If you are a regular of this blog, you know that each year, I pick 30 stocks to beat a dividend ETF in the upcoming 12 months. Each year, I select 20 U.S. 10 Cdn stocks and try to build a portfolio. So far, I have a great batting average where I had failed to beat my benchmark only twice (one on each market) since 2012… That was before 2017. Unfortunately, I failed to beat both markets last year. I went a little too aggressive on both selections and 1 pick in each portfolio nailed my results.

As I just mentioned, my performance in 2017 were below my expectations. When I look at my overall results, a single pick in each portfolio crushed my hope of beating my benchmark. This is not an excuse, but it shows you how easily you can make one mistake in your portfolio and underperform the market.

On the other, I couldn’t really complain when my portfolios did 20% and nearly 10% return last year. Now, what about my 2018 book, I have a feeling that my book is getting larger year after year. It’s the second issue with 2 pages analysis per stock. Each pick is represented in a similar way that we do at Dividend Stocks Rock with our stock cards. I kept the idea of having 20 U.S.

10 Canadian candidates. The whole book is over 15,000 words across 65 pages of content. I don’t only love Starbucks coffee; I love the whole company and its business model. SBUX is one of the rare restaurant success stories. Founded in 1971 by the opening of the first coffee shop at the iconic Seattle Pike Place Market, it now operates 22,519 stores in 75 countries. Starbucks is known for its stellar customer experience and its variety of beverages.

It built a reputation of listening to its customers and using technology (Facebook, Twitter, mobile payment) to continuously improve its in-store experience. I first discovered SBUX as an investment when I compared it to McDonald’s (MCD). SBUX growth potential in the U.S. There is a limit to the amount of coffee that can be purchased by an American!

Therefore, if the company faces headwinds in China or India, its growth potential will be highly reduced. The stock price is still at a PE of 28 (forward PE at 26.70); a loss of interest from the market could also hurt the valuation temporarily. Just by saying that management increased their dividend by 25% toward the end of 2017 is enough to convince me. SBUX shows a low payout can cash payout ratios along with a robust double-digit dividend growth rate over the past 5 years.

The company is generating enough cash flow to fund both its stores’ growth and its aggressive dividend policy. SBUX is a keeper for years. Starbucks’ future is still bright. The company is currently growing fast in China and there is no reason it won’t continue to do so. Therefore, while SBUX can continue to optimize their U.S.

China where 1.3 billion people will start enjoying high quality coffee. The dividend yield is almost at 2% now with a great perspective of payout increase during their next quarterly report. It doesn’t only produce its own wine, but also markets it along with other products. ADW owns several brands like Peller Estates, Trius, Hillebrand, Thirty Bench, Sandhill, Copper Moon, Calona Vineyards Artist Series VQA wines and Red Rooster. Currently the company has an estimated 14% share of the total wine market, and a 37% share of domestic wines. The company is known to grow its revenues through acquisitions.

114M to purchase 14 vineyards. The company has built a solid relationship with provincial liquor stores, but also maintains company-owned retail stores in Ontario. Andrew Peller shows a strong and steady growth of its sales mainly due to the creation of multiple products, a strong marketing program, and several acquisitions. The Canadian wine business is doing well and ADW continues to ride this bullish trend. Its recent alliance with Wayne Gretzky vineyard will not only be good for wine sales, but will also open the door to whisky production.

The wine industry and the domestic and international market in which the Company operates are consolidating. While this could be a great opportunity, it also brings stronger competitors to the table. ADW must continue investing in its brands to keep its market share. Since Wine is a luxury product, any economic downturns would affect ADW sales. For now, I don’t think it’s an issue as the Canadian economy has proven to be more resilient than anticipated. Wow… such a low dividend yield for this wine company.