SargeX wrote: Hey Karl
Thanks for the really nice comments and great questions. This AQN board has to be one of the best on stockhouse. Everyone seems so polite (or maybe I just have all the impolite posters on ignore :-)
1-2. TSX listed/diversification, cash - we are 100% invested in TSX listed companies in the 5 sectors - banks, utils, midstream, telecom, and REITs. No fixed income/GICs/etc. We usually try and have $20k in cash but don't worry if it drops lower as we get such regular dividends. We don;t worry about geographic diversificaton as many of our holdings have international exposure.
I don;t actually consider it having all our eggs in one basket as we do own 16 stocks and 1 ETF. I'm pretty amazed at how many people only have 1-3 stocks.
We had a bad experience with O&G producers and that helped formulate our investment strategy to avoid anything directly related to a commodity. We then extended that to high tech, consumer related, pot, crypto, etc.
3. low yield/high growth - we actually have a rule that are minimum yield is 3% (other than a bank possilby dipping that low - which hasn't happened yet). We've found that selling a holding that's dropped below 3% and re-allocating that to our existing holdings has given a significant bump in dividend income. A good example was selling all our GRT.UN at the start of the year. It led to an increase of $2800 in annual dividend income.
4. REITs - Over the last couple years, I've really cooled on REITs. We used to typically hold between 6-10 up until 2019 and now only have 2. We've done really well with them collecting lots of divys and had some really big capital gains with take-overs and our timely GRT sell.
I totally expect a divy cut for NWH and hopefully it and AQN are only 2.
Let me know if you have any other questions and all the best on the investing front
Sarge
Karl63 wrote: Hello Sarge, I read your post with great interest, and I think it's terrific that you share your experience.
I note that your investments are in the Canadian sectors of Financial (banks), Telecoms, Energy, Utilities and some REITS. I presume that, like me, the big draw is that they pay good dividends, something we all need in retirement. May I ask . . .
1. That portfolio doesn't appear diversified, either geographically or by all sectors or even cap sizes. Have you ever found this limiting in any way? Have you been uncomfortable having "all your eggs in one basket"?. (As an aside, most of my monies are also in Canadian investments, but I do have an S&P 500 ETF)
2. Have you been fully invested, or have you access to cash or short term gics? If you keep cash, what percentage do you keep?
3. Have you ever been inclined to invest in more growth-centric stocks, for example the industrials of CN and CP? Of course they pay a small dividend, but growth over a longer period is substantial.
4. I've never been a big fan of reits, but at one time many years ago, I bought NWH.UN, sold a while later since I thought they couldn't maintain their larger 8% dividend. But they always did; I see that it's price has been coming down - is that reflecting concern about a dividend cut, as you've suggested? Is there a realistic price where you would consider adding more?
You're very generous with your time, and I greatly appreciate your efforts, thanks, Karl