A new investment idea for my RRSP portfolio: Hamilton Gold Producer YIELD MAXIMIZER™ ETF (AMAX)

This summer, on our way back from a family vacation in Cap-Pelé, we stopped by the Magnetic Hill Zoo in Moncton. We had the perfect day. It wasn’t too hot, and the sun was nowhere to be seen. We wouldn’t have gone to the zoo if it had been a hot, sunny day. Among the lovely animals we saw were Azizi the lion and the female lion Amara, who were definitely the stars of the zoo. Sadly, it was announced today that Azizi has passed away. He was 18 years old and spent most of his life at Moncton’s Magnetic Hill Zoo.

These are the pictures I took of Azizi and Amara during my visit. They were pretty much asleep the whole time. I don’t know if it’s a good idea to keep animals in captivity in cages just for our entertainment. I still enjoyed my visit to the Magnetic Hill Zoo, though. I hadn’t visited a zoo in a very long time.

Following the sale of my Telus Corp (T) shares inside my RRSP portfolio, I was left with a couple of thousand dollars in cash, patiently waiting to be invested somewhere else. I actually have a few ideas, but for one reason or another, it’s difficult to come up with investment ideas for my RRSP, especially knowing that soon enough I’ll have a few thousand more to invest by the end of the year. It’s not a process that I enjoy, as I almost find it a waste of money since RRSP funds can only be touched much later in life. So I don’t know yet what I’ll be investing in for my RRSP, but I did come up with a great idea for my TFSA portfolio for when Guardian Capital Group Limited (GCG) will no longer be trading on the TSX and I’m left with several thousand dollars just waiting to be invested.

So here’s the plan I’ve been working on, focusing a bit too much on the dividend income, making it almost feel like it’s my top priority. Currently, my monthly dividend income is a little bit down, at $971. What I like about my plan is that I’ll be able to exceed the equivalent of $1,000 in dividend income per month. I’ve been dancing around the $1,000 mark for a little while now without actually being there.

It hasn’t been easy to come up with this idea, but basically, I started by looking for options among what I already hold in my portfolio. I’m already pretty packed with PPL and ENB. The energy sector has great dividend payers. I just had no idea where to park my money. Then I looked at my Hamilton Enhanced U.S. Covered Call ETF (HYLD) shares.

When I first invested in HYLD, I was quite skeptical. The price per unit was low, and the ETF was paying a very high distribution. Normally, I wouldn’t have invested in it, but I did because it offered me a bit of exposure to the U.S. market, which wouldn’t hurt in my opinion since most of my assets are concentrated on the good Canadian side. So I finally invested in Hamilton Enhanced U.S. Covered Call ETF (HYLD) in both my RRSP and TFSA portfolios. I’ve been enjoying their monthly distributions, but that’s not all. I’ve also been enjoying some capital gains: +18% in my RRSP portfolio, and +40% for the HYLD shares I hold inside my TFSA portfolio.

For those reasons, I’ve been looking into more Hamilton ETF options. I actually went through each of their funds, and this is how I found the investment that will soon replace my Guardian Capital Group Limited (GCG) shares inside my TFSA portfolio. That new investment is the Hamilton Gold Producer YIELD MAXIMIZER™ ETF (AMAX). Once GCG disappears from the TSX, I plan to reinvest the money in AMAX. That’s the plan for now. My plan could eventually change. AMAX’s yield is 7.232%, and distributions are paid monthly. I already have exposure to gold with Sprott Physical Gold Trust (PHYS) inside my RRSP, but I can handle a little bit more gold inside my investment portfolio. PHYS doesn’t pay any dividend, so AMAX will add income to that gold exposure.