Friday, April 29, 2016

*** Modified: April 2016 Dividend Income Summary : $CP $CUF.UN $MDLZ $KHC $ATD.B $BCE $BNS $PWF $VZ

Hey Personal Financial Freaks! This is my fourth Dividend Income Summary for 2016. 

As you can see on my Passive Income page, 9 companies chipped in for this month.  

In April, I managed to collect 313.70$. Not a great amount, but not too shabby either

The amounts are all in Canadian dollars. 

My Dividends came from:

                REIT Cominar (CUF.UN) : 24.62$ (which I use in part to buy one more unit @ 17.20 with my DRIP);

                Canadian Pacific (CP) : 17.50$ (CP has become a top holding for me due to the rise of the stock over the past 5 years. Thanks to Bill Ackman and Hunter Harrison. They recently just raised their dividend after a 2-3 years interruption. It's a keeper.) 

                Mondelez (MDLZ) : 23.05$ (MDLZ's price stock has grown quite a bit. But not the dividend. Will see how it goes. Could be a potential buy like Kraft).

                Kraft Heinz (KHC) : 31.98$ (Mature stock. Now in the hands of Warren Buffet. Buy and hold like the master and see how it does in 20 years)

                Alimentation Couche-Tard (ATD.B) : 8.10$ (Not a dividend player just yet. But wait and see. Remember, you read it here first!).

                BCE (BCE): 27.30$. (Year after year, BCE show strong results and hike its dividend. What's not to like? I wish I had some more.)

                Bank of Nova Scotia (BNS) : 108$ (Yes, that's mighty impressive! BNS is now a top holding. I used this money in part to buy one more share@ 65$ with my DRIP)

                Power Financial (PWF) : 39.25$ (PWF is such a diversified stock : insurance, financials, name it. One of the cheapest stocks, most conservatively and well-managed company out there. What are you waiting for?).

                TransCanada Corp (TRP) : 33.90$ (I don't own TRP anymore. I still think it's a great stock but between TRP and ENB I had the latter with a slight advantage. Hence TRP not making the cut no more. Remember, I don't want to hold more than 20 individual stocks!)

My total Dividend paid for 2016 :  250.47$ + 256.52$+531.59$+313.70$  = 1352.28$

Total Dividend paid since I started Investing : 17 680.52$+313.70$ = 17 994.22$

What do you think of my dividend income stream?

Friday, April 15, 2016

A glimpse of my new Hybrid Strategy

Hey Financial Freaks,

I hope all is we'll for you guys. I've been quite busy lately working, saving and doing a little bit of investing. And no... I haven't developed any kind of "strange obsession" with anyone as of late -- well since forever I might add.  (don't get me started!)  ;-)

I have been tweaking my investing strategy though.

Like I've hinted in the past, I have made a few moves to developed a mix strategy between a dividend growth and a Index one. I know some of you are already doing this. Congrats! I also know some of you will be sticking forever with the same strategy, namely a Dividend stocks approach. Both strategies are sound in my opinion. This is why I picked both!

Like I said numerous times in the past, I don't have time (nor the passion) to monitor closely more than 20 stocks. Heck, I barely find the time to do 20 push-ups... So I thought about allowing a certain percentage of my portfolio to Index Investing. This meant I would also cut on the number of stocks I would hold since I had 22 as of late. I say "had" because I now hold only 17 individual stocks.

Since the beginning of the year, I have made more than 26 transactions. This is a lot, I know. If you do you share of reading, you probably know that when it comes to investing the less you do is the better. But I had some tweaking to do and I thought that I would be better off doing this after a 7 years bull Market than before all Hell break loose. Call it Market Timing if you want. I call it necessary changes.

All the 13 buys I have made since January 2016 have been in stocks I still hold today and will be holding for a long time.

My new Big Five holding consists of : Johnson and Johnson (JNJ), Power Corp, (POW) Bank of Nova Scotia (BNS), Royal Bank (RY) and Canadian Pacific (CP). 

Unfortunately (or fortunately in some cases), I had to let go of some companies.

I said goodbye to : Transcanada Corp (sadly, but I prefer Enbridge), Barrick Gold (good frickin' riddance!), Suncor (only sold some shares in my RRSP), COP (dividend cut = adios muchacho and thanks for the good memories), PJC.A (short-term intense romance) and POT (second time around wasn't a charm after all).

That leaves me with 17 stocks. (I will try to never hold more than 20).

Finances (4) : Power Corp, Financial Corp, Bank of Nova Scotia, Royal Bank.
Industrials (2) : Canadian National Railway, Canadian Pacific Railway.
Consumer Staple (3) : Kraft Heinz, Mondelez, Alimentation Couche-Tard
Energy (4) : Suncor, Enbridge, ATCO, Fortis.
Telecom (2) : BCE, Verizon.
Healthcare (1) : Johnson and Johnson.
REIT (1) : Cominar.

I also purchased some new Index Funds:

  • Vanguard Canada All Cap Index ETF (VCN);
  • Vanguard FTSE Developed All Cap ex North America (VIU);
  • And Vanguard short-term Canadian Bonds (VSB).

Check out my leaner portfolio here.

I also still hold two Index Funds from RBC. These funds enable me to purchase on a regular basis shares of the funds without commission.  So, twice a month, I buy new shares without really care if the Market is up or down. Eventually I will sell parts of these funds to buy new shares of my Vanguard's funds.

I find that the most important aspect of my strategy will be the balancing between my bonds % and my stocks %. This is key. Right now I have set this balance to 80-20 in favour of stocks, of course.

This means that, once or twice a year, depending on how the Market performed, I will rebalance everything.

Say, for instance, the Market had a poor year and my balance is now 65-35. This means I would only have to sell shares of my bond funds and allocate new capital to my stock funds (or my individual stocks). I could also simply allocate new capital to my stock funds to find my initial balance.

Or for instance, say the Market has performed too well and my allocation is now 95-5. Well I would then sell some shares of my stock funds and allocate the new capital money towards bonds. Simple as that!

Right now, I hold more cash than normal. I might add a Vanguard US Fund in the coming months. Not sure which one. I'm hesitating between a US currency one and a Canadian one.

But you get the gist of my strategy. It's very simple. The bonds simply act as a security cushion that enables me to balance my portfolio.

Eventually, stocks wise, I would like to get a parity between my individual stocks % allocation and my Index Funds % allocation. This means, most of my coming buys will be in my new funds. However, I swill till keep money aside to grow my actual  individual stock holdings if opportunities arise. (Like Verizon)

I realized this is a bit of a long post. I will shares my other thoughts on this new approach in coming weeks. Stay tune.

Meanwhile, let me know what you think. How do you like this hybrid strategy ? It is too passive for you?

Friday, April 1, 2016

My March 2016 Dividend Income Summary : $JNJ $ACO.X $POW $ENB $CNR $FTS $COP $SU $CUF.UN $ABX

Hey Personal Financial Freaks! This is my third Dividend Income Summary for 2016. 

As you can see on my Passive Income page, a whopping 10 companies chipped in for this month.  

In March, I managed to collect 531.59$. This is the first time, if I'm correct, that I have reached the 500$/month milestone. Shots for everybody!

The amounts are all in Canadian dollars. 

My Dividends came from:

                REIT Cominar (CUF.UN) : 31.48$ (which I use in part to buy one more unit with my DRIP);

                ATCO (ACO.X) : 57.00$ (ATCO is now a top holding for me.)

                Power Corp. (POW) : 93.38$ (POW remains one of my big 6).

                Barrick Gold (ABX) : 3.96$ (My most hated stock. Only 100 shares remaining...).

                Enbridge (ENB) : 53.00$ (A new addition to my portfolio and a keeper for the long term).

                Conoco Philipps (COP) : 16.85$. (COP and I parted ways recently. It was a minor holding)

                Fortis (FTS) : 47.25$ (which I use in part to buy one more share with my DRIP).

               Johnson and Johnson (JNJ) : 129.92$ (The king of Kings).

              Suncor (SU) : 72.50$ (SU isn't part of my big 6 anymore, it's still a force to be reckon with.)

             Canadian National Railway (CNR) : 26.25$. (I love trains, what can I say!)

My total Dividend paid for 2016 :  250.47$ + 256.52$+531.59$ = 1038.58$

Total Dividend paid since I started Investing : 17 148.93$+531.59$ = 17 680.52$

What do you think of my dividend income stream?