Initial Value $24,947.30
March 21, 2012
Update Value $45,238.85
March 23, 2017
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.
Although some interest-sensitive stocks lost ground in the latest quarter, this portfolio still managed a gain of 7.1% during the period thanks to strong contributions from Premium Brands and Sun Life Financial. As of our fifth anniversary, we have a cumulative gain of 81.3%, which works out to an average annual compound rate of return of 12.64%. This is well in excess of our target.
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