Dividend Income – September 2017

September was a no trading month. I did a number of trades back in August with new money. I am aware that markets are reaching new high but I am not an investor who stays on the sideline, I like to have my money invested and generate compound growth. I invest for the long term and I can dollar cost average over time. The reality is that I can invest in small amounts of money such as $1,000 rather than make big bets in the $20,000.

Stock Trades

September was about collecting the dividend and letting my money work for me. I reviewed a list of US Consumer Defensive stocks to assess what my next holding should be. Stay tuned for my selection in the coming weeks.

As mentioned in my last update, my approach is to have a certain minimum of stocks to spread the percentage for each sector. I am short 1 dividend growth stock with the Industrial sector and I am thinking of 3M NYSE:MMM.

The table below is my guideline based on my ratio of percentage target for each sector. I try to have 4.25% of my portfolio holding in each stock as a target which leads to the number of stocks per sector below. When you have a portfolio over $500,000, the holdings start to get large and it’s a way to spread the risks without buying too many stocks.

SectorStock TypesSector PercentageStock # TargetStock # Current
Consumer DefensiveGrowth19.00%56
Financial ServicesGrowth19.00%57
Real EstateIncome5.00%21

September 2017 Trades

Nada. No trades.

August 2017 Trades

Sector Diversification – September 2017

My sector diversification has been shifting out of line in September with the Financial Sector growing well above the target percentage along with the Healthcare sector. Meanwhile, the Consumer Defensive and Technology sectors were pulling back.

The pullback in my technology target is surprising considering that NASDAQ:MSFT and Apple  are doing well. The Canadian banks essentially did really well in my portfolio over the past few months pushing the financial sector ahead of targets.

October is going to be a rebalancing month. My approach is to review my portfolio sector target thresholds every 3 months and adjust it when there is over $2,000 gap unless I have new money to add to offset the rebalancing.

Dividend Triangle – Stock Selection Made Easy

Dividend Income

My September dividend income is the high month of the quarter with $1,682.27. 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 8 years of data highlighting my dividend growth investing strategy works. I am waiting for a market pullback to see how my portfolio will do.

Dividend income - September 2017

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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