Wanting Again At Our Yr Of Progress

Hey everybody

It’s time to take a seat down and look over what occurred in our portfolio in 2023. We had an excellent 12 months however there may be nonetheless room for enchancment. I nonetheless chase worth at instances vs high quality and want to get our dividend development will increase up. However this can be a long run sport and fortunate for us there may be a number of time to make issues higher.

New Capital

Together with drips we put $43,460.72 of capital into the market. That’s a tonne of cash, no query. Particularly contemplating mixed we in all probability make round 160k earlier than taxes. (not together with passive earnings – all tax free or tax deferred)

Dwelling in Ontario Canada we might lose roughly $47,192 bucks of that earnings to taxes alone. (with out factoring rrsp contributions, donations and so forth) So we might have roughly $112,808 to reside on with a household of 4. We additionally introduced in $24,294 in passive earnings final 12 months (tax free or deferred), so we had roughly $137,102 to reside and make investments with.

Total our financial savings price was round 31.69% Fairly insane while you do the mathematics and see all of it on paper.

We see all these information articles that you just want an earnings of like 90k to reside solo within the gta however if you happen to handle your cash proper I disagree. It definitely helps with a 2 earnings family although. Housing is a serious challenge in Canada..

I believe we reside our life fairly good. Occurring holidays twice a 12 months, wonderland season passes and tonnes of tenting. Our youngsters are in sports activities and ones in rep. (which positively ain’t low cost) They attend after college care which provides up as nicely.

So we’re positively spending cash however I can inform ya a pair issues we don’t try this save us a tonne of cash that lots of people do.

Automobile funds – The stats are in and funds are completely insane. In response to the Globe and Mail in July 2023 the common new automobile cost for Canadians was $880 per 30 days, with 30% of consumers paying over 1,000 a month. That is in my view one of many greatest wastes of cash folks make.

That could be a tonne of cash and its a 2023 stat, what wouldn’t it be at present? Our automobiles are paid for and each are 2013 fashions, rocking over 200k on every. Primarily based on these numbers if we each had new automobiles we might be throwing away over $1,700 a month or 20 thousand 4 hundred a 12 months on funds….. to not point out greater insurance coverage charges.. I’ll say it once more $20,400! wtf. That’s 3 wonderful household holidays..

Uber Eats – Clearly there may be demand for these items however the markup is astronomical. Each time I’m going to a quick meals place there may be a number of folks selecting up uber eats and so forth. I’ve carried out it the odd time, principally whereas having a bunch of drinks. 2 schwarma’s that must be like 25 bucks can be over 50 bucks with tip.. So that you get that hangover and that monetary hangover… dammmm! haha Do it as soon as in awhile however don’t make it a behavior.

Clearly there’s a number of minor issues we do like make our personal espresso and so forth however these items stand out to me as main wastes of cash. All of us worth sure issues in a different way however I believe all of us must be trustworthy with ourselves with stuff we spend an excessive amount of cash on.. Mine could also be fish =)

The unique rich barber e-book nonetheless gave me a very powerful data I’ve ever be taught t about investing – pay your self first. Get into this behavior and your way of life will “gel” round it.

2023 Portfolio Strikes

We made 2 gross sales in 2023.

We offered our small place of 27 shares of stanley black and decker for a small revenue after realizing it wasn’t a place I actually needed to continue to grow.

We additionally offered 8 shares of  microsoft when it hit like 370 a share and made up over 8% of the portfolio. Clearly the inventory has saved working however we put these proceeds at house depot beneath 300 and its carried out fairly nicely too. Perhaps its only a reminder to simply let your winners run however the commerce has labored out both means.

All of the proceeds from these gross sales had been put again into the market.

Purchases in 2023

• 7 Microsoft
• 53 bep
• 23 bce
• 80 td
• 10 txn
• 25 Nutrien
• 58 couchetard
• 208 telus
• 19 hd
• 31 bam
• 12 nationwide financial institution
• 3 lmt
• 9 cnr
• 46 costco cdr
• 280 allied property reit
• 26 bam

We obtained an honest mixture of development and earnings. Transferring ahead I’d prefer to get extra development within the portfolio. Decrease beginning yields however greater dividend development and inventory worth appreciation = greater whole return

Drips In 2023

• bce – 10
• aecon – 39
• tc vitality – 8
• cisco – 3
• telus – 4
• xaw etf – 4
• aqn – 60
• td – 2
• normal mills – 3
• suncor – 14
• bep – 10
• fortis – 6
• enbridge – 15

In whole our drips added $4,660.51 of worth to the portfolio at time of buy. I’m an enormous fan of the drip program because it buys stuff regardless of the worth when you have sufficient cash for shares. This generally is a enormous profit when shares are down. Aecon stands out right here. I used to be actually debating rising our place at 8 or 9 bucks a share however couldn’t pull the set off, right here we’re north of $14.50. I’m glad the drips averaged our worth prices down.

Dividend Raises

Brookfield Asset Administration and Aecon had been the one 2 shares we maintain that didn’t announce a dividend elevate in 2023. Though Bam was mainly restructured in order that one will get a move. Right here’s hoping Aecon pronounces a elevate this 12 months as their earnings develop now that the pandemic jobs end. (Their costs skyrocketed on jobs they already quoted)

Algonquin is the one one which introduced a lower in 2023. Lets be trustworthy aqn, had traders up towards the ropes and threw every part they might at us.. uppercut jab jab… This continues to be the one inventory I debate slicing from the portfolio however surprise if this 12 months will be the time they Bob Seger – Flip the web page. Time will inform however they higher maintain these water property.

Total the dividend raises had been fairly low at over 200 bucks on a 10k portfolio however with out that lower would of been higher at roughly 4.5% common. Couchetard comes out victorious as soon as once more with the most important improve of 25%. That’s a giant purpose we added a lot to them as soon as once more. Gotta all the time be rewarding these large raises with extra of our cash.

Wrapping up

The portfolio had a very good 12 months however beneath carried out the market with a 5.51% return in 2023. Numerous rate of interest delicate shares in right here and we solely maintain one of many magnificient 7 shares. However on the finish of 2022 we had a ahead dividend earnings of $8,350.93. December thirty first 2023 we had ahead dividend earnings of  $10,551.29. A rise of $2,200.36 yr over yr. The mathematics is Mathing as Braden Dennis from the Canadian Investor podcast would say.

Im completely happy to place all of it down on paper and see the numbers extra clearly. Transferring ahead in 2024 I plan on growing our low yield excessive development positions and getting that general dividend development % up. I additionally plan on growing our monetary sector as its our 2nd lowest sector when it comes to portfolio allocation forward of reits which I don’t essentially look after. (low development and div development)

Properly there ya have it, one other 12 months within the books and we’re already 8% into 2024. Time is flying. What are your ideas? What might we be doing higher and the way did you do final 12 months general?

cheers!

Hey I’m Rob, creator of Passive Canadian Revenue.

In 2011 me and my spouse had nearly $60,000 in debt and a adverse $7,000 Internet Price. By means of arduous work and monetary training we paid all that off. Now we’re specializing in growing our Passive Revenue Streams to make the cash work for us. Really feel Free to Comply with alongside the Journey by clicking the Social Media hyperlinks beneath or subscribing to get notified of latest posts on the sidebar.