Hello all, and welcome back to another update of our dividend portfolio!
Our dividend portfolio is very important to us, as this is the source of our income that we intend to live off of to fuel our early retirement lifestyle once we officially “F.I.R.E.”.
If you’re interested in comparing changes from our last update you can view that here.
When tracking our portfolio we like to keep both of our investing accounts together on one spreadsheet, we also lump together TFSA’s, RRSP’s, and Non-Registered accounts, the only thing we don’t include in these updates is our non-dividend payers like our DC pensions and work savings plans that are index funds.
So to start off, let’s look at our Canadian holdings.
Canadian Holdings:
It used to be that our Enbridge holding was by far our largest, we’ve owned pretty well all of that since the early days of our portfolio. Now though – we’re seeing all of our “core holdings” cross over the 5-figure threshold which is really cool to see. It’s hard to imagine when you first start your portfolio that someday a single holding could be $30k,$40k maybe even $50k by the time our journey is complete.
Removals: IPL.TO, PZA.TO, NFI.TO
The 3 removals from our portfolio were small positions I just decided to liquidate to focus on some other holdings we tend to like more. I’ll miss the income of PZA.TO but overall we’re happy to reallocate those funds elsewhere. I noticed that those 3 holdings were always ones that came up as “maybe” removes one day so I just ripped the band-aid off and got it done.
US Holdings:
The US holdings are where we try to focus a lot more on getting our consumer staples and tech exposure since we’re greatly lacking those sectors in the Canadian market in comparison to our financials and oil sectors.
Removals: BPY.UN
Additions: NNN, NUSI
With the buyouts lingering we just liquidated our BPY.UN holding and transferred those funds into a starter position of NNN to begin replacing the REIT loss of BPY.UN and also dipped our toes into the “covered call ETF” world by buying a little NUSI. NUSI has an amazing 7% yield and when looking how it performed during the cover crash of 2020 they seem to do a really good job of limiting downside during turbulence, so it’s a position we’ll keep a small % of moving forward to boost current income.
Sector Allocation:
For anyone new to these updates, the % portfolio and target % are floating totals that vary slightly as the share prices fluctuate day to day, they aren’t set in stone targets for us more like guidelines to know where we might be lagging and need to add the next funds.
We are very heavy in financials as well but when the Canadian banks are some of your favourite holdings and then you add on mortgage funds, insurance companies and the like it’s bound to get pushed up a lot faster than other sectors in an income focused portfolio. Thus far the capital growth has been there as well as the income so there’s no need for us to make any changes to our financials.
The stats on our portfolio overall are:
Current Value: $273,753 (+$21,000)
Income/Year: $11,240 (+$625)
Yield: 4.11% (-.09%)
So in just under 2 months our portfolio has appreciated $21,000 and has added an additional $625 of forward looking income. Even with our modest sized portfolio, a good month in the stock market dwarfs whatever we can typically add in a given month, again highlighting the power of compounding and time in the market.
Anways, that’s the recap on our dividend portfolio that we plan to use to fund our early retirement. If you’ve got any questions or feedback for us contact us on our social media’s:
INSTAGRAM: FindependenceCanada
TWITTER: FindependenceC1
Thanks for stopping by,
FIC.
Disclaimer: This is all meant for entertainment purposes only, please do not take this as financial advice we are merely documenting our journey. Consult a financial advisor before making any changes to your investment accounts.