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.
Markets hit records day after day. Toronto stock exchange (TSX) is trading at all-time high. TSX was having trouble to find direction for last couple of years, and now found its way to jumped above $16 000 first-times in its history.
TSX is very sensitive market due to its poor diversification. Finance, Energy and resource sectors represent over two-third of the market value.
Any slow-down in U.S or global economy may hurt its performance.
I like finance sector and it is representing around 20% of my portfolio, and I purposely avoid energy producer and mining sectors in order to reduce portfolio volatility. If one or both sectors start to take-off then my portfolio may lag behind the market.
But, I am not trying to beat the market or any other sort of ideas. I am a dividend investor. I like predictable income streams from stable, low volatility and quality companies, and I like to buy them in discount price.
And, if I find any stock is in trouble to pay me my dividend or trading at high multiple then I won’t hesitate to eliminate from my portfolio and deploy the capital to buy other income producers at discount price.
I wasn’t too comfortable owning GE in my U.S portfolio and GWW jumped so quick from $160 to $210 after good earning. Thus, I sold both of them and purchased two hard hits stocks.
Also, I initiated an international dividend ETF in my TFSA account to diversify my portfolio with some international stocks.
U.S and Canadian stocks are easy to understand as we are here and use their products or services in our life. But, it is hard to evaluate international stocks individually. For me it will kill my time to understand a company and read their balance sheet, etc. Also, we need to convert all the numbers in our currency to see the actual results.
Thus, I decided to use one or two ETF to have international exposure in my investment.I will be keep adding this ETF as long as its price stays low. And also I added small position of TRP in my non-registered account.
Here are the changes I made my portfolio:
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 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.
Here is the changes I made in my dividend portfolios in October 2017:
The changes made in my Canadian portfolio in October 2017.
- Added 10 shares TRP at $60.26
- Initiated 15 units of ZDH at $23.45
The changes made in my U.S dividend portfolio in October 2017.
- SOLD 22 shares GE at $22.12
- SOLD 5 shares GWW at $204.65
- Initiated 15 shares WBA at $66.85
- Initiated 10 shares O at $53.55
With these last month changes, my estimated yearly passive income increased by $90 to $8420..
Please note that I’ve reduced or trimmed some of my positions. It doesn’t mean they are bad stocks. I just wanted to take some profits and diversify my portfolios. I will consider add them back if their price start to move south.
Many readers asked me how or why I execute very tiny orders of ETFs. They were wondering about the commission fees. Actually, I use Questrade for ETFs purchases. There are no commission fees for ETFs purchases at Questrade. Therefore you could buy any number of ETFs without paying commission costs.
I personally use Questrade for most of my investments, especially ETF purchases. 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 requirement to open an account.
If you have a plan to open an account with Questrade, please take advantage of this $50 trade commission rebate.
There is a trading charge of $4.95 when you sell ETFs at Questrade. 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: Please note above is a affiliate link. Therefore, I will earn a commission if you decide to make a purchase (at no additional cost to you).
I have updated the portfolio pages with these changes.
Please share your thoughts about my holdings and recent purchases. Also share your investment ideas with us.