Greg Merrithew
Greg Merrithew, 60
Occupation
Insurance claims adjuster
The portfolio
Shares in companies with growing dividends, including BCE Inc., Genworth MI Canada Inc., Coca-Cola Co. and McDonald's Corp.; also owns shares in companies operating Canada's north, including North West Co. Inc. and Northern Property REIT
The investor
Greg Merrithew is an insurance claims adjuster "servicing Canada's three northern territories." He also owns commercial and residential properties in the territories.
How he invests
Mr. Merrithew's registered retirement saving plan (RRSP) is "balanced across all sectors." It tilts toward companies that are growing and rewarding shareholders with dividend increases.
BCE is a core Canadian holding. It has a solid market position and "increases dividends faithfully."
Genworth MI Canada, a mortgage insurer, "is well positioned to pick up market share" now that a ceiling has been placed on CMHC's mortgage-insurance operations. Genworth's dividend of nearly 4 per cent has been raised "44 per cent in the last five years."
Mr. Merrithew's non-registered account "focuses on northern operating companies." Many are local to where he lives – so, in addition to reading their financial reports, he can pay a visit and "observe their operations" first-hand.
North West Co. is chain of stores that provides food and dry goods to northern communities in Canada. "They have little, to no, competition in a many of their markets," says Mr. Merrithew.
Northern Property REIT, a large landlord in northern Canada, has "a strong balance sheet and proven long-term track record." The board just "approved the eighth distribution increase in 12 years."
Best move
In 2010, he moved half of his RRSP portfolio into U.S. dividend-growth companies, thus benefiting from the appreciation that has occurred over the past four years in the U.S. stock market and dollar.
Worst move
He believed gold would go up more in value due to all the money the U.S. Federal Reserve was printing under its quantitative easing programs.
Advice
Do the same due diligence on your investments as you would do if buying a business to run, he advises.
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