Ahh, the start of a new year and the first quarter over.  There were quite a few changes to my dividend portfolio, a lot of my dividend stocks triggered stop losses.  As you can see, I had $5600 in annual dividend income in the last update (December 2014) and now I have just over $5500.

Changes to the Dividend Portfolio

One of the major reasons for the decline in dividend income is because Canadian Oil Sands (which I owned 100 shares of) cut their dividend drastically.  I ended up buying 300 more shares because I tried to “time the market” (in this case, COS.TO) and ended up getting out of it without being too burned.  I sold 300 shares and now I am back to my 100 shares.

Transalta (TA.TO) also triggered a stop loss.  It wasn’t one of my best investments so I am glad it eventually deleted itself off my dividend portfolio.

Also, ESI.TO (Ensign Energy triggered a stop loss at $10).  It does not surprise me that this happened with the recent drop in oil per barrel.  It went all the way down to $8-9 or so.  Currently just hovering over $10 a share.

Last update, I said that I was tempted to buy more shares of HSE.TO and of course i succumbed to my temptations.  I bought 50 more shares of HSE.TO (HUSKY) and that has been doing well so far.  My Husky shares continue to be slowly dripped.

Just recently, I rebalanced the ETF portfolio in my TFSA and added more shares  of XDV, CPD, CYH, XTR  to rebalance back to 25% of each.  They were slightly off balance but not by much (just under 5% absolute)…. the last time I rebalanced was 6 months ago so I felt it was time.

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 think for 2015 a reasonable goal would be to aim for $6000 of annual dividend income which would give roughly $500 a month, not too shabby I think.

I might add a little bit more in Telecoms (for example, AT&T (NYSE: T) or Telus as they have been trending down lately.  However my shares in these are in USD and I’m a little short on my USD lately thanks to the high exchange rate.  In addition, the telecoms are a little pricey right now, at above P/E of 17-18.  So I will likely hold off.

REI.UN.TO has been doing well lately because of the recent decrease in the interest rate.. I might buy a bit more of that to make my real estate portion of the portfolio a bit more robust.  Currently real estate in my portfolio is comprised of NLY and REI and my current pricinpal residence (which doesn’t count since I’m not renting it out) of course.

I am also considering adding some healthcare stocks to my dividend portfolio.  Merck (NYSE:MRK) has a P/E of 14.23 and a dividend of $0.45, or 3.08% annually.  However, the major thing stopping me is that I am low on US dollars right now and don’t want to be paying at 20% to 25% premium.  I will continue to keep an eye on this one.

Bank stocks have been pretty reasonably priced lately with a nice and generous >4% annual dividend income payout.  This makes 100 shares of National Bank (TSE: NA) quite attractive right now, however, I already own a lot of Canadian financials, and the exchange traded funds I have in my TFSA is strongly financial focused as well (since the Canadian stock market is mainly financial focused).

In the end I have a feeling I will just add more ETFs in my TFSA by rebalancing in September and mainly just sit on the $7000+ of cash I have in my TFSA account.

I calculated my average annual yield for my dividend portfolio (spread across TFSA, RRSP, and non-registered accounts) is at 4.51%, which is pretty decent in my opinion. Not too high, not too low…

For your eyes only… and et voila, here is my most recent dividend screenshot update for March 2015:

Readers, how has your dividend portfolio been doing?  Has it been slashed just like mine has or are you “keeping calm and holding on”? 

Article comments

RM says:

Are there any withholding taxes on holding an ETF like CYH in a TFSA?

Kyle says:

Yes there are RM. I have an article on this coming out in the next two weeks. Stay tuned.