Hello everyone! today we’re going to be doing another breakdown of our dividend portfolio.

Today’s update will note some major changes as we’ve just done a full-on rebalance of our portfolio.

This rebalance of our portfolio included cutting out a couple of positions as well as adding another few and then doing the requisite sell-offs and buys to get our overall portfolio closer to where our target allocations are.

Our initial intent was to rebalance our portfolio by adding all new funds to our under allocated stocks but this was taking too long so we’ve sped up the process.

Canadian Holdings:

As you can see as with most Canadian investors we love ourselves some bank stocks, we believe that Canadian bank stocks are some of the most stable, solid returning shares you can own. We also are working hard to round out our portfolio more equally across sectors like utilities, consumer defensive, telecoms and industrial than we have been in the past.

We’re still not quite right on allocation as we still need to lower our Enbridge and Canadian Utilities shares and then take some of those proceeds and move them into a new SunLife Financial position. The hold up at the moment is we believe that both of these companies are still on bullish paths so we’re not willing to sell shares just yet – but soon.

US Holdings:

Our US stocks are held primarily in our RRSP’s for taxation purposes, the exception being our Facebook shares that have their own account, for the time being the FB shares don’t pay a dividend so there’s no real downside to holding them outside.

For a reminder of why we do hold Facebook in our “dividend portfolio” it’s because we do expect them to begin paying out a dividend in the next couple of years given how loaded their balance sheet is with cash and the likely slowly opportunities for expansion but we’ll see if we’re proved right on this theory.

There are a few main goals of the US side of our holdings and they’re to target three key sectors: Consumer Defensive, Technology and Healthcare. Our Canadian market thrives for the aforementioned financials, energy and utility sectors but we look to the US market to fill in the others.

Sector Allocations:

Here’s our overall portfolio allocations.

The target % is done with a fluid calculation that automatically changes as we invest into the different markets. Since we only invest in the US stocks in our RRSP it’s hard to predict how much CAD vs USD investing so our “targets” ie. for Apple of 7% only reflects 7% of our US portfolio and then gets multiplied by our % of US holdings vs. entire portfolio size so while it’s at its % allocation currently that only actually equates to 2.5% of our overall portfolio.

Also, another thing that this rebalance has done is actually dropped our dividend yield from 4.5% down to 4.26% which isn’t ideal but we’re still a lot more comfortable with this overall allocation and feel as though we reeled in the risk of dividend cuts quite substantially.

Before our retirement age if some of our low yielders such as Facebook, Apple, Microsoft and Brookfield Asset Management haven’t shown extremely strong dividend growth those are targets to be reduced or cut entirely in a shift to a more income based portfolio to fund our retirement.

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.