Dividend Income – March 2017

Dividend Income

Are you interested in how Warren Buffett invest? I took a look at his diversification and found it interesting how limited his diversification actually is. When we think diversification, we often think of breaking the sectors evenly but the reality is that sectors are not even in the real world and it’s possible that your investing approach favor some sectors over others.

I track my diversification as a strategy to systematically invest in a sector out of favor when I have new money to add. I don’t really rebalance every year as I usually add money to bring the sectors in line to what I want it to be at but it’s not out of questions in the future. It allows for a systematic way to buy low and sell high without trying to assess if markets or stocks are over valued.

Stock Trades

This past month, I have made the decision to drop 2 sectors from my investing strategy and drop the 2 stocks I was holding in the sectors. I am not investing in the basic material and consumer cyclical anymore. I felt that holding on to those two sectors was hampering my ability to fully benefit from other sectors that better match my 7 investing rules. I have therefore increased my target for the consumer defensive, financial and healthcare sectors.

Diversification - March 2017

I dropped McDonald’s (NYSE:MCD) and Agrium (TSE:AGU, NYSE:AGU) from my portfolio. As I mentioned, it’s not about the companies and their potential but rather an overall portfolio decision. The healthcare sector benefited from this adjustment. I now have 29 unique holdings across all of my accounts with Telus (TSE:T, NYSE:TU) being my largest holding followed closely behind by Johnson & Johnson (NYSE:JNJ).

With the money from the disposition, I have increased my holdings in AbbVie (NYSE:ABBV) and Visa (NYSE:V).

3 Simple Steps – Dividend Stock Selection Process

Dividend Income

My March dividend income adds up to $1,566.18. A new record in monthly dividend income for my portfolio. This monthly increase come from many annual dividend increases and new money added earlier in the year. The both together contributed to a decent monthly increase.

Considering my investing strategy for selecting a stock is based on the Chowder Rule and the 10/10 rule where a stock must have increase its dividend by 10% on average over 10 years, it’s understandable that I can see a good increase once a year.

Dividend Income - March 2017

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 decision at your own risk – see my full disclaimer for more details.

Image courtesy of Master isolated images – FreeDigitalPhotos.net

6 Responses to "Dividend Income – March 2017"

  1. Congratulations on getting $1,566.18 dividends in one month. What does your present annualized dividend gross represent in percentage to your gross investments?

    After any leverage debt servicing, what is your net percentage return?

    1. @John
      Thanks for your question. The dividend yield across my portfolio is 2.95% and the yield on cost is 4.72%. Please note that my portfolio is setup for growth and not retirement income. I have many growers with only 1% dividend yield.

      My annual ROR is 13.49% since I started tracking back in 2009.


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