It’s time for the year-end review and summary of the main portfolio. Here are some overall data points to get started with.
- Total portfolio growth of 21.34% including contributions. It’s well above my annual salary. It’s not the highest growth in percentages as I have had better years but it’s the largest by amount to date. 20% last year is less than 20% this year as an example since the account grows annually.
- Total contribution of $17,808 with $1,600 in the taxable account and $16,208 in RRSP. In 2023 I did not add much new money. I even contributed to my TFSA from my taxable account by shifting $13,000 including dividends earned.
- $38,486 in total dividend earned across 6 accounts (3 x personal and 3 x spousal).
- A portfolio yield of approximately 2.00% give or take on average. If I switch the holdings to a 4% yield or more, I can easily reach $100K in dividends. Now, if you want to know the size of this portfolio, do the math since I gave you the 2 numbers you need to calculate the amount.
When I started investing on my own in 2009, the focus was growing my dividend income annually. That’s how many start too and that’s a great start but I also noticed my portfolio growth had a ceiling due to the higher yield I was receiving.
I changed to dividend growth investing to grow both my dividend income and my portfolio at a better rate. Instead of focusing on the amount, I focus on the rates which is rarely talked about online, unfortunately. It doesn’t make for great headlines on social media.
The Annual Review
As mentioned above, I did not add much in terms of new money and yet, my annual dividend income was up 17.32% compared to last year. It beats inflation and nothing had to be done.
The drop you see in 2021 is when I switched more dividend stocks to dividend growth stocks. 2024 is currently trending below 2023 as I have, again, switched some dividend stocks to dividend growth stocks plus Google. You can check the forecast down below.
The graph going up should not be your compass. Focusing on dividend income is not the optimal way to build a large portfolio. Total return with your annual rate of return is the way. If you are retired, then it’s completely different depending on your situation. For an income portfolio, look at the corporate account.
Portfolio Management
The Canadian banks still represent the largest exposure in my portfolio. Scotia Bank was an opportunity play 1.5 years ago and I will sell it in 2024. Early in 2024. I am itching to sell it but I have not decided what to invest in next …
Take a minute to compare the industries I cover and how there is little overlap compared with the sector diversification. Remember, the investing world talks about sector diversification which is ultimately having DIY investors looking at sectors that are not the best to build a nest egg.
Dividend Income
My December 2023 dividend income is $766.
Here is what my dividend income has been and how I forecast future dividend income. 19.92% is the average dividend growth since 2010.
The dividend growth includes both new money, DRIP shares, and the dividend growth by the companies. Based on how I invest, the dividend target can change pretty fast. Earlier this year, I was reaching $100K in 2028 and not anymore.
Now keep in mind that I have a yield of 2% so if I was to switch to some yield max type of investments, I could increase it quite fast.
If you want high income, check out the corp account as this retirement account has a yield of 2.17% and is built to grow the value with dividend growth.
| 2010 | $3,785.87 | ||
| 2011 | $4,742.99 | $957.12 | 25.28% |
| 2012 | $5,650.70 | $907.71 | 19.14% |
| 2013 | $6,270.04 | $619.33 | 10.96% |
| 2014 | $8,108.62 | $1,838.59 | 29.32% |
| 2015 | $10,415.40 | $2,306.78 | 28.45% |
| 2016 | $12,460.67 | $2,045.27 | 19.64% |
| 2017 | $15,475.60 | $3,014.93 | 24.20% |
| 2018 | $18,757.22 | $3,281.62 | 21.21% |
| 2019 | $23,305.32 | $4,548.10 | 24.25% |
| 2020 | $28,285.82 | $4,980.50 | 21.37% |
| 2021 | $26,034.41 | -$2,251.41 | -7.96% |
| 2022 | $32,763.15 | $6,728.74 | 25.85% |
| 2023 | $38,436.82 | $5,673.67 | 17.32% |
| 2024 | $37,640.03 | -$796.79 | -2.07% |
| 2025 | $45,139.38 | $7,499.35 | 19.92% |
| 2026 | $54,132.89 | $8,993.51 | 19.92% |
| 2027 | $64,918.26 | $10,785.37 | 19.92% |
| 2028 | $77,852.49 | $12,934.23 | 19.92% |