Dividend stocks portfolio – Recent Changes – August 2019

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.

Last month, I just sold one REIT position in my U.S portfolio and added more dividend growth ETFs I already own.

I also took advantage of the Canadian banks sell-off and added two positions.

If you recall correctly, almost a year ago, investors were freaking out for rising interest rate/bond yields and sold their positions in rate-sensitive sectors.

Some well-known fund managers, market analysts, and portfolio advisors were talking about why they are moving away from rate sensitives stocks to growth and financial stocks.

Their reasons were valid at the time. Because most the stocks they referred in rate sensitive sectors were carrying massive debts.

Thus, the rising rate would reduce their free cash flow due to high debt service charges, which would lead to their dividend payments at risk.

And, some of them sold their defensive holdings at a discounted price to exit the positions – almost at the bottom.

Luckily, I was able to add some utilities, telecom, and pipeline stocks at a cheaper price.

Last year, I added positions in Fortis, Emera, BCE, TC Energy, some REITs, and Limited partnership units, etc at a much lower price than now.

Hey, I am not a genius stock picker. I am just an income-focused dividend investor, so I always look for a way to boost my dividend income.

Sell-off pushed their dividend yield higher, and most of them were yielding over 5% at the time.

So, I periodically built my positons here and there using the cash-flow from my investments and also using some fresh capital from savings and debts. Because I thought, I could boost up my dividend income for a lower price.

Pure luck worked on my side.

A few months later, the situations changed rapidly, and defensive sectors became favorable for most investors because of falling bond yield and recession fear.

As a result, those stocks rallied to their all-time high, and my net-worth got a little boost. But, boosting my net-worth is not my primary goal.

My investment strategy is to build dividend income using high-quality high yield dividend growth stocks now, which eventually leads to high net-worth later.

To be honest, it is not my strategy. I learned the technique from my favorite book:

• Get Rich with Dividend – A proven system for earning double-digit returns‘ written by Marc Lichtenfeld.

Nobody knows what will happen tomorrow, next week, next month or next year. As many experts say, timing market is impossible.

Things good change upside down in matter of day or week if the economic conditions improve and bond yields start to rise.

Therefore, to my knowledge, long-term investment approach works well.

So, if you have not done so, develop an investment strategy based on your financial goal, risk tolerance, and financial situations and stick with it for a longer-term in a good and bad time.

If you do not know what to do, then it is always a good idea to discuss with a qualified financial advisor rather than damaging the wealth that you already have.

Now, let us look at the purchases I made last month.

Canadian portfolio

Last month, I purchased 25 shares The Bank of Nova Scotia (TSE: BNS)in two different transaction to bring up my number of holding to 200, and also bought 5 shares of The Bank of Montreal (TSE: BMO) to bring up my number of holdings to 70.

U.S portfolio

I sold 20 units of Omega Healthcare Investors Inc (NYSE:OHI), and purchased my favourite dividend growth ETFs using the proceeds raised from the sale.

OHI was in my registered portfolio for a while, but after the recent share price rally, I decided to exit the position, lock the profit and move the capital to diversified dividend growth ETFs.

International Portfolio

I just added 1 unit of ZDH (Canadian hedged) international dividend ETF.

I continue build my international portfolio using the international dividend ETFs (ZDH.TO & IDV) in order to diversify my investments.

Here are the changes I made in my dividend portfolios in August 2019:

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 August 2019.

• Added 25 shares of BNS at $68.25 (average price)
• Added 5 shares of BMO at $88.50

The changes made in my U.S dividend portfolio in August 2019.

• SOLD 20 units of OHI at $40.50
• Added 9 units of DGRO ETF at $38.01
• Added 3 units of SDY ETF at $99.44
• Added 3 units of NOBL at $69.45
• Added 2 units of ZUD (Canadian hedged) U.S Dividend ETF at $23.30
  

The changes made in my International dividend portfolio in August 2019.

• Added 1 unit of ZDH at $21.26

With recent changes and dividend hikes my yearly estimated passive income (EPI) hit to new high of $11 295 in July 2019, with year-to-date gain around 12.54%.

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).

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