Summary of portfolio activities for 2021 & target for 2022

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    Portfolio activity 2021

    Summary of portfolio activities for 2021 & target for 2022

    Hello everybody

    And just like that, we start completing another year. End of 2021. Time flies, that’s for sure. While we have been camping a lot and traveling to Mexico, I can safely say that this is a year that we all want to get away from. Here in Ontario we’ve been in lockdown for about half a year, and here we’re in the same discussion. Things are much better and hospitalizations are way back. The narrative seems to be changing, is the end really near? Unfortunately, my last posts at the end of the year have the same conversation.

    On the positive side, the market is still in an absolute rift. What pandemic it says ..

    • The Dow Jones is up 21.04% since the beginning of the year
    • The S&P 500 is up 29.69% year-to-date
    • The Tsx is up 21.94% ytd

    Covid has been really good for the markets if we look back on the last couple of years.

    We have continued to perfect our portfolio throughout the year. It definitely looks a lot better. When I started investing, I was drawn to monthly paying companies. You have to love getting paid every month don’t you? Compounding should really explode, dividends will be steady for months. I think this is a very common approach for new dividend investors. (based on questions in forums etc.)

    Over the years I’ve found that this seems like a bad idea. They’re typically not that good for dividend growth, and I’ve personally had more dividend cuts from these payers than quarterly. Most of them got the cut this year to focus on higher value businesses.

    Inventory sales in 2021

    Number of stocks & companiesGet total capital
    287 Brookfield Property6,180.64
    488 extension3,113.25
    32 BMO3,199.97
    267 Riocan4,775.69
    208 interpipeline4,177.09
    124 transcontinental2,418.22
    28 IBM3,545.26
    27410.12

    Brookfield Asset Management was the main reason behind the sale of IPL and BPY. They bought them up and when the price was right we sold our positions. Why don’t I have BAM yet?

    Riocan cut their dividend and I wanted to distance myself from the office space too.

    Extendicare seemed like a political nightmare during Covid, and with a stagnant dividend, it was time to move on.

    IBM I kept waiting for a turnaround and watched the share price erode. Finally, I sold the $ and transferred it to Microsoft with no regrets.

    Transcontinental – Another stagnant dividend as they try to tread water during Covids. At the end of the day, I didn’t see how we improved that position and that says enough sometimes.

    BMO – The one I’ll hear about. You’ve been on tears since we sold it. I wanted to reduce our Canadian banks to 3 positions and sold bmo. In retrospect, it wasn’t the right sell-off, but what can you do? I invested this capital in the National Bank and it is also well done.

    In principle, the proceeds from these sales were immediately reinvested in the portfolio.

    US stock purchases

    Number of shares & sharescosts
    32 Lockheed Martin10,900.54
    7 Microsoft1,740.27
    12640.81

    We invested a total of USD 12,640.81 in US dollars, if we convert this into Canadian dollars at today’s exchange rate, we invested USD 16,160.64 in American stocks in 2021. Only 2 companies were bought. I still think the Lockheed is a great buy, even though it has only recently been launched. It is now our second largest position in the portfolio. I would like to expand our position at Microsoft. It’s definitely not a value game, but as we look to the future, technology will only play an increasingly bigger role in our daily lives.

    Canadian share purchases

    Amount & companyValue when buying
    950 rit etf15,636.07
    68 Couche-Tard2,702.57
    60 TC energy3,373.78
    40 Smart Centers1,133.95
    178 Algonquin Force3,436.40
    66 Bell Canada4,222.12
    19 CNR2,573.81
    22 National Bank2,026.91
    178 Manulife Finances4314.34
    233 sun cor6,795.5
    81 Xaw ETF2,750.33
    46,215.45

    In total, we deposited $ 48,965.78 into our Canadian accounts in 2021. This is crazy to see! However, the focus was on maximizing these TFSAs, hopefully next year. Of all of these purchases, Manulife is the only one that is slightly submerged. I believe 1%. However, rising interest rates should do insurance stocks well.

    If we add these US stocks, we have $ 65,126.42 invested. Of course, we need to take away that $ 27,410 of stocks that we sold and switched to other stocks.

    In total, we invested $ 37,716.42 in 2021. Once again, it’s crazy to sit back and do the math and see the real numbers. I feel like we’ve taken more time to travel this year and still invested essentially the same as we did last year. It has become such a habit of paying ourselves first that you hardly notice it. Very cool.

    2021 drops

    It’s great to see how much new capital we’ve put in, but one of my favorite things to do when investing in dividends is doing the dividend reinvestment program. I’m a huge fan as we don’t need the money right now. I want to use this money for us again immediately.

    shareShares drippedExtra income
    Rit etf2822.68
    Enbridge1655.04
    Algonquin forcefifteen12.75
    Telus12th15.72
    Canadian utilities915.84
    Intelligent Centers7th12.95
    Expand6th4.32
    Bell Canada517.5
    Bank of Nova Scotia4th16
    Renewable Brookfield4th6.2
    General mills4th8.16
    Tc energy4th13.92
    Td bank4th14.24
    Transcontinental4th3.60
    Manulife33.36
    Riocan21.92
    Sun cor23.36
    Xaw etf2.88
    Cisco11.48
    to hum130229.92

    In 2021 we added 130 more stocks to our portfolio. All of those drops added $ 229.92 to that dividend advance. Set it up and forget about it!

    Dividend increase in 2021

    This has been the best year for dividend increases since we started investing. There were 0 cuts. (Well Riocan did it so we sold)

    Rit ETF, Disney, General Mills, Smart Centers, and xaw etf were the only ones not to announce a raise in 2021.

    I can’t blame Disney, Covid is a nightmare for them. I actually thought of buying more of these. General Mills seems a little spotty, but I like the pet trend and will continue to stick with it. Smart is another one that navigates Covid. Rit stands out. It’s been doing great from a capital perspective, but if I want this to be my main game I would love to see some payout growth as well.

    The dividend increases were a big contributor to our year-end earnings, bringing in an additional $ 556.29

    2021

    At the beginning of 2021 we had forward dividend income of $ 6,981.41, and as we close in 2021 we now have forward income of $ 8,714.19. A $ 1,732.72 increase, or 24.81%, slightly above our dividend growth target of 8% for 2021 in our post – Looking To The Future.

    The 24% increase was the combination of new capital, drips and dividend increases. Three times what makes dividend growth investments so great.

    Financial goals for 2022

    Dividend target – If we look at my dividend income forecast. Invest dividend growth – look 30 years into the future. 2022 should end the year with a forward income of $ 10,434.32

    I intend to blow this number out the window entirely. In a previous post last month, I talked about refinancing our home at those low interest rates and using a little more equity to maximize some of our accounts and really get the snowball moving. We still haven’t met with the bank, but I don’t see a problem in that.

    I want to start doing this asap so we can toss a ton of money into our rrsp and get a respectable tax return.

    We currently make around $ 17,000 a year from passive income. My goal is to get this to $ 31,000 by the end of 2022. We will put another 50,000 in our private investment which will bring in another 6,000 per year. The solar and private investment will bring in $ 14,500 and the rest should be dividends. Yes, I plan to increase our dividend advance to $ 16,500 by the end of the year.

    I aim for an average initial return of 3% in Rrsp and 4% in our Tfsa’s for new investments. With that much money to deploy, the plan is to work 5-10,000 a week. I don’t intend to do everything in one go.

    2022 purchases

    I plan to really add to our technology holdings and offset those low returns with some higher ones. These are some stocks that I really plan to take up or seriously add to positions in.

    • Couche-tard
    • Microsoft
    • 3m
    • JNJ
    • Amazon?
    • CNR
    • National Bank
    • Proctor & Gamble – please lower the price!
    • Telus
    • Air products and chemicals
    • Sun cor
    • Philip morris
    • nutrient
    • Fortis

    Conclusion

    2021 was a fantastic year from a financial point of view. It amazes me that our dividend growth has increased over 24% over the course of the year. Of course, nothing is guaranteed and things can change in the blink of an eye. 2022 should be another great year. Hope we see a major pull back before this deal is closed. But who knows nowadays.

    We can only be sure that taxes will go up, carbon taxes will go up again in Canada, and things are likely to get even more expensive. We have to do our best to increase our income, be it labor income or passive income.

    How was your 2021 What is your goal for 2022 and which stocks do you want to target?

    Wish you all a wonderful new year. Have fun when you drink, don’t drive

    Applause!

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