Corporate Income Account

While my personal portfolio is invested with a dividend growth investing strategy during the accumulation years, the corporate investment account is going to be an income account.

The income account differs slightly from a retirement account. The income account will not be expected to keep up with inflation unlike a retirement portfolio. A retirement portfolio pays the bills and must keep up with inflation.

There is an important distinction between the accumulation years and the income years. The former is focused on growing the portfolio to the largest size possible while the later is to generate the highest income possible while preserving the capital.

Corporate Account Guidelines

When you have a corporation with profits, you have the choice to re-invest the cash for more growth, pay a dividend to shareholders, or keep it in cash just in case.

I am opting to keep the cash in the company for now and investing it. To that end, I have opened an investment account with Qtrade. Qtrade will be my corporate investment platform.

The investment timeline is short to medium simply to earn income. It’s definitely not long term but if there is a market crash, I could wait. I plan to invest quarterly mostly targetting $5,000 per quarter.

The guidelines for the account are pretty simple;

  1. Preserve capital by not taking unnecessary risks while not expecting growth per say.
  2. Earn income from the investment with a yield above 5% from dividends or distributions.
  3. Keeping up with inflation is not necessary as it’s not a retirement account.
  4. No re-investment of income. It will either be used to pay taxes, or withdrawn from the corporation as dividends to myself.
  5. Focus on Canadian currency.

Corp Account Holdings

The holdings with purchase price and current price along with the total shares will be outlined here for full transparency.

  • Invested Capital: $20,000
  • Total Value: $19,756.84 
  • YTD Income: $0
  • Forward Annual Income: $838.64 (Estimated)
  • Forward Yield: 4.19% (Estimated)
Qtrade 2022 04 26 Portfolio Score
Qtrade 2022 04 26 Allocation
Qtrade 2022 04 26 Investment Type

Corp Account Transactions

All the transactions will be outline below with a post describing the process of selection.

DateActionTickerSharesPriceAmountPost
April 19, 2022Deposit$20,000.00
April 20, 2022BoughtGWO.TO134$37.266$5,002.43Details
April 25, 2022BoughtZWU.TO600$13.50$8,100.00Details
May 16, 2022BoughtGWO.TO209$33.01$6,907.93Details