Initial Value $24,947.30
March 21, 2012
Update Value $44,440.08
September 14, 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.
The majority of our holdings lost ground in the latest period. Only Premium Brands posted a strong gain, up more than $20 a share. Morneau Shepell was ahead by a modest amount and we did slightly better than breakeven (including distributions) on The Keg and Chemtrade.
Overall, the total value of the portfolio fell by $798.77, or 1.8%. That gives us a cumulative gain of 78.1% in five and a half years, which works out to an average annual compound rate of return of 11.08%. Although this is down from our last review, it is still well in excess of our target.
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