A Quick Glance of Our 2020 TFSA Portfolio

Our goal is always to maximize the contribution limits of our TFSA beginning of each year. We aim to contribute the allowable limit first week of January.

Here are the TFSA contribution limits by year.

  • 2009 – $5,000
  • 2010 – $5,000
  • 2011 – $5,000
  • 2012 – $5,000
  • 2013 – $5,500
  • 2014 – $5,500
  • 2015 – $10,000
  • 2016 – $5,500
  • 2017 – $5,500
  • 2018 – $5,500
  • 2019 – $6,000
  • 2020 – $6,000

Total contribution room = $69,500 

In January of this year we started new positions to have some diversification in our portfolio. We only invest Canadian dividend stocks, REITs, and Income Trusts in our TFSA Portfolio. A year ago majority of our holdings are monthly dividend income payers. However, beginning this year we now have a good mix of quarterly and monthly paying dividends. As investors we continue to evolve and constantly improve our strategy.

On the contrary, unlike other investors we don’t participate in an investors program called dividend reinvestment plan (DRIP) as we prepare cash distribution to reinvest in undervalued equities in our holdings.

 

                                                            (Updated: October 3, 2020)

My spouse portfolio is almost identical to mine with a few exceptions to some new securities that she added in the last few months.

                                                    

                                                           (Updated: October 3, 2020)

You may also notice that we have not calculated the market value of our holdings. In my humble opinion, it is irrelevant as it changes all the time and as dividend investor our goal is to increase passive income over time by buying more shares and reinvesting all cash distributions we received.

However, you should still be able to calculate the market value by multiplying the quantity to the current market price/share and again I am not posting the current price/share as it is not constant.

Meanwhile, I will post an update on our holdings hopefully on a monthly basis reflecting the quantity of each of our equities.

Additionally, you can easily track down our TFSA monthly dividend income which I update every month.

Our ultimate goal is to live off our dividend income without harvesting its capital. Eventually, our pensions and social security benefits will be a huge bonus comes retirement age.

Note: Sadly, one of those holdings Inter Pipeline Ltd. (IPL) after over 11 years of consecutive dividend increase has announced a reduction of their dividend of 72% to  $0.04/share. The new declared dividend will be paid on May 15, 2020. We still believe that this a solid company overall but with the ongoing COVID 19 pandemic and oil price wars between Russia and Saudi Arabia, the North American energy sector has been badly hit.

As a current IPL shareholder, we are holding our shares for now and will reassess our plans in the next couple of months. As of today, we still continue to hold our IPL holdings in spite of them cutting their dividends.

In June we sold our holdings with Alaris Royalty Corporation (AD.TO) when they decided to pay their dividends quarterly instead of monthly and started positions with Parkland Corporation (PKI) and Choice Properties REIT (CHP.UN.TO).

Month of July, we decided to sell our positions with BTB.UN REIT when they decided to cut their dividends in April. In addition, we started to partner with Northland Power Incorporated (NPI.TO) which is a robust utility company and are considered essential during these times and Keyera Corporation (KEY.TO). Energy sector is slowly recovering and Keyera is a company with strong financial.

For the month of August, still we were not well diversified. Exchange Income Corporation (EIF) was one industry that I have so much weight on so decided to sell a few shares. Consequently, with the uncertainty of this COVID 19 pandemic and our economy we started new positions with technology sector Enghouse Systems Ltd (ENGH) and Open Text Corporation (OTEX). Obviously, with more people now are working from home these two are among Canada’s best performing dividend tech stocks.

Similarly, I added consumer defensive companies Loblaws (L), Metro Inc (MRU), Power Corporation of Canada (POW) and Algonquin Power and Utilities Corporation (AQN).

Some few additions to our TFSA portfolio for the month of September. My other half started positions with Canadian Tire Corporation Ltd (CTC.A) and Power Corporation of Canada (POW) and I added Keyera Corporation (KEY) and Pembina Pipeline Corporation (PPL). These two latter companies are in a business of natural gas and I don’t think people stop heating their homes in the next 10-20 years. Currently, these two energy companies are still available at a huge discount and regularly pay monthly dividends.

All things considered, we strongly believe that these companies we added has great potential moving forward.

Finally, our dividend income is not limited to our TFSA only but for the purposes of this post we are only tracking our TFSA dividend portfolio.

My Final Thoughts

Admittedly, as investors we made mistakes in the past focusing only on a few sectors. As a result, we are now trying to diversify our portfolio and have added sectors in financial services, REITs, utilities, industrials, basic materials, technology, telecom, consumer cyclical, and defensive.

In March, the stock market crashed due to the COVID 19 pandemic has possibly led us now into a looming recession. This has created chaos and panic leading to the sell off in the market.

However, if you are patient and a long term dividend investor this has created a great opportunity to partner the businesses of solid paying dividend growing companies at a fraction of its price.

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PPGal
6 months ago

I’m curious about taxation of REIT (eg. TNT.UN and BTB.UN) in TFSA. In every purchase, do you have to pay tax right away or at filing of income tax return? I also like REIT but I prefer an ETF REIT like ZRE.

Jun
Jun
1 month ago

Impressive!

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