Hello all, it’s been a couple of months since we last did a portfolio update so here we are at it again.
We would like to get to a point where it won’t matter how longs it’s been – not much will have changed in our portfolio as we’ve got all of the holdings we want and they’re roughly allocated properly so it will just be a matter of topping up each position. But alas, we are not there yet and so here we are to update you on the changes we’ve made.
Canadian Holdings:
New additions to the list are:
Energy: CNQ
Financials: BMO, NA, AI, TF, FC, MKP
Industrials: RUS
Consumer Discretionary: ITP
Real Estate: REI.UN, SRU.UN
I’ve bolded the ones we’ve already initiated the new positions in, the non-bolded are simply positions we’d like to add to our portfolio for one reason or another but haven’t gotten around to adding just yet (only so many funds to add).
In the financials we also had our position in Sagen/Genworth MIC removed due to them being bought out so we re-allocated those funds into some other Mortgage funds AI, TF, FC and MKP. We like the concept of MIC’s and also like the yield that they provide in the short term.
We also took some profits and downsized our IPL position which we got a little over weight for our liking in and reallocated those funds into CNQ and the two REITS REI.UN and SRU.UN.
The furthest right column in the table is our target allocation longer term for each holding, this is a fluid number still but we continue to get closer and closer to where we’re happy. To calculate this number we use a separate spreadsheet where we factor in how much we like each stock as well as both the current yield and the predicted dividend growth over the next several years to find a balance of yield now and growth to match inflation.
Keep in mind our portfolio allocation will not line up with yours because our goals are likely different than yours, so keep that in mind when buying your own stocks.
US Holdings:
The changes here are:
Energy: Swapped RDS and BP for XOM and CVX
Comms: Removed FB and added VZ
We still hold FB but it’s been removed from our “dividend portfolio” and we’ve added VZ as a future holding we plan to acquire.
The gameplay with our US stocks is to just continue balancing out our ideal allocation using new funds being added as opposed to a big buy and sell spree. It will never truly get to “perfect” because shares change prices every single day but it will continue to get more and more in line with where we want it to go.
VZ, PFE, KO and PEP are going to be priorities for the next few months.
Sector Allocation:
These are the combined numbers of our US and CAD holdings. These automatically update based on where we add our funds too. The targets will continue to shift on their own because they vary if US or CAD stocks are being purchased but these should be very minor moves.
Our dividend portfolio is now worth $252,641 and yields us $10,607/year or 4.20%
This yield of 4.2% may seem high to some but as a family that plans to live off this passive income rather than selling growth stocks in retirement we really do need to make sure we’re bringing in as much yield as possible, coupled with being as safe as we can and then prioritize getting enough dividend growth to offset inflation.
At our current allocations we believe that our goals are being met but time will tell.
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.