Hey everybody
It’s time to sit down down and look over what occurred in our portfolio in 2023. We had an awesome yr however there’s nonetheless room for enchancment. I nonetheless chase worth at instances vs high quality and want to get our dividend progress will increase up. However this can be a long run recreation and fortunate for us there’s numerous time to make issues higher.
New Capital
Together with drips we put $43,460.72 of capital into the market. That’s a tonne of cash, no query. Particularly contemplating mixed we in all probability make round 160k earlier than taxes. (not together with passive earnings – all tax free or tax deferred)
Residing in Ontario Canada we might lose roughly $47,192 bucks of that earnings to taxes alone. (with out factoring rrsp contributions, donations and so on) So we might have roughly $112,808 to stay on with a household of 4. We additionally introduced in $24,294 in passive earnings final yr (tax free or deferred), so we had roughly $137,102 to stay and make investments with.
General our financial savings fee was round 31.69% Fairly insane whenever you do the maths and see all of it on paper.
We see all these information articles that you just want an earnings of like 90k to stay solo within the gta however for those who handle your cash proper I disagree. It actually helps with a 2 earnings family although. Housing is a serious problem in Canada..
I believe we stay our life fairly good. Occurring holidays twice a yr, wonderland season passes and tonnes of tenting. Our children are in sports activities and ones in rep. (which positively ain’t low cost) They attend after college care which provides up as effectively.
So we’re positively spending cash however I can inform ya a pair issues we don’t try this save us a tonne of cash that lots of people do.
Automobile funds – The stats are in and funds are completely insane. In response to the Globe and Mail in July 2023 the common new automobile cost for Canadians was $880 monthly, with 30% of patrons paying over 1,000 a month. That is in my view one of many largest wastes of cash folks make.
That may be a tonne of cash and its a 2023 stat, what would it not be immediately? Our automobiles are paid for and each are 2013 fashions, rocking over 200k on every. Primarily based on these numbers if we each had new automobiles we might be throwing away over $1,700 a month or 20 thousand 4 hundred a yr on funds….. to not point out increased insurance coverage charges.. I’ll say it once more $20,400! wtf. That’s 3 wonderful household holidays..
Uber Eats – Clearly there’s demand for these things however the markup is astronomical. Each time I am going to a quick meals place there’s numerous folks choosing up uber eats and so on. I’ve finished it the odd time, largely whereas having a bunch of drinks. 2 schwarma’s that needs to be like 25 bucks could be over 50 bucks with tip.. So that you get that hangover and that monetary hangover… dammmm! haha Do it as soon as in awhile however don’t make it a behavior.
Clearly there’s numerous minor issues we do like make our personal espresso and so on however this stuff stand out to me as main wastes of cash. All of us worth sure issues in another way however I believe all of us have to be trustworthy with ourselves with stuff we spend an excessive amount of cash on.. Mine could also be fish =)
The unique rich barber ebook nonetheless gave me a very powerful information I’ve ever study t about investing – pay your self first. Get into this behavior and your life-style will “gel” round it.
2023 Portfolio Strikes
We made 2 gross sales in 2023.
We bought our small place of 27 shares of stanley black and decker for a small revenue after realizing it wasn’t a place I actually wished to continue to grow.
We additionally bought 8 shares of microsoft when it hit like 370 a share and made up over 8% of the portfolio. Clearly the inventory has saved working however we put these proceeds at house depot underneath 300 and its finished fairly effectively too. Possibly its only a reminder to only let your winners run however the commerce has labored out both method.
All of the proceeds from these gross sales have been put again into the market.
Purchases in 2023
- 7 Microsoft
- 53 bep
- 23 bce
- 80 td
- 10 txn
- 25 Nutrien
- 58 couchetard
- 208 telus
- 19 hd
- 31 bam
- 12 nationwide financial institution
- 3 lmt
- 9 cnr
- 46 costco cdr
- 280 allied property reit
- 26 bam
We bought a good mixture of progress and earnings. Shifting ahead I’d wish to get extra progress within the portfolio. Decrease beginning yields however increased dividend progress and inventory value appreciation = increased complete return
Drips In 2023
- bce – 10
- aecon – 39
- tc power – 8
- cisco – 3
- telus – 4
- xaw etf – 4
- aqn – 60
- td – 2
- common mills – 3
- suncor – 14
- bep – 10
- fortis – 6
- enbridge – 15
In complete our drips added $4,660.51 of worth to the portfolio at time of buy. I’m an enormous fan of the drip program because it buys stuff irrespective of the value if in case you have sufficient cash for shares. This could be a enormous profit when shares are down. Aecon stands out right here. I used to be actually debating rising our place at 8 or 9 bucks a share however couldn’t pull the set off, right here we’re north of $14.50. I’m glad the drips averaged our value prices down.
Dividend Raises
| Inventory and Amount | Account | Dividend | Annual Revenue | Dividend Increase | Added Revenue From Increase |
| 917 Algonquin Energy | TFSA | JAJO | $397.98 | -40% | -247.84 |
| 669 Aecon | TFSA – 2 | JAJO | $495.06 | ||
| 228 Alimentation Couche-Tard | RESP | MJSD | $159.60 | 25.00% | 29.54 |
| 57 Brookfield Asset Administration | Tfsa | MJSD | $72.96 | ||
| 202 BCE | RESP | JAJO | $781.74 | 5.20% | 32.11 |
| 118 Canadian Nationwide Railroad | RESP | MJSD | $372.88 | 7.80% | 25.07 |
| 46 Costco CDR | TFSA | FMAN | $8.80 | 25% | |
| 325 Enbridge | TFSA/ RESP | MJSD | $1,189.50 | 3.1 % | 35.2 |
| 238 Fortis | RESP | MJSD | $561.68 | 4.40 % | 23.6 |
| 13 Nationwide Financial institution | TFSA | FMAN | $53.04 | 3.90% | 2.08 |
| 73 Nutrien | TFSA | JAJO | $154.76 | 10.40% | 15.36 |
| 435 Suncor | TFSA – 2 | MJSD | $948.30 | 4.80% | 43 |
| 216 Telus | Tfsa | JAJO | $324.95 | 7.1 % | 6.2872 |
| 127 Td Financial institution | TFSA – 2 | JAJO | $518.16 | 6.3 % | 30.48 |
| 188 Tc Vitality | TFSA | JAJO | $699.36 | 3.30% | 21.24 |
| 344 Brookfield Renewable Companions | TFSA | MJSD | $464.40 | 5.50% | 19.39 |
| 282 Allied Property Reit | TFSA | Month-to-month | $507.60 | 2.90 % | n/a |
| 299 Xaw.to ETF | RRSP | JJ | $194.37 | 17.55% | 5.48 |
| 70 Abbvie | RRSP | FMAN | $434.00 | 4.70% | 19.6 |
| 46 Air Merchandise & Chemical substances | RRSP | FMAN | $322.00 | 8.00% | 23.92 |
| 145 Cisco Techniques | RRSP | JAJO | $226.20 | 2.63% | 5.68 |
| 61 Disney | RRSP | $18.30 | Reinstaded | 18.3 | |
| 149 Normal Mills | RRSP | FMAN | $351.64 | 9.30% | 29.41 |
| 29 Residence Depot | RRSP | MJSD | $242.44 | 10% | 7.61 |
| 67 JNJ | RRSP | MJSD | $318.92 | 5.30% | 16.08 |
| 25 LMT | RRSP | MJSD | $300.00 | 5.00% | 15 |
| 41 Microsoft | RRSP | MJSD | $123.00 | 10.00% | 11.48 |
| 34 Proctor & Gamble | RRSP | FMAN | $127.94 | 3% | 3.7252 |
| 36 Texas Devices | RRSP | FMAN | $187.20 | 4.80 % | 8.64 |
| Whole |
Whole Added Revenue From Raises |
||||
| $10,556.77 | 200.4424 |
Brookfield Asset Administration and Aecon have been the one 2 shares we maintain that didn’t announce a dividend increase in 2023. Though Bam was principally restructured in order that one will get a move. Right here’s hoping Aecon declares a increase this yr as their earnings develop now that the pandemic jobs end. (Their costs skyrocketed on jobs they already quoted)
Algonquin is the one one which introduced a reduce in 2023. Lets be trustworthy aqn, had buyers up in opposition to the ropes and threw all the pieces they might at us.. uppercut jab jab… This continues to be the one inventory I debate chopping from the portfolio however surprise if this yr could be the time they Bob Seger – Flip the web page. Time will inform however they higher hold these water property.
General the dividend raises have been fairly low at over 200 bucks on a 10k portfolio however with out that reduce would of been higher at roughly 4.5% common. Couchetard comes out victorious as soon as once more with the most important improve of 25%. That’s an enormous cause we added a lot to them as soon as once more. Gotta at all times be rewarding these massive raises with extra of our cash.
Wrapping up
The portfolio had an excellent yr however underneath carried out the market with a 5.51% return in 2023. A number of rate of interest delicate shares in right here and we solely maintain one of many magnificient 7 shares. However on the finish of 2022 we had a ahead dividend earnings of $8,350.93. December thirty first 2023 we had ahead dividend earnings of $10,551.29. A rise of $2,200.36 yr over yr. The maths is Mathing as Braden Dennis from the Canadian Investor podcast would say.
Im completely satisfied to place all of it down on paper and see the numbers extra clearly. Shifting ahead in 2024 I plan on growing our low yield excessive progress positions and getting that total dividend progress % up. I additionally plan on growing our monetary sector as its our 2nd lowest sector when it comes to portfolio allocation forward of reits which I don’t essentially take care of. (low progress and div progress)
Properly there ya have it, one other yr within the books and we’re already 8% into 2024. Time is flying. What are your ideas? What might we be doing higher and the way did you do final yr total?
cheers!
Hey I’m Rob, creator of Passive Canadian Revenue.
In 2011 me and my spouse had virtually $60,000 in debt and a destructive $7,000 Internet Price. Via exhausting work and monetary schooling we paid all that off. Now we’re specializing in growing our Passive Revenue Streams to make the cash work for us. Really feel Free to Observe alongside the Journey by clicking the Social Media hyperlinks beneath or subscribing to get notified of recent posts on the sidebar.
