Intro..
For those of you new to this website, in this post, I discuss the recent changes I made in my dividend portfolios, and sometimes I discuss my portfolio diversification strategies as well.
Stock markets have been performing well recently, and most of the stocks in my portfolios are at or near a record high.
Recession fear is fading away as economic outlooks have improved sharply in recent weeks. Therefore, the market may continue to move higher from here until investors find another problem to get panic.
For those who timed the market and sold their stock investments last December might have missed over 20% gains right after the Christmas Eve.
In fact, it would be a costly mistake, and beter-off by stay invested and ride through the market volatilities.
For instance, imagine an investor with around $300 000 portfolios decided to sell his investments during the last December sell-off, and have been waiting to get back to the market until how.
In reality, he might have missed more than $60 000 gains this year; that is a big opportunity cost.
Of Course, it is hard to watch when our investment values get hammered during the market sell-offs, but volatility is the nature of the stock markets. Therefore, if we can navigate through the storms, then we can enjoy a big upside later.
As many experts say, the timing market is almost impossible. And, no one can successfully predict market movements for a shorter-term. If someone can predict it successfully, then they can rule the world.
But, based on history, stock markets move high over a long time. Thus, I will stay invested in a good and bad time.
As I always say, I am still in the assets accumulation stage. Therefore, I will keep adding profitable businesses to my investment portfolios and keep reinvesting the dividends to enjoy the compounding growth over the long run.
Recommended books for dividend growth investors:
- Get Rich with Dividends: A Proven System for Earning Double-Digit Returns by Marc Lichtenfeld
- The Single Best Investment: Creating Wealth with Dividend Growth” by Lowell Miller.
Portfolio Changes
In my Canadian portfolio, I decided to exit the Boardwalk REIT (TSE: BEI.UN) position and moved the money somewhere.
Almost two years ago, BEI.UN reduced its distribution; however, the company operations and revenues got improved a lot after that, but it did not reward its unit owners with distribution hikes.
And, it’s distribution yield is very low (around 2%) stick with it. Thus, I decided to exit the position with a little profit and purchased some REITs with little higher yields using the portion of proceeds raised from the sale.
I have some money left in the account and will add a new REIT soon.
In my U.S portfolio, I sold my AT&T position and purchased my favorite dividend growth ETFs using the proceeds. I have been doing these changes for the last couple of months in my U.S portfolio for diversification purposes.
Now, let us look at the purchases I made last month.
Canadian portfolio
Last month, I sold 100 units of Boardwalk Real Estate Investment Trust (TSE: BEI.UN) and added some REITs using the proceeds raised from the sale.
U.S portfolio
In my U.S dollar portfolo, I sold 37 shares AT&T Inc (NYSE: T) at 37.08 and purchased my favourite dividend growth ETFs using the proceeds raised from the sale.
International Portfolio
I just added 2 units of ZDH (Canadian hedged) international dividend ETF and 4 units of IDV (another international dividend ETF in U.S dollar)
I will continue to build my international portfolio using the international dividend ETFs (ZDH.TO & IDV) in order to diversify my investments.
Here are the changes I made in my dividend portfolios in October 2019:
Disclaimer..
Please note the information posted on this website is the opinion of my own and should not be considered as professional financial advice. I am not a financial professional, and I can buy, sell, or hold any investment at any time.
Any transactions I publish on this website are not recommendations to buy or sell any securities or investments.
Please do your own research or consult with a qualified financial professional before even considering using the information obtained from this website.
The changes made in my Canadian portfolio in October 2019.
- Sold 100 units of BEI.UN at $45.80 (due to very lower yield)
- added 63 units of PLZ.UN at $4.44
- added 100 units of BPY.UN at $25.00
- added 40 units of REI.UN at $26.62
- added 10 shares of TD at $73.55
- added 10 shares of T (Telus) at $48.05
The changes made in my U.S dividend portfolio in October 2019.
- Sold 37 shares T (AT&T) at 37.08
- added 29 units of DGRO ETF at $38.06
- added 4 units of NOBL ETF at $69.55
- added 1 unit of SDY at $99.56
- added 2 units of ZUD (Canadian hedged) U.S Dividend ETF at $24.30
The changes made in my International dividend portfolio in October 2019.
- added 1 unit of ZDH at $21.56
- added 4 units of IDV at $29.94
With recent changes and dividend hikes my yearly estimated passive income (EPI) hit to a new high of $11 519 in October 2019, with year-to-date gain around 14.78%.
I have updated the portfolio pages with these changes.
Commission FREE ETF purchases
Are you wondering how I can execute small orders of ETSs? Thinking about commission fees?
Actually, I use Questrade for all my ETFs purchases. There are no commission fees for ETFs purchases at Questrade. Therefore, we could buy one or any number of ETFs without paying any commission fees.
This is a great way to deploy cash and invest for more cash-flow as soon as they come in.
For those looking to start investing with little money, Questrade is one of the good options to consider because of their commission-free ETF program and minimum requirements to open an account.
If you have a plan to open an account with Questrade, please accept my gift and take advantage of this $50 trade commission rebate.
There is a trading charge of $4.95 when you sell ETFs. All the details are at the time of writing. If you have a plan to open an account at Questrade, please check all the information (including current commission fees) on their website and see if it is suitable online brokerage for your needs.
Disclosure: This post contains affiliate link. Therefore, I will earn a commission if you use the links to buy products or services (at no additional cost to you).
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The post Dividend stocks portfolio – Recent Changes – October 2019 appeared first on Finance Journey.