Six months have now passed, and my dividend income so far is $7,497. More importantly, my current annual rate of return (ROR) is 13.72%. Using the rule of 72, I can double my portfolio in 5 years and 3 months. In 5 years, my portfolio could be worth $1 million. I would hope to achieve it a little faster considering I am still saving and investing at the rate of at least $30,000 with the following:
- TFSA – $5,500
- Spousal TFSA – $5,500
- RRSP – $20,000 (catch up to do)
My rate of return is calculated since 2009 which is when I started taking full control of my portfolio and fired my financial advisor. No more mutual funds and all my money works for me. Tracking your investment and calculating your rate of return is simple. All you need is to track your contributions and the date in a spreadsheet and your end up with a portfolio tracker.
In May I was planning some of my trades, and in June I have followed through on some transactions.
May 2017 Contenders
If you recall, these were the holdings I had in mind back in May.
Canadian Dividend Growth Stocks – Financial Sector
US Dividend Growth Stocks – Healthcare
- Cardinal Health (NYSE:CAH)
- Medtronics (NYSE:MDT)
- Becton Dickinson (NYSE:BDX)
June 2017 Trades
- TD Bank saw more money added to the account making it my 6th largest holding.
- Enbridge (TSE:ENB) saw some money added to top up the energy sector making it my 3rd largest holding.
- Kimberley-Clark (NYSE:KMB) also had an increase of fund making for the consumer defensive sector.
- Cardinal Health (NYSE:CAH) is a new addition to the healthcare sector.
My trades and stock addition and removal have a strategy and approach behind it. As you probably know by now, my diversification goals help me decide which sector to add funds to. Another rule I have is to not go above 7% market value in one holding. To that end, I needed to add a healthcare stock otherwise Johnson & Johnson (NYSE:JNJ) and AbbVie (NYSE:ABBV) would be overweight.
My June dividend income adds up to $1,748.03. I don’t plan to balance the months or the USD dividend either. It doesn’t matter as once I am ready to live from my portfolio, I will plan to have 6 months of cash on hand.
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