It was a tough year with many stocks losing value. While it provided investors with buying opportunities and consequently raised the dividend yield for many said opportunities, it is still hard to see your portfolio drop.
One lesson many have also learned is that fixed income wasn’t a saviour either. The thought of balancing your portfolio with bonds and equities is usually poorly thought through as pure fixed income is not what investors get, unfortunately … They invest in equities with fixed income as underlying assets and it’s not the same. The financial industry often twists things in their favour.
With that said, investing is pretty easy, my kids are doing it. Investors have to stop overthinking … overanalyzing … timing the markets … and simply focus on good businesses or a simple ETF (VFV anyone?).
My kids are investing in VFV now by the way after doing Computershare with Bank of Montreal, Fortis, and Telus.
Stock Trades
Nothing to report for trades.
Portfolio Management
Look at those banks!
Can you notice the pattern in my holdings? I will let you look at my portfolio and find the pattern. For 2023, I will break down the ratios by account type.
Dividend Income
My December 2022 dividend income is $2,852.
The total for 2022 is $32,478. It’s an increase of 24.75% over the previous year.
With new money added and dividend increases, I am forecasting $39,285 in dividends for 2023 with $20,000 from my taxable account.
Here is the yield by account so you have a perspective on why I don’t earn $80,000 in dividends. Remember that the RBC and RBC-S are genering eligible dividends for income. The other accounts are focused on dividend growth.
- RBC = 4.45%
- RBC-S = 7.00%
- RRSP = 1.27%
- RRSP-S = 2.21%
- TFSA = 1.25%
- TFSA = 2.49%