My Dividend Portfolio as of August 2011: -886.25 (-2.12%)
This August reminded of the first year I started investing in 2008. Being new to investing, I was very emotional with my stock portfolio. I used to buy and sell with the slightest tick in a stock price. In hindsight, if I left those stocks alone and tolerated the highs and lows that year, my portfolio would've recovered the following year and had a nice profit gain the following year.
Unlike in 2008, my stock choices this year were researched properly and my strategy is being used for long term gains and not for short term gains. I also made the decision to invest in stocks that offered dividends. Most importantly, I'm less emotional with investing and look towards 5 to 10 years down the road.
With the world markets being pummeled almost every week with depressing news, the prices of stocks have been effected considerably. Not necessarily due to a company's performance, but because of market emotions. Lately, most investors are putting their money into bonds and gold. A common strategy when markets go on a downtrend.
Back in 2008 during the previous market drop, I would have sold a majority of my portfolio and waited until signs of improvement to reinvest. I would have lost any dividend income and instead of building a portfolio, I would have been destroying any potential value. Being a little wiser from past experiences, reading more books about investing, doing research and more research, I see the current market situation as an opportunity to buy more shares at bargain prices and add some new stocks to my portfolio. I went a little crazy this month with new stocks, but I think I built my ideal portfolio. Now it's just the matter of buying more of them to increase my dividend income.
I added the following stocks to my portfolio this month:
- TMX Group Inc. (X.TO)
- Saputo Inc. (SAP.TO)
- Canadian Natural Resources Limited (CNQ.TO)
- Leon's Furniture Limited (LNF.TO)
- Metro Inc. (MRU.A.TO)
- Shaw Communications Inc. (SJR.B.TO)
- Toronto-Dominion Bank (TD.TO)
- National Bank of Canada (NA.TO)
- Laurentian Bank of Canada (LB.TO)
- Kinross Gold Corp (K.TO)
- Canada Imperial Bank of Canada (CM.TO)
- Cineplex Inc. (CGX.TO)
- Agnico Eagle Mines Ltd. (AEM.TO)
I didn't sell any shares this month. I'm currently using the "Buy and Hold" strategy, mixed in with "lazy investing". A similar strategy I learned from reading books by Derek Foster, and has worked very well for him.
Profit/loss as of August 2011: -886.25 (-2.12%)
With bad news about political instability continuing to come out of the US and Europe lately, the majority of stock prices will continue to be fairly low. For me I see this as good news, making it easier to accumulate more dividend income shares for a good price. Canadian banks are starting to get more press with positive news. As of this month, I am invested in most of the major Canadian banks (RBC, Scotiabank, BMO, CIBC, and TD).
August 2011 Dividend Income: $76.36
The majority of my stocks give quarterly dividends so the income this month were from my monthly dividend stocks.
Overall, my portfolio has been recovering since the big dip in August. Even though my dividend portfolio is still in the red at the end of August, I can see my portfolio being back in the black by the end of September. But, only time will tell.
Disclaimer: These are not stock purchasing recommendations. I am not a financial adviser, tax professional or an investment professional, I am only writing about experiences I have encountered through my own investments. Consult a financial adviser, tax professional and/or investment professional with any of your questions.