Initial Value $41,000.00
December 18, 2016
Update Value $54,484.28
May 25, 2017
In May 2015, I created an income portfolio designed for Tax-Free Savings Accounts (TFSAs).This portfolio has a goal of generating cash flow of at least 5%. Income is the key to its success; any capital gains are a bonus. Note that because the securities chosen have above-average yields, risk is on the high side. So this is not a good model for very conservative investors.
I selected 10 securities from the Income Investor Recommended List. All are Canadian based so currency exchange is not a factor, except for the distributions from the limited partnerships, which are in U.S. dollars. I gave each security an initial weighting of approximately 10% for diversification and balance.
Comments: The value of the portfolio (market price plus retained earnings) increased by $1,897.80, or 3.6%, during the latest six-month period. Scotiabank registered the biggest gain, and we also had good results from Dream Global REIT, BCE, and Brookfield Infrastructure Partnership. TransAlta Renewables posted the biggest loss.
Since it was launched two and a half years ago, the portfolio has posted a gain of 32.9%. On an annualized basis, that works out to just over 12%. Cash flow during the latest period was $1,331.10, for a six-month yield of 2.53%. That is right on target in terms of our 5% annual objective.
tii1722 | TII1710 | TII1624
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