The TSX closed today's session at a strong 24,923.01 points, up +133.73 (+0.54%). Despite this positive performance, my stock portfolio lost over $1,000 in value. It’s never easy to see! Typically, when the TSX rises, my portfolio follows suit… but not today. Shopify Inc. played a major role in today's gains for the TSX, while other sectors lagged. Shopify is a dominant force in the Canadian stock market, but I’ve never felt the need to invest in it.
I don’t hold shares in the big names of the conventional Technology sector, like Google, Apple, or Microsoft. However, I’m not entirely out of tech—I prefer companies in the technology service space, such as Calian Group Ltd. (CGY), CGI Inc. (GIB.A), and Open Text Corporation (OTEX). These companies offer a unique blend of growth and stability in the tech sector, aligning better with my portfolio strategy.
I just can’t see myself investing in Shopify stock. The main reason? It’s trading near its all-time high, which makes me cautious. Shopify’s stock chart also shows significant volatility, suggesting that the current $152.26 per share price might not hold for long. Can someone explain why anyone would invest at $152.26 per share when this stock doesn’t pay a single penny in dividends? For me, dividends are essential for building long-term wealth through passive income, and while Shopify is a popular choice, it’s just not right for my investment portfolio.
The sector I enjoy investing in most is the industrial sector. My definition of the industrial sector might not align perfectly with the official definition, but here are some stocks that I consider part of it and really like: WSP Global Inc. (WSP), Toromont Industries Ltd. (TIH), ATCO Ltd. (ACO.Y), Aecon Group Inc. (ARE), and Finning International Inc. (FTT). Another favorite I used to hold in my portfolio was Stelco Holdings Inc. (STLC).
Unfortunately, the day after the U.S. election, Stelco Holdings Inc. (STLC) was delisted from the TSX. Although this didn’t impact my portfolio’s overall value, I was disappointed, as I had a strong interest in STLC. Managing multiple investments can be challenging, and sometimes I miss updates like this. Staying on top of industrial stocks and TSX listings can be tricky, but the industrial sector remains a cornerstone of my portfolio.
I've held my Aecon Group Inc. (ARE) stock for many years, but it never really took off—until recently. Now, I’m seeing a gain of +49.48% on ARE! Honestly, it feels like these gains happened overnight, and I couldn’t be happier. Overall, my long-term investments are performing well, with BCE Inc. (BCE) being the main exception. It’s exciting to see positive growth in my Canadian industrial stocks, especially since I focus on building wealth through stable, long-term holdings. Watching stocks like Aecon Group finally gain momentum is incredibly rewarding!
CE Inc. (BCE) has become the 'black sheep' of my portfolio. I hold BCE stock in both my non-registered and TFSA portfolios, with my largest position in BCE held within my TFSA. My non-registered investment in BCE was just over $1,000. Unfortunately, BCE’s stock has been declining for some time, resulting in a dividend yield that now exceeds 10%. Over the past year, BCE has lost more than 27% of its value.
BCE had planned to expand into the U.S., but now that Donald Trump has been elected, I’m uncertain if any progress in the U.S. market is possible for BCE. It’s hard to see how U.S. exposure would improve its stock performance. Given these factors—and because I’ve been diligently working to pay down my margin account debt—I decided to sell my BCE shares in my non-registered portfolio. I completed the sale earlier today.
With BCE’s high dividend yield and declining stock price, it’s become clear that managing my portfolio with a focus on stable dividend stocks and reducing debt is a priority. Staying focused on reliable, high-quality stocks with growth potential remains my strategy for long-term portfolio success.
My margin account debt is now below $3,700. I can confidently say that I’ll be able to pay it off by the end of 2024. Given my personal financial goals, I believe selling the BCE shares in my non-registered portfolio was the right decision. I still hold a substantial position in BCE within my TFSA, and I plan to keep those shares for now. Focusing on reducing debt while maintaining a dividend-focused portfolio is key to building long-term wealth and reaching financial independence. Managing margin debt effectively and optimizing investments in tax-free accounts like the TFSA are core strategies for my financial goals.
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