Dividend Income: September 2024

Dividend Income: Portfolio Management

Small changes have happened, but nothing drastic. I started looking at my portfolio as a unit separate from the spousal to get an idea of my exposure. The exposure made sense across both portfolios, but I had significant exposure to Costco individually.

Costco just kept on rising, and I decided to trim a little to add other stocks. I don’t like to trim a winner, but I have identified a couple of other winners over time, and I prefer a stable of winners across sectors if that’s possible. Note that it’s not always possible, and the MAG 7 tends to provide excellent returns.

Another consideration is that some winners were only in the spousal portfolio, and I wanted them in my portfolio. This RRSP account is not an account to which I can add money. All my RRSP contributions go into the work RRSP to get the matching contributions – it’s free money. To that end, I have done the following:

• Took profits from Costco, Apple, and Microsoft. I don’t generally like doing that, and I am doing it only to add new winners to the stable. It’s not to protect profits, as I don’t subscribe to this idea, which is akin to trimming flowers and watering weeds for most people.
• I added Broadcom, Cintas, ADP, and recently nVidia.

More on Dividend Income…

I have watched Broadcom, Cintas, and ADP stocks for over 2 years and assessed the business for a while (not the financial numbers, but the business). nVidia is a play on AI, and it’s just the beginning. Now, you may have a personal opinion on AI and whether you believe it suits humanity; this is about money, and AI is here to stay. Government regulations, like social media, are limited or nonexistent, which means it’s early, and there is still room for nVidia to grow.

I reduced my exposure to banks on the taxable account changes and added a new ETF called TSLY and some CSU. It’s a pure play on Tesla options, and it’s risky, but the potential return beats the banks. In the longer run, it won’t keep up with inflation, but now, my expenses are all over the place with the separation, providing an excellent income. Because Tesla is rocky but loved, it allows for the option strategy to work well, unlike some of the other Yield Max options.

Dividend Income: Annual Rate of Return

The annual rate of return is how I measure performance for my holdings. Most of my US holdings are in the 20+% yearly rate of return. Only a few Canadian stocks can match those, and the banks are usually around 12% – 14%, which is less than the yield I can get from TSLY. This is my current thinking, even though the ETF can fluctuate 20% month to month.

2024 has no contribution. It’s purely just stock growth. As you can see from reviewing my portfolio, it’s not a typical retirement dividend portfolio. This portfolio is a money-making machine!

At this point in time, in 2023, my portfolio was up 11.13% year-to-date, and I finished the year at 20.25%. In 2024, it’s up 16.30% year-to-date. How will the year-end for my stocks be? Not the market; that’s not relevant.