2020 Portfolio Activity Summary & 2021 Target
2020 Portfolio Activity Summary & 2021 Target
Hey everyone
Every year I wish I did a post to really analyze how the plan is going. How much we are investing. Where did we end off and whats the plan for the following year. This is that post.
2020 was a different year to say the least, market dropping and dropping, sell! sell! Sell! and then today – Buy! Buy! Buy! Who would of thought all this stuff would happen in 2020? covid, lockdowns, protest after protest. A world so divided, but with vaccines in the picture a little light at the end of the tunnel.
It’s going to be a slow process getting back to the new normal but by the end of 2021 I think we will see it.
2020 for our investments was a good year, the portfolio did well but also suffered a couple dividend cuts. We put alot of new capital to work throughout the year and shuffled up the portfolio a little bit. While there is still some work to be done, it’s a work in progress and I feel the portfolio today looks better than it did at the start of 2020.
This is a summary of the portfolio activity in 2020.
Stock Sales in 2020
| Stock & Amount of Shares | Share price When Sold | Total Capital Received |
|---|---|---|
| 31 CVS | 71.69 | 2,212.39 |
| 98 Emera | 47.16 | 4,611.73 |
| 30 Altagas | 16.60 | 488.05 |
| 36 Brookfield Renewable Corp | 77.37 | 2,769.61 |
We kept the cash from the emera sale for emergency funds during the first lock down when we weren’t working. We now keep $5,000 in our slush fund at all times. CVS and Altagas were positions I didn’t really see myself wanting to grow and they were small positions so I sold them. BEPC got sold because it was a spin off and I already have enough brookfield renewable. All the remaining capital besides that emera sale got reinvested – $5,470.05
US Stock Purchases
| Amount of shares and What Stock | Price per Share | Capital Invested |
|---|---|---|
| 10 IBM | 147.02 | 1,480.15 |
| 21 Abbvie | 93.94 | 1,982.89 |
| 13 JNJ | 149.71 | 1,956.30 |
| 10 3M | 147.78 | 1,487.80 |
| 10 Disney | 115.89 | 1,168.85 |
| 10 JNJ | 145.79 | 1,467.94 |
| 10 JNJ | 147.37 | 1,483.65 |
| 5 Microsoft | 210.37 | 1,061.84 |
| 7 Microsoft | 216.07 | 1,522.49 |
| 10 JNJ | 149.63 | 1,506.25 |
In total we invested $15,118.09 in usd if we convert that to Canadian dollars at today’s exchange rate we invested $19,252.88 in American Stocks during 2020. All of those stocks are higher in price besides one purchase of microsoft and that IBM purchase. One of my goals in 2020 was to start and grow our positions in JNJ and 3M. I definitely enjoy having them in the portfolio and plan on continuing to grow those position sizes in 2021.
Canadian Stock Purchases
| Amount of Shares and Which Stock | Price Per Share | Capital Invested |
|---|---|---|
| 45 Smart Centres | 27.97 | 1,268.60 |
| 48 Smart Centres | 21.21 | 1,028.03 |
| 65 Smart Centres | 15.17 | 996.00 |
| 15 CNR | 117.98 | 1,779.65 |
| 39 Enbridge | 36.29 | 1,425.26 |
| 22 Nutrien | 58.31 | 1,292.77 |
| 50 Telus | 22.99 | 1,159.45 |
| 15 BMO | 67.67 | 1,025.00 |
| 15 Restaurant Brands International | 74.50 | 1,127.45 |
| 64 Algonquin Power | 17.16 | 1,108.19 |
| 29 Restaurant Brands International | 72.80 | 2,121.15 |
| 21 Restaurant Brands International | 71.41 | 1,509.56 |
| 71 Tc Energy | 55.63 | 3,959.68 |
| 51 Algonquin Power | 20.47 | 1,053.92 |
| 141 Xaw ETF | Avg Cost 27.76 | 3,915.38 |
In total we deposited $24,770.09 into our Canadian accounts in 2020. The only purchase of all of these that is lower now would be that first smart centres purchase, but if we average them all we are up. Happy with these purchases for sure and plan to add more algonquin in 2021.
If we add those US stocks we invested $44,022.97. Of course we need to take away that $5,470.05 of stock we sold and redeployed into other stocks though.
In total we invested $38,552.92 in 2020. To me that is absolutely insane. I know I’m always taking our money from the account, but that came as a shock. On average we are investing over 3k a month. This year our incomes were lower as well and in the summer we took more time off for camping.
2020 Drips
Its great to see how much new capital we invested but one of my favourite things about dividend investing is the dividend reinvestment program. I’m a massive fan, since we don’t need the money now. I want to put that money right back to work for us.
| Stock Name | Number of Drips | Value Jan 19, 2021 |
|---|---|---|
| Interpipeline | 6 | 80.82 |
| Bank of Nova Scotia | 4 | 283.04 |
| Telus | 9 | 238.68 |
| Bell Canada | 4 | 221.08 |
| Transcontinental | 5 | 105.7 |
| Td Bank | 4 | 299.92 |
| Restaurant Brands International | 1 | 78.68 |
| Riocan | 17 | 300.9 |
| Smart Centres | 9 | 215.82 |
| Extendicare | 33 | 204.27 |
| Algonquin Power | 8 | 171.76 |
| Emera | 1 | 53.13 |
| General Mills | 4 | 222.68 |
| Canadian utilitys | 8 | 258.72 |
| Brookfield Renewable | 4 | 238.28 |
| Brookfield Property Partners | 30 | 656.7 |
| Enbridge | 15 | 671.25 |
| Cisco | 3 | 135.57 |
| Total - | 4,437.00 |
In 2020 all those drips added $249.49 to that forward dividend income. If you count all these purchases as well into our total invested capital in 2020, we totalled $42,989.92.. Again that’s crazy! It’s great to see and super inspiring. The plan is working, even know I’m currently not. Zing! – Arg home schooling….
2020
By the end of 2020 we increased our forward dividends $1,194.83 with new capital, drips and dividend raises. 2020 was a horrible year on so many fronts, but by not being able to do as much as normal, we saved a lot more. It’s a great feeling but I’m dying to go to the zoo again or Canada’s wonderland etc Bring on 2021!
2021 Financial Goals
Dividend Target – At the start of 2021 we had a forward dividend income of $6,981.41. This is right in the middle of where I projected our income to be in our post Dividend Growth Investing – Looking 30 years into the Future. I’m really happy about that so our goal in 2021 is to achieve the top of that 2021 8% dividend growth projection. $8,661.60 forward dividend income by year end. That would be an increase of $1,680.19.
It is a big goal for sure, but I’m hoping since the portfolio is larger the effect of the dividend raises and drips will be bigger. Also if the 2nd half of the year starts to rebound from covid, maybe these banks will come through with raises as well. I also hope for no dividend cuts in 2021, they hurt us in 2020.
Purchases – I plan on continuing to beef up our existing positions this year. There will be a little more emphasis on dividend growth rates and less on starting yields. As I’ve stated in a couple of my previous posts, it’s the high yield company’s that generally make the cuts. I got to aim for a good balance. Wide Moat stocks are a big plus as well. Some companies that I really want to start/grow our holdings in are
- Algonquin Power
- CNR (Looking for a dip!)
- Alimentation Couche-Tard
- Microsoft
- JNJ
- 3M
- TC Energy
- Waste Connections
- Lockheed Martin or General Dynamics
Conclusion
Well that’s a summary of our portfolio moves during 2020 and our goal to increase things in 2021. It was a great year and like I said before we were both shocked to see how much investing we actually did last year. By writing posts like these and even the monthly updates, it gives us an even clearer picture of how things are going. I highly suggest you track your own progress, it’s done wonders for us.
Now I want to end this by saying we are very fortunate to be where we are at. I think I started learning about finances 8 years ago, after I got sick of working so hard and not seeing any money in our bank accounts.
2020 has been a hard year for so many people and lots of people have little to no money in their accounts. I hope by reading the posts here and other bloggers, you get inspired, motivated, gain ideas and in general grow your financial education. I don’t post to brag or whatnot. Reading other financial blogs a while back, changed our life. They showed how easy it is to start earning a passive income and once you start getting passive income you get hooked. I honestly didn’t know much about finances before I saw people making money from dividend stocks!
I also want to thank all of you, the readers! 2020 was a great year on that front as well. Welcome to all the new followers on the social media platforms, and email subscriptions. By seeing the added followers and comments it really keeps me inspired and engaged. I want to learn more, do better and share what I learn with you all.
Here’s to a fantastic 2021, I wish you all the best. Stay Healthy, Stay Hungry and Most important go out there and live that life. We only got one!
cheers.
How was your 2020 results? Ever sit down and write it all down? Whats your goal for 2021 and what stocks do you plan to target?
Hey I’m Rob, creator of Passive Canadian Income.
In 2011 me and my wife had almost $60,000 in debt and a negative $7,000 Net Worth. Through hard work and financial education we paid all that off. Now we are focusing on increasing our Passive Income Streams to make the money work for us. Feel Free to Follow along the Journey by clicking the Social Media links below or subscribing to get notified of new posts on the sidebar.
Hey Rob looks like 2020 was great for you on the investing front. Lots of buys, I like what your doing with the US stocks. Wow so many drips for the year just fantastic stuff. I think you will definitely achieve your goal for 2021.
All the Best!
hey Matt
Thanks man, posts like this were definitely an eye opener. I would have never thought. Great for the wife to see too, puts it in a better perspective.
I like what your doing with your us stocks now too =)
cheers
Looks like you had a great 2020. Congrats on these buys. Will keep an eye on your 2021 goals and your progress.
Thanks Bob
Really amazing you invested so much in year 2020. Staying home really helps saving money, right? We also had very low expenses last year. And I am afraid the expenses will continue to be low this year as I didn’t see we can travel anywhere yet until the entire world being vacacinned. No eating out either. Unbelievable traveling and eating out cost so much in previous years.
I am a little bit scared by the current sky high market and am afraid will not be fully invested this year either although I really should. I know I should not time the market but sometimes just cannot help. Well, I have to be fully invested at the time to retire. In two years according to my plan. Will see what happens two years from now. I am pretty sure I will be ready to retire in two years. But maybe I will continue to work ten more years after that, who knows.
If it’s the case that one of me or my husband continue to work after we are ready to retire, I will try to spend more then. But I heard it’s difficult to change the habit for frugal people.
hey May
thanks alot. Yeah its kinda remarkable how little you spend when your not allowed out =)
I agree and think the market is overvalued, but who knows when it will drop. If biden locks down the US maybe then, but at the same time hes proposing another 2 trillion dollar stimulus. Also if student loans all the sudden do get forgiven (I’m completely against this, maybe offer 1.5% interest rates) alot more people may have money to fund the market…
I would be putting a portion of it in the market each month. I think you need about a 20-30% crash just to get back to where the market was last year before the march crash…
I really don’t keep much cash on hand for investing as you just never know. If a crash comes I’ll do my best to get hungrier and earn more income to put it in the market. I want that money working for us as soon as possible.
I hear you about that retirement predicament. It would be hard to get into that spending phase and seeing your investments drop, but it would be great to travel the world kid free!
Also I agree about not knowing if you will stop, right now I’m not working as I have to stay home with the kids for homeschooling. Its driving me crazy, sure its nice to be with the kids. But I don’t have that I accomplished something today feeling. I really enjoy working and I’m sure my body prefers it too!
I want that freedom to know, we have the choice to work permanently though. After that I’d probably do a mix of work and volunteer work. Food banks, Conservation work or something.
Wish you all the best May
Good luck in 2021!
Hey Rob,
Congrats on the success in a rather challenging year, and I like the names you have mentioned as purchases in 2021.
My forward projected dividends have taken a hit recently for two reasons: index ETF dividends were largely down in 2020 (and I record forward dividends for these based on trailing 12 month divs), and the sale of BPY.UN. I replaced it with TRP.TO on it’s recent weakness, as well as with KMP.UN, but neither of these paid the same dividends as BPY.UN (which, arguably was not doing so in a particularly sustainable way). As of now, having added to BIP.UN, my forward dividends have a ways to go to recover to the highs of November (before the index dividend write down).
I guess that just means I have room to be optimistic about surprise excess divs from these funds if things go better in 2021! Will definitely keep addition to funds like VTI, IEMG, XEF & HXS despite these not being dividend plays.
All the best for 2021!
John
hey John
Thanks! The bpy buyout hurt a lot of peoples portfolios from a income point of view, but as you stated how sustainable is that dividend in this environment. Like the additions of trp, killiam and bip. The cancellation of keystone is definitely not good for trp but also shows just how powerful those existing pipelines in place are. Growth for new pipes will be slow now..
I like the glass half full approach. I think that sometimes about companies that cut their dividend and I’m still holding. Hopefully they bump those div’s /distributions for us in 2021.
All the best John!
I will lose almost USD$2K investment income once BPY.UN is final. Still holding it and hope for a better offer. Fortunately I am not retired yet, and I am pretty even with the principals, so it has no real impact on me.
Yeah that’s going to be a big drop from just one stock, but the risk of their dividend being cut was growing every week in my opinion. In this world of lockdown’s you got to wonder about reits and office space moving forward. I have even thought of selling our riocan and bundling up into that rit etf. Will be keeping an eye on things.
Hey Rob,
Really great work with both the fresh capital invested and the reinvested divs. If you keep going at that rate, you’ll definitely be on track to hit all of your goals over the years to come.
My favourite part is that now you’ve established a $5k Emergency Fund. Nothing like having some idle cash on the sidelines to protect against the unforeseen.
Take care,
Ryan
hey Ryan
Thanks a lot. It would be incredible to keep up with that 8% dividend growth graph. Raises have been lower to start off the year, but they keep coming!
It really does feel good have a stack of cash to fall back on if we need it.
cheers man
2020 has thought us to be prepared for unforeseen consequences that can arise on financial front. That is why I have started to refer financial blogs especially portfolios to derive ideas on how people are planning their finances. I will be soon preparing by 2020 portfolio and setting targets for 2021.
hey Ramesh
For sure! I never once thought there would come a time when me and my wife both wouldn’t be working.
That’s an eye opener for sure. It feels great to keep a larger sum of $ in the account for unforeseen circumstances.
All the best in 2021 Ramesh!