Back in January, I wrote about my goal to increase my non-Canadian investment holdings from 20% to 25%. With the recent appreciation of the US dollar, purchases of Microsoft and Intel, and the run-up of a few US stocks (JNJ, WU, WAG and MCD)...US stocks now represent 24.8% of my total portfolio! Even better, US holdings account for 48.8% of the value of my RRSP. I hold US dividend payers in my RRSP to avoid paying the 15% with-holding tax on their dividends.
Given I've been thinking of selling Walgreens and Microsoft, I have to keep some US stocks on my watch list to replace them with. I'd really like to initiate a position in Coca-Cola, but given the 2.6% dividend yield, and P/E of 22X, it's too expensive for me at the moment. I've also been waiting for a pullback to add some shares of Pfizer, but it hasn't fallen to a point that it's really attractive for me. Given I have about 4% of my portfolio in cash right now, if either Coke or Pfizer falls, I'll be in a position to take advantage, and add to my US holdings. I'm glad to add to my non-Canadian stock holdings as the Canadian market has been moving sideways for the first five months of 2013.
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