Initial Value $24,947.30
March 21, 2012
Update Value $47,238.24
September 13, 2018
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 had a lot of ups and downs in the latest period. We scored nice gains with CIBC, Enbridge, Pembina Pipeline, and Morneau Shepell. But they were offset by losses in Premium Brands, Pizza Pizza, and Sun Life. The net result was only a small gain in the market value of the portfolio.
However, the dividends/distributions continued to be strong, with no cuts and several increases. As a result, our overall gain for the period was a respectable 2.9%. Since inception six and a half years ago, we are ahead 89.4%. That works out to a compound annual return of 10.3%, well ahead of target.
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