Dividend Portfolio

Below is my portfolio. To read about recent buys and sells in my portfolio check out this page. To see a monthly summary of my dividend income go to this page, or if you want a more detailed breakdown of my monthly dividends check out this page.

Portfolio Notes:

  • I have quite a few other DRIPs setup, but they are not shown in the portfolio above. I originally setup these DRIPs so that I could transfer shares to others so they could enrol in the DRIP. I stopped transferring shares to others, but was left with odd amounts of shares. It can be quite time consuming to setup a DRIP, so I don’t want to close down these DRIPs. This leaves me with a bunch of companies with around a share or two in the DRIP. I chose not to include these companies as they represent a very small portion of my portfolio.

Disclaimer:

I am a blogger and not a financial expert. These writings are my own opinions and should not be considered financial advice. This portfolio is not a recommendation to buy these stocks. Always perform your own due diligence before purchasing a stock.

20 comments to Dividend Portfolio

  • Nice portfolio!

    Curious, why keep U.S. stocks in taxable account?

    Aren’t you hit with withholding taxes? Yes, you can recover them but…you also get taxed on dividends at your marginal tax rate..they don’t receive the CDN dividend tax credit (DTC).

    Yeah, I used full DRIPs for some time but no longer. Only use synthetic DRIPs. Full DRIPs are great for building up a position though! Well done.

    Also, I liked your Blackberry comment :)

    Mark

    • Hey Mark,

      Right now I have JNJ, PG, and PEP in a taxable DRIP account because I don’t have enough shares yet to synthetically DRIP them in a non-taxable brokerage account. My initial plan with these stocks was to build up a position so that I have enough in quarterly dividends to cover at least the price of one share. Once my position is built up I’d transfer them over to my Questrade account and setup a synthetic DRIP. So like you did in the past I’m using the Full DRIPs to build up a position before I transfer them over to my discount brokerage. In the meantime I get hit with the withholding tax, but so be it.

      For Pepsi the DRIP plan changed and it now includes fees if you want to buy additional shares. Because of this I doubt I’ll be contributing more to Pepsi through the DRIP, so I might as well transfer them over and consolidate them with the other Pepsi shares in my RRSP. Because I’m traveling out of the country until August I’m not going to be able to do this for awhile. Sending paperwork from Indonesia might be a bit of a hassle.

  • All makes sense, especially the paperwork from Indonesia part :)

    Safe travels and email me when you can back, to potentially share some guest posts or other ideas.

    Happy investing and collecting dividends in the meantime ;)

    Mark

  • Darren

    I notice you don’t have any REITs like RioCan (REI.UN) or American mREITs like Armour Residential REIT (ARR) or Annaly Capital Management (NLY) in your portfolio of dividend stocks? Maybe there is a reason, but IMHO a little diversification wouldn’t hurt. I know this sector has been hit hard the last couple of months due to rising interest rates, so could be a great buying opportunity plus they have terrific yields!

    I really enjoyed your posts on dividend stock analysis and would love to see one done on how to rate a REIT as they are a totally different animal from regular dividend stocks.

    Darren.

    • I agree my portfolio could use some more diversification. My target prices are fairly conservative, so I find it hard to diversify sometimes. The reason I haven’t invested in REITs is that I don’t really know how to value them properly. I don’t like to invest in things until I have a proper understanding of them. It’s one of those things I’ve been meaning to look into further, but I always seem to get distracted by something else. When the accounting rules changed and IFRS was brought in, it affected REITs in a big way. Most of my valuation methods are based on historic rates, but because of the accounting changes a lot of the historic rates aren’t as meaningful for REITs.

      Also I only somewhat understand adjusted funds from operations (AFFO), which is usually a better metric to use than net income or EPS for REITs. I know having REITs in my portfolio would be beneficial, but until I take the time to learn more about them, I won’t be investing in them. Any tips on where to start learning more about REITs or how to value them?

      Side note: From a diversification standpoint, I think having 5-10% of a portfolio in REITs is a good level.

  • denns

    nice portfolio, i own 4 of them. you missed the spelling on Enbridge, theres no D, its a combo name from the words energy and bridge.

  • I cant see anything in TFSA, Is it my screen or you dont have anything there

  • Can I ask why ? What should be in TFSA ?

  • Richard

    DGI&R, I’m more than a little surprised that you have nothing in your TFSA. Given your reply to “gladaki”, would you mind telling your readers: a) Why you have nothing in your TFSA? and/or b) Why you don’t talk about tax topics on the blog? (We all recognize you’re not a tax consultant or a tax expert; moreover, we’re not looking for “tax advice”.) Thanks in advance. Richard

    • I’m using the smith manoeuvre so all my investments are in the taxable account right now. Eventually I’ll add to the TFSA, but it likely won’t be for awhile.

  • gladaki

    Being a dividend investor why not much interest in Fortis ?

    • Fortis interests me as a Canadian dividend investor as they have a long dividend streak, but the price hasn’t come down enough for me to consider investing in them yet.

  • Hello, are there any reasons why not investing in ETF?

  • Ak

    Most of the stocks from above portfolio are trading at there lows. Whats your strategy on buying more of it. Are you trying to hold cash for now and see where economy is going ?

    • Hi Ak,

      It’s a good question and I should probably write a post about my average down strategy as it has evolved a bit lately. The plan I’m going to lay out hasn’t been used for all my stocks, but this is my plan going forward. I used to consider averaging down at 10% intervals, but you can’t really apply this to every stock, so I’ve come up with a different strategy that I feel can be applied across the board better and take into account a stock’s volatility better.

      My first target price to buy at is usually a price that trades at similar valuation metrics to the third lowest year in the past decade. Ideally I’d want at least two metrics. For instance say the current P/E ratio and dividend yield are similar to the third lowest year in the past decade then that would be my target buy price. If the stock drops to this level I buy a 50% position.

      To average down after this I’d like to see it trading at similar levels to the 2nd worst year out of the past decade using multiple valuation metrics. At this point I would buy a 25% position. The same idea applies for my third purchase, but at this point I’m looking for it to be comparable to its worst year in the past decade. The third purchase would be the final 25% position.

      I will consider a fourth purchase if the stock starts trading at most or all valuation metrics that haven’t been seen in the past decade. Basically if the stock hasn’t been this cheap in the past decade, then I’ll consider a fourth purchase… “Blood in the streets” type purchase.

      For stocks that are more volatile in nature this average down strategy should allow me to enter a position I want to and then not average down too quick, which I feel I did in the past with some of my investments.

      Keep in mind that this strategy won’t be applied in all cases. For instance I have a high weighting in financials right now, so I probably only have one more small purchase in this sector for the time being. I don’t want to expose my portfolio too much to one stock or industry.

      As for holding cash right now based on where the economy is heading … I don’t pretend to know where the economy is heading, and I try to avoid predicting the future as I’m just going to get it wrong. If I have investments that are within my buy range and in line with my diversification limits then I’ll consider investing at that point. The whole point of the target price I come up with is to have a reasonably cheap target price in high quality dividend growth stocks. If the economy is bad or potentially getting worse, then I don’t plan on waiting on the side-lines. Hopefully I’m investing in companies that can continue to grow their dividend in bad economies so that as a long term investor I can come out on top.

      If everyone thinks times are going to get worse then the stock price is likely low already. If they are wrong or sentiment changes then I may have missed my opportunity to buy a good dividend growth stock. This type of strategy is better for investors who have a long holding period and are interested in investing in high quality dividend growth stocks that can hopefully stand the test of time.

      Cheers,

      DGI&R

  • Matt

    You are leaving some of the best paying (more risky mind you) stocks off your plate. VSN GEI CHE.UN CPX ALA …. Just wondering, since you are in for the div income and therefore assuming long term with each stock why don’t you have some of riskier names that are better paying companies in your portfolio?

    • I’m a dividend growth investor and I have a set of criteria that I like to meet before investing. I had a quick look at the stocks you listed. I wouldn’t currently invest in them for a number of reasons. For example:

      VSN – no dividend growth
      GEI – negative earnings
      CHE.UN – no dividend growth
      CPX – high payout ratio
      ALA – credit/debt rating too low (I like BBB+ or higher)

      A higher yield is usually indicative of more risk as you alluded too. With my minimum investing criteria I will often screen out the higher yielding stocks because of one reason or another. That said it doesn’t mean I won’t invest in higher yielding stocks, that is just how it has ended up.

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