Portfolio Cleanup – Cuts & Additions. 2 Less Holdings

Portfolio Cleanup

Portfolio Cleanup – Cuts & Additions


This month, I decided to do a little bit of house keeping and clean up the portfolio a bit. There were certain holdings I have had for a long time that I have always thought of tossing, but didn’t want to book a loss. This month I decided to take the loss and just move forward. Short term its unfortunate, but I feel in the long term it’s going to a better move/Portfolio.



First on the sale list is Extendicare. This was one of our original holdings from way back, and just like most of those it needed to be cut. I think I bought it because of its monthly high yield and lack of healthcare stocks in Canada. I liked the idea of long-term care, retirement living and home health care.

Then covid hit…. Outbreaks at homes like theirs blew up (exe did pretty good in this regard though) and then things started getting political… Why did extendicare get government funds for covid while it continued to pay dividends to its shareholders? At that time, I was worried of a dividend cut but it didn’t happen. Once covid has come to pass maybe we will be looking at these homes differently and question the systems in place..

I decided to take roughly a 20% loss (minus like 4 years of dividends) and move that cash into something else.

  • Sold 488 shares of exe & lost $232.00 in forward dividends from this sale.


Riocan – yup I did it. I sold our position in Riocan. I have said how much I like this company and how retail will be fine, as well as how they are diversifying into residential.. I drove through the outskirts of Toronto one day last week and saw a tonne of for lease signs on both retail and office.

Covid has been devastating to businesses and unfortunately Trudeau screwed our vaccinations big time! I think we will be lucky in Canada if things go back to normal by the end of the fall. You hear of companies just hanging on, how long can they last? I feel for them… It’s sad to say but I think there will be a lot of bankruptcies coming up.

There will be a lot of places for lease and the avg sq ft landlords will be able to get for office/retail may drop due to lack of demand and increase of available property’s to rent. You could even question if there will be less people starting their own businesses after this. We now know the govt can just shut the small businesses down while letting the large corporations get all the business. It’s an added risk that people will probably think of moving forward.

I do think Riocan is a great business and love their recent moves into residential. At the same time though Ed said the dividend was safe and then cut the dividend at the end of the year. There also is the fact that Ed has been the ceo of Riocan since the start and will be now retiring in March 2021. (he will still be a board member) How will Gitlin do taking the reins while in this environment?

At the end of the day I wanted to lower our office/retail exposure. We hold both riocan and smart centres but I feel the walmart anchor is just huge! Companies will always want to be around walmart, they just bring in so much traffic. So Riocan got the cut.

We locked in a 25% loss. (minus all the dividends over the years)

  • Sold 267 shares of Riocan losing $256.30 in dividend income

Bmo? Didn’t they just have that great earnings report? Yup! All the Canadian banks did and their stocks shot way up setting 52 week highs. Sweet! sell sell sell. Nothing against bmo, but I simply don’t need 4 different Canadian Bank holdings in the account. Both our bmo and National bank holdings are small. If you know me by now its all about getting those Drips!

I have been thinking about selling bmo for awhile, simply to focus on growing that national bank position and cutting one of our banks. This was the time.

Locked in a 30% gain plus all the years of dividends.

  • sold 31 shares of bmo & lost $135.68 in forward income.

Sales Summary

In total we cut 3 positions from our portfolio and lost $623.98 in forward income. Obviously I put that cash right back to work for us though!


Rit Etf

Since both Extendicare and Riocan paid monthly, I wanted to reinvest in a monthly paying stock/etf. Riocan sale was a big blow to our reit sector so I wanted to allocate that money into that sector. I recently started a position in RIT etf and think that’s a great spot to deploy the capital. I really like a reit etf as its so diversified and pays a solid yield.

While they hold some riocan its minor. The top 10 holdings are industrial and residential reits. So we moved the exe and riocan funds here. While I sold both stocks at a loss rit etf itself is down 17.16% from its 52 week high, so it makes the loss feel less drastic.

  • Bought 481 units of Rit Etf. This adds $390.94 to those forward dividends.
Tc Energy

Recently I did a post on the top 3 stocks I want to add to our portfolio at current prices. Tc Energy was one of them and was in the same account as bmo. So I just decided to move that money into Trp. Like I said before we will still need traditional energy for awhile and with a cold winter like the one we are having, this should bode well for natural gas pipelines. Plus that 7.5% dividend raise the other week continues to make me smile.

  • Purchased 57 shares of Trp  around 55$ adding $198.36 in forward income.
Lockheed Martin

As I said in the post above, Lockheed was my top target for February. It was tax time and I always try to maximize those contributions right before we file. This stock is cheap, offers a great starting yield, has good dividend growth and has over 100 billion dollars worth of backlog projects.

People think democrats will reduce govt spending on military. I think the opposite, I actually said they will be more active than trump was with the military. Here we are just over a month after Biden took office and missile’s are getting fired in Syria. Not to mention the growing worldwide tension with China accusing them of Genocide. You never want to see war or anything, but country’s will keep spending money on “defence”

  • We started a new position & bought 14 shares at around $338 per share. Adding $145.60 usd to those forward dividends.
Xaw Etf
  • We continued our monthly purchase of xaw etf 9 shares adds roughly 4 bucks.

Purchase Summary

We added to 3 positions and started a new one with lmt. All together these purchases added $738.90


After the portfolio cleanup and all these moves our portfolio will generate $114.92 more than it would before. I’m happy to cut our total positions down by 2 and beef up those existing ones. Something I have started to ask myself over the years is if any stock in the portfolio is down lets say more than 10% why would I not want to add to that position? If I don’t want to add when its in the red why do I own that stock?

BMO and Extendicare have always been on my mental chopping block for reasons I stated above. Riocan was just one I started questioning, wanted to lower our retail exposure and honestly enjoy the simplicity of Rit etf for most of our real estate exposure.

I love the look of our portfolio now but still question IBM, I’m asking the question I said above. I’m down on it and yet don’t want to add to them. (I’m hoping the new ceo can turn things around)

Who knows, things are always changing and I’m trying to improve and grow the portfolio as we go. What are your thoughts on these moves? Have you been buying anything these days? Finally seeing some red days again.


23 Responses

  1. jimmbboe says:

    Sorry to hear about the losses! Can you apply them against your gain or are they in a registered account? I got into LMT at about the same price. 🙂

    • Rob says:

      hey Jim

      They are both I my tfsa. It’s all good with the dividends over the years, profit from bmo and also buying rit etf cheaper it all works out.


  2. May says:

    Good job to clean up your portfolio. I need to clean up my portfolio too. I have sold some stocks with big loss recently. Hard to admit failures but it’s the right thing to get rid of dead money and buy good stocks. Still more clean up to do. I also have some REI.UN that I want to get rid of. As I still have some cash to deploy and also my REI.UN is under water now, I want to wait a bit. The yield is still decent.

    As I cannot decide between ENB and TRP, I bought both. Also bought quite a bit EMA and BCE. Too bad looks like market sell of is over today. I am debating now continue to buy or keep my dry powder and waiting for next correction.

    • Rob says:

      hey May

      thanks and same to you! Riocan has started its climb back up this month for sure.

      Nice buying both enbridge and tc. Emera and bce are nice pickups. (bce is one of the positions I’m down on and need to add too)

      Next purchase for us with current prices will probably be either algonquin or more couche-tard.

      Anything can change though. I’d keep putting the money to work slowly but surely..

      keep it up May!

  3. Vibrant Dreamer says:

    Good for you cleaning up. I have a lot of cleaning up to do but my case is a bit more complicated. Haha

    • Rob says:

      hey vibrant

      thanks, why is yours more complicated?

      • Vibrant Dreamer says:

        You are welcome. Well, I am going to compare apple and orange here! I am cleaning up Robo and GICs and move more and more on a weekly basis into WealthSimple Trading. I am basically buying a lot of stocks at this stage and made a kind of complicated Excel file to keep track. Shall see how it goes.

        • Rob says:

          Ahh yeah you were saying that.. Yup your rebalance/cleanup is a lot more complicated than ours. Good luck with the transition.

  4. Mich says:

    Hi Rob, I suggest you sell IBM. I work in tech and I don’t see how IBM can keep pace with the FAAMNG stocks. The competition will continue to erode their top line and that’s a risk to long-term dividend health. There are safer dividends out there. If you’re looking for a tech play with a dividend, then switch to MSFT. Total return will be better in a company that keeps pace with innovation.

    I agree with your REI-UN sell. Ed committed in public to keep the dividend, then cut it. That’s enough for me to lose trust in management. What I don’t understand is why you moved into RIT ETF. I see the benefit in a “couch potato” strategy, but if you’re already committing to individual stocks, then why not pick 1 or 2 decent REITs rather than settle for a basket.

    • Rob says:

      hey Mich

      Appreciate the thoughts on Ibm. That’s kind of what I’m thinking of doing..

      As for rit etf. Its been the best performing reit etf. I have had a couple reits that have succumbed to dividend cuts over the years and with their general lack of dividend growth, I just prefer an all in one approach. Set it and forget it kind of. Its full of great companies, pays a nice monthly dividend and will compound nicely. I would need a lot of capital to get something like canadian apartment reit to drip and then I would also need to pick a industrial play. It just makes our reit exposure, simpler and safer imo.

      Cheers Mich!

  5. May says:

    I already bought quite a bit of AQN and ATD.B too. Looks like we are buying the same stocks all the time. The other ones I added recently are TD, RY and IFC.

  6. Nice moves Rob. Not funny but funny, you sell EXE and it rises. Weird how that happens! See you next month

  7. Howard says:

    Hi Rob, just found your blog via a link on Dividend Earner’s newsletter. I recently did a bit of house cleaning. I bought CWB back in April at around $20 in hopes that it would recover faster than some of the big banks. It was also pushed lower than the big banks so I hoped to be able to trade it for a stock paying a higher dividend once it recovered. I sold it yesterday and moved that money to EMA, increasing my dividend income. I have avoided REITs all together as they generally have very low dividend growth. I have bought ETFs in the past, but found that they were too diluted and I really dislike paying fees. RIT charges a 0.87% MER and it’s top ten holdings comprise 90% of the fund. I used to own XFN which was a similar situation. I sold it and now own 3 stocks from its top ten. I look forward to reading your blog in the future and wish you luck on your investment journey.

    • Rob says:

      hey Howard.

      Great to hear and welcome!
      Sounds like you did very well with cwb, nice play! You are right Rit’s .87 fee is higher than most but their out performance makes up for it. I’m with you with the lack of dividend growth in reits, that’s why I just decided to put most of our reit exposure into this etf. With all the inflation coming I think its a good idea to have some exposure to reits in the portfolio. Sounds like your doing that with some of their top 10!

      All the best to you as well, thanks

  8. John says:

    Hey Rob,

    Like to see the cleanup, although I am bullish on BMO as they are starting to really do well in their US footprint. I’ve recently done a bit of a portfolio cleanup as well. I’ve held some fixed income for a number of years as a decreasing portion of the total portfolio. Nowadays with interest rates as they are, I see high quality fixed income as much as a source of liquidity and accessible emergency cash as a good investment. But i’ve also been holding a junk bond ETF, whose risk/reward tradeoffs don’t seem that attractive with interest rates falling. So that has been sold, with the money going back into BCE, TRP & POW: they may be somewhat riskier, but the dividends are more likely to grow over time.


    • Rob says:

      Hey John

      Only can have (well want) so many banks.. =)

      Sounds like a good move. bce is almost like a bond itself (with a growing div). trp and pow may give you more upside as well. With this market these days who knows what will happen though…

      cheers John

  9. DividendsOn says:

    Hi Rob,

    Regarding IBM, some advice from one of my dividend growth mentors, Edmund Faltermayer in the Autumn 1993 (yes you read the date right) edition of Fortune Magazine.

    Stocks A Retiree Can Stick With


    “Whoever thought that mighty IBM would wind up in this category? Among the stocks I own, it’s the only other one that has cut its ! dividend. It’s a technology stock I should never have bought in the first place, but when I got onboard in the late Seventies, the company’s invincibility made it a special case. I’m going to sell, but since IBM is now down to less than 1% of my present portfolio, I see no point in hurrying to exit. The time to get out is when investors first become optimistic that IBM is turning around, and my plans won’t change even if it restores the dividend. What matters is that IBM’s days of guaranteed growth are over.”

  10. Hey Rob,

    Has to feel nice to tidy up the portfolio.

    I’ve pretty much lost any faith in the word of management at RioCan. I bought my shares back in August 2009 and plan at this time to continue holding onto them, but their cut of the distribution was a huge letdown.

    I currently hold three Canadian banks and have considered adding more, but don’t really want to keep expanding out in that space, like you.

    Take care,

    • Rob says:

      hey Ryan

      Who knows right? We all take faith in what the ceo of a company says and then who knows what they are saying behind closed doors. It was a disappointment for sure.

      Yeah the banks makes sense, focus on beefing up these 3 banks now. No point having more in the same industry.
      cheers Ryan

  11. Christopher Howes says:

    TD,RY,BNS and BMO….the “Cash Castles” of Civilization…

Id love to Hear What You Think

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