The goal of this portfolio is to build wealth through stock appreciation while earning a steady dividend income. In other words, a passive income machine. During the accumulation years, the dividend income is fully re-invested through synthetic DRIP. When retirement comes, the portfolio may switch to focus on higher dividend earnings but time will tell if I need to make this change. My hope is to become financially independent from the dividend income my portfolio can generate.
The dividend growth stocks are selected using a simple but yet effective stock selection process which leverages the Chowder Rule as growth marker.
One of my rules is to hold 40 or fewer stocks in my portfolio to ensure I can stay on top of my holdings. To better understand my strategy, you need to read my 7 investing rules and leverage my dividend growth stock selection process. All in all, it has provided me with a portfolio that can beat the index and in retirement, my knowledge of dividend investing will allow me to draw dividend income rather than burn through my hard earned capital.
Portfolio Breakdown by Accounts
As an initial disclaimer, I am in the accumulation phase. Dividend growth and total return is what drives my stock selection process and as such you will see very low yield stocks that I would normally not hold in my retirement years.
The accounts below represent holdings across my accounts and our spousal equivalent. My accounts are with RBC Direct Investing and Questrade.
| Account | Holding | Sector | Growth | Dividend |
|---|---|---|---|---|
| TFSA | TSE:CNR | Industrial | High | Low |
| TFSA | NYSE:V | Financial Services | High | Low |
| TFSA | TSE:ATD.B | Consumer Defensive | High | Low |
| TFSA | TSE:RY | Financial Services | Medium | High |
| TFSA | TSE:TD | Financial Services | Medium | High |
| TFSA | TSE:IFC | Financial Services | Medium | High |
| TFSA | TSE:T | Communication Services | Medium | High |
| TFSA | TSE:SAP | Consumer Defensive | Medium | Low |
| TFSA | TSE:EMA | Utilities | Low | High |
| TFSA | TSE:BIP.UN | Utilities | Low | High |
| RRSP | NASDAQ:AAPL | Technology | High | Low |
| RRSP | NASDAQ:MSFT | Technology | High | Low |
| RRSP | NYSE:COST | Consumer Defensive | High | Low |
| RRSP | TSE:CNR | Industrial | High | Low |
| RRSP | NYSE:V | Financial Services | High | Low |
| RRSP | NYSE:ABBV | Healthcare | Medium | High |
| RRSP | NYSE:JNJ | Consumer Defensive | Medium | Medium |
| RRSP | NYSE:MMM | Industrial | Medium | Medium |
| RRSP | NYSE:ITW | Industrial | Medium | Medium |
| RRSP | NYSE:KMB | Consumer Defensive | Medium | Medium |
| RRSP | NASDAQ:TXN | Technology | Medium | Medium |
| RRSP | NYSE:CAH | Healthcare | Medium | Medium |
| RRSP | TSE:MRU | Consumer Defensive | Medium | Low |
| RRSP | NYSE:BAM | Real Estate | Medium | Low |
| RRSP | NYSE:BDX | Healthcare | Medium | Low |
| RRSP | TSE:SAP | Consumer Defensive | Medium | Low |
| RRSP | TSE:ENB | Energy | Low | High |
| RRSP | TSE:BIP.UN | Utilities | Low | High |
| Taxable | TSE:CM | Financial Services | Medium | High |
| Taxable | TSE:RY | Financial Services | Medium | High |
| Taxable | TSE:TD | Financial Services | Medium | High |
| Taxable | TSE:NA | Financial Services | Medium | High |
| Taxable | TSE:T | Communication Services | Medium | High |
| Taxable | TSE:ENB | Energy | Low | High |
| Computershare | TSE:T | Communication Services | Low | High |
| Computershare | TSE:TRP | Energy | Low | High |
Canadian Stock Portfolio
When it comes to choosing a Canadian stock, the list of companies matching my investing criteria will mostly be Canadian Dividend Achievers with a 10% CARG dividend growth. However, with some sectors, it can be difficult to find a match and I have to vary my approach and selection.
US Stock Portfolio
The list of stocks matching my investing criteria will mostly be US Dividend Aristocrats with the exception of the technology sector. That sector is relatively recent to fulfill the requirements for a US Dividend Aristocrat.
Microsoft
VISA Inc
Apple Inc.
Texas Instrument