Portfolio Update 2019 – All Income Stream

The main purpose for our portfolio update in 2019 is to DRIP our holdings where possible and sell equities we cannot DRIP in the near future. We still have some equities we do not DRIP yet:

  1. Chevron (CVX)
  2. Restaurant Brands International Inc. (QSR)
  3. Delta Air Lines, Inc. (DAL)
  4. Vanguard All Cap Index ETF (TSE: VCN)
  5. Domino’s Pizza, Inc. (DPZ)
  6. Amgen Inc. (AMGN)
  7. The Boeing Company (BA)
  8. PrairieSky Royalty Ltd. (PSK.TO)
  9. Marathon Petroleum Corporation (MPC)

Currently we are not DRIPing 9 out of our 31 holdings. In most cases the reason is a high share price tag.

High Share Price Tag

To be able to DRIP company shares, the received dividend should exceed at least the price of one share. If the share price is high, there is a need to have enough dividends received. For example, if the share price is $100 and dividend annual yield is 4%, you will need $10,000 invested to cover $100 quarterly for DRIP.

Some of our non-DRIP holdings have a high share price tag:

  1. Chevron (CVX) $121.59
  2. Domino’s Pizza, Inc. (DPZ) $274.28
  3. Amgen Inc (AMGN) $168.77
  4. The Boeing Company (BA) $344.05

All of the above companies are doing great, and we are gradually buying more shares. About Boeing recently doing well, I agree it is debatable, but I still tend to believe this company will emerge stronger from its current crisis.

Inherited Shares

Two companies on the list got into our portfolio by acquiring companies we held before, and as a result shares we held have been replaced with the shares of the new company:

  1. Marathon Petroleum Corp (MPC)
  2. Prairiesky Royalty Ltd (PSK)

Both are from the energy sector and are in red territory in our portfolio. The energy sector is about 15% of our portfolio, and considering current oil prices, I doubt we want to keep such exposure to this sector.

In addition, according to our evaluation these two became our worst-performing assets. We have not sold these holdings, but they definitely will be first to find a way out of our portfolio.

As for PSK, we are not pleased with the performance of this asset, and because we are lowering our exposure to the oil sector, we have sold our 100 shares.

Increased Holdings

We bought 40 more shares of Genworth MI Canada (MIC). This company continues to please its investors. Only this year we got a special dividend of $784 from this company. The special dividend is beyond its regular distribution.

We added 10 shares of BA to our position on March 11. Although the company is working to gain customers’ faith back, it did increase dividends by 20.18% in 2019.

We added 40 shares of Canadian National Resources (CNQ) in July. The company increased dividends by 11.94% this year.

We added seven shares of Domino’s Pizza (DPZ) on July 16.

We bought 60 shares of Restaurant Brands International Inc. (QSR) to enable DRIP of one share.

On September 10, we bought 242 shares of Dream Global REIT (DRG-UN.TO).

New Arrivals This Year

We bought 75 shares of Delta Air Lines at $63.48 in January and then added more 88 shares during the year. It is our first investment in the airline company.

Further, 80 shares of Enbridge Inc. (ENB.TO) found their way into our portfolio. We could not pass on the juicy dividend of ~6% from this company.

We bought 250 shares of RioCan Real Estate Investment Trust (REI.UN). After Blackstone acquired DRG-UN.TO in a cash transaction, we profited 51% from our holdings in DRG-UN.TO. We used that cash toward our first position in REI-UN.TO.

Only One Asset Sold

During 2019 we sold only one of our holdings: PSK. We tend to keep our portfolio in buy mode and not sell, but sometimes, after holding onto an asset for several years and not seeing improvement, we sell. According to our evaluation process, PSK was our worst investment after holding onto it for almost four years. We like to increase our holdings of good-performing assets, like MIC, DPZ, QSR, CNQ, BA, and DRG-UN.TO REIT, so we decided this year to cut on those that were not performing well.

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