Sigh, with the massive realignment of my investment portfolio, my dividend portfolio took a major hit. There were some major changes since I last updated my dividend income, I had no idea until I finished reviewing the stocks within my dividend portfolio.
Well, I basically dropped $1300 in dividend income compared to last time (in total, I think I will make $5000 this year for 2015 in dividend income) because of the changes of my portfolio in my investment makeover.
Last update, my dividend payout was about 4.3% and this update, it is 4.08%. Decent, but I don’t want to go lower than this, however, it will inevitably go lower since the dividend income from the main ETFs I will be investing in: VXC, VAB, and XIC do not have high dividend income percentages. Favouring growth over dividend income, I have to tell myself.
Changes to the Dividend Portfolio
What are the main changes to the dividend portfolio? Well, like last update, again, the ZPR preferred shares was the major change since I sold off about 1400 shares (haha!). It felt good to sell it off but also stung at the same time. Selling ZPR gave me a capital loss of about $5000. Can you say ouch? Even 10 years into investing, I am still learning, learning, and learning.
As mentioned in my contract to myself, I am planning to limit my equities to just 25% of my total portfolio. It’s kind of hard to do this, but when I buy more ETFs I’m allowed to buy more equities haha.
I sold off COS.TO, mind you, I only had 300 shares in it. I also sold off XDV, XTR, XBB, XRB, and ZRE (among other exchange traded funds) hence the major cut in the dividend income. I added VXC, VAB, and XIC instead.
I also sold BCE (Bell) in my RRSP because it was in US Dollars. I sold Telus too because it was in my RRSP. Making room in my RRSP for non-Canadiana stuff. I bought Telus back again but not in my RRSP.
KEG.UN.TO (Keg Royalties Fund) increased their dividend from $0.08 to $0.0875 (whoopiee!!). I am still waiting for my KEG $20 gift card to go towards my steak dinner, I hope it comes in the mail soon, along with the annual report.
Another tried and true company that increased their dividends is Fortis (FTS.TO), they increased the dividend to $0.375. Did I mention that I love Fortis? I don’t love paying the bills but it stings a little less knowing that I am paying myself.
TCK.B (Teck) slashed their dividend from $0.90 annually to $0.30 annually. I am down about 60% on it, unfortunately my stop limit order expired and I didn’t renew it.
I bought a whopping lot more of HSE.TO (HUSKY ENERGY) doubling my HSE exposure. HSE is on sale! $17, not bad. Of course it hurts that I am down over $1000, but I tell myself it is on sale. I have over 350 shares now.
If you want to make your own spreadsheet, check out my snazzy ‘step by step guide on how to make a dividend income spreadsheet‘.
Goals for the Dividend Portfolio
I must admit, seeing my dividend portfolio shrink from $5300 to $4000 kind of sucks. I must tell myself it is for the greater good (of my portfolio). It is a lot cleaner now. However, I can see that there’s still a lot of ‘tidying up’ to do with my portfolio.
I have to remind myself that I am favouring growth over dividend income. If I am closer to retirement, then dividend income will be of utmost importance, but for now, I will opt for growth then I will have the money to buy more dividend paying stocks.
I am going to aim for $6000 in dividend income for the end of 2016 still. I might add more positions in REI.UN.TO and of course will continue adding to the triple glory investment portfolio that I have been playing around with. Maybe some more National Bank and SNC Lavalin. I still have a lot of cash to play with so I will continue adding to the portfolio.
Here is my screenshot update for December 2015:
Readers, how has your dividend portfolio been doing?