RE:RE:RE:Portfolio question for allalparentqc wrote: I do agree that it depends of your age, but also your portfolio. If you have blue chips in general, then you don't really need to diversify as much. It also depend of your situation. Let's say you barely have the income to pay for your expenses, then you shouldn't take risk. If you have ample cash, your income (from investing, not salary because you will lose this income at retirement) is way over your expenses, then you may use some cash for risky investment. Dream isn't risky if you ask me. There's only the AFFO that may take a hit and maybe the dividend, but the share price has already priced the worst case scenario. Just don't invest in Dream as your Holy Grail for financial freedom if the dividend is barely above the income you need because the dividend may get cut. But let's say the dividend you would receive is about twice the income you need, then I wouldn't lose my sleep by investing in Dream.
All i'm saying is if you can stand the worst case scenario, then go ahead.
As for the personnal side, I'm a student, I'm 21 years old, I study business administration at HEC Montreal specialized in finance. Dream is currently my only stock. I own 1698 shares currently in my TFSA which gives me 316,96$ each month but I'm currently on the DRIP. I have 3500$ contribution room left, so after I max my TFSA with my summer job, i will use the remaining cash to pay back my line of credit, then I will open a margin account and invest on margin in dividend paying stocks and use the dividends to pay back the margin.
Just think about it, invest in Dream at 30:70 leverage ratio with today's price of 15,50$. You invest 10000$, you can borrow 23333$. It would give you about 2149 shares, which would give you 401,30$ each month and your interest charge would be 74,03$ if you take National Bank Direct Brokerage which has one of the lowest rate. Your net profit each month would be 327,28$ each month or 3927,36$ each year. About 39% yield on your net value. Yes it's risky but the yield is hard to pass by!
I'm doing this as well, I had opened up large lines of credit for the sole purpose of buying dividend paying stock. I mix in the debt with my own money & use the dividends to cover interest & put the rest on principal.