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If you're an invest-it-and-forget-it person, this Buy and Hold Portfolio is for you. It was created in June 2012 so we are currently celebrating its fifth anniversary. The portfolio contains a bond ETF and a mix of Canadian and U.S. stocks, which will rarely change.

On the equity side, I focus on blue-chip stocks that offer long-term growth potential plus, in all cases but one, regular dividend payments. The original weighting was 10 per cent for each stock with the bond ETF given a 20-per-cent position.

I used several criteria to choose the stocks including a superior long-term growth profile, industry leadership, good balance sheet, and relative strength in down markets.

The objective was to generate decent cash flow, minimize downside potential, and provide slow but steady growth. The target rate of return is 8 per cent annually.

These are the current securities we hold with some comments on how they performed since my last review based on results to Nov. 30. Prices are as of mid-day on June 23.

iShares Canadian Universe Bond Index ETF (XBB-T). Bonds rallied back a little after their fall sell-off and this ETF has gained 44 cents since our last review. We received distributions totalling 42 cents per unit.

BCE Inc. (BCE-T, BCE-N). BCE shares did not show a lot of movement in the latest six months, gaining just 76 cents. However, we benefitted from a dividend increase of 5.1 per cent, effective with the March payment. Because of timing, we received three dividends during the period of totalling $2.12 per share.

Brookfield Asset Management (BAM.A-T, BAM-N). We saw a strong rebound in Brookfield shares in the latest period, with a gain of $6.07 (13.4 per cent) in the six months. We received two dividends totalling 28 cents (U.S.) per share.

Canadian National Railway Co. (CNR-T, CNI-N). CN Rail continued its strong run, gaining another $16.38 (18.1 per cent) during the period. Because of timing, we received three dividends in six months, for $1.20 per share. The dividend was increased by 10 per cent effective with the March payment.

Enbridge Inc. (ENB-T, ENB-N). It has not been a good six months for Enbridge. The shares are off almost $5 from the time of our last review. The only consolation was a 4.6 per cent dividend increase in May. We received two dividends totalling $1.19 per share during the period.

Toronto-Dominion Bank (TD-T, TD-N). We saw a modest advance of $1.52 (2.4 per cent) in the price of TD stock during the period. The quarterly dividend was increased by 5 cents per share (9.1 per cent) in April.

Alphabet (GOOGL-Q). This company, which comprises the Google empire, got off to a bad start after we added it to the portfolio last year. But it has come back in an impressive way, adding $201.35 (U.S) per share (yes, that's correct) in the past six months to put us well into the black. The stock does not pay a dividend.

UnitedHealth Group (UNH-N). This health insurer stock was added to the portfolio in January 2015. It has done very well for us, gaining $25.75 (U.S.) in the latest review period. The quarterly dividend was increased by 20 cents to 75 cents per share, effective with the June payment.

Walt Disney Corp. (DIS-N). Disney stock posted a small gain of $3.94 (U.S.) in the latest period. We received a semi-annual dividend of 78 cents per share in December.

Cash. At the time of the last review, our cash reserves, including retained dividends, were $1,414.18. We invested that money at 2 per cent in an account with EQ Bank, earning $14.14 in interest.

Here is the current status of the portfolio. For consistency, the Canadian and U.S. dollars are considered to be at par. However, the currency differential magnifies U.S. dollar gains and losses for Canadians. Trading commissions are not factored in although in a buy and hold portfolio they are not significant in any event.

Buy and Hold Portfolio (as of June. 23)

SymbolWeight %SharesAvg. priceBook valueCurrent priceMarket valueRetained dividendsGain/Loss %
XBB16445$31.40 $13,973.05 $31.79 $14,146.55 $261.51 3.3
BCE9.7145$43.21 $6,265.35 $59.18 $8,581.10 $343.76 42.4
BAM.A13.6235$22.80 $5,359.00 $51.30 $12,055.50 $79.10 126.4
CNR12.7105$44.11 $4,179.00 $106.81 $11,215.05 $139.85 171.7
ENB8.5145$41.23 $5,978.50 $52.07 $7,550.15 $316.13 31.6
TD 10.7145$41.23 $5,978.60 $65.40 $9,483.00 $365.62 70.8
GOOGL8.98$794.49 $6,355.92 $982.85 $7,862.80 $0 23.7
UNH9.445$112.47 $5,061.15 $185.10 $8,329.50 $253.14 69.6
DIS10.185$47.12 $4,005.20 $104.11 $8,849.35 $509.89 133.7
Cash0.4$299.60 $313.74
Total100$57,455.37 $88,386.74 $2,269.00 57.8
Inception$49,945.40 81.5

Comments: The new portfolio value (market price plus retained dividends/distributions) is $90,655.74, compared to $83,430.63 at the time of the last review. That represents a gain of 8.7 per cent over the period.

Since inception, we have a total return of 81.5 per cent. That represents an average annual compound rate of return of 12.7 per cent, which is comfortably ahead of our 8 per cent target.

Changes: We will invest some of our retained dividends as follows.

XBB – We will purchase five units for a total cost of $158.95. That will bring our total to 450 and reduce retained cash to $102.56.

BCE – We'll add five shares for a cost of $295.90. We now own 150 shares, with a cash balance of $47.86.

ENB – We will take advantage of the price retreat to buy five shares for a cost of $260.35. We now own a total of 150 shares and have cash remaining of $55.78.

TD – Here again, we will buy five shares for a cost of $327. Our total is now 150 shares, with cash of $38.62.

DIS – Finally, we'll add five shares of Disney for an expense of $520.55. That will use all of our retained dividends and we will take $10.66 from our cash account to make up the difference.

Readers are reminded not to do small trades unless you have a fee-based account. Use dividend reinvestment plans instead.

We have cash remaining of $1,019.99. We will keep that in our EQ Bank account, which is currently paying 2.3 per cent.

Here is a look at the updated portfolio. I will review it again in December.

Buy and Hold Portfolio (updated June. 23)

SymbolWeight %SharesAvg. priceBook valueCurrent priceMarket valueRetained dividends
XBB15.9450$31.40 $14,132.00 $31.79 $14,305.50 $102.56
BCE9.9150$43.74 $6,561.25 $59.18 $8,877.00 $47.86
BAM.A13.4235$22.80 $5,359.00 $51.30 $12,055.50 $79.10
CNR12.5105$44.11 $4,179.00 $106.81 $11,215.05 $139.85
ENB8.7150$41.59 $6,238.85 $52.07 $7,810.50 $55.78
TD 10.9150$42.04 $6,305.60 $65.40 $9,810.00 $38.62
GOOGL8.78$794.49 $6,355.92 $982.85 $7,862.80 $0
UNH9.345$112.47 $5,061.15 $185.10 $8,329.50 $253.14
DIS10.490$50.29 $4,525.75 $104.11 $9,369.90 $0
Cash0.3$303.08 $303.08
Total100$59,021.60 $89,938.83 $716.91
Inception$49,945.40

Gordon Pape is editor and publisher of the Internet Wealth Builder and Income Investor newsletters. For more information and details on how to subscribe, go to buildingwealth.ca.