For those of you just joining us, below is my portfolio that is leveraged with money borrowed from my home equity line of credit (HELOC). As the money borrowed is used to invest, the interest charged is tax deductible. I write an update every so often to show new positions added along with any market gains/losses. For more details on the strategy and procedure, check out my modified smith manoeuvre strategy and my comparison of online stock brokers.
As a common theme among my portfolios across all accounts, there has been very little buying as of late as most strong dividend stocks seem fully valued and in some cases over valued. I typically only buy when I notice that a security is selling at prices that are attractive (when to buy dividend stocks). Even with current valuations, I noticed that some of the oil and gas operators were being sold off and potentially etching out a bottoming formation. I’m a long term oil bull, so I picked up some more Husky Energy (HSE) for this portfolio and some Exxon Mobil (XOM) for another.
My dividend watch list hasn’t changed since my last report. I am looking to increase my position in T.BMO, T.TD, T.ENB, T.FCR and new positions in T.CNR and T.L when their valuations become attractive.
The Portfolio as of April 2010:
|Stock||Symbol||Shares||Avg Buy Price||Total||Div/Share||Yield|
|AGF Management Limited||AGF.B.T||50||$22.71||$1,135.49||$1.00||4.40%|
|Bank of Montreal||BMO.T||25||$44.17||$1,104.24||$2.80||6.34%|
|First Capital Realty||FCR.T||100||$15.75||$1,574.99||$1.28||8.13%|
- Total Cost Base of Equities (inc. fees): $41,161.94
- Market Value of Equities (April 1, 2010): $45,414
- Total Dividends / Year: $1,774.10
- Portfolio Dividend Yield: 4.31%
Sector Allocation (based on market value)
- Financials: 56.05%
- Utilities: 17.46%
- Energy: 21.62%
- Resources: 0.00%
- Real Estate: 4.87%
- Other: 0.00%
In my last SM portfolio update in late 2009, the portfolio just about broke even. With the market rally continuing its upward trend, my portfolio is finally showing a profit.
With regards to sector allocation, you may notice that this portfolio is fairly concentrated in financials. Note though that this is one of my accounts where I treat all of my accounts as one big portfolio. In other words, my international and other sector equity exposure are in other accounts.
Leveraged Investing Disclaimer: There have been a lot of readers who have mentioned that they are interested in a leveraged portfolio. Over the long term it may be lucrative. However, over the short term, equities are volatile and can put the portfolio deep in the red. My portfolio over 2008 is a prime example of what can happen. If you can’t stomach losing 20-30% in the portfolio in any given year, then your risk tolerance isn’t suited for leveraged investing.
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