Initial Value $24,947.30
March 21, 2012
Update Value $42,229.74
September 23, 2016
The goal of the portfolio is to provide above-average cash flow. It is best suited to non-registered accounts for three reasons. First, registered plans like RRIFs and RRSPs should not be exposed to as much risk as you’ll find here. Second, any capital losses in a non-registered account can be deducted from taxable capital gains. Third, a high percentage of the payments from this portfolio will receive favourable tax treatment in a non-registered account. We have a target average annual rate of return of 7% to 8% annually.
We enjoyed another strong six-month period, with the portfolio gaining 11.8%, including dividends. Since inception four and a half years ago, we have a total return of 61.8%. That works out to an average annual compound rate of return of 12.4%, which continues to exceed our target by a wide margin. This won’t go on forever; the share prices are likely to retreat when interest rates rise. So let’s enjoy it while we can.
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