Dividend stocks portfolio – Recent Purchases – January 2023

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.

I made a few small purchases in January, and I put my focus on debt reduction last month.

I have a sizable amount of debts, most of which are fixed-rate. Only the margin loan is at a variable rate. Thus, the rising interest rate has modestly affected my debt service costs.

My fixed-rate debts (mortgages) are coming for renewal in late 2024. If the interest rate stays high, my debt service costs will dramatically increase in the renewal.

Thus, I better start preparing for the renewal than wait until late 2024. Time will fly faster.

I started my financial journey with two primary goals.

The first is to generate a minimum $25K annual dividend income from my investments. I reached this goal in June 2022.

The second one is to increase my net worth to $1 million. I have over $1 million in assets and less than half a million in debts.

I can reach my 2nd goal by either increasing the value of my assets, reducing my debts, or doing both simultaneously.

If the interest rate stayed low as we had before, I would have preferred to go with the first option – keep increasing my assets.

But the rates are so high now, and the debt service charge is costly. Thus, I prefer to reduce my debts. My path may change if the rate starts to drop again.

AQN dividend cut

As expected, AQN slashed its dividend by 40% in January 2023. It is a great company, but I am very disappointed with the management. Many Canadian dividend investors would have been negatively affected by this stock.

It was one of my top-performing holdings and paid big dividends in U.S. dollars. I failed to log profits. And it turned out to be the worst investment.

Due to this dividend reduction, my yearly estimated passive income dropped from $30 198 to $29 589. The drop was even higher, but recent dividend increases and asset purchases partially offset the losses.

Thanks to my diversification strategy, my overall annual dividend income was impacted by only 2% due to this dividend cut.

I maintain my portfolio with less than 5% in a single stock and less than 20% in a sector. Thus, damages will be minimal from any unexpected events.

The stock has recovered slightly from the sell-off pressure, but it is still far lower from its recent high.

I did not making any changes to my AQN holdings.

I reached one of my long-term financial goals.

My estimated yearly dividend income reached $25 000 in June. I successfully achieved one of my long-term financial goals of $25000 annual dividend income.

Small-cap portfolio

My small-cap experiment portfolio didn’t perform well.

I try to sell small positions at a time.

Again, it is an experimental project with a tiny portion of my money (compared to my dividend portfolios). It is just less than 1% of my overall investments.

Therefore, its poor performance did not make any significant impact in my net worth.

Here are the changes I made in my dividend portfolios in January 2023:

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 January 2023.

• added 1 unit of RIT at $16.25
• added 25 shares of TPZ at $20.80

The changes made in my U.S dividend portfolio in January 2023.

The changes made in my International dividend portfolio in January 2023.

• added 1 unit of IDV at $27.38

Due to the AQN dividend cut, my yearly estimated passive income dropped from $30 198 to $29 589. The drop was even higher, but dividend increases and recent asset purchases partially offset it. (exchange rate – 1USD = 1.3337 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.