Dividend stocks portfolio – Recent Purchases – September 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.

September was another tough month for the investors. It started so well at the beginning of the month- stocks were up 3% or 4 %, but later everything started to go down.

My portfolio took a hard hit last month as many of my defensive stocks have lost value, and many were trading at 52 weeks’ low.

My focus is on dividend income. Almost all of my holdings pay dividends.

For the last couple of years, there has been less competition for dividend stocks. Income-focused investors like myself love dividend stocks because there was no alternative.

Now, due to rising interest rates, there are so many other attractive options to replace dividend stocks. Safer government bonds and GIC have been competing for money from income-focused inventors.

Investors can easily get similar income (or even more) from GIC or bonds with much less risk (in many cases, zero risk).

Thus, many income-focused investors started to move money from dividend stocks to safer investments, which added pressure to the dividend stock prices.

As a result, many of my holdings dropped in value, trading at or near the 52-week low.

I decided to take advantage of this sell-off and gradually started building positions using dividend income, saving and most of the purchases using margin loans.

I spent over $70 000 in September on stock purchases. It is the most significant spending I made in my life in a month besides my house purchase.

I still have a lot of purchasing power. I have over $100K in low-interest credits outside my margin loans.

And my margin loan value is relatively low compared to my overall portfolio value.

Thus, I am safe in case the market drops a lot quicker.

I understand that I have been taking excess risk. But, I have a full backup plan if things go wrong. But, it is not suitable for many investors.

I didn’t buy them all in one. I purchased small positions at a time and averaged them down.

And I have no idea when we hit the bottom of this bear market. I might have purchased the stocks too early, and they may go further down.

I would have purchased the stocks at even lower prices if I had waited until October. Anyways, I pulled the trigger already.

I am happy with my purchases because I bought them well below their recent high, and I may continue to add positions and continue to average down in if my favourite stocks fall further.

I spent the money in the defensive sectors and purchased dividend-paying stocks in utilities, REITs, financials, telecoms, and pipelines.

Due to this massive spending, my debts increased to nearly $500 000 (half a million), including my mortgage. I sold my CGY position to free up some capital.

Again, I still have a lot of purchase power. Depending on the market mood in the coming months, I either continue to average down my purchases, pay down debts, or improve my buying power.

Due to recent purchases, currency exchange changes and dividend hikes, my estimated passive income increased by $4555 to $30 597.

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 started to liquidate this portfolio.

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 2% 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 September 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 September 2022.

• SOLD 200 shares of CGY at $56.11
• added 340 shares of AQN at $16.80
• added 27 units of RIT at $16.32
• added 200 units of PLZ.UN at $4.03
• added 5 units of MREL at $12.46
• added 25 shares of FTS at $52.77
• initiated 225 shares of TPZ at $19.94
• added 20 shares of BMO at $120.84
• added 20 shares of RY at $123.93
• added 50 shares of ENB at $52.23
• added 175 shares of BCE at $60.54
• added 125 shares of T (Telus) at $28.30
• added 100 shares of GEI at $22.54
• initiated 225 shares of PPL at $42.94
• added 150 shares of TRP at $58.87
• added 56 units of DIR.UN at $10.52
• initiated 300 units of SRU.UN at $25.68
• added 55 shares of BNS at $69.40
• added 100 shares of KEY at 29.33
• added 100 shares of MFC at $21.63

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

• added 2 units of NUSI at $19.54
• added 2 units of DGRO at $45.93

The changes made in my International dividend portfolio in September 2022.

• added 1 unit of IDV at $24.80
• added 1 unit of ZDH at $20.04

With recent purchases and dividend increases, my yearly estimated passive income (EPI) increased by $4555 from $26 042 to $30 597 in September 2022 (exchange rate – 1USD = 1.3704 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).

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