Oh goodness, this was a bad quarter and I find solace that I am not alone in this sentiment.  Things were going so good until Canada got so bad haha.

As some of you may recall, in my last update, I had over $5800 in dividend income, which was a pretty nice feeling since it is so close to $6000.  However, with this most recent update, this month I dropped by $500 mainly because of the cut in ZPR preferred shares (I decreased my exposure by 25% I believe).  Because of this drastic move, I don’t think I’ll make the $6000 goal in dividend income for the end of this year, but I think it might be achievable next year.  Unfortunately, the dividend portfolio took a big cut because of the switch in investing style (and my recent investment owner’s contract).

The dividend payout is about 4.3% which is down from 4.5%, still fine with me.

Changes to the Dividend Portfolio

The main changes to the dividend portfolio includes selling a relatively large portion of my ZPR preferred shares which I chose mainly for income but it backfired because of the large loss in capital (I think I am down $4000 in it).  At least I get to claim capital loss because it is in my non-registered account.

National Bank (NA.TO) increased their dividend to $0.52 from $0.50 per share.  Their P/E is very low right now too which is making it even more attractive to buy another 50 shares.  But I will try my best to hold out and not buy.

Also, Suncor (SU.TO) increased their dividend, but I think it is by $0.01 for the entire year.  I only have 30 shares of Suncor.

With HSE, I had one additional share thanks in part because it is dripped.  I plan to buy another 40 shares because the price is pretty good right now with the recent plunge in oil prices.  I know, I am adding more Canadian exposure, and in oil and gas to boot, but I just can’t resist the dividend!!  Also, tempting to buy more COS.TO (Canadian Oil Sands) because my purchase price was $10-ish and now it is around $7 but I’ll mull it over for now.  My dividend portfolio will continue to have the key players (like my favourites, such as Husky, Fortis, Bank of Montreal etc.) but I don’t think I’ll be as adventurous and put things in my portfolio like TCK.B which I did (and I still have).

Another change with the dividend portfolio is that I removed XBB and ZCN from my dividend portfolio because I needed some capital for my new focus on the three ETF’s and the VAB would be redundant with the XBB (I needed it for VXC in my RRSP because I maxed out my contribution for the year).  I know I should really clean out my portfolio and sell everything with the new changes, but I just can’t bring myself to do that haha.

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

Well, the goals are a bit different now for the dividend portfolio.

The goals for the dividend portfolio is a little bit changed now because of my new “investor’s contract“.  The numbers are more likely to stay stagnant or there will be less dividend stocks on this list as there will be an increase in the number of shares of VXC, XIC, and VAB as per my investing promise to myself.  However, I will continue to use my existing cash to purchase these unless I run out of room in my TFSA or my RRSP.  There’s only 4 more months until 2016 so I will have new contribution room then.

I will still aim for $6000 in dividend income, but maybe for the end of 2016 now.  Unfortunately sometimes goals have to be adjusted a bit.  I could aim for the $6000 in dividend income easily, but that increases my risk for loss of capital, and I have learned my lesson from ZPR and CPD, the preferred shares.  I can’t always just be chasing yield…don’t go chasing waterfalls, like TLC says.

Here is my screenshot update for September 2015:

Readers, how has your dividend portfolio been doing?

Article comments

5 comments
Pete says:

I find it very useful also to use excel to track portfolios. It kind of keeps me from “speculating” instead of “investing”.
I agree that Husky is soooo undervalue that the price is getting very silly nowadays.

Kyle says:

Energy stocks are always cyclical in nature right? That’s why I like passive investing, it takes all of the guest work out.

Steve Miller says:

Don’t sweat the down month, your monthly dividends are great.

invstr says:

Very nice job. That is a substantial amount of dividends for the year.

I am curious why you are straying away from dividend stocks and more into an ETF portfolio? I understand the different level of risk and diversification however if I remember correctly, you have TD e-series in an RRSP.

I ask because because I am contemplating combining the two methods for my portfolio. I would like some dividends however the majority of my portfolio would still be in low cost ETFs.

Young says:

@Invstr- I’m trying to do 70% ETF and 30% dividend but am finding it hard to sell my dividend stocks haha. I do have TD e-series in an RRSP but I am having too many different portfolios (e.g. i have a portfolio inside a portfolio) and I need to look at it from a wider lens.