2016 Dividend Income and Realizations

So throughout 2016 I received dividends from many different companies as I traded around the market volatility. My total income from dividends in 2017 was $2087.91 not bad considering it is passive income! See the table of dividends below to show my monthly income.

Jan Feb Mar April May Jun Jul Aug Sept Oct Nov Dec
163.15 90.86 173.79 147.29 58.26 192 211.18 69.2 174.35 191.61 101.81 514.41

Throughout the year however, I did learn a valuable market lesson, and I learned it the hard way through lost capital. The lesson I learned is as smart as I am… (or think I am) I am not as smart as the market indexes. It is incredibly hard to beat the market by picking individual stocks. Even advisors who do this full time often cannot beat the market. Through a series of good and bad trades I believe index investing may be the answer. Even if a stock is performing, hitting targets and beating expectations large funds can still drive it down shorting and selling the stock. I don’t have all the information they do nor the capital to influence the stock therefor I am at the mercy of the hedge funds. However, If I were invested in the whole index either the S&P 500 or the TSX the long-term trend since the beginning of time is positive. Also I will not need to worry about my 5-6 stocks tanking as I am diversified automatically across the index.

I plan to move into A CCP type portfolio to be completely diversified and hopefully perform the same as the market or slightly beat it. With the low fees now offered I believe this is the best option for play at home investors.

Since the market is currently stretched I plan to take a conservative approach with 70% bond index and 30% equities. As the market comes down (my prediction) in the next while I will re-distribute to a slightly more aggressive portfolio.

One issue however, is I need to sell my existing positions, I have begun to do so but I have some stocks, which I expect to outpace the index in the near-term that I am going to keep holding. As they move up I will move out and begin investing In the allocation noted above.

I will keep you guys up to date on how I plan to do this and when I sell some of my positions.

Cheers,

The Investing Engineer

2 Replies to “2016 Dividend Income and Realizations”

    1. I defiantly have! and in the hardest way possible but I hope to get it back on track as I do have time on my side!

      Cheers

      -Patrick

Leave a Reply

Your email address will not be published. Required fields are marked *