The blog has fallen somewhat behind the past few months, and for good reason. In April 2017 the Baby Dividend Gangster (BDG) entered my life, and the past nine months has been a whirlwind tour of sleep loss, stress, laughter, tears, joy, and everything in between. But now that he is nine months old things are slowly stabilizing where I can start to focus on some of my other activities, such as this site.
The best place to start would be to review the 2017 goals, and see how we fared.
Goal #1: Increase TFSA Contributions
My goal entering 2017 was to contribute at least $20,000 to my TFSA. I’m happy to say that I beat that goal by 35%, contributing over $27,000 to my TFSA. I had actually exceeded the goal by more than that, but had to take some money back out of the TFSA mid-year for some miscellaneous expenses, so my net contributions put me right back at 35% over my goal.
Goal #2: Minimize Taxes
We met this goal during the mid-year write-up.
Goal #3: Rebalance my Total Fund to my Target Allocation
My targets are 55% equity, 20% real estate, 20% fixed income, and 5% cash. Unfortunately I didn’t meet this goal: I actually increased my equity position from 73% to 76% in F2017 — mainly due to the overall stellar performance of the markets. I’ll continue to work at investing new capital into fixed income and real estate through F2018 to meet my target allocation.
Goal: did not meet. 🙁
Goal #4: Increase Passive Income by 5%
My plan was to increase total passive income across all accounts by 5%, to roughly $7,400 in F2017. Total passive income for F2017 came in at $7,700, beating the goal by roughly 6%!
Goal #5: Update and Expand Investment Research
I was going pretty strong in my analysis by mid-year, but have slowed down since BDG was born. I’ve only published three articles since my June 2017 update:
All in all, I exceeded my goal, but I am not impressed with my slowdown the past few months.
So, where does that leave us for F2018?
As I said above, I’ve been lacklustre in updates the past few months (but for good reason!). I’ve also let most of my portfolio run on auto-pilot, and have been investing new capital straight into the Vanguard REIT, VRE.TO. My intent was to move excess cash into VRE.TO to increase my real estate exposure to support 2017 Goal #3. But whichever way you look at it, I haven’t been paying much attention to my investments as of late.
Goal #1: Re-focus on Blog Updates
As a target, I’d like to get back on track to publishing at least four updates per year (i.e. quartelry) on the portfolio. I’ve also got a backlog of ideas to write on, so I’d like to get those out as well. To that end, I would like to target at least 16 articles this year (one per month, plus an additional one per quarter for portfolio updates).
Goal #2: Increase Passive Income by 5%
This year’s passive income goal is $8,100/year.
Goal #3: Focus and Revisit Research
All in, my portfolio currently contains 52 individual companies and/or ETFs. Some of those I haven’t actually done research on, and some companies I have done research on but not invested in (e.g. Richelieu). Goal #3 will be to re-focus my analysis on the companies I own in the portfolio, and publish quarterly updates on each of those to stay current.
Goal #4: Publish the Dividend Gangster Dividend List
I had started in June 2017 with my initial post of dividend updates, but didn’t publish anything after that. The past year I have been compiling a dividend database for Canadian companies to help me in my research. For 2018, I’d like to get this list published on a periodic basis.
There you have it! It will be an exiting year to see how well I can meet those goals!
Onwards and upwards!
Back in May I wrote a review on Aecon Group, and recommended it as a buy. Following my own advice, since then I have been purchasing shares on dips in both my TFSA and corporate accounts. It seems that I wasn’t the only one that thought Aecon was under valued, and a worthy investment, because CCCC International Holding Limited (CCCI) has offered to purchase Aecon Group at a price of C$20.37/share!
From the Aecon Group press release:
- All-cash consideration of $20.37 per share; 42 per cent premium to unaffected share price
- Aecon gains access to new platforms and partnerships for continued growth in Canada and abroad; CCCI advances its global growth strategy
- New growth and employment opportunities expected as Aecon gains significant capabilities and financial strength by joining the world’s largest network of engineering and construction companies
- Aecon will retain its name, continue to be Canada-headquartered and led by its Canadian management team
- Aecon and CCCI share a strong commitment to maintaining customer service excellence and a safety-first culture
- Aecon board of directors unanimously recommends transaction to shareholders
This is great news for me. My adjusted cost basis is $16.67, and with an offering price of $20.37 that nets me a healthy 22.20% gain!
I had originally purchased Aecon for its strong dividend growth—21% compounded annually since 2007—and great underlying fundamentals, and I will be sad to see a solid dividend payer go away. However, given the capital gains attached to the sale, this is a great win. What makes things even better is that half of my holdings are in my TFSA, which means that the 22.20% gain is tax-free.
All in all, a great way to end October; this was certainly a treat!
It’s been about five months since my last post, and likewise, about five months since I last looked at any of my investments. Thankfully, my investment strategy is focused on long-term holdings, and as such does not require me to constantly monitor the markets on a day by day basis.
That said, I have made on investment recently in the Class B shares of Dorel Industries, and the analysis will be posted shortly. For the next month this blog may also see some non-investing articles, as I may post some material for one of my classes at the Rotman School of Management. However, even though they are not directly related they will still be relevant to analyzing companies and how they operate vis-à-vis providing value to investors.
Until then, happy investing!
I have been an avid follower of Dividend Growth Investor for the past few years as I have become more interested in investing, but as DGI is a US based investor many of the recommendations and analyses are based on US stocks. However, given that imitation is the sincerest form of flattery, and that securities analysis is something that I also do when I am interested in a company, I figured I’d start up my own blog.
Lo and behold, some of the popular names such as Canadian Dividend Investor and Canadian Dividend Investing were taken, albeit both of those sites have zero content. “Canadian Dividend Growth Investor” would work 100%, but it is a little lengthy. So, what’s the next best thing? A Dividend Gangster, of course. Haha.
Stay tuned for more!