Holdings

The following holdings in our investment portfolio constitute the Roadmap2Retire. Majority of our investments yield dividends and distributions providing us with passive income which is reinvested back, when applicable. Our goal with the holdings is to own great companies and earn profits while we own the companies as opposed to buying only growth-focused stocks and funds where we do not see any profits until we sell and get out of the investment.
Our investment portfolio is divided into various brokerage accounts including RRSPs, TFSAs and non-registered accounts. All US stocks, funds and ADRs are held in RRSP accounts in order to take advantage of the tax treaty between Canada and US.

We divide our portfolio into three different categories:
  1. Dividend Growers: Stocks and funds which have a track record of increasing their dividends year after year. Stocks in this category normally yield 2-6% and have a dividend growth rate of 4-25%.
  2. High Income: Stocks and funds which have a relatively higher yield and do not usually increase dividends every year. Stocks and funds in this category normally yield 4-7%.
  3. Index Funds: The funds may or may not yield but track an index to take advantage of a broader market's rise. Funds that we hold yield 1-4%.

Dividend Growers

  • Archer Daniels Midland (ADM)
  • BCE Inc. (BCE.TO)
  • Chevron Corp (CVX)
  • Inter Pipeline Ltd (IPL.TO)
  • Johnson & Johnson (JNJ)
  • Kinder Morgan Inc (KMI)
  • Medtronic Inc. (MDT)
  • Omega Healthcare Investors Inc (OHI)
  • Qualcomm Inc (QCOM)
  • Realty Income Corp (O)
  • Rogers Communications Inc (RCI.B.TO)
  • The Bank of Nova Scotia (BNS.TO)
  • The Jean Coutu Group Inc. (PJC.A.TO)
  • The Southern Company (SO)
  • Thomson Reuters (TRI.TO)
  • Wells Fargo & Co (WFC)
  • Claymore S&P US Dividend Growers ETF (CUD.TO)

High Income

  • CHS Inc (CHSCP)
  • Cineplex Inc (CGX.TO)
  • RioCan REIT (REI.UN.TO)
  • CI Signature High Income Fund (mutual fund)
  • iShares Canadian Financial Monthly Income Fund (FIE.A.TO)
  • Scotia Diversified Monthly Income Fund (mutual fund)

Index Funds

  • BMO Equal Weight Utilities Index ETF (ZUT.TO)
  • Scotia Canadian Balanced Fund (mutual fund)
  • Vanguard Total International Stock ETF (VXUS)

Other

  • CI Global Health Sciences Fund (mutual fund)
  • IAMGold Corp (IMG.TO)


Our portfolio is diversified as shown in the chart below. 
Our Portfolio Diversification


Updated: Mar 5, 2014

Disclaimer: The information provided here is for educational purposes only. All opinions here are my personal opinions and should not be taken as financial advice. I am not qualified to be a financial advisor. Always consult with your financial advisor before investing in any of the companies mentioned on this blog.


14 comments:

  1. Looks really well diversified by sector. I, too, am not afraid to use index funds in addition to dividend growth picks.

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    1. Thanks for leaving a comment S.B. Index funds are indeed a good complementary component to dividend growth stocks.

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  2. I have owned O for at least four years and hold 500 shares. I am an income and growth investor. O is one of my core holdings. Unfortunately many investors have treated O as a bond in 2013 and that is why the price has declined. It certainly is a buy at the current level.

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    1. Thanks for stopping by and the comment, Anonymous.
      I think O is a great stock to hold for the long term. My investment horizons are in decades and any minor price moves will eventually get ironed out considering O's ownership, business model, dividend yield, payout ratio and dividend growth rate.

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  3. could you explain your FIE holdings? How do they manage to maintain such a good dividend yield, when none of their holdings come close to this dividend yield? Do they use covered calls in this ETF? Thanks

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    1. The FIE holding is a bit doozy in my portfolio. It provides a great source of passive income, but the distributions are questionable. The only holdings detailed in the literature: Canadian banks common and preferred shares, REITs, insurance and other financial holdings and corporate bonds. With these holdings the distribution shouldnt be as high as it is. They do not use covered calls to generate income in this ETF. Questioning iShares has resulted in no answers on that front either. The only other explanation can be capital return.
      So, I have only a limited exposure to this ETF and sold off a portion of my holdings in Fall 2013 since I thought that my exposure to this questionable investment was too high.

      Hope that helps.

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    2. The best I can also figure is that they are "returning capital" as a portion of the distribution, but like you, I could not get any answers from iShares and I could not make sense of the numbers so I sold off half my position, despite the very attractive yield..

      Might you have any thoughts on the BMO ZWB, which is a covered call on the banks, pays a nice dividend, and gives some protection to the downside?

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    3. I looked into the BMO covered call ETFs last year (spring/summer 2013) and they looked interesting. I didnt invest in them as I didnt know how options/covered calls etc worked. Since then, I have been reading up on options trading and have been writing my own covered call over the past 3-4 months...so, I am starting to understand how covered calls work and under what market conditions.
      If I understand correctly: covered calls arent good in a rapidly rising market - as that would mean the option would get exercised and the option writer has to sell when the option ends up in-the-money. I am not sure where the Canadian financials will go in 2014 (if they rise rapidly, that could be bad news for ZWB) - but this is assuming that the BMO option writers cannot correctly gauge the market and turn a profit. Something to think about...

      Another interesting one in the series is ZWU - BMO Covered Call Utilities ETF - I dont think utilities will be rising (sharply or otherwise) from current levels - which probably means better news for option writers. Again, needs faith in BMO option writers since we dont know anything about the details.

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  4. Are you able to tell us the approximate percent (%) of your total investment dollars allocated to each of your investments? Do you have minimum and maximum thresholds?

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    1. Thanks for your interest, Anonymous.
      I have been thinking of putting up that information and havent gotten around to do it yet.
      The funds have a larger percentage allocation. For the stocks, most of them except BNS have a weightage of 1.5% to 3.5% (I just started DRIPping BNS a couple of months ago..so that will build up over the course of next year or two).

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  5. Can't find a VUS fund listed at Vanguard, and my on-line brokerage account website can't find it either. --- A typo?
    VXUS looks appealing and I might take a position in that for diversity's sake.

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    1. Thanks for your interest, Anonymous.
      I should've added the exchanges next to the security for clarity. VUS is traded on TSX.
      https://www.vanguardcanada.ca/individual/etfs/etfs-detail-overview.htm?portId=9551

      Essentially it is the same as VTI as traded on NYSEArca - the only difference is that it is hedged and traded in CAD$. I use VUS instead of VTI to avoid any losses that I could incur due to currency conversion.

      VXUS is a great tool for international diversification. Happy investing.

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  6. I like your diversification. Also it looks like you are also diversifying per dividend growth - growers vs. payers. I like it and I do it as well. I like to have a few high paying (ideally monthly) stocks to help me growing my account faster reinvesting into growers. Good luck!

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    1. Thanks Martin,
      Yes, that the idea behind it - investing in dividend growers is great for future income, but I also want current income to grow my coffers faster.

      Thanks for stopping by and the comment.

      Best wishes

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