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Wednesday, November 8, 2017

Crazy cool sexy dividend investment: what you should really be aware of

Today, my non-registered portfolio close the session at $190 705.54, my TFSA portfolio at $62 413.80 and my RRSP portfolio, at $37 374.78. I am currently under the impression that my net worth might be around $216 000 right now. My latest investment, Aecon Group Inc. (ARE), is stable. CAE Inc. (CAE) remains in the good profit zone for now, which hasn't been the case. WSP Global Inc. (WSP) is doing super great right now, and so many others of my stock.

My dividend income, at $714.27 (excluding RRSP dividend distribution, like always), is quite nice, but of course, I just want to see that amount increased. I am in no rush, and it's important to stay away from funds or stocks that pay an excessive high dividend. I always like to search for new stocks. The excitement comes from the fact that you never know what you can find, and the dream of hitting my next everything is a thrill I can't ever enough of, even after all those years.

In my very eternal search for new dividend stocks, I am doing it the easy way: I am checking on Susan Brunner blogs. First, on this one. I got to know Waste Connections Inc. (WCN). Nice, but WCN is super expensive and pays very little in dividend, but worth the interest. It's not because a stock pays very little in dividend that it doesn't deserve a place in your portfolio. 

The financial sector is really generous in term of dividend distribution. However, you have to be careful and a good portfolio is a diversified one in different companies, but also in different sectors. So the taste for dividend can also be your worst enemy. If you wonder if your portfolio is well diversified enough, you'll like Stockopedia. They have a Folio - UK English word for Portfolio maybe??? - section, where you can recreate the holdings you have in your broker account, and you can see how much, in %, you have in the financial sector and all other sectors on the TSX. I am not exactly up to date on that matter, but my biggest sector is Consumer Defensives, at 18.75%. Otherwise, I am pretty well diversified because as you know, I love everything, I love my stocks and I want EVERYTHING.

I catch this stock on Susan Brunner blog, Granite REIT (GRT.UN). GRT.UN looks interesting and pay a dividend of 5.143%. Nice! But oh, wait! I already hold enough of REIT stocks in my portfolio, and I am already enough exposed to the financial sector. So GRT.UN is a no-no for me. At least not now. For now, I just don't know exactly what I want. It's not just because I am lazy. It's just a matter of not knowing.

Do you see now how difficult it can be to find new stocks to invest in? Especially in case. The best of the best, I have many of those very good quality stocks in my portfolio and it's for that reason that.. .are ready for this? I don't think so, but ready or not, you'll have to take it because I am going to hit it right in your face NOW: since October 2017, for the past 12 months, my broker statement is giving me a return of 46.19%, for the past 3 years 22.54%, and since 2012, 19.32%.

More than dividend, investing in quality stocks will bring capital gains for the long run. Dividend income must be seen as a little bonus that you get as extra cash. While investing, dividend shouldn't be your main focus. Good quality stocks will support the value of your portfolio during downtime.

Just don't tell everyone yet, but I feel I might come to the point where I feel that I hold on to the best of the best of the TSX on my portfolio and I doubt I can do better than what I have done so far. I can push baby, don't get me wrong, but barely anymore. I just cannot do better and it's strange to be just in front of the screen, trying to pick another hot stock and just be in the waiting.

I would like to have everything it needs to just keep money in the bank for a while before the stock market collapse. My biggest concern at this time is not having enough cash, and I am a bit obsessed because I wonder if the markets can remain on the high like this for a very long time. The unknown is a stress that investors have to deal with.

From now on, after reading my every word, you'll always be the best investor you can be. I wish you the same and beef up on those capital gains, dividend is only coffee money.

7 comments:

Pellrider Scarborough said...

Many of the people are telling to hold on the stocks for long time. Then there are dividend investment FIRE walkers. I am more in to dividend investments now a days. Canadian banks are giving capital gains and dividends. Utility companies and other big canadian companies also give out dividend. Dividends and capitol gains, good for you investments!

Anonymous said...

What's going on with Just Energy, seems to be trading in 6$ range for ever

Anonymous said...

I love your blog and congratulations on your success! I have taken my money out of mutual funds (finally) and wish to start investing in dividend stocks. You have inspired me! I am going to start with Canadian bank stocks and Canadian utilities. I have opened an itrade account so I can purchase stocks myself. I have 50,000 in my tfsa. In your opinion, should I buy 5 stocks for 10,000 each or should I buy 10 stocks for 5,000 each? There is a 9.99 fee for each purchase. I will only purchase blue chip companies for a very long term hold as I am in my mid 20's. I was hoping the market would have a bit of a pullback but that hasn't happened! I know you can't tell me what to buy but I just need some advice as to how to get started with my first purchases.
Thanks!

Sunny said...

Hi Pellrider,

Exactly, I find it really important to focus on both dividend and capital gains, but not exclusively on dividend only because it can be a trap. And never invest in a stock only because of its dividend yield.

Dividend investment is interesting, complex because many things need to be to consider, but it's not complicated.

Yeah.. Sadly, Just Energy is facing difficult time and I am looking into my options. I am going to write about it in my next post.

Thanks for reading, because I am writing this blog exactly for people like you!
Very sincerely, it depends on which stocks you pick. But why not go with very good quality stocks and go with $3 000 investment on each stock? Don't invest in penny stocks, invest in the real good solid companies. The market had pulled off a bit this Friday. But it could eventually gest worst. Keep in mind that the worst can happen and right now, the worst that can possibly happen is a nuclear war.

You have a lot of money for someone in their mid-twenties. Please don't invest like me: don't invest in a margin account. Make sure you have a couple thousand left in your bank account. Don't ever invest the totality of what you have. I don<t have enough cash and its someone I am trying to fix.

Learn from my mistakes, and be the smartest investor you can be.


Sunny said...

Hi again,

I can make suggestions - I do it all the time on my blog. It's just that you need to keep in mind that I am not a professional. Let me think and I will get back to you with ideas on my next post - my this evening or tomorrow.

x

Anonymous said...

Thanks! I would greatly appreciate your stock suggestions to get me started.

Sunny said...

Please read my latest post, http://www.myfirst50000.com/2017/11/my-very-best-advices-to-any-newbie.html

 

Thank you

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