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.
As an investor and a lifelong learner I was watching election results and stock market movements in the U.S election night. And, I was comparing how fast people react for things that they can’t control.
As all know, stock markets dropped more than 5% on the election night, and recovered next morning and ended high at the end of the day.
It was one of the biggest market swings in very short period of time the recent months.
No one that I know predicted/expected both election results and the positive market momentum after that.
My personal portfolios also ended with big gain right after the Election Day.
I hope this positive momentum will continue for sometimes. Just hope.
As a long-term investor, I scoop up shares if price go down and enjoy my net worth gain, otherwise. Sometimes I take some profits by reducing number of shares.
In mid-to-late November, I did a portfolio clean up by selling some risky investments, and also taking some profits off the table. Main purpose for this action is tax-loss harvesting.
Usually, I feel bad when about to sell a stock, but I have to do it anyway to increase my net worth for long-term.
Almost all the stocks I sold last month went up after the trades. Actually, the opportunity cost is little high. But, I think I made the right choices for the good health of my portfolio.
Now, let’s look at the changes I made in my dividend portfolios in November 2016.
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 consult with your financial professional before even considering using the information obtained from this website.
The changes made in my Canadian portfolio in November 2016.
Sold XTR
I sold 200 XTR (full position).
I purchased this ETF in multiple occasions in my TFSA account using free ETF purchase offer at Questrade brokerage. And, I sold all 200 units at $11.20 with a tiny profit of $195.20 (with distributions). The turn-over is very small compare to long-term stocks gain, but it provided a steady income and instant diversification for last 3 – 4 years. I purchased XTR to add a stability to my portfolio as it is mixed with bonds and stocks.
Sold XDV
I sold all 94 XDV units at $22.53 with a tiny profit of $546.06, most of the profits from distribution. I purchased this ETF at the early stage of my investment for diversification purpose. Now, I decided to sell it because my portfolios are little big and have enough stocks to diversify.
Sold CBO
I sold 56 CBO (full position) with a tiny profit of $93.02 (including distributions). I purchased CBO for a while ago in my TFSA account to give portfolio stability and to maintain a fixed-income portion. Now I have a pension plan and having fixed income is not necessary, so I could replace this with dividend growers.
Sold CVE and GEI
I purchased both CVE and GEI for a while ago with higher price than now. They both gained value until the oil price started to move south.
Their stock prices may go higher when oil price get recovered as both are still good companies with good managements. But I made the decision to sell them because I could move my money into price fixers than having price takers.
I sold CVE at $18.92 with loss of $1054.36 (including dividend). It is the biggest lost in my dividend portfolio. This lost can be recovered with less than 2 months dividend income.
And, I sold GEI for $16 with loss of $19.91 (including dividend).
Sold CPX
I sold all 100 shares of CPX at $20.76 with a tiny profit of $302.70. It is a quality high-yield utilities company. The price moved higher after I sold this stock. I missed a big opportunity cost of more than $300 in less than 5 days.
Reduced MFC
I sold 50 shares of MFC with profits. The stock moved higher after the earning announcement, so I decided to take some profits off the table. I will buy again if price come down below $19.
Sold 25 shares of TD
I sold a tiny position in my TD shares at $61.40 to take some profits. I will buy back if price come down below $58.
Sold 25 shares of TRP
I sold a tiny position in my TRP shares at $59.78 to take some profits. I will buy back if price come down below $55.
Purchased 45 shares of AQN
I purchased 45 shares of AQN at $10.96, after it’s price came down due to rising bond yield
Purchased 39 units of BEP.UN
I purchased 39 units of BEP.UN at $38.71, after it’s price came down due to rising bond yield
Purchased 35 shares of BCE
I purchased 35 shares of BCE at $59.91, after it’s price came down due to rising bond yield
Add 1 unit of XRE at $15.09
The changes made in my U.S dividend portfolio in November 2016.
- purchased 2 more units of XLV at average price of $67.62 using the dividends I received in my registered account. I will be keep adding this health care ETF in my U.S account if its price stays low.
Due to these big changes, my estimated yearly passive income decreased to $7060, down by $370 from last month.
Again, most of the stocks moved higher after I sold them, especially TD and MFC moved all the way up. I missed some opportunity costs, but I am happy because I will be a winner if their prices move any direction. Therefore, I will enjoy the ride with the shares I have in my portfolio if their prices go even higher, and buy more shares with lower price if they come down.
I have updated the portfolio pages with these changes.
I will discuss about the portfolio diversification in my January update.
Please share your thoughts about my holdings and recent changes in my dividend portfolios.
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 consult with your financial professional before even considering using the information obtained from this website.
Hello,
I have a two somewhat vague questions I would like to ask you :
First, do you believe that the market as it is right now is overvalued and that it will crash in 2017?
Second, if there was a market crash tomorrow, what would be your reaction? Would you sell your stocks? Are there any categories of stock (else than gold) that you would buy during a financial crisis?
Excellent blog, keep it up!
Hello James,
Thank you for stopping by,
I really don’t know whether the market will crash in 2017 or not. Actually, I am dividend investor so I believe I keep receiving dividend payments from high quality blue-chip companies regardless of what the overall market is doing.
If market crash tomorrow, I would get excited because I could buy more high quality stocks for cheaper price. Therefore, I could buy dollar worth of assets for 75 cents. In fact, most of the stocks I bought when market was at negative mood.
Regarding categories – I am a strong believer in diversification. Investors should diversified their investment in order to minimize risks. I would buy stocks in all categories during a financial crises period but gold. For me, gold is just a yellow color shine metal. It doesn’t produce any income.
I hope I answered for all your question..
Best Regards,
FJ, I was quite surprised at how much the States, and the election results affected Canada. Insurance companies like SLF & MFC, their move in the share price was quite high. I think it was a good move to sell off MFC. I also think buying AQN, and BEP.UN was a good move as well.
I’m kinda kicking myself for not holding a larger position in the banks earlier, as they seem to be align with the TSX, and have performed quite well for the last 20 years. Maybe sometime down the road. Right now, I’m keeping my positions with TD, RY, BNS, BMO. I didn’t touch my portfolio ever since the election, except buying some shares of BAM.A recently, when the price went down.
And BCE, my largest holding, I’ve been tempted to sell parts of it, but left it. So I’m glad to hear you bought more shares in BCE. I feel your portfolio is well designed for low volatility, which looks good for a potential volatile market ahead of us.
Thought I’d share my portfolio weighting, 50/50 within Canada & America. Mostly blue chip, with a dividend yield of about 2.5% per year.
Technology – 22.4% (ADBE, NVDA, video game stocks)
Financial Services – 15.9% (mostly banks)
Consumer Defensive – 12.1%
Utilities – 10.9%
Communication Services – 9.8%
Consumer Cyclical – 8.4%
Real Estate – 6.5%
Industrials – 6.3%
Energy – 4.7%
Health Care – 2.3%
I’m glad to have shared my thoughts, look forward to reading more of your blog posts.
Hello Justin,
Thank you for sharing your thoughts.
MFC rised over $25 now. I think I sold it very early, but the rest of the half is enjoying the ride.
Wow! you have 22.4% in Technology sector. I just started to building my Health care and Technology sectors. I prefer to maintain only 5% in each sector. I wanted to build U.S holdings, but I couldn’t do it now because of the exchange rate.
Best Regards,