Dividend Income - November 2017

Dec. 18, 2017 6:03 AM ETEBGUF, SU10 Comments
Dividend Earner profile picture
Dividend Earner

In times like we have now, it’s important to ensure you are investing based on your investing rules. Taking shortcuts can only hurt you down the road.

I have found my approach to tracking sector diversification with targets has helped use a non-emotional decision process to select the next stocks to purchase. The markets are at an all-time high and it’s not easy to find a bargain but there are some. In some cases, you just need to stay the course and not chase the money.

Stock Trades

I sold Suncor (SU) after dropping my energy sector target and I have to reduce my energy holdings more. I intend to sell Enbridge Income Fund (OTC:EBGUF) since it’s mostly an income play.

As a Canadian, it’s too easy to be over-exposed to the energy sector and while it has done well in the past and would do well once the oil prices bounce back, I am not interested in the energy producers for growth. I find the pipelines to be more stable when it comes to energy and have therefore adjusted my sector diversification.

Sector Diversification - November 2017

Sector Diversification – November 2017

When I started using sector diversification for managing my portfolio, I was trying to cover all sectors but I concluded over the past couple of years that I don’t need all the sectors and that many of the investments were not always supporting my investment goals even though it was the best investment I could find for the sector.

Investors tend to have to choose between growth and income stocks when investing and building a portfolio. Based on my current goals, I have established targets to focus on growth which has pushed down the energy sector, which I consider blended between growth and income.

I also define my largest holding target as 5% which allows me to decide on the number of stocks per sector. If my target is 16% as is the case for healthcare, I need 4 stocks to cover the sector. My investment style requires I track all of my investments on my own through a self-made portfolio tracker allowing me to track the following:

  • Portfolio Performance
  • Stock Exposure across all accounts
  • Diversification
  • Rate of Return per account
  • Dividend Income

Dividend Income

My November dividend income is $1,231.42. My portfolio continues to beat the index by 3% which validates my approach to portfolio management and stock selection. I compare my portfolio by simulating a purchase in the TSX and S&P 500 indexes when I make my own purchase. It’s the most accurate comparison I can imagine.

I am on target to make over $15,500 for 2017 which is almost $3,000 more than the previous year. My target is $60,000 which is 4 times my current dividend income. Using the rule of 72, I should reach the goal in 14 years or so.

Dividend Income - November 2017

Disclosure: Please note that I may have a position in one or many of the holdings listed. For a complete list of my holdings, please see my Dividend Portfolio.

Disclaimer: Please note that this blog post represents my opinion and not an advice/recommendation. I am not a financial adviser, I am not qualified to give financial advice. Before you buy any stocks/funds consult with a qualified financial planner. Make your investment decisions at your own risk – see my full disclaimer for more details.

This article was written by

Dividend Earner profile picture
I am passionate about building a dividend income portfolio to build wealth and retire from. I seek solid value companies with an optimal dividend yield and growth.
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