June 2022 Recession Portfolio


How is your portfolio holding up? Everything is down so it’s normal to be down from the highs. My portfolio is down 9.69% year-to-date if you want to put that in perspective. In 2021, it was up for a total of 26.44%.

The best metric you can use to really understand your portfolio has nothing to do with year-to-date or last 12 months or last year. It’s the annual rate of return. Most investors do not have it, or do not know how to get it.

Take control and take the steps to know your annual ROR.

The TSX above is the simulated index investing strategy based on XIC ETF.

I compare to index investing to get an idea of my performance but what is important is which number I use to make that assessment. Just looking at a chart doesn’t take into account when you invest and using the annual rate of return does.

Go ahead and compare your Annual ROR with mine. It’s an apple to apple comparison as it completely takes away the size of your portfolio and the time you have been invested. However do note that it is a poor metric for a time period under 1 to 2 years as there is way too much fluctuations.

These days, I am reminded that I started investing with dividend in 2009. I was able to buy Bank of Montreal and BCE at a really really low price.

This is another amazing opportunity to put money at work.

Stock Trades

So, are you panicking? If you are, send me a note. I would love to undersand why.

My non-registered account is getting enough dividends on a regular basis to make monthly investments now. I stopped the DRIP in that account so I can choose where to add it to.

I added more Great West Life from the dividends earned in early June. My focus on Great West Life is based on the company being an insurance company that will benefit from higher interest rates and also it pays a safe high yield with respect to financials.

From a fund transfer from an RRSP plan to our self-directed RRSP, the following were purchased. A mixed of fundational dividend growth stock and high income investment.

Portfolio Management

The ratios of my sector and industry diversification are pretty similar from month to month in general. It shows the markets are moving all sectors together.

My strategy for my non-registered account is to add to current Canadian dividend stocks and selecting the holding with the highest yield with an attractice 5-year yield. It’s a metric from the Dividend Snapshot Screener.

Notice I don’t have any real estate – that means NO REITs – read all about it.

While my portfolio is down approximately 9% even with what someone might say a lack of diversification. In reality, the only sector not down is the energy sector. Even if I had 5% exposure, I am not sure it would have soften the blow or kept my portfolio in the positive.

As an FYI, Eric Nutall is the best analyst you want to follow for energy stocks. Due to how the energy sector has performed recently, he is also one of the best performing analysts.

Portfolio Sector Allocations June 2022
Portfolio Industry Allocations June 2022

Dividend Income

My May 2022 dividend income is $2,284.

I am making my non-registered account a retirement income account now while keeping the other accounts as dividend growth until I get closer to retirement.

That account now generates over $14.5K in dividend per year with a yield of 4.37% (up from 3.96% last month). I am hoping to get it close to 4.5% or higher with time and new invested money.

Dividend Income June 2022


Image and article originally from dividendearner.com. Read the original article here.