Intro..
For those of you new to this website, in this post, I discuss the recent changes I made in my dividend portfolios, and sometimes I discuss my portfolio diversification strategies as well.
May was another volatile month for the stock market.
My portfolio went down a bit and recovered quickly, thanks to my defensive holding such as utilities, pipeline and communication stocks.
At the end of the month, my net worth ended in the green.
Enghouse Systems Limited (ENGH.TO), my worst-performing stock so far
A few years ago, I didn’t have significant exposure to the tech sectors, and I missed a tech rally that started after the 2008-2009 financial crash.
Thus, I decided to have some exposure to the tech sectors. As you know, I am a big fan of dividends. Therefore, I started to hunt tech stocks that pay dividends.
I purchased ENGH, SYZ and OpenText in 2021. The first two had a good run in 2021, and the third one didn’t make any noticeable moves.
I purchased SYZ in the $10 range, which rallied over $18 within a few months after I built my positions, but I missed the opportunity to lock some profits.
Later, it dropped to $7 and now has been trading around $8.
The opportunity cost is high but dropped less than 15% from my purchase prices (with dividend).
I purchased Enghouse in the mid- 50s range. It rallied over $70, but I missed to take profits. It dropped to $25 recently.
Therefore, it fell over 50% from my initial purchases.
It is the worst performer in my portfolio so far.
The stock is only representing less than 2% of my entire portfolio.
Thus, the recent drop didn’t significantly impact my overall portfolio.
In my view, Enghouse is a good company with an excellent management team. It has over $230 million in cash and virtually zero debts.
Enghouse is growing by acquisition company. Due to the high valuation in the tech sector, the management couldn’t have a chance to find a good target for the acquisition.
Pandemic and travel restrictions are another blame as management couldn’t visit the facilities to explore the acquisition target.
The main risk the company has been facing is the competition, but I believe the management will handle this issue.
Thus, I decided to take this opportunity to add more positions in the mid-20 range (more details will be in my June post).
If this stock drops further down, I plan to buy more but ensure it will be less than 5% of my holdings. I won’t go over 5% to any single stock.
The stock recovery could be a long journey, but I am okay to hold it and collect a growing dividend while waiting.
I couldn’t be entirely wrong with this one, and I might be missing something. Please let me know if I am missing something with this stock.
Also, it is a risky play. Please do your own research or discuss it with qualified financial professionals before making any investment decisions.
Sold a small position in PIF
Utility stocks have been performing well recently, pushing my utility allocations to above 20%.
Thus, I decided to take some profits.
I had 1200 shares of PIF, and I sold 200 shares and took profits. And I still have 1000 shares.
I may trim some of the stock moves higher or buy back those 200 shares if it falls below $18 (depending on available funds).
Purchased CAR.UN
CAR.UN is not a new stock in my portfolio. I had 200 shares before, and I sold them at $61.56 back in July 2021 and took profits.
Now the stock is down below $50. Thus, I decided to purchase it back.
I purchased 100 shares at $47.15. I may consider buying more if it falls further down.
I usually buy REITs in my registered accounts to avoid tax headaches, but I didn’t have enough room in my registered accounts.
Thus, I bought it in my non-registered account. I will move the holdings in my TFSA once I have some rooms (probably early next year).
Due to the rising rate, real-estate units are down. The real-estate sector represents only 8.5% of my portfolio.
I plan to take advantage of the recent sell-off and build positions using REITs and real estate ETFs.
Small-cap portfolio
One stock from my small-cap growth portfolio (TSX: QIPT) recovered slightly recently.
I sold a portion of the holding, took some profits, and am holding another portion. I will sell and lock earnings in the coming weeks or months if it continues to move higher.
And the rest of the holdings are still down. As I mentioned in my previous posts, it is an experimental project with a tiny portion of my money compared to my dividend portfolios. It is just less than 2% of my overall investments.
Therefore, its poor performance is not noticeable.
I am looking for an opportunity to exit the position and try a new idea again with a small investment. .
Here are the changes I made in my dividend portfolios in May 2022:
Disclaimer..
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 any time.
Any transactions I publish on this website 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.
The changes made in my Canadian portfolio in May 2022.
- sold 200 shares of PIF at $19.23 (average price)
- added 31 units of RIT at $18.67 (average price)
- added 7 units of MREL (IDR renamed to MREL) at $14.25 (average price)
- added 100 units of CAR.UN at $47.15
There are no changes made in my U.S dividend portfolio in May 2022.
- –
There are no changes made in my International dividend portfolio in May 2022.
- –
With recent purchases and dividend increases, my yearly estimated passive income (EPI) increased by $195 from $24 618 to $24 813 in May 2022 (exchange rate – 1USD = 1.2645 CAD)
I have updated the portfolio pages with these changes.
Commission FREE ETF purchases
Are you wondering how I can execute small orders of ETSs? Thinking about commission fees?
Actually, I use Questrade for all my ETFs purchases. There are no commission fees for ETFs purchases at Questrade. Therefore, we could buy one or any number of ETFs without paying any commission fees.
This is a great way to deploy cash and invest for more cash-flow as soon as they come in.
For those looking to start investing with little money, Questrade is one of the good options to consider because of their commission-free ETF program and minimum requirements to open an account.
If you have a plan to open an account with Questrade, please accept my gift and take advantage of this $50 trade commission rebate.
There is a trading charge of $4.95 when you sell ETFs. All the details are at the time of writing. If you have a plan to open an account at Questrade, please check all the information (including current commission fees) on their website and see if it is suitable online brokerage for your needs.
Disclosure: This post contains affiliate link. Therefore, I will earn a commission if you use the links to buy products or services (at no additional cost to you).
If you haven’t done so..
Please don’t forget to join our FREE newsletter below and stay informed & get inspired.
Leave a Reply