In Budget Roundups, Money

April 2020: The Investments Budget Roundup

General Investment Strategy

My strategy is to have 50/50 as in:

50% of my portfolio in index mutual funds
50% of my portfolio in dividend-paying stocks

The ultimate goal is that my portfolio for dividend paying stocks will yield $12,000 at a minimum in dividend income each year, up to $50,000.

I am also playing the other side by having money invested in index mutual funds, and letting them grow slowly and appreciate. They too, pay out dividends at about 1.24% so it isn’t zero, just not as fast.

Time for some dividend stock snap-ups

Not buying index mutual funds right now

Yes I can buy index mutual funds, but really, I am buying individual companies that are depressed and will eventually come up because… they’re SOLID companies, it is just a blip right now in the grand scheme of years.

Divested of oil early on before the crash off the cliff

I was lucky in that I divested in oil index funds (I was fed up with the whole situation), and finally cut 90% of my holdings loose, and redirected the money into index funds and individual stocks.

I was holding XEG.TO for those of you interested.

Not investing all of my savings

My side income to recap, was pretty good this month, good enough so that it covered my living expenses and left me with over $5700 in savings (82.64% savings rate).

Still preserving/building up my emergency fund

I still have to run a business and live for the next 2 years, MINIMUM, so I am leaving my emergency fund in place, and slowly saving my side income to replenish it.

What I am using to buy these stocks, are the dividends from other stocks that paid out this month.

Redirecting dividends and lending to other dividend stocks

I stopped the DRIP on all of my dividends and am now redirecting the cash into buying other stocks; this will help diversify my holdings. Yes, I am paying trading fees but ultimately, some of these stocks I want to stop re-investing in and start spreading the love, so to speak.

Dividends = $1154.18 + Lending Income = $230.23 = $1384.41 invested into new companies:

Snapped up the following stocks

  • ADW-A – Andrew Peller Wine with 2.28% dividend yield
  • NFI – New Flyer Industries with 5.34% dividend yield
  • GIB.A – CGI with no dividend yield but a solid stock to own
  • ENB – Enbridge with a 7.6% dividend yield
  • INE – Innergex Renewable Energy with 3.85% dividend yield
  • T – Telus with 5.12% dividend yield

I will keep buying this roster and maybe a few more as I reinvest my dividends from other shares and from private lending

Why I like each of them:

  • ADW-A – Andrew Peller Wine = Lots of people drinking, wine is unlikely to go out of style or fashion
  • NFI – New Flyer Industries = Took a hit lately because of public transportation but that will come back soon enough, just have to be patient
  • GIB.A – CGI = Solid technology consulting company
  • ENB – Enbridge = Oil & gas distribution but more importantly, a growing renewable energy section which is interesting as a branch-off; like the best of both worlds in this transitional period
  • INE – Innergex Renewable Energy = Renewable energy!!!
  • T – Telus with 5.12% dividend yield = Telecommunications

Other dividend stocks I am looking at included banks, but I am so heavily invested in them, I am loathe to put more in.

FYI my investments are all here:

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Sherry of Save. Spend. Splurge.

Am my own Sugar Daddy. Am a millionaire at 36 after getting out of $60K of student debt in 18 months, a little over a decade earlier, using I have worked 50% of my career (taking 1-2 year breaks), and quadrupled my income within 2 years of graduating, going from $65K to $260K with an average lifetime savings rate of 50%. I have 11 side incomes that are on track in 2020 to make me $50K - $75K. I could retire today if I wanted, but love my work-life balance as a freelancing consultant in STEM (Science, Technology, Engineering, Math). I am all about balance - between time and money, and also enjoying my money. I also post daily on Instagram @saverspender.

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  1. Noob

    Which accounts (tfsa, nonregistered, etc) do you put your index funds and individual stocks in?

    1. Sherry of Save. Spend. Splurge.

      RRSP = index funds, U.S. index funds
      TFSA = individual stocks
      Margin = Individual stocks

      It generally breaks down like that. Some anomalies, but that’s where my money goes.

  2. Susan

    What are dividend stocks that you invested in? How do you predict they will yield $12k cash every year?

    1. Sherry of Save. Spend. Splurge.

      These are all the ones I have been researching and looking at, and I go to the company page prospectus to get actual dividend payouts by year by stock, and multiply it out to what the yield is based on how many stocks I own, and that’s my income.

      I have to update my sheet for the yield, I think it went up a little.


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