Dividend Income: December 2021

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 future 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 previous years as well as positioning my holdings around total returns for some of the accounts. I should earn over $30,000 in dividend over 2022.

2021 Historical Annual Dividend

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.

Portfolio Sector Allocations December 2021

The recent sector classification adjustments are what makes it critical that you focus on industry allocation and not the 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 towards my exposure to different markets than the sector allocation. I find the financial industry is too slow to adjust in their reporting capabalities.

Portfolio Industry Allocations December 2021

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.

Dividend Income December 2021

DISCLOSURE: Please note that I may have a position in one or many of the holdings listed. For a complete list of my holdings, please see my Dividend Portfolio.

DISCLAIMER: Please note that this blog post represents my opinion and not an advice/recommendation. I am not a financial adviser, I am not qualified to give financial advice. Before you buy any stocks/funds consult with a qualified financial planner. Make your investment decisions at your own risk – see my full disclaimer for more details.