| | | Re: Middle Age Portfolio ... Rebalance.
Over the last couple of days I was looking at positions that were oversized and overvalued and looking to trim those positions and deploy the proceeds elsewhere. I was also trimming positions that have underperformed the market over the past 5 and 10 year time frames.
The first to go was JNJ. It has underperformed the market for a decade now and since this portfolio needs a heavy increase in dividend cash flows in order to retire earlier than hoped for, I had to generate more income.
In addition to selling out of JNJ, I also sold out of IRM.
IRM has a short term play when I purchased them. It was my post Covid play and I've earned enough profits to say the trade was worth the effort.
I also took 'some' profits from LOW, NEE and HD. These were all overweight positions with triple digit total returns. I decided to take 'some' of those profits and create more income.
The buys were mostly Canadian banks. I added to RY, CM and TD. Then a Canadian telecommunication company TU.
I also added to a few CEF's to help boost that income level. I added to AIO, PCI, BST and CSQ.
BOTTOM LINE:
Sold --
IRM - 243 shares
LOW - 9 shares
NEE - 23 shares
JNJ - 48 shares
HD - 5 shares
Bought --
TU - 311 shares
PCI - 97 shares
BST - 38 shares
RY - 20 shares
TD - 27 shares
CM - 15 shares
AIO - 147 shares
CSQ - 211 shares
The positions I sold represented:
Balance - $25,418
Annual Income - $904
Yield - 3.56%
Dividend Growth - 5.60% (last 5 years)
The positions bought represented:
Balance - $24,935
Annual Income - $1,328% (a 47% increase)
Yield - 5.33%
Dividend Growth - 6.40% (last 5 years)
The primary objective is income growth. Once the income objective has been achieved, then I can focus on capital growth, but the capital growth isn't helping much unless I realize some of those profits and create more income. ... Mission accomplished. |
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