Dividend stocks portfolio – Recent Changes – December 2022

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 no big purchases in December as I focused on debt reduction.

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 need to start preparing for it.

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% today (Jan 12, 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. But, it turned out to be the worst investment.

There will be some selling pressure now. Thus, I am not planning to sell my holdings now. I will take some time to make decision about it.

I sold EIF

I sold 100 shares of EIF shares to take profits. I had 500 shares of EIF. The share performed well after I purchased them. I decided to take a small profit off the table. Thus, I sold 20% of my holdings and logged gains.

The proceeds raised from asset sales were used to reduce some debts.

I plan to make similar asset sales and logged profits. I didn’t want to make the same mistakes as I did with SYZ and AQN.

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 December 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 December 2022.

• added 2 units of RIT at $16.82
• added 11 units of MREL at $12.26
• added 10 units of BIP.UN at $44.22
• sold 100 share of EIF at $50.85

The changes made in my U.S dividend portfolio in December 2022.

There are no changes made in my International dividend portfolio in December 2022.

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Due to asset sale (sold 100 shars of EIF), my yearly estimated passive income dropped from $30 257 to $30 198. The drop was even higher, but dividend increases and recent asset purchases partially offset it. (exchange rate – 1USD = 1.3537 CAD)

Please note: AQN dividend cut is not included in this update.

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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