Dividend stocks portfolio – recent purchases and diversification – February 2017

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 February 2017, my investment portfolios did pretty well and gained by $6000, then lost around $2000 in last few trading days. This is exactly what happened in January.

Because of the nature of the stock markets, the capital gains are hard to predict.

In most situation, we better to focus on predictable things than unpredictable.

So, I focus on accumulating income generating assets – especially dividend stocks because dividend incomes are much predictable than capital gains.

Financial sectors gained well in the last few months. It is my largest sector in my portfolio. Now it is representing over 20% of my portfolio.

I am not too comfortable having over 20% in just one sector. As you know, diversification is the key minimize risks.

In order to reduce the risk, I could either sell some financial stocks or keep accumulating stocks in other sectors.

I decided to go with the second option. I think bank and insurance stocks will be doing well with high interest rate.

Majority of my other holdings are interest rate sensitive stocks – REITs, utilities and pipelines.

So, having a good portion of financial stocks will help my portfolios to balance well in rising interest rate environment.

It is all about accumulating income generating assets and diversifying them to handle any economic cycles.

In February, I sold one stock and purchased four different types of investments.

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 and/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 February 2017:

The changes made in my Canadian portfolio in February 2017.

• initiated 50 shares of KPT at $15.21
Most Canadians have been using one or more of these company products in their daily life. I really hope the internet or new technologies don’t change the way people use toilet papers. I will buy another 50 shares if its price drop below $14.


• initiated 50 shares of VNR at $20.80


• initiated 11 units of BPY.UN at $30


• SOLD 2 units of BBU.UN at $32.35

The changes made in my U.S dividend portfolio in February 2017.

• added 1 unit of XLV at $73.31

My portfolio has a very little to health Care stocks, so I decided to buy health care ETF using dividends in my U.S dollar registered accounts. Hopefully, I could buy at least one unit per month without adding new money. So far, I have 6 XLV etfs.

With recent purchases and along with dividends hikes, my estimated passive income has increased to $7416.

I have updated the portfolio pages with these changes.

Now, let’s look my portfolio diversification.

Portfolio diversification

Portfolio Geographical Diversification

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.

Almost 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% level of my entire portfolio.

As you might have noticed, I began to build health care sector using an ETF called XLV. It is now moved from 0% to 0.22%. I will keep adding XLV for upcoming months as long as the unit price stays low.

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?