2014 is in full swing. The markets are starting to fluctuates during earnings and economic reports. By know you should be used to that as it is the standard flow of the stock markets. I recently shared a number of trades I have executed over the past few months that I believe are all improvements. I am basically trying to settle on the set of stocks I will own for the long term (unless there are fundamental changes). I have also decided to track my dividend retirement portfolio separate from my RESP portfolio as both of them have different timeline and therefore different risks profile and different requirements.
In fact, my RESP portfolio is allowing me to test what my strategy in retirement would be as I move my investments from long term equity stocks towards income focus investments.
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February 2014 is a lower dividend income month with $536.17. I read a recent article on someone strategy to keep each of their stock at equal value and thought it was interesting. In a way, his strategy is to maximize taking profits and adding to his down holdings. It follows my sector allocation target which is to utilize our own portfolio to decide on where to add money. If you are just starting, it’s understandable that you are looking into what investments to buy but at some point, you will need to add to your positions otherwise your are just going to be buying the entire stock market. It doesn’t mean that you forgo researching companies as their may always be a company you have not heard of or looked into just like me with COP. At some point, when multiple companies evaluate the same, you may choose the one with the higher yield.
As Jim Craimer said, “Buying for the long term is NOT buy and forget. It requires constant monitoring”. There is nothing constant in the world of investing. Government regulations can have a major impact, wars can really disrupt the markets along with innovations.
Related: How Many Stocks Should You Hold?
As I start tracking my RESP and Retirement Accounts separately from a planning perspective, I can tell you that 28% of my dividend income comes from my RESP account and there isn’t a lot of money in that account. I could get my dividend income much higher if I put that strategy against my retirement accounts. The major problem with that strategy is that my RESP accounts only hold income stocks and the purpose of those investments is to generate income as opposed to growth. My retirement accounts, however, generate growth and income with dividend increases. I need my retirement account on the growth lane as it is the only way to accelerate a portfolio growth.
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.