Putting My 5-Stock Portfolio Under the Microscope

After an incredible two months, shares of Canadian Imperial Bank of Commerce (TSX:CM)(NYSE:CM) still have a lot of room to grow.

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s premium investing services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

On November 5, 2017, I wrote an article about the top five stocks to hold in the weeks leading to the end of the fiscal year. As we’ve reached that point, it is now time to review the selections and see how these companies have performed.

The first name on the list was none other than Canadian Imperial Bank of Commerce (TSX:CM)(NYSE:CM), which was then at a price of $113.50 and has since risen to $122.50, as the major Canadian bank continues to be viewed more positively. Due to its most recent acquisition south of the border, the increase in equity markets will strongly positively correlate to higher revenues (from the management of the underlying assets). Shares have returned close to 8% since November 5.

The second name on the list was the risky Home Capital Group Inc. (TSX:HCG), which previously traded close to $14 per share. As the company continues to prove (on a daily basis) that it will not collapse, investors are finally giving the alternative lender a chance and have bid shares higher to close the year at $17.31 per share. The return has been close to 23% since November 5.

The third name was Suncor Energy Inc. (TSX:SU)(NYSE:SU), which had the benefit of higher oil prices to push shares from $45 to close the year at $46.15. Clearly, not every pitch can be hit out of the park, but investors had as much to gain from the dividend yield as they did from capital appreciation with this behemoth. The return since November 5 has been 2.5%.

The last Canadian name on the list was MedReleaf Corp. (TSX:LEAF), which moved from approximately $13.50 to close the year at a price of $21.24. In spite of an astonishing return of 57%, investors still need to refrain from putting their eggs in one basket and remember that this name was brought into the picture as part of a portfolio and not an “all-in” investment.

The only U.S. name on the list was Apple Inc. (NASDAQ:AAPL), which moved from a price of US$173 to close the year at US$169.23. In spite of being a fantastic company, the decline in this name brings our betting average to 80%. The return (excluding dividends) was negative 2.2%.

Had we purchased all five securities in equal weightings (20% each), the total price return would be no less than 17% driven in large part by MedReleaf Corp. Excluding this company, the average return of the remaining four companies would come in at a very healthy 7.8%.

What we can learn from this focused portfolio is that investors have the potential to outperform the market by making focused picks. Although it is not always advisable to put such a large amount of money into a new sector (marijuana), investors still need to remember that they always have the ability to sell and take money off the table. In the case of the marijuana sector, now may be the best time to to take this approach.

Should you invest $1,000 in Ats Corp. right now?

Before you buy stock in Ats Corp., consider this:

The Motley Fool Stock Advisor Canada analyst team just identified what they believe are the Top Stocks for 2025 and Beyond for investors to buy now… and Ats Corp. wasn’t one of them. The Top Stocks that made the cut could potentially produce monster returns in the coming years.

Consider MercadoLibre, which we first recommended on January 8, 2014 ... if you invested $1,000 in the “eBay of Latin America” at the time of our recommendation, you’d have $20,697.16!*

Stock Advisor Canada provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month – one from Canada and one from the U.S. The Stock Advisor Canada service has outperformed the return of S&P/TSX Composite Index by 29 percentage points since 2013*.

See the Top Stocks * Returns as of 3/20/25

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor RyanGoldsman has no position in any of the stocks mentioned. David Gardner owns shares of Apple. The Motley Fool owns shares of Apple and has the following options: long January 2020 $150 calls on Apple and short January 2020 $155 calls on Apple.

Confidently Navigate Market Volatility: Claim Your Free Report!

Feeling uneasy about the ups and downs of the stock market lately? You’re not alone. At The Motley Fool Canada, we get it — and we’re here to help. We’ve crafted an essential guide designed to help you through these uncertain times: "5-Step Checklist: How to Prepare Your Portfolio for Volatility."

Don't miss out on this opportunity for peace of mind. Just click below to learn how to receive your complimentary report today!

Get Our Free Report Today

More on Dividend Stocks

The TFSA is a powerful savings vehicle for Canadians who are saving for retirement.
Dividend Stocks

TFSA Investors: 2 Top TSX Stocks With Decades of Dividend Growth

These stocks have great track records of delivering dividend growth in challenging economic conditions.

Read more »

Piggy bank with word TFSA for tax-free savings accounts.
Dividend Stocks

TFSA: Invest $15,000 in This TSX Stock and Create $884 in Annual Passive Income

This TSX stock certainly has quite the long-term outlook -- one that could create passive income now and decades to…

Read more »

Dividend Stocks

Invest $20,000 in These REITs for Over $1,000 in Annual Passive Income

Are you looking for a boost in your passive income? Then consider these two REITs for your self-directed investment portfolio.

Read more »

Asset Management
Dividend Stocks

How I’d Allocate $10,000 in 2 Canadian Growth Stocks for the Long Run

Both growth stocks offer a compelling mix of income, growth, and value, and I believe they can outperform over the…

Read more »

grow money, wealth build
Dividend Stocks

2 Dividend-Growth Stocks to Buy on the Pullback

These stocks have increased their dividends annually for decades.

Read more »

Electricity transmission towers with orange glowing wires against night sky
Dividend Stocks

BCE Stock Analysis: A Smart Choice for Potential Value and Income

BCE stock has slipped to its June 2009 level amid Trump tariff uncertainty and intensity. Does the sharp dip provide…

Read more »

Person slides down a stair handrail
Dividend Stocks

Should You Buy Cargojet Stock at $70?

Cargojet stock might be down, but don't let that scare you off. It's still a long-term opportunity.

Read more »

Middle aged man drinks coffee
Dividend Stocks

3 Monthly Dividend Stocks to Buy and Hold Forever

Add these three TSX dividend stocks to your self-directed portfolio for reliable monthly passive income.

Read more »