Another alternative that I am considering for my portfolio of Canadian stock is the The Two-Minute Portfolio.

According to Rob Carrick of the Globe and Mail, “this is a stock-picking strategy designed to provide a quick, easy and effective way to invest in the Canadian market. You simply invest equal amounts in the two largest dividend-paying stocks in each of the 10 sectors of the S&P/TSX composite index at the beginning of the year.”

The portfolio’s total return in 2013 was 23% per cent (share price gains plus dividends), compared with 13% for the S&P/TSX index. And, the portfolio has averaged 10.8% a year since it started in 1986, on a total-return basis while the S&P/TSX composite averaged 8.4 per cent.

Here is the Canadian Two-Minute Portfolio list for 2014:

  • Suncor Energy (SU-T)
  • Imperial Oil (IMO-T)
  • Potash Corp. (POT-T)
  • Barrick Gold (ABX-T)
  • Cdn. Nat’l Rail. (CNR-T)
  • Cdn Pacific Rail. (CP-T)
  • Thomson Reuters (TRI-T)
  • Magna Int’l (MG-T)
  • Alim. Couche-Tard (ATD.B-T)
  • Loblaw Cos. (L-T)
  • Extendicare Inc. (EXE-T)
  • Medical Facilities (DR-T)
  • Royal Bank (RY-T)
  • TD Bank (TD-T)
  • Open Text (OTC-T)
  • Constellation Soft. (CSU-T)
  • BCE Inc. (BCE-T)
  • Rogers Commun. (RCI.B-T)
  • Cdn. Utilities (CU-T)
  • Fortis Inc. (FTS-T)