2021 Portfolio Exercise Abstract & 2022 Goal

2021 Portfolio Exercise Abstract & 2022 Goal

Hey everybody

And similar to that we begin to wrap up one other 12 months. The top of 2021. Time fly’s that’s for positive. Whereas we did loads of tenting and went to Mexico, I feel its secure to say it is a 12 months all of us wish to transfer on from. Right here in Ontario we had been in lock downs for about half the 12 months and right here we’re in the identical dialogue. Issues are quite a bit higher and hospitalizations are manner down. The narrative appears to be altering, is the tip really close to? Sadly my earlier 12 months finish posts have this similar dialog..

On the plus facet, the market continues to be on an absolute tear. What pandemic it says..

• The dow Jones is up 21.04% ytd
• The S&P 500 is up 29.69% ytd
• The Tsx is up 21.94% ytd

Covid has been actually good for the markets if we glance again on the earlier couple years.

We continued to good our portfolio all year long. Its undoubtedly trying quite a bit higher. Once I was first beginning investing I used to be drawn to month-to-month paying firms. Received to like getting paid each month proper? compounding ought to actually blow up, dividends shall be even throughout months. I feel it is a quite common strategy for brand new dividend traders. ( primarily based on questions on boards and many others)

All through the years I’ve realized that appears to be a foul thought. They have an inclination to not be nearly as good for dividend development and I’ve personally had extra dividend cuts from these payers vs quarterly. Most of them received the lower this 12 months to give attention to increased high quality firms.

Inventory Gross sales in 2021

Variety of Shares & Firm	Complete Capital Acquired
287 Brookfield Property	6,180.64
488 Extendicare	3,113.25
32 BMO	3,199.97
267 Riocan	4,775.69
208 Interpipeline	4,177.09
124 Transcontinental	2,418.22
28 IBM	3,545.26
	27410.12

Brookfield Asset Administration was the principle cause we bought each IPL and BPY. They purchased them out and when the worth was proper we bought our positions. Why don’t I personal BAM but?

Riocan lower their dividend and I additionally wished to distance myself from the workplace house.

Extendicare appeared like a political nightmare throughout covid and with a stagnant dividend it was time to maneuver on.

IBM I saved ready for a flip round and watching the inventory value erode. Ultimately I bought and moved that $ to microsoft, no regrets.

Transcontinental – One other stagnant dividend as they attempt to tread water throughout covid. On the finish of the day I didn’t see us including to this place and that typically says sufficient.

BMO – The one I’ll hear about. They’ve been on a tear since our sale. I wished to chop our Canadian banks down to three positions and bought bmo. Wanting again it wasn’t the proper one to promote out, however what are you able to do. I put this capital into Nationwide Financial institution and its performed nicely too.

The proceeds from these gross sales was principally immediately reinvested again into the portfolio.

US Inventory Purchases

Quantity of Shares & Inventory	Value
32 Lockheed Martin	10,900.54
7 Microsoft	1,740.27
	12640.81

In complete we invested $12,640.81 in usd if we convert that to Canadian {dollars} at at the moment’s change fee we invested $16,160.64 in American Shares throughout 2021. Solely 2 firms had been bought. I nonetheless suppose Lockheed is a superb purchase though it has been operating as of late. Its now our 2nd largest place within the portfolio. Id like to proceed rising our Microsoft place. Its undoubtedly not a worth play but when we glance to the long run tech will solely play an even bigger and greater a part of our each day lives.

Canadian Inventory Purchases

Quantity & Firm	Worth at Buy
950 Rit Etf	15,636.07
68 Couche-Tard	2,702.57
60 TC Power	3,373.78
40 Sensible Facilities	1,133.95
178 Algonquin Energy	3,436.40
66 Bell Canada	4,222.12
19 CNR	2,573.81
22 Nationwide Financial institution	2,026.91
178 Manulife Monetary	4314.34
233 Suncor	6,795.5
81 Xaw ETF	2,750.33
	46,215.45

 

In complete we deposited $48,965.78 into our Canadian accounts in 2021. That’s loopy to see! The main target has been to max these tfsa’s although, hopefully subsequent 12 months. Out of all these purchases Manulife is the one one just below water. I feel 1%. Rising rates of interest needs to be good for insurance coverage shares although.

If we add these US shares we invested $65,126.42 Canadian. In fact we have to take away that $27,410 of inventory we bought and redeployed into different shares although.

In complete we invested $37,716.42 in 2021. As soon as once more its loopy to take a seat again and do the mathematics and see the true numbers. I really feel like we took extra time without work this 12 months for journeys and but we invested principally the identical as final 12 months. It’s develop into such a behavior to pay ourselves first, that you just barely even discover. Very cool.

2021 Drips

Its nice to see how a lot new capital we invested however one in every of my favorite issues about dividend investing is the dividend reinvestment program. I’m an enormous fan, since we don’t want the cash now. I wish to put that cash proper again to work for us.

Inventory	Shares Dripped	Added Earnings
Rit Etf	28	22.68
Enbridge	16	55.04
Algonquin Energy	15	12.75
Telus	12	15.72
Canadian Utilities	9	15.84
Sensible Facilities	7	12.95
Extendicare	6	4.32
Bell Canada	5	17.5
Financial institution of Nova Scotia	4	16
Brookfield Renewable	4	6.2
Common Mills	4	8.16
Tc Power	4	13.92
Td Financial institution	4	14.24
Transcontinental	4	3.60
Manulife	3	3.36
Riocan	2	1.92
Suncor	2	3.36
Xaw etf	2	.88
Cisco	1	1.48
Totals	130	229.92

In 2021 we dripped an extra 130 shares into our portfolio. All these drips added $229.92 to that ahead dividend earnings. Set it and neglect it!

2021 Dividend Raises

This was one of the best 12 months for dividend raises since we began investing. There have been 0 cuts. (nicely riocan did, so we bought)

Rit ETF, Disney, Common Mills, Sensible Facilities and xaw etf had been the one ones who didn’t announce a elevate in 2021. (Though I feel xaw goes to announce a pleasant bump subsequent fee, not official although)

Disney I cant blame, covid is a nightmare for them. I’ve really considered shopping for extra of them atm. Common mills appears a bit spotty however I just like the transfer in the direction of pets and can proceed to carry. Sensible is one other one navigating covid. Rit stands out. It has performed nice from a capital potential but when I need that to be my predominant reit play Id like to see some payout development as nicely.

The dividend Raises had been a giant contributor to our 12 months finish ahead earnings bringing in an extra $556.29

 

2021

At the beginning of 2021 we had a ahead dividend earnings of $6,981.41 as we shut up 2021 we now have a ahead earnings of $8,714.19. A rise of $1,732.72 or 24.81% barely above our 8% dividend development goal for 2021 in our submit – Wanting into the Future.

The 24% enhance was the mixture of recent capital, drips and dividend raises. The trifecta that makes dividend development investing so nice.

2022 Monetary Targets

Dividend Goal – If we take a look at my projections for dividend earnings. Dividend Progress Investing – Wanting 30 years into the Future. 2022 ought to finish the 12 months with a ahead earnings of $10,434.32

I’m planning on blowing that quantity utterly out of the window. In a earlier submit final month I talked about refinancing our home at these low charges and utilizing some extra fairness to max out a few of our accounts and actually get the snowball shifting. We nonetheless haven’t met with the financial institution however I don’t see this being a problem.

I wish to begin this asap so we will throw loads of funds to our rrsp and get a size-able tax return.

We at the moment usher in about $17,000 a 12 months from passive earnings. My objective is by the tip of 2022 is to convey that to $31,000. We’ll put one other 50k into our personal funding that can convey an extra 6k a 12 months. The photo voltaic and personal funding will usher in $14,500 and the remaining needs to be dividends. Sure I plan on rising our ahead dividend earnings to $16,500 by 12 months finish.

I’m concentrating on a 3% common beginning yield within the rrsp and 4% in our tfsa’s on new funding. With this a lot money to deploy the plan is to place 5-10k to work per week. I don’t plan on lump summing all of it, proper off the bat.

2022 Purchases

I plan on actually stepping up our tech holdings and balancing these low yields with some increased ones. These are some shares I’m actually planning on beginning positions in, or significantly beefing up.

• Couche-Tard
• Microsoft
• 3m
• JNJ
• Amazon?
• CNR
• Nationwide Financial institution
• Proctor & Gamble – Please dip in value!
• Telus
• Air Merchandise & Chemical compounds
• Suncor
• Philip Morris
• Nutrien
• Fortis

Conclusion

2021 was a improbable 12 months on the monetary entrance. It amazes me to see our dividend development enhance by over 24% through the 12 months. In fact nothing is assured and issues can change in a immediate. 2022 needs to be one other nice 12 months, I’m hoping we see a significant pullback earlier than this deal go’s by way of. However who is aware of today.

The one factor we will actually be sure about is taxes are going to go up, carbon taxes will enhance as soon as once more in Canada and issues will most definitely maintain getting dearer. We have to do our greatest to extend our incomes be it working earnings or passive earnings streams.

How was your 2021? Whats your objective for 2022 and what shares do you intend to focus on?

Want you all a beautiful new years. Have enjoyable, for those who drink don’t drive

cheers!