A Quick Glance of Our 2020 TFSA Portfolio

Our goal is always to max out the contribution limits of our TFSA at the beginning of each year.

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, 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: August 3, 2020)

My spouse portfolio is almost identical to mine with a few exceptions to some new securities that she added in early January. She has added sectors in REITs, utilities, industrials, basic materials, and consumer cyclical.

                                                    

                                                           (Updated: August 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 dividend income over time by adding more shares.

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

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.

Therefore, our short, mid, and long term target is to increase our passive income through dividends and reinvesting all cash distributions we received.

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 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. I 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).

For the 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. 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

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
3 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.

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