For those of you new to this website, in this post, I discuss the recent changes I made in my dividend portfolios and also discuss about my portfolio diversification strategies.
In January 2017, my investments did fine for first weeks and portfolio gained by over $5k, then suddenly dropped over $3K in last few trading days of the month.
It is the nature of the stock markets. Capital gains are really hard to predict, it will affect your overall net-worth, especially when you have a much bigger portfolio than your yearly income.
I really hope my dividend portfolios will handle any uncertainty in the stock market.
Stocks markets are in all-time high. Many analysts are predicting a deep correction in the markets, but no one can predict exactly when this will happen.
For me, it is not a matter. I am an income orientated investor.
If stock markets go up, I am happy because my portfolio values go up so does my net-worth, and I can focus on reducing debts with cash-flow and sharp up my buying power.
If markets go down, I am happy because I can buy more income producing assets for less cost.
Win-win situations 🙂
Now let’s discuss what changes I made in my dividend portfolios.
I sold all my MST.UN units (100 units) after the acquisition news. I usually sell if a stock price jumps high due to an acquisition announcement, because sometime the deals may not happen and it will cost on the stock price.
And, I initiated a small position in Exco Technologies Limited (TSE:XTC). I accidently found this stock when I was reading a news about Magna International (MG).
XTC is a small cap stock in auto-mobile industry. I did some research and I liked it. It is a low debt, dividend grower stock with very good balance sheet. So, I decided to give a try with small amount of money.
It is a bit of risker stock (in my opinion) because of its operations in Mexico. But, I like its management team. Let’s wait and see how it is performing in the coming month.
Also, I added few other stocks in my portfolio.
I made all these new purchases using the money I received from the sale of MST.UN.
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 anytime.
Any transactions I publish 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.
Here is the changes I made in my dividend portfolios in January 2017:
The changes made in my Canadian portfolio in January 2017.
- added 55 shares of AQN at $11.27
- added 25 shares of BAM.A at $43.58
- initiated 50 shares of XTC at $10.58
- SOLD 100 units of MST.UN at $21.61
The changes made in my U.S dividend portfolio in January 2017.
- added 1 unit of XLV at $69.10
My portfolio has a very little to health Care stocks, so I decided to buy this health care ETF using dividends in my U.S dollar registered accounts. Hopefully, I could buy at least one unit per month without pouring new money.
With all the changes, my estimated yearly passive income has increased to $7147.
I have updated the portfolio pages with these changes.
Now, let’s look my portfolio diversification.
Portfolio diversification
Portfolio Geographical Diversification
There are no big changes in my diversification strategies from the last updates.| Country | Target asset allocation | Current asset allocation |
| Fixed income (bonds and pension) | 20% | 4.95% |
| Canadian stocks | 40% | 80.03% |
| U.S stocks | 35% | 13.63% |
| International stocks | 5% | 1.40% |
My Canadian portion of my investments have increased a bit from my last update due to recent rally in my Canadian holdings.
My fixed income portions have been keep improving for last 15 months because of my pension plan contributions.
Portfolio diversification – sectors & fixed income
Actually, (I guess) there are only 10 sectors, but I have divided my dream portfolio by 15 sectors including fixed income/bonds/employer pension.
Please note this is not the way professional fund managers or experts diversify their funds. This is my own diversification strategy.
You may consider create your own diversification strategy (if you don’t have one) to minimize investment related risks in your portfolios.
Some information to highlight:
My fixed income portion is getting improving with my employer pension contribution. Since I have a defined benefit pension plan, I reduced/eliminated my bond holding.
My 80% of investments are in Canada. I am waiting for improvement in Canadian dollar to move some money into U.S market. It is really a long wait.
Due to the recent rally in bank stocks, my financial portion moved over to 20%. In order to reduce portfolio risk, I like to bring this sector below 20%.
As you might have noticed, I began to build health care sector using an ETF called XLV. It is now moved from 0% to 0.17%. I will keep adding XLV for upcoming months as long as the unit price stays low.
| Sector | Target asset allocation | Current asset allocation |
| Fixed income (bonds & Employer Pension) | 20% | 4.95% |
| Finance | 10% | 20.46% |
| Industrials & Infrastructure | 5% | 10.08% |
| Consumer Staples | 10% | 7.01% |
| Energy & Materials | 5% | 2.85% |
| Utilities | 5% | 15.59% |
| Pipelines | 5% | 11.96% |
| Consumer Discretionary | 5% | 2.22% |
| Health care | 5% | 0.18% |
| Information technology | 5% | 0.17% |
| Telecommunications | 5% | 7.12% |
| Real-estate | 5% | 6.92% |
| Miscellaneous & Preferred shares | 5% | 2.29% |
| Transportations | 5% | 6.83% |
| International & Diversified ETFs | 5% | 1.40% |
Please share your thoughts about my holdings and recent purchases. Also, do you have any portfolio diversification strategy? And how often do you balance your portfolio?
Just having an bit of an “awakening” concerning my investments and am very happy to have found your blog. I suspect I am like many others and have traditionally dumped money into whatever RRSP mutual fund my bank recommended. Tiring of paying high MER with little return I’ve taken the plunge and moved everything into a self-directed and am just beginning to build a portfolio. Reading you blog is helpful as it I can relate to you goals and thought processes and helps me work through setting goals and planning. Do you follow any of the online information site like Couch Potato, Motley Fool, MoneySense?
Hello David,
Thank you for stopping by,
Glad to hear that you are beginning to take control on your financial journey. Some companies charge high fees, but their real returns are very low. Learning is one of the keys to build wealth. Read good books and related websites, and learn about investing and other financial information.
Actually, I read a lot, especially from financial websites and blogs. I visit most of the sites you mention above.
Wish you all the best in your success.
Best Regards,
March 2012, What was your total investment? Is there an easier way to engage with your blog?
Hello Cory,
Thank you for stopping by,
I didn’t keep track of the records, I guess I hold few shares of RY and TRP in March 2012.
Best Regards,
My tech and finance are high but as I add to other areas they will even out as I plan to nibble on health and energy over the next couple of years as oppurtunity knocks lol.
Hello Doug,
Thank you for stopping by,
My Tech sector is very low. It is really hard to find a good dividend paying tech in Canadian market. I will start adding more Tech and Health care stock when I get chance to move some money into U.S dollar accounts.
Best Regards,