Dividend Income – October 2017

Lots of discussions on the markets were high and what to do. I stay the course, save my hard earned money, invest it, reinvest the dividend and repeat the process.

I prefer to stay invested and ride the wave then try to figure out when it’s time to pull back and get back in. How often does a surfer catch the perfect wave? Timing the markets is not my investment strategy so I ignore all of the noise. That way, I continue to earn above 10% returns.

Stock Trades

I pulled the trigger on one stock. I made a decision between Walmart NYSE:WMT, Target NYSE:TGT, Walgreens Boots Alliance  and Costco NASDAQ:COST. The 4 companies where shortlisted within the  US Consumer Defensive sector.

I decided on buying Costo. While the company is included with the likes of Walmart and Target, it has a different business model already anchored in the membership business and can still differentiate itself from the competition. I won’t go over numbers here as I believe it comes down to a business preference and what you believe the future competition will be like. These past months, everything has been around the butterfly effect of Amazon and one key ingredient is membership, or subscription, as it creates a base of revenue to build upon. Couple that with a necessity and you have a utility model.

In the end, when it comes to the retail sector, each of our own experience and research defines what the future could be like. At this point in time, COST made the cut for me.

Consumer Defensive - The Short List

I am still looking into an industrial stock and have narrowed it down to the following two companies:

October 2017 Trades

September 2017 Trades

Nada. No trades.

Sector Diversification – October 2017

Due to the size of some of my holdings, my diversification can have some decent swings from month to month. I do not intend to rebalance monthly, that would not make sense. If I add money in a month, I do try to add to the sector behind as long as I can find the value. Otherwise, I look at balancing the sectors every quarter.

The technology sector just took off after I had just added to it last month. Not a bad process.

Portfolio Diversification - October 2017

Dividend Triangle – Stock Selection Made Easy

Dividend Income

My October dividend income is the high month of the quarter with $1,473.64. My portfolio continues to beat the Canadian or US index and when I compare with a blended index portfolio, it’s doing even better. With clear portfolio performance data tracked since 2009, I now have many years of data highlighting my dividend growth investing strategy works. I am waiting for a market pullback to see how my portfolio will do as I feel it has mostly been exposed to upward markets since the 2009 financial meltdown.

Dividend Income - 12 Month Graph

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.


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