2021 Portfolio Activity Summary & 2022 Target – Let’s Go!

2021 Portfolio Activity

2021 Portfolio Activity Summary & 2022 Target

Hey everyone

And just like that we start to wrap up another year. The end of 2021. Time fly’s that’s for sure. While we did a lot of camping and went to Mexico, I think its safe to say this is a year we all want to move on from. Here in Ontario we were in lock downs for about half the year and here we are in the same discussion. Things are a lot better and hospitalizations are way down. The narrative seems to be changing, is the end actually near? Unfortunately my previous year end posts have this same conversation..

On the plus side, 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 really good for the markets if we look back on the previous couple years.

We continued to perfect our portfolio throughout the year. Its definitely looking a lot better. When I was first starting investing I was drawn to monthly paying companies. Got to love getting paid every month right? compounding should really blow up, dividends will be even across months. I think this is a very common approach for new dividend investors. ( based on questions on forums etc)

Throughout the years I’ve realized that seems to be a bad idea. They tend to not be as good for dividend growth and I’ve personally had more dividend cuts from these payers vs quarterly. Most of them got the cut this year to focus on higher quality companies.

Stock Sales in 2021

Number of Shares & CompanyTotal Capital Received
287 Brookfield Property6,180.64
488 Extendicare3,113.25
32 BMO3,199.97
267 Riocan4,775.69
208 Interpipeline4,177.09
124 Transcontinental2,418.22
28 IBM3,545.26
27410.12

Brookfield Asset Management was the main reason we sold both IPL and BPY. They bought them out and when the price was right we sold our positions. Why don’t I own BAM yet?

Riocan cut their dividend and I also wanted to distance myself from the office space.

Extendicare seemed like a political nightmare during covid and with a stagnant dividend it was time to move on.

IBM I kept waiting for a turn around and watching the stock price erode. Eventually I sold and moved that $ to microsoft, no regrets.

Transcontinental – Another stagnant dividend as they try to tread water during covid. At the end of the day I didn’t see us adding to this position and that sometimes says enough.

BMO – The one I’ll hear about. They have been on a tear since our sale. I wanted to cut our Canadian banks down to 3 positions and sold bmo. Looking back it wasn’t the right one to sell out, but what can you do. I put this capital into National Bank and its done well too.

The proceeds from these sales was basically instantly reinvested back into the portfolio.

US Stock Purchases

Amount of Shares & StockCost
32 Lockheed Martin10,900.54
7 Microsoft1,740.27
12640.81

In total we invested $12,640.81 in usd if we convert that to Canadian dollars at today’s exchange rate we invested $16,160.64 in American Stocks during 2021. Only 2 companies were purchased. I still think Lockheed is a great buy although it has been running as of late. Its now our 2nd largest position in the portfolio. Id love to continue growing our Microsoft position. Its definitely not a value play but if we look to the future tech will only play a bigger and bigger part of our daily lives.

Canadian Stock Purchases

Amount & CompanyValue at Purchase
950 Rit Etf15,636.07
68 Couche-Tard2,702.57
60 TC Energy3,373.78
40 Smart Centers1,133.95
178 Algonquin Power3,436.40
66 Bell Canada4,222.12
19 CNR2,573.81
22 National Bank2,026.91
178 Manulife Financial4314.34
233 Suncor6,795.5
81 Xaw ETF2,750.33
46,215.45

 

In total we deposited $48,965.78 into our Canadian accounts in 2021. That’s crazy to see! The focus has been to max those tfsa’s though, hopefully next year. Out of all these purchases Manulife is the only one slightly under water. I think 1%. Rising interest rates should be good for insurance stocks though.

If we add those US stocks we invested $65,126.42 Canadian. Of course we need to take away that $27,410 of stock we sold and redeployed into other stocks though.

In total we invested $37,716.42 in 2021. Once again its crazy to sit back and do the math and see the real numbers. I feel like we took more time off this year for trips and yet we invested basically the same as last year. It’s become such a habit to pay ourselves first, that you barely even notice. Very cool.




2021 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.

StockShares DrippedAdded Income
Rit Etf2822.68
Enbridge1655.04
Algonquin Power1512.75
Telus1215.72
Canadian Utilities915.84
Smart Centers712.95
Extendicare64.32
Bell Canada517.5
Bank of Nova Scotia416
Brookfield Renewable46.2
General Mills48.16
Tc Energy413.92
Td Bank414.24
Transcontinental43.60
Manulife33.36
Riocan21.92
Suncor23.36
Xaw etf2.88
Cisco11.48
Totals130229.92

In 2021 we dripped an additional 130 stocks into our portfolio. All those drips added $229.92 to that forward dividend income. Set it and forget it!

2021 Dividend Raises

This was the best year for dividend raises since we started investing. There were 0 cuts. (well riocan did, so we sold)

Rit ETF, Disney, General Mills, Smart Centers and xaw etf were the only ones who didn’t announce a raise in 2021. (Although I think xaw is going to announce a nice bump next payment, not official though)

Disney I cant blame, covid is a nightmare for them. I have actually thought of buying more of them atm. General mills seems a little spotty but I like the move towards pets and will continue to hold. Smart is another one navigating covid. Rit stands out. It has done great from a capital prospective but if I want that to be my main reit play Id love to see some payout growth as well.

The dividend Raises were a big contributor to our year end forward income bringing in an additional $556.29

 

2021

At the start of 2021 we had a forward dividend income of $6,981.41 as we close up 2021 we now have a forward income of $8,714.19. An increase of $1,732.72 or 24.81% slightly above our 8% dividend growth target for 2021 in our post – Looking into the Future.

The 24% increase was the combination of new capital, drips and dividend raises. The trifecta that makes dividend growth investing so great.

2022 Financial Goals

Dividend Target – If we look at my projections for dividend income. Dividend Growth Investing – Looking 30 years into the Future. 2022 should end the year with a forward income of $10,434.32

I’m planning on blowing that number completely out of the window. In a previous post last month I talked about refinancing our house at these low rates and using some more equity to max out some of our accounts and really get the snowball moving. We still haven’t met with the bank but I don’t see this being an issue.

I want to start this asap so we can throw a lot of funds to our rrsp and get a size-able tax return.

We currently bring in about $17,000 a year from passive income. My goal is by the end of 2022 is to bring that to $31,000. We will put another 50k into our private investment that will bring an additional 6k a year. The solar and private investment will bring in $14,500 and the rest should be dividends. Yes I plan on growing our forward dividend income to $16,500 by year end.

I’m targeting a 3% average starting yield in the rrsp and 4% in our tfsa’s on new investment. With this much cash to deploy the plan is to put 5-10k to work a week. I don’t plan on lump summing it all, right off the bat.

2022 Purchases

I plan on really stepping up our tech holdings and balancing those low yields with some higher ones. These are some stocks I’m really planning on starting positions in, or seriously beefing up.

  • Couche-Tard
  • Microsoft
  • 3m
  • JNJ
  • Amazon?
  • CNR
  • National Bank
  • Proctor & Gamble – Please dip in price!
  • Telus
  • Air Products & Chemicals
  • Suncor
  • Philip Morris
  • Nutrien
  • Fortis

Conclusion

2021 was a fantastic year on the financial front. It amazes me to see our dividend growth increase by over 24% during the year. Of course nothing is guaranteed and things can change in a instant. 2022 should be another great year, I’m hoping we see a meaningful pullback before this deal go’s through. But who knows these days.

The only thing we can really be certain about is taxes are going to go up, carbon taxes will increase once again in Canada and things will most likely keep getting more expensive. We need to do our best to increase our incomes be it working income or passive income streams.

How was your 2021? Whats your goal for 2022 and what stocks do you plan to target?

Wish you all a wonderful new years. Have fun, if you drink don’t drive

cheers!

 

 

10 Responses

  1. James B. says:

    Congrats on the awesome year. BAM is my largest holding and one of my best performing. Even if the dividend is tiny…it really performs. Same with MSFT…both have been really worth it for me.

    • Rob says:

      hey James thanks

      Yeah bam should of made my list. always want to work on my sector diversification so we will see.

      Microsoft has been an absolute beast!
      cheers James

  2. Hey Rob,

    Looks like you got a lot of great repositioning done in the portfolio this year. RioCan was the second company I ever purchased and so it holds a sentimental place for me, but I haven’t been impressed with how they’ve been managing their distributions since I picked them up in 2009. Still a high-yielder for me based on my purchase price, but underwhelming overall.
    Like you, I’ve grown to value dividend growth over initial high-yield. The total return tends to work out much better.
    All said, you’re well-positioned for 2022 and beyond.

    Take care,
    Ryan

    • Rob says:

      thanks Ryan

      Hopefully riocans residential contruction portfolio comes online soon and pops things up a bit. I know they had a couple projects on the go when I held them, but havent followed them much lately.

      should be a interesting year.
      cheers
      Ryan

  3. Brian says:

    This is absolutely awesome. Great year and looking forward to your future!

  4. SD Growth says:

    Wow you definitely deserved a moment to sit back and appreciate what you accomplished in 2021. Between capital deployed and dividend growth it was an impressive year indeed.

    • Rob says:

      thx SD

      slowly but surely it grows but the power of dividend growth really propelled things in the latter half of the year.
      have a fantastic 2022

  5. Norm says:

    Hey Rob, happy new year to you! Another fantastic year for yourself and the family. Your 2022 forward dividend income goal is awesome, shoot for the stars man!

    –Portfolio cleanup… I’ve commented before your moves this year were beneficial and the portfolio does look more efficient and higher performing now, keep that up!

    –BMO sale….. no words can describe this 🙁

    –REITs… I personally hold ZRE but don’t know many that do. Picked up 345 shares in Jan 2014, have grown that amount over time, brought in over $18K in lifetime dividends/distributions, and dripped a lot of new shares along the way. It has a high MER (by far the highest in my portfolio), but for a well balanced ETF it feels like a bond that has consistent capital growth.

    –Congrats on the 130 drips, the trifecta is real!

    –Leverage the house? Yes you absolutely should! You’re journey has proven you guys are very financially responsible now, so why not take advantage of and exploit that? Start small and grow the leverage. Almost $38K newly invested last year was huge!

    We had a great 2021 as well, didn’t quite hit the dividends received goal but it was a lofty one. Next year’s goal will be even loftier! 😉

    • Rob says:

      Next year’s goal will be even loftier!
      Love it, Set em high and if you miss at least you swung hard.

      Thanks for the comments, I have looked at zre but think it was basically the same as rit. Would be great to see one reit etf with dividend growth. But i share the same views as you about this etf. Nice bundle of reits, that I dont really need to watch.

      Always like hearing people share the same views about leveraging the house, it definitely has risks and may not be the most conservative play. Maybe its even frowned upon amongst the financial community as everyone gears on being debt free etc etc In these low interest rates I think it only makes sense, to take advantage though.

      Glad to hear you had a great 2021, 2022 is off to another horrible start with more lockdowns but I guess its just like the previous years.
      cheers Norm

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