It’s time for the year in review. Interestingly enough, I have only invested $12,000 plus my RRSP contributions through my work.
I have been collecting cash for plans toward extended holidays. Nothing related to timing the markets or anything like that.
Interestingly enough, my portfolio went on to grow by at least $300K. There is a reason for this saying.
The 1st million is the hardest!
Before we jump into all the details, here is the annual trend. The annual drop is due to investing less money than in previous years as well as positioning my holdings around total returns for some of the accounts. I should earn over $30,000 in dividends in 2022.
Stock Trades
A single trade was made in December which was to re-invest all the juicy bank dividends into Telus.
I will probably invest in our TFSA account in February or March.
One holding in my portfolio is XQQ for the Nasdaq100 and it’s a play on cloud services for human resources transformation and security transformation. You are probably seeing ransomware and hacking going around in the news and there are big companies in that space on the Nasdaq 100 as well as all the companies transforming customer support and human resources.
Portfolio Management
If you take a look at my portfolio, you can see that my non-registered account is now a higher-yielding portfolio for my Canadian holdings.
My portfolio yield is 1.81% but my non-registered account has a yield of 3.63%.
A word on sector classification. Have you noticed that many “technology” companies are now in the communication services sector? It’s not exclusive to telcos anymore. Google, Disney, Netflix, and Facebook for example are all in the communication services sector.
Amazon is a consumer cyclical company for example and not a technology stock even though AWS is theirs and powers many more cloud services.
The recent sector classification adjustments are what make it critical that you focus on industry allocation and not sector allocation. Businesses are changing fast and forcing the classification standards to be adjusted.
The below industry allocation paints a much better risk analysis picture of my exposure to different markets than the sector allocation. I find the financial industry is too slow to adjust its reporting capabilities.
Dividend Income
My December 2021 dividend income is $960. The monthly pattern is pretty weird now. It’s very consolidated in the middle month of the quarter.
