Wanting Again At Our Yr Of Progress

Hey everybody

It’s time to sit down down and look over what occurred in our portfolio in 2023. We had an awesome 12 months however there may be nonetheless room for enchancment. I nonetheless chase worth at occasions vs high quality and want to get our dividend development will increase up. However it is a long run sport and fortunate for us there may be plenty 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’d lose roughly $47,192 bucks of that earnings to taxes alone. (with out factoring rrsp contributions, donations and so on) So we’d have roughly $112,808 to stay 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 stay 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 stay 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 difficulty in Canada..

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

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.

Automotive funds – The stats are in and funds are completely insane. In accordance with the Globe and Mail in July 2023 the typical new automotive cost for Canadians was $880 monthly, with 30% of consumers paying over 1,000 a month. That is in my view one of many greatest wastes of cash individuals make.

That may be a tonne of cash and its a 2023 stat, what wouldn’t it be right now? Our vehicles are paid for and each are 2013 fashions, rocking over 200k on every. Based mostly on these numbers if we each had new vehicles we’d be throwing away over $1,700 a month or 20 thousand 4 hundred a 12 months on funds….. to not point out larger insurance coverage charges.. I’ll say it once more $20,400! wtf. That’s 3 superb household holidays..

Uber Eats – Clearly there may be demand for these things however the markup is astronomical. Each time I’m going to a quick meals place there may be plenty of individuals selecting up uber eats and so on. I’ve performed it the odd time, principally whereas having a bunch of drinks. 2 schwarma’s that needs to be like 25 bucks could 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 plenty of minor issues we do like make our personal espresso and so on 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 should be sincere with ourselves with stuff we spend an excessive amount of cash on.. Mine could also be fish =)

The unique rich barber guide 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 life-style will “gel” round it.

2023 Portfolio Strikes

We made 2 gross sales in 2023.

We bought 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 bought 8 shares of  microsoft when it hit like 370 a share and made up over 8% of the portfolio. Clearly the inventory has saved operating however we put these proceeds at house depot underneath 300 and its performed fairly properly too. Possibly its only a reminder to simply let your winners run however the commerce has labored out both approach.

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 received an honest mixture of development and earnings. Shifting ahead I’d wish to get extra development within the portfolio. Decrease beginning yields however larger dividend development and inventory worth appreciation = larger complete return

Drips In 2023

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

In complete 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 irrespective of the value if in case you have sufficient cash for shares. This is usually 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 increase in 2023. Though Bam was mainly restructured in order that one will get a move. Right here’s hoping Aecon proclaims a increase 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 minimize in 2023. Lets be sincere aqn, had buyers up towards the ropes and threw every little thing they may at us.. uppercut jab jab… This continues to be the one inventory I debate reducing from the portfolio however marvel if this 12 months often is the time they Bob Seger – Flip the web page. Time will inform however they higher preserve these water belongings.

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

Wrapping up

The portfolio had 12 months however underneath 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 maths is Mathing as Braden Dennis from the Canadian Investor podcast would say.

Im pleased to place all of it down on paper and see the numbers extra clearly. Shifting 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 take care of. (low development and div development)

Effectively 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 Earnings.

In 2011 me and my spouse had nearly $60,000 in debt and a detrimental $7,000 Internet Value. By means of exhausting work and monetary schooling we paid all that off. Now we’re specializing in growing our Passive Earnings Streams to make the cash work for us. Really feel Free to Observe alongside the Journey by clicking the Social Media hyperlinks under or subscribing to get notified of recent posts on the sidebar.