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Some people hate trading stocks. They get a pain in the gut every time they think about it. Am I selling too soon? Should I buy Royal Bank or TD Bank? Is there a risk the market will collapse? They would prefer to invest their money and forget it. What we used to call a couch potato approach. Our Buy-and-Hold Portfolio was designed for exactly these people.
The portfolio was launched 13 1/2 years ago in my Internet Wealth Builder newsletter, in June 2012. The idea was to invest in high-quality stocks, with the intention of holding them through bull and bear markets. The core premise was that the long-term trend of the markets is up, and if you own good stocks, they’ll move with it.
The portfolio consists mainly of Canadian and U.S. blue-chip stocks that offer long-term growth potential. It also has a bond ETF holding. The original weighting was 10% for each stock, with the bond ETF starting with a 20% position. That has now been reduced because equity increases have outpaced the bond market.
I used several criteria to choose the stocks. These included a superior long-term growth profile, industry leadership, a good balance sheet, a history of dividend increases, and relative strength in down markets.
The objective is to generate decent cash flow (all the stocks pay dividends), minimize downside potential, and provide slow but steady growth. The target rate of return was originally set at 8% annually.
These are the securities we hold with comments on how they performed since my last review in December. Prices are as of the afternoon of Nov. 27.
iShares Canadian Universe Bond Index ETF (TSX: XBB). The Bank of Canada has implemented two rate cuts since our last review, which has breathed a little life into this ETF. The unit price is up $0.28 since our last review. We received monthly distributions that totalled $0.479 per unit.
BCE Inc. (TSX: BCE). Finally, some signs that the worst is over. The stock is up $2.91 since the last review. Due to timing, we received one dividend during the latest period for a total of $0.4375 per share.
Brookfield Corporation (TSX: BN). Brookfield implemented a 3-for-2 share split in October, thereby increasing our share position by 50%. The stock then went sharply higher, giving us a big win for the period.
Procter & Gamble Co. (NYSE: PG). We added a small position in P&G to this portfolio in mid-2023. The company offers a steady business profile, a decent dividend, and long-term growth. But the shares slipped $9.77 in the latest period. We received two dividends for a total of $2.114 per share.
Canadian National Railway Co. (TSX: CNR). CN shares continued to slide in the latest period, dropping $8.43 due to worries about the strength of the Canadian economy. We received one dividend payment of $0.8875 per share.
Enbridge Inc. (TSX: ENB). Enbridge shares posted a good gain, up $5.77 for the period. We received two quarterly dividends for a total of $1.885 per share.
Royal Bank of Canada (TSX: RY). We replaced TD Bank with Royal Bank one year ago. The stock posted a small loss in the first six months but soared in the latest period, gaining $40.08. We received two dividend payments for a total of $3.08 per share.
Alphabet Inc. (NSD: GOOGL). Most tech stocks have been weak lately but not Alphabet. The shares almost doubled since our last review, up US$146.63. The company pays a small dividend of US$0.21 per quarter.
UnitedHealth Group Inc. (NYSE: UNH). The stock plunged in the early part of this year, falling as low as US$234.60. It’s now begun the long road back, rising US$22.51 in the latest six months. The quarterly dividend is US$2.21 per share. We received one payment due to timing.
Walmart Inc. (NYSE: WMT). The stock gained US$14.01 a share. We received one dividend payment for $0.235 a share.
Cash. The portfolio has cash and retained earnings of $5,471.98. We put the money in EQ Bank, which was paying 3.5%. We earned $95.76.
Here is the status of the portfolio as of Nov. 27. The Canadian and U.S. dollars are shown at par, but obviously the U.S. holdings are doing better thanks to the strength of the greenback. Trading commissions are not factored in, although in a buy-and-hold portfolio they are not significant.
The new portfolio value (market price plus retained dividends/distributions) is $229,454.89. That compares to $187,319.48 at the time of the last review, for a gain of 22.5%.
The big gainers during the period were Alphabet, which almost doubled, Royal Bank, and Brookfield.
Since inception, we have a total return of 359.4%. That represents an average annual compound growth rate over 13 1/2 years of about 12%. That is well ahead of our 8% target.
This is a Buy-and-Hold Portfolio, so we should always resist making changes. At the time of the last review, I expressed concern about two of our holdings, BCE and UNH. However, both have since rallied, so we’ll keep our positions for now.
We will reinvest some of our retained earnings, as follows.
XBB – We’ll buy another 10 units for a total cost of $284.20. We now own 570 units and have $204 in retained earnings.
BN – We will add another 10 shares for $657.50. We now own 565 shares, with retained earnings of $120.17.
UNH – We’ll purchase another 5 shares at $329.71, for a cost of $1,648.55. We now own 50 shares and have retained earnings of $565.77.
The portfolio has cash and retained earnings of $4,530.64. We’ll move the money to Steinbach Credit Union, which is offering a promo rate of 4.6% for four months.
Here is the revised portfolio. I will update it again in December.
Gordon Pape is one of Canada’s best-known personal finance commentators and investment experts. He is the publisher of The Internet Wealth Builder and The Income Investor newsletters, which are available through the Building Wealth website.
Follow Gordon Pape on X at X.com/GPUpdates and on Facebook at www.facebook.com/GordonPapeMoney.
For more information and details on how to subscribe to Gordon’s newsletters, go to www.buildingwealth.ca/subscribe.
Notes and Disclaimer
Content © 2026 by Gordon Pape Enterprises. All rights reserved. Reprinted with permission. The foregoing is for general information purposes only and is the opinion of the writer. Securities mentioned carry risk of loss, and no guarantee of performance is made or implied. This information is not intended to provide specific personalized advice including, without limitation, investment, financial, legal, accounting, or tax advice. Always seek advice from your own financial advisor before making investment decisions.
Image: iStock.com/PaulPaladin
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