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Saturday, March 17, 2012

Investment portfolio restructuration is on its way

At this time, I really like what I have as portfolio, but with a few exceptions. The Maple Group acquisition of TMX Group (X) will probably go through, maybe not by the end of March, but still, it seems to be on its way. When the deal finally closed and completed, I will earn some big bucks. In case of such eventuality, I need to prepare and find some quality stocks to invest in and that’s really not easy. I need a quality stock that will both support my margin account situation and my dividend income. The task is certainly difficult, but not impossible.

Among all of the investments I hold, I would like to be able to sell at profit Kinross Gold Corp (K), First Majestic Silver Corp (FR), Sprott Physical Silver Trust ET (PSLV) and Sprott Physical Silver Trust UTS (PHS.U). A little way back, I had been able to reduce my position in Rogers Sugar Inc. (RSI) and Colabor Group Inc. (GCL). I would like to the same thing, but in better. Currently, stuff like K, FR, PSLV and PHS.U are not paying any dividend. What I would like to do is to sell at profit those investments and reinvest in some high quality dividend stocks. To do so, I need to: sell at profit K, FR, PSLV and PHS.U and than reinvested. And after what, the only problem being that I have to find those quality stocks and I am not in a rush to sell K, FR, PSLV and PHS.U, but it’s eventually something I would like to care of. And I am not in any rush at all to restructure my portfolio in order to increase my dividend income. And there’re many reasons for that.

Before selling any stocks and reinvested in any other things, I have think, primo, of reinvested in stocks that will have the same loan value – same of very close of being similar. And it’s not exactly an easy thing.


Anonymous said...

stop thinking about the next stock and start paying off your debts with the proceeds of the sale.

Sunny said...

I do what I want with my money.

Its not anytime soon that I will be selling part of my portfolio to pay off debt. But you can always dream.

I never been into paying debt. Laid off or not, I am the same person, nothing has changed. I will try to pay off my credit line at 7.52%, but other than that, I am much more interested in adding up to my portfolio value than paying debt.

I don't have that much cash available, I prefer to invest in stuff that I judge of quality for my portfolio rather than paying off debt. On the learn run, my investment value will be higher than my debt and interest own on the money. Its being see for the long term, not in the immediate.

"The next stock" is what I continually have on mind..... its been like that since 2008 and its not about to stop anytime soon.

Anonymous said...

have you considered us stocks? there are some great companies out there that are very stable and are blue chips and have a long history of growing dividends.

especially with canadian above par it's a good time to convert some cash and take advantage of this!

here's are some companies to consider:


I believe that most of them are mentioned in derek foster's books too!

Sik said...

Just had a question regarding your dividend payments. Is it re-invested dividends or do you get a cheaque for each dividend payment?

Anonymous said...

Sunny, I agree that when you sell those stocks you should keep the money in the account to purchase the blue chip stocks that pay a decent yield and grow their dividends. Then wait for the market to have one of its moves, and invest when there is a big drop in a stock you like. The stocks you want to sell didn't pay a dividend in the first place so you will not decrease your income from selling.

Maybe with money you add to the portfolio, if you decide to do that, you put this money on the debt. If you keep the track of this money, then you can transfer it back into the investing accounts and buy stocks when they are cheaper. You save on interest on your debt while waiting for any type of market crash.


Anonymous said...

If you're not invested in the US you have already missed out and will continue to miss out in the next few months.

Sunny...with no plans on paying off any debt I've got a better idea for you to restructure your portfolio.
Here goes...

Liquidate everything, pay off the 80 000 in debt, and spend the next 30 years paying cash into a cash account . Nothing is risk free, inflation and the value of the canadian dollar change over the decades(this effects everyone no matter what you do with your money). You are excellent at paying all the money you earn into your portfolio, rather then spend it on things you don't need, and apparently entertainment is not a priority for you either. After 30 years starting from scratch I'm sure you could save $360 000!

Heres why...

The debt payments you make are far better money makers for the bank then your portfolio will ever be for you. One of your credit cards is a whopping 7.52% with no chance of ever decreasing but in fact increasing over the years. (and to be honest, if you could guarantee 7.52% returns over the next 30 years id give you my money)

Your debt is eliminating any returns you think you're making, do not mistake your rising portfolio value as higher returns...EVERYONES portfolio value has risen over the last 3 months...the DOW is at 13k, the tsx is at 12.5k. Higher then it ever was all of last year. The market will soar and fall ,over and over again. As investors we can't predict nor control what it does . At the very least we can manage how we are taxed, cost,diversification or asset allocation and the risk we are willing to accept.

Currently your cost is too high, asset allocation is all over the map, you're not diversified globally, your taxes are a mess and your risk is off the charts, i don't know how you sleep.

Maybe Consider low cost index funds?


Ruth said...

HI Sunny, , know you do not like BCE but it is dirt cheap right now, quality stock that is paying over 5% dividend , u could tuck this one away for years, who cares where they are located. Be nice to get debt free too, a feeling of freedom without owing a dime unless it is a house that you will buy sometime in the future!

Ruth said...

Sunny, think my whole name is on the last message...will you just leave it at Ruth , please and thank you.

Anonymous said...

Pay off your debt first and wait for the next market correction buy high quality dividend paying stocks at cheap price.

Anonymous said...

listen to rich, he has great advice. maybe you are too blind to see this! your portfolio is way underperforming the tsx index guaranteed. you can't do better than the index, why bother choosing gazillions investments and taking so much risk to underperform the market??? think about it!!! i think you don't listen to your followers that much and just too stubborn to face the facts and reality.

Sunny said...

Hi Sik,

I am enroll to a DRIP, which mean that if the dividend amount received is enough to provide stocks, it does so, it automatically roll over to generate new stocks. The rest of the money is being depose on the margin account. There's no check coming in. The easiest way to received dividend payment is to get them straight in your broker account. You can have such deposit even if you don't have a margin account. Cashing in dividend distribution is certainly the easiest thing in the world.

Hi Ruth,

I only invest in stuff that I like. I don't like BCE. Their customer service is really poor. When I was in Montreal, I wanted to have Internet with Bell. A technician came at whatever time when I wasn't home and I wasn't even told someone have to come over to have the Internet install.... I set another time, the technician never came. At the time, i was working at 3 jobs, it was difficult enough to find a time for the setting, but when the guy didn't show up - and he never call to say he wasn't coming - it really upset me.

Also, I have a pager number that I wanted to be transfer into a cell phone number, but Bell couldn't do it. Like why?

Bell didn't want my business so I just flush them.

There's many stories about Bell bad customer service, I am just one among other.

As for Rich and the other readers, you are welcome to comment. With my margin account, I prefer to invest exclusively on a non-register mode and also in Canadian dollars only. That's to make it safe for my margin. If I would have 200k and up, I could consider some US stocks, but at this time, I am not interested. The Canadian stock market is enough for me.

I invest in stocks that I like and find interesting. I think people don't understand that this blog have to be read more as a testimony, maybe to inspire other into investing, to have an idea of what work and what doesn't work... stuff like that. Investing in BCE or US stocks is of no interest for me and I have explain many times my reasons.

What I am looking forward too is building a portfolio strong enough to support my margin situation and to have something to rely too as an income. Having a portfolio with a high percentage of return is not my main goal. I want something balance, that will keep the head of the water during bad time, I want the investment value to exceed the original amount of money invested, but that amount doesn't have to be very huge. I guess my way doesn't match most of my readers point of view on finance. If its the case, you have a moral handicap.


Thank you

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