The ugly true about the hidden cost of my margin account debt

We had a strong start to the morning for the TSX. I thought we were going to exceed 20,300 points, but we closed the day at 20,260.13. It wasn't a bad day, and as long as we remain above 20,000 points, I will be happy. My non-registered portfolio closed the day at $145,789.22, my US portfolio at $5,206.19, my RRSP stocks-only portfolio at $65,387.33, and my TFSA portfolio at $127,540.48. The debt on my margin account still remains the same at $44,066.21. I have $61,290.24 available to invest on margin, but of course, I won't be investing that money anytime soon, especially at an interest rate of 8%.

In 2022, I was charged around $2,500 in interest for my margin account. It wasn't an excessive amount, but if I had kept my margin debt at $46,787.51 in 2023, the interest charged would have been $3,743. While I've never had an issue with managing a margin account, the current interest rate of 8% is becoming a concern for me.

I just filed my 2022 tax return and I'm expecting a $1,000 cash refund. This refund is due to my contributions to my RRSP, expenses for dental and eye care, and the interest earned on my margin account, which I declare as a financial fee every year. Despite my job and dividend income, and some capital gains, my income still exceeded $70,000. It's difficult to pay less tax without contributing more to my RRSP, but I'm not keen on doing that at the moment.

Since I'm expecting a tax return of $1,000, I can see that my margin cost me $1,500 directly out of my pockets for the year 2022. It's not an excessive amount for a bit of fun on margin. However, in 2023, with my margin debt at its current level of $44,000, it will cost me a whopping $3,520. If I expect to receive the same $1,000 tax refund as in 2022, my margin account will cost me $2,520, which is equivalent to $210 per month. It's beginning to add up. Additionally, there may be tax increases to consider, so I may not receive a $1,000 refund for my 2023 tax income.

At a certain point, it's not worth keeping my margin debt that high, which is why I began to pay it down. I am thinking of adding an extra $2,000 to it.

While the TSX had a decent day and all of my portfolios are performing well, I am becoming increasingly concerned about the high-interest rate on my margin account debt. I believe that my decision to pay down my margin debt is a wise one. The cost of maintaining such a debt could eventually outweigh the benefits of the investments held on margin. With the potential for tax increases in the future, I am considering all aspects to ensure long-term financial stability.

Paying Down Margin Debt: Why It's the Right Move Now

By now, you should know if you are subscribed to my Twitter account that I am pleased to announce that I have completed the task I dislike the most: sending all my papers for my 2022 tax income. This is worth announcing because I usually procrastinate on this task. Although it will take up to four weeks to complete during this busy tax season, at least I am in the process. I am glad that I sent my papers early because I received my T5, T3, and other documents, and I want to ensure that I file my tax income on time. Imagine working at an accounting firm and having hundreds of clients knocking at your door, mostly all at the same time, to get their tax income done before April 30... Crazy!

I sent all my papers online, but not without taking care of the actual papers first. All the papers that were required to complete my tax income for 2022 were in PDF format. I opened each one of them using Edge, and I covered up my social insurance number, account number, and the name of the institution. Of course, the accounting firm needs to have your social insurance number, but they don't need it to appear on every single paper. Additionally, when downloading documents onto a platform, you need to consider that these documents may be downloaded at some point and may end up on someone else's computer. Therefore, I covered up what I needed to while opening my PDF in Edge, and once I was done, I used the Snipping Tool on my computer to get what I needed from those PDFs. I then sent the documents, which were mostly all in JPG format. I couldn't send the PDFs in which I made the cover-up because I couldn't block the changes from being erased, and the sensitive information could be at risk of being viewed.

It's a boring little task, but if I can get $1,000 back from my hard-earned money, which is my goal, it would be nice. While waiting for it to be done, my non-registered portfolio closed this past Friday's session at $145,386.49, my US portfolio at $5,191.33, my TFSA portfolio at $127,803.85, and my RRSP stocks-only portfolio at $65,424.98. The TSX closed at 20,200 points. I hope it remains within 20,000 points. With this past Friday's paycheck, I had a bit over $17,000 in savings. I thought to myself that it was time to pay down my margin. So, I did and brought my margin debt down to $43,000. I was proud of myself, but then the interest charges came in shortly after. I pay over $300 in interest per month on that margin. My margin account debt is now at $44,066.21.

With National Bank Direct Brokerage, the interest rate on my margin account is currently 8%. Since no bank is offering an equivalent interest rate for an unsecured GIC, I have concluded that the best course of action in the current circumstances is to pay down my margin debt. This is particularly true as I do not feel like investing at this time. It is better to do something with my money, and for now, paying down my margin debt appears to be the right choice.

MoneySense's Top 100 Dividend Stocks of 2023: Insights into the Best Income-Generating Opportunities

This time of year is always a bit nerve-wracking for me because I need to get my papers in order for my 2022 tax declaration. It's nothing complicated, but I don't like dealing with administrative tasks like this. However, it's worth it because I think I might be able to get $1,000 back from the taxman, which I really need to achieve my goal of saving $20,000 by the end of May. The plan is working, but it requires me to be in control of my spending, and that's not always easy, even when I have big goals in mind.

Another reason why this time of year is a bit stressful is the yearly evaluation at work. I had mine a few days ago, and it went well. I'm good for the next few months in terms of employment. For many years, saving money hasn't been a priority for me, but I'm glad I'm doing it now while I can. During this time, I'm keeping an eye on my stocks and the TSX. Things are more than confusing these days, as many workers in the tech field have been laid off, many companies have increased their dividend distribution, and many have recorded excellent Q4 results for 2022. The war in Ukraine is making things even more challenging to deal with, not to mention inflation, of course.

A few days ago, MoneySense, a well-known personal finance and investment magazine, released its highly anticipated list of the top 100 dividend stocks for 2023. This list is highly valued by investors as it provides valuable insights into which stocks are expected to provide strong dividend returns in the coming year. According to MoneySense, the top 100 dividend stocks of 2023 were chosen based on several factors, including dividend yield, dividend growth, payout ratio, and the overall financial health of the company. Additionally, the list includes stocks from a wide range of sectors, such as technology, finance, healthcare, and consumer goods.

Many of the stocks featured in that Canadian dividend stocks list are already in my investment portfolio. Here are my winners, along with their respective dividend yields:

Algonquin Power & Utilities Corp. (AQN): 8.992%
Labrador Iron Ore Royalty Corporation (LIF): 7.812%
Enbridge Inc. (ENB): 6.927%
TransCanada Corp (TRP): 6.777%
Pembina Pipeline Corporation (PPL): 5.849%
Bank of Nova Scotia (BNS): 5.757%
Whitecap Resources Inc. (WCP): 5.688%
Power Corporation of Canada Subordinate Voting Shares (POW): 5.556%
Canadian Imperial Bank Of Commerce (CM): 5.547%
Telus Corp (T): 5.12%
Emera Incorporated (EMA): 5.112%
Suncor Energy Inc. (SU): 4.69%
ATCO Ltd. (ACO.Y): 4.421%
Toronto-Dominion Bank (TD): 4.205%
North West Company Inc. (The) (NWC): 4.18%
Fortis Inc. (FTS): 4.088%
National Bank of Canada (NA): 3.918%
Royal Bank of Canada (RY): 3.867%
Quebecor Inc. (QBR.B): 3.695%
Northland Power Inc. (NPI): 3.622%
Stelco Holdings Inc. (STLC): 3.178%
Rogers Communications Inc. (RCI.B): 3.066%
Canadian Apartment Properties Real Estate Investment Trust (CAR.UN): 2.974%
Finning International Inc. (FTT): 2.677%
TMX Group Limited (X): 2.573%
Nutrien Ltd. (NTR): 2.444%
Canadian National Railway Co (CNR): 2.023%
Boralex Inc. Class A Shares (BLX): 1.796%
Thomson Reuters Corporation (TRI): 1.596%
Metro Inc. (MRU): 1.549%
Toromont Industries Ltd (TIH): 1.521%
Loblaw Companies (L): 1.392%
TFI International Inc. (TFII): 1.135%
Cargojet Inc (CJT): 0.917%
Alimentation Couche-Tard Inc. (ATD.A): 0.871%
WSP Global Inc. (WSP): 0.858%
Brookfield Asset Management Inc. Class A Limited Voting Shares (BN): 0.815%

I own exactly 37 stocks in my investment portfolio that belong to MoneySense's Top 100 Dividend Stocks of 2023. The list provides a valuable resource for investors looking to build a diversified portfolio of income-generating stocks. With a mix of well-established companies and emerging players in various sectors, this list offers something for all investors, no matter what their interests are.

I have over 60 stocks to explore that I don't currently own, which are included in MoneySense's Top 100 Dividend Stocks of 2023. Since canceling my subscription to Stockopedia back in November, I welcome any references that may help me find my next best investment. The list contains some well-known Canadian insurance companies, such as IA Financial Corp Inc (IAG), Intact Financial Corp (IFS), Sun Life Financial Inc (SLF), Manulife Financial Corporation (MFC), and Great-West Lifeco Inc (GWO). Although I have no interest in insurance companies, IFS is certainly interesting with its perfect chart. However, due to its expensive valuation and being in the insurance business, I'm not looking forward to investing in Intact Financial Corp (IFS).

Here's a list of stocks from MoneySense's Top 100 Dividend Stocks of 2023 that I may consider investing in the future - but certainly not right now:

Canadian Tire Corp Cl A NV, CTC-A-T

Empire Company Ltd, EMP-A-T
Waste Connections Inc, WCN-T
Ccl Industries Inc Cl B NV, CCL-B-T
Imperial Oil, IMO-T
Ritchie Bros Auctioneers Inc, RBA-T
Brp Inc, DOO-T
Stantec Inc, STN-T
Element Fleet Management Corp, EFN-T

I held onto some Stantec Inc stocks for a little while, but I didn't really like that investment, so it's no longer in my portfolio. One stock that I do like from the list is Ritchie Bros Auctioneers Inc. (RBA). While I always find Brp Inc to be quite surprising, the stock is not cheap. Ritchie Bros aligns more with my investing style and preferences.

Investing beyond dividends: How some non-dividend paying stocks supercharge my portfolio

I'm excited to say that my annual dividend income is almost at $12,200, with only $0.67 left to reach that milestone. One of the largest holdings in my RRSP is Emera Incorporated (EMA), and I have a DRIP set up for that investment, which means that the maximum dividend earned is automatically transformed into new shares each quarter. Recently, I received my dividend from EMA, and my new Emera shares quickly followed, bringing me one step closer to my goal.

However, I don't expect any dividend increase from Emera when the company releases its Q4 2022 results on February 23. In my opinion, the controversy surrounding the increase in electricity bills for residents of Nova Scotia makes it unlikely that Emera will raise its dividend distribution. According to reports, power rates in Nova Scotia are set to increase by almost 14% over the next two years, which will directly impact Nova Scotia Power's customers. If Emera were to announce a dividend increase in this context, it would likely reflect poorly on the company and come at the expense of its customers.

Currently, Emera's dividend yield stands at a strong 5.039%.

In yesterday's post, I revealed that I hold many stocks across my four investment portfolios: my non-registered portfolio, US portfolio, TFSA portfolio, and RRSP portfolio. I haven't actually counted the number of stocks I hold, but there are certainly quite a few. One reason for this is that I don't want to miss any investment opportunities, and I like to add new investments to my portfolio from time to time. Despite this, I've been relatively quiet over the past few weeks and months on that matter, as I haven't made any new investments recently. Even if my blog is being named "The Dividend Girl", not all of the stocks that I hold in my various portfolios are dividend payers. There are several reasons for this.

I know this for a fact, maximizing your investment portfolio can be a tricky balancing act, and one factor to consider is the role of dividend payments. Dividend payments are a portion of a company's profits that are distributed to shareholders. Some investors like myself prioritize dividends because they provide a steady stream of income, while others focus on capital appreciation, which is an increase in the stock price. However, there are many stocks that don't pay dividends, also known as non-dividend payers. These companies reinvest their profits back into the business, which can lead to potential growth in the future. While they may not offer an immediate source of income, non-dividend payers can still be a valuable addition to an investment portfolio.

When searching for new stocks to invest in, I look for a variety of factors to ensure I'm making the best possible investment decisions. One of those factors is the dividend payment status of the company. However, if I come across a stock with a perfect chart, solid fundamentals, and everything else in place except for the fact that it doesn't pay dividends, I may still consider it for my investment portfolio.

Years ago, I decided to invest in several stocks that don't pay dividends, including Berkshire Hathaway Inc. (BRK.B), CAE Inc. (CAE), CGI Group Inc. Class A Subordinate Voting Shares (GIB.A), and JFT Strategies Fund Class A Units (JFS.UN). While these companies may not provide an immediate source of income, I still believe they have strong potential for long-term growth and are valuable additions to a diversified investment portfolio.

Let's start with Berkshire Hathaway Inc. (BRK.B). I invested in BRK.B back in August 2016, and since then, my shares have gained over 113% in my US portfolio. That's a fantastic return on my investment. However, BRK.B does not pay any dividends. This is because the CEO of Berkshire Hathaway Inc., Warren Buffett, is widely regarded as one of the best investors of our time, and he believes in reinvesting profits back into the company rather than paying dividends to shareholders. While it's possible that the company's dividend policy may change in the future, especially after Warren Buffett steps down as CEO, it's difficult to predict. Regardless, as an investor, I am happy to hold onto my BRK.B shares for the long-term potential for capital appreciation. Don't expect Berkshire Hathaway Inc. to become a dividend payer anytime soon.

It's because of this awesome chart that I have BRK.B in my US portfolio:

Inside my RRSP portfolio, my non-dividend payers are CAE Inc. (CAE), CGI Group Inc. (GIB.A), and JFT Strategies Fund Class A Units (JFS.UN). CAE went through a difficult time during the COVID pandemic. They operate in the aviation sector and are well-known for providing aviation training for pilots. CAE used to pay dividends before, but in recent years they have cut them off due to the challenges faced by the industry. CAE Inc. has been in my portfolio since 2017 and is currently showing a gain of +39.97%, which is not bad considering the difficulties the company has faced. Another stock that I hold in my RRSP portfolio that doesn't pay any dividends is JFT Strategies Fund Class A Units (JFS.UN). In my RRSP portfolio, JFS.UN has gained +7.51%.

When I first invested in JFT Strategies Fund Class A Units (JFS.UN), I didn't fully understand it. I was frustrated to see that while many of my stocks were performing well, JFS.UN wasn't on the same track. This led me to sell the shares I had initially bought when it first traded, but I later decided to buy again. That's why you can now find some units of JFT Strategies Fund Class A Units (JFS.UN) in my RRSP and TFSA portfolios.

In my RRSP portfolio, JFT Strategies Fund Class A Units (JFS.UN) has experienced a gain of +7.51%, and in my TFSA portfolio, it has gained +8.42%. Over the years, I have come to appreciate my investments in JFT Strategies Fund. I consider it a money stabilizer since investing in JFS.UN almost guarantees a return in the short to medium term, and the capital is also almost guaranteed. However, it's important to note that nothing is 100% guaranteed, of course.

I also hold another great non-dividend-paying stock, CGI Inc. (GIB.A), in my TFSA portfolio. My investment in CGI Inc. (GIB.A) has gained +28.75%. Just like Berkshire Hathaway Inc. (BRK.B), CGI Inc. (GIB.A) has a chart that looks almost perfect. Take a look for yourself:

I like all of those stocks, even though they don't pay any dividend distribution. If I were to sell all my shares of BRK.B, CAE, GIB.A, and JFS.UN, I would be able to collect around $20,000. If I invested that money in dividend-paying stocks, I could generate an extra $930 annually in dividend income. However, I prefer to keep things the way they are. I don't believe in investing exclusively in dividend-paying stocks. Non-dividend-paying stocks, like my BRK.B, CAE, GIB.A, and JFS.UN, can represent great investment opportunities and are very precious to me. When evaluating non-dividend-paying stocks, it's important to look at their financial health, growth prospects, and industry trends. Companies with a solid balance sheet, strong management, and a competitive edge in their market are more likely to succeed in the long run. I use a simple and easy tool to evaluate stocks quickly, which is their chart. Charts never lie.

Choosing to invest in a mix of dividend-paying or non-dividend-paying stocks, like I do, can help reduce overall risk and potentially maximize returns. For me, it's worth considering both dividend and non-dividend payers when building my investment strategy.

Does Boyd Group Services Inc. (BYD) still belong to my TFSA portfolio?

Well, it seems that the TSX's recent peak of 20,700 points may not be the new "normal" after all. Unfortunately, such normality does not exist, even though it's something I am hoping for. The TSX closed yesterday's session at 20,515.24 points. My non-registered portfolio closed at $147,278.87, my US portfolio at $5,103.65 US, my RRSP stocks at only $65,863.62, and my TFSA portfolio at $129,006.37. I am pleasantly surprised to see my TFSA portfolio come so close to reaching 130k. My financials remain strong for now. Although my net worth is no longer at its highest ever of exactly $366,524.01 reached on February 13, I am not too far behind.

Despite having several hundred dollars at my disposal in my RRSP and TFSA portfolio, I haven't made any recent investments. It's not that I'm feeling stressed by the markets or anything like that, but I just don't feel like investing at this time. Normally, I reinvest my dividend income quickly, but that's not the case these days. It feels a little off. For the biggest part of my investment life, I always had some stocks that I was excited to invest in, but that's not who I am anymore. It seems to me like the aftermath of the 2008 market crash was full of promises, and it was exciting to invest at that time. Despite the uncertainties, I always felt confident in what I was doing. I have unconditional faith in the capitalist system, which may be surprising for a small investor like myself, but it's true. However, that doesn't mean I'm not trying to do everything in my power to maximize my gains. A significant part of this is the price at which you buy your assets. That's why I'm not currently investing in anything.

I hold too many stocks in my investment portfolio, and it's certainly excessive, but I enjoy investing this way. Some of my major holdings have been in my portfolio for many years, even since I started investing. I like to add to some stocks that I feel can contribute to my portfolio. It seems to me that I haven't invested in anything new in quite a while, but things are currently fine the way they are.

Yesterday, I was looking at my stocks and found out that my investment in Boyd Group Services Inc. (BYD) is doing much better these days. I am only short of recovering less than $11 from my loss with that investment. I hardly ever talked about Boyd Group Services Inc. (BYD), and when I searched my blog for information on when I invested in that stock, I couldn't find anything. However, it seems that Boyd Group has been in my portfolio since at least 2016. In the past, Boyd Group Services Inc. (BYD) was known as Boyd Group Income Fund (BYD.UN). I'm actually having a hard time remembering where I got this stock idea, but I think it used to be an old stock of Derek Foster, which he no longer holds in his investment portfolio.

My investment in Boyd Group Services Inc. (BYD) is quite substantial - it's over $6,000, which I consider to be a significant amount of money. For a long time, the value of my investment in BYD was down, but it never really bothered me as I was confident it would go up again. As a result, I kind of ignored Boyd Group for quite some time, which is probably why I rarely write about this stock on my blog. However, I was able to find a post with the topic "stocks that I hold that you shouldn't be buying" kind of thing, where I talked about my struggles with Boyd Group Services Inc. (BYD).

BYD is now doing better, and I hope for better days for this stock. Even though I have over $6,000 invested in BYD, I earn less than $20 in dividend income annually with this stock. Knowing this and how dividend thirsty I am, I'm questioning whether I should sell or partially sell my investment in BYD, or hold on to it. There's no easy answer, but for now, I prefer to hold on to BYD.

A stock that doesn't belong in my valuable investment portfolio: Manulife Financial Corporation (MFC)

These days, it seems like 20,700 points have become the new norm for the stock market. My non-registered portfolio closed at $148,626.46, my US portfolio at $5,063.14, my RRSP stocks-only portfolio at $65,866.07, and my TFSA portfolio at $128,991.04. Overall, my portfolio value remains strong. I would like to see my non-registered portfolio reach a value of $150,000.

I am slowly preparing to file my income taxes for 2022. I am currently waiting for my tax documents to arrive from National Bank Direct Brokerage, which I should receive on February 22. I find this to be a bit late. Accounting firms have a very short period of time to process our tax documents, and brokers can be slow in providing dividend papers and other necessary documents. It would be better if brokers could provide all the required documents in January, which would give everyone more time to prepare their tax reports.

It's quite frustrating because even on February 22, National Bank Direct Brokerage won't have provided all the documents that I need. One important document that I need to include in my tax report will only be available in March! I will be missing one document, but it only amounts to $50, and I didn't include it in last year's tax return. I will likely do the same thing this year. It's not that I want to do things the wrong way, but I need to send my documents early to the accounting firm that I usually work with. Since the amount is only $50, it doesn't bother me much in that sense.

 

Once my taxes are done, I am expecting to receive $1,000 back, since I contributed almost $7,000 to my RRSP for 2022. That $1,000 will be added to my savings. Speaking of savings, I recalculated everything and I should be able to reach $20,000 in savings by the end of April instead of the end of May. By April, I should be able to exceed the $20,000 goal by close to $400. March and April are going to be a bit rough. Some people are quite good at not spending much on groceries, coffees, etc. I consider myself good, but I am certainly not as good as @kyleliu_invest in that matter. I mean, one meal a day?! Go check it out. But before anything, you need to follow me on Twitter, @SunnyJNB

Yesterday, Nutrien Ltd. (NTR) announced an increase in its dividend. My annual dividend income, including all portfolios, is now close to $12,190. The annual dividend income from my non-registered and TFSA accounts officially exceeds $850 per month by a few dollars. This $850+ amount represents a significant sum of money for me, as it covers my monthly Montreal rent (currently $730), my cell phone bill ($29), my internet bill ($80), and approximately three espressos per month. With my dividend income growing, I am thrilled with its direction and the financial benefits it provides.

These days, many businesses located in both Canada and the US are raising their dividends, and it's making their investors very happy. Today, a stock that I don't hold, Manulife Financial Corporation (MFC), also announced an increase in its dividend distribution. I am not a fan of insurance companies and I am not willing to invest in any of them. In the case of Manulife Financial Corporation (MFC), if you take a look at its overall chart, MFC has never been able to recover from the 2008 stock market crash. This is my main reason for not investing in this stock. A stock that has not been able to recover from a crash that occurred 15 years ago does not belong in my portfolio. I know next to nothing in terms of finance, but I do know how to read a chart. Investing, in its essence, is not more complicated than that.

I doubt we'll be dealing with a recession anytime soon. Too many jobs have been created in Canada and the US, and too many businesses have increased their dividends and beaten their estimates. On Valentine's Day, I wrote about a stock that I found among the top holdings of the JFT Strategies Fund: AG Growth International Inc. (AFN).

A reader asked for my opinion on AG Growth International Inc. (AFN), and I'm happy to oblige! Regarding AFN, I feel like I may have missed the boat as its current share value is at an all-time high, making it expensive to buy now. While AFN's chart looks promising, it's not as impressive as that of Toromont Industries Ltd (TIH), which has a super chart. Additionally, AFN is a volatile stock on the TSX, and its chart is not as smooth as some others. It reminds me of a stock I've held for a long time in my TFSA portfolio, ATCO Ltd. (ACO.Y).

This is the overall chart of ACO.Y:

In my opinion, the chart for ACO.Y looks somewhat similar. It has had some fluctuations, but overall, it has been trending upward rather than downward, which is the most important thing. I like AG Growth International Inc. (AFN) because it operates in the agriculture sector. Although its dividend of 1.098% is low, we can still say that it pays a more than reasonable dividend. Currently, I have several hundred dollars in cash in my RRSP portfolio, and I'm not closing the door to a small investment in AFN.

My newest investment idea: AG Growth International Inc. (AFN)

My investments closed slightly lower today, but it was not too significant. The TSX closed in positive territory, remaining at 20,700 points. My non-registered portfolio closed today's session at $149,000.53, my US portfolio at $5,080.08 US, my RRSP stocks-only portfolio at $65,457.75, and my TFSA portfolio at $128,432.29. Yesterday, I noticed that my non-registered portfolio was about to reach $150,000, so I immediately updated my investment portfolio. As a result, I discovered that my net worth had reached $366,000. It felt like receiving a small gift just before Valentine's Day.

One of the things I enjoy most about updating my investment portfolio on good days is that it enables me to determine whether or not I have exceeded my highest net worth. I keep a record of my investment portfolios and net worth for my personal satisfaction. If, for any reason, the stock market takes a bad turn and experiences a significant decline, which can happen at any time, I will always have my highest net worth recorded somewhere as a reference. It will act like a little souvenir from my hottest point. I always hope for the best, but if I have to endure a period of loss, which has occurred to me before, I will always have that highest net worth to refer to. The logic behind this is that if I have been there once, I can make my way back there, even if it takes some time. It's always the same pattern: at some point, the stock market declines, and when it does, I just need to hold on to what I have. If anything, I can invest in stocks when prices are low.

To add to the fun, many of the stocks I currently hold have recently announced dividend increases. Today, both TC Energy Corporation (TRP) and Toromont Industries Ltd (TIH) announced that they were increasing their dividend distributions. It is now official that the dividend income generated from my non-registered and TFSA portfolios amounts to the equivalent of $850 per month, plus a few pennies. This is enough to cover my rent in Montreal, as well as my cell phone and internet bills.

Overall, my annual dividend income, including the dividends earned inside my RRSP, is getting closer to $12,200. If I can earn $12,000 annually from both my non-registered and TFSA portfolios, that would be great.

However, I am not in a rush to see that happen. Recently, I have been considering the Hamilton Enhanced U.S. Covered Call ETF (HYLD). Its yield of 14.25% is extremely tempting. I enjoy creating financial scenarios, and my dividend income is no exception. For example, if I invested $5,000 in HYLD, I would earn $57 per month, increasing my non-registered and TFSA dividend income to over $900 per month. Who wouldn't be tempted by that?

When it comes to HYLD, my heart says yes, but my head says no. A dividend yield of 14.25% does not make sense, and it is not sustainable. No high-quality stock can reasonably pay such a high dividend yield. Therefore, I have decided to stay away, and I can control myself, believe it or not. While investing, dividends should never be your number one focus. Many super high-quality stocks pay a low dividend distribution. It's way better to build your dividend income slowly rather than throwing your money in an ETF that doesn't make any sense. HYLD doesn't make sense to me.

Lately, I discovered a stock that I haven't noticed before and that I actually never heard of: AG Growth International Inc. (AFN). It's the second-largest position in the JFT Strategies Fund Class A Units (JFS.UN). Why did I never notice it before? I don't know. I may have come across this stock while I was a user of Stockopedia, but I may have quickly passed it by due to its volatile chart. While browsing for stocks on Stockopedia, I used to check everything, but I selected my stocks based on the overall chart of each potential investment.

Currently, I have a couple of hundred dollars available in my RRSP to invest, which is why I have been actively searching for a new investment. I have to admit, without my Stockopedia subscription, I feel a bit lost. Ideas for investments are taking more time to come by, and it's extremely annoying. It's times like these that I really miss Stockopedia.

Historic of my Total assets and Net worth values on date of February 13, 2023

2023

Total in assets: $413,311.52/Net worth: $366,524.01: February 13, 2023 - My highest net worth value EVER!!!

Total in assets: $411,186.99/Net worth: $364,399.48: February 10, 2023

Total in assets: $408,656.95/Net worth: $361,844.12: February 7, 2023

Total in assets: $407,606.87/Net worth: $361,043.28: January 17, 2023

Total in assets: $405,708.89/Net worth: $359,060.31: January 16, 2023

Total in assets: $404,983.22/Net worth: $358,324.64: January 13, 2023

Total in assets: $403,429.72/Net worth: $356,771.14: January 12, 2023

Total in assets: $399,232.95/Net worth: $352,574.37: January 11, 2023

Total in assets: $396,629.76/Net worth $349,971.18: January 10, 2023

Total in assets: $395,568.27/Net worth $348,909.69: January 9, 2023
Total in assets: $393,444.59/Net worth $346,786.01: January 6, 2023

2022

Total in assets: $384,602.29/Net worth $337,875.65: December 30, 2022

Total in assets: $394,205.35/Net worth $347,621.02: November 25, 2022

Total in assets: $383,659.43/Net worth $337,227.95: November 11, 2022

Total in assets: $373,493.10/Net worth $327,061.62: November 4, 2022

Total in assets: $356,147.14/Net worth $309,920.82: October 11, 2022

Total in assets: $396,620.95/Net worth $350,590.82: August 14, 2022

Total in assets: $369,523.83/Net worth $323,815.43: June 24, 2022

Total in assets: $367,287.71/Net worth $321,579.31: June 20, 2022

Total in assets: $364,145.55/Net worth $318,437.15: June 18, 2022

Total in assets: $398,010.84/Net worth $352,164.94: June 2, 2022

Total in assets: $385,843.39/Net worth  May 20, 2022: $340,156.47

Total in assets: $407,547.23/Net worth $361,442.42: April 20, 2022 

Total in assets: $405,658.35/Net worth $358,941.11: March 29, 2022

Total in assets: $403,792.28/Net worth $357,075.04: March 25, 2022

Total in assets: $402,081.01/Net worth $355,363.77: March 22, 2022

Total in assets: $400,979.64/Net worth $354,262.40: March 21, 2022 - First time I ever hit on the $400,000 in total assets!

Total in assets: $398,652.13/Net worth $352,071.24: March 18, 2022 - First time I ever hit on the $350,000 in net worth value!

Total in assets: $396,355.91/Net worth $349,713.01: March 10, 2022

Total in assets: $393,037.13/Net worth: $347,573.53: March 4, 2022

Total in assets: $391,766.36/Net worth: $345,622.80: February 9, 2022

Total in assets: $382,726.19/Net worth: $341,862.36: February 2, 2022

Total in assets: $386,320.32/Net worth: $340,128.37: February 1st, 2022

2021

Total in assets: $385,979.66/Net worth: $339,434.39: December 31, 2021

Total in assets: $382,726.19/Net worth: $336,268.16: December 23, 2021

Total in assets: $388,421.37/Net worth: $340,312.77 - FIRST TIME I EVER REACHED A $340,000 NET WORTH!
November 8, 2021

Total in assets: $387,068.51/Net worth: $338,959.91: November 5, 2021

Total in assets: $384,785.92/Net worth: $336,781.52: October 20, 2021

Total in assets: $382,580.80/Net worth: $334,576.40: October 19, 2021

Total in assets: $379,263.95/Net worth: $330,680.17: October 14, 2021

Total in assets: $364,072.52/Net worth: $315,407.64: July 26, 2021
Total in assets: $358,867.59/Net worth: $311,858.22: June 15, 2021
Total in assets: $354,774.64/Net worth: $307,559.30: June 10, 2021
Total in assets: $348,042.77/Net worth: $300,799.45 - FIRST TIME I EVER REACHED 300k in net worth, on May 26, 2021
Total in assets: $346,583.88/Net worth: $298,486.93: May 20, 2021
Total in assets: $349,651.45/Net worth: $298,435.31: May 7, 2021
Total in assets: $347,002.53/Net worth: $297,614.64: April 16, 2021
Total in assets: $338,188.16/Net worth: $287,914.75: March 11, 2021
Total in assets: $333,970.92/Net worth: $283,675.99: March 9, 2021
Total in assets: $328,881.12/Net worth: $279,611.57: February 10, 2021
Total in assets: $326,670.02/Net worth: $278,758.37: February 8, 2021
Total in assets: $324,891.52/Net worth: $276,979.87: February 4, 2021
Total in assets: $322,236.52/Net worth: $274,318.36: February 3, 2021
Total in assets: $327,639.01/Net worth: $274,298.23: January 19, 2021
Total in assets: $316,192.85/Net worth: $268,180.14: January 7, 2021
Total in assets: $313,003.95/Net worth: $264,915.22: January 6, 2021
Total in assets: $310,587.36/Net worth: $262,498.63: January 5, 2021

2020
Total in assets: $310,392.38/Net worth: $259,661.24: December 31, 2020
Total in assets: $307,812.05/Net worth: $259,070.79: December 24, 2020
Total in assets: $306,444.25/Net worth: $258,948.73: December 4, 2020
Total in assets: $304,701.39/Net worth: $257,331.58: November 27, 2020
Total in assets: $300,956.84/Net worth: $253,587.03: November 24, 2020
Total in assets: $298,903.01/Net worth: $251,533.20: November 23, 2020
Total in assets: $296,643.60/Net worth: $249,158.71: November 20, 2020
Total in assets: $294,514.87/Net worth: $247,145.87: November 11, 2020
Total in assets: $291,172.40/Net worth: $243,802.59: November 10, 2020
Total in assets: $287 803.13/Net worth: $240 433.32: November 9, 2020
Total in assets: $277,872.92/Net worth: $226,678.26: August 5, 2020
Total in assets: $276,627.27/Net worth: $227,745.47: June 6, 2020
Total in assets: $263,304.63/Net worth: $211,395.63: April 29, 2020
Total in assets: $241 461,13/Net worth: $194 558,29: March 13, 2020
Total in assets: $282,640.61/Net worth: $235,284.72: February 21, 2020
Total in assets: $304,955.72/Net worth: $257,187.44: February 12, 2020
Total in assets: $296,200.07/Net worth: $250,595: January 16, 2020
Total in assets: $292,715.58/Net worth: $244,970.41: January 9, 2020

2019
Total in assets: $288,237.52/Net worth: $239,582.44: December 31, 2019
Total in assets: $278,823.27/Net worth: $230,902.04: September 17, 2019
Total in assets: $271,896.19/Net worth: 226,137.05: June 24, 2019
Total in assets: $269 950.21/Net worth: $222 942.87: April 5, 2019
Total in assets: $251 634.94/Net worth: $206 278.84: January 18, 2019
Total in assets: $238 656.07/Net worth: $191 009.83: January 4, 2019

2018
Total in assets: $270 679.86/Net worth: $204 306.57: November 16, 2018
Total in assets: $332 750.88/Net worth: $232 609.15: August 3, 2018
Total in assets: $331 413.83/Net worth: $232 280.40: June 20, 2018
Total in assets: $326 085.75/Net worth: $226 801.92: June 3, 2018
Total in assets: $322 479.23/Net worth: $222 850.15: May 4, 2018
Total in assets: $319 644.86/Net worth: $217 246.23: March 16, 2018

2017
Total in assets: $318 544.64/Net worth: $221 989.65: December 29, 2017
Net worth on the date of November 17, 2017: $211 430.89
Net worth on the date of October 27, 2017: $212 633.39
Net worth on the date of September 29, 2017: $206 352.49
Net worth on the date of April 24, 2017: $204 277.66
Net worth on the date of March 31, 2017: $200 325.69
Net worth on the date of March 29, 2017: $198 299.73
Net worth on the date of March 18, 2017: $193 969.21

2016
Net worth on the date of December 30, 2016: $184 074.35

Net worth after debt on the date of January 1, 2014:
$101 172.99 (yes, finally, IN NET WORTH!).

On the date of February 16, 2011, the TMX hit 14 000+ points, and I exceeded the 150k in assets! (Not net worth yet).

On September 9, 2010, I reached $100,000 in assets! (not in net worth yet).

On the date of August 5, 2009, I reached my investment goal: I reached $50 000 worth of assets! (NOW, net worth).

On the date of December 5, 2009, I had exceeded $60 000 in assets! (not in net worth yet).  

My investment portfolio on date of February 13, 2023

Cold cash: $16,359.37

Stocks and Units investment portfolio $CAN 

Bank of Nova Scotia (BNS)

Methanex Corporation (MX)

Fortis Inc. (FTS)

Pembina Pipeline Corporation (PPL)

iShares S&P/TSX Capped REIT Index (XRE)

New Flyer Industries Inc. (NFI)

TMX Group Inc. (X)

K-Bro Linen Inc. (KBL)

TransCanada Corp (TRP)

Canadian National Railway Co (CNR)

Enbridge Inc. (ENB)

Emera Inc. (EMA)

Loblaw Companies (L)

Savaria Corporation (SIS)

WSP Global Inc. (WSP)

George Weston Limited (WN)

Power Corporation of Canada Subordinate Voting Shares (POW)

BCE Inc. (BCE)

Canadian Imperial Bank Of Commerce (CM)

Brookfield Asset Management Inc. Class A Limited Voting Shares (BAM.A)

TOTAL: $149,905.77    

Stocks and Units investment portfolio $US:

Berkshire Hathaway Inc. (BRK.B)

General Mills Inc. (GIS)

Vanguard Russell 1000 Growth Index Fund (VONG)

Pfizer Inc. (PFE) 

TOTAL: $5,143.38 US: $6,913.73 CAN

 

Tax-free savings account (TFSA):

Dumont Nickel Inc. (DNI)

CT Real Estate Investment Trust (CRT.UN)

Canadian National Railway Co (CNR)

Exchange Income Corporation (EIF)

Brookfield Infrastructure Partners L.P. (BIP.UN)

Brookfield Renewable Energy Partners L.P. (BEP.UN)

Andrew Peller Limited (ADW.A)

Toronto-Dominion Bank (TD)

Boyd Group Services Inc. (BYD)

Canadian Apartment Properties Real Estate Investment Trust (CAR.UN)

Data Communications Mgmt (DCM)

Royal Bank of Canada (RY)

Park Lawn Corporation (PLC)

Toromont Industries Ltd (TIH)

BCE Inc. (BCE)

Boralex Inc. Class A Shares (BLX)

Savaria Corporation (SIS)

Northland Power Inc. (NPI)

Calian Group Ltd. (CGY)

Canadian Utilities Limited (CU)

WSP Global Inc. (WSP)

Granite Real Estate Investment Trust (GRT.UN)

Cargojet Inc. (CJT)

Nutrien Ltd. (NTR)

TFI International Inc. (TFII)

Canadian Imperial Bank Of Commerce (CM)

SIR Royalty Income Fund (SRV.UN)

ATCO Ltd. (ACO.Y)

Aecon Group Inc. (ARE)

Brookfield Asset Management Inc. Class A Limited Voting Shares (BAM.A)

Metro Inc. (MRU)

Alimentation Couche-Tard Inc. (ATD.A)

Fortis Inc. (FTS)

CGI Inc. (GIB.A)

TMX Group Limited (X)

Brookfield Infrastructure Corporation Class A Exchangeable Subordinate Voting Shares (BIPC)

Brookfield Renewable Corporation Class A Exchangeable Subordinate Voting Shares (BEPC)

Suncor Energy Inc. (SU)

Rogers Communications Inc. (RCI.B)

Telus Corp (T)

JFT Strategies Fund Class A Units (JFS.UN)

Bitcoin Fund The Class A units (QBTC)

Purpose Bitcoin ETF CAD ETF non-currency hedged units (BTCC.B)

3iQ CoinShares Ether ETF (ETHQ)

Tilray Inc (TLRY)

North West Company Inc. (The) (NWC)

Bank of Nova Scotia (BNS)

National Bank of Canada (NA)

Stelco Holdings Inc. (STLC)

Hammond Manufacturing Company Limited Class A Subordinate Voting Shares (HMM.A)

Saputo Inc. (SAP)

Labrador Iron Ore Royalty Corporation (LIF)

Intertape Polymer Group Inc. (ITP)

Parex Resources Inc. (PXT)

Wescan Energy Corp. (WCE)

Verde Agritech Plc Ordinary Shares (NPK)

Wajax Corporation (WJX)

Whitecap Resources Inc. (WCP)

Goodfellow Inc. (GDL)

Algonquin Power & Utilities Corp. (AQN)

TOTAL: $127,758.35

RSP investment portfolio: 

Emera Incorporated (EMA)

Ovintiv Inc. (OVV)

Toronto-Dominion Bank (TD)

Telus Corp (T)

Royal Bank of Canada (RY)

Savaria Corporation (SIS)

Thomson Reuters Corporation (TRI)

Park Lawn Corporation (PLC)

Richards Packaging Income Fund (RPI.UN)

Toromont Industries Ltd (TIH)

CAE Inc. (CAE)

CGI Group Inc. Class A Subordinate Voting Shares (GIB.A)

Boralex Inc. Class A Shares (BLX)

Quebecor Inc. (QBR.B)

Logistec Corporation Class B Subordinate Voting Shares (LGT.B)

Brookfield Renewable Partners L.P. (BEP.UN)

Leon's Furniture Limited (LNF)

Bank of Nova Scotia (BNS)

Brookfield Renewable Corporation Class A Exchangeable Subordinate Voting Shares (BEPC)

Cascades Inc. (CAS)

JFT Strategies Fund Class A Units (JFS.UN)

AirBoss of America Corp. (BOS)

Suncor Energy Inc. (SU)

Pender Growth Fund Inc. (PTF)

Rogers Communications Inc. Class B Non-voting Shares (RCI.B)

ATS Automation Tooling Systems Inc. (ATA)

Algoma Central Corporation (ALC)

Finning International Inc. (FTT)

Guardian Capital Group Limited (GCG)

Information Services Corporation Class A Limited Voting Shares (ISV)

Interfor Corporation (IFP)

Maple Leaf Foods Inc. (MFI)

National Bank of Canada (NA)

Nutrien Ltd. (NTR)

Open Text Corporation (OTEX)

Taiga Building Products Ltd. (TBL)

Vitreous Glass Inc. (VCI)

Power Corporation of Canada Subordinate Voting Shares (POW)

North West Company Inc. (The) (NWC)

Whitecap Resources Inc. (WCP)

Parex Resources Inc. (PXT)

North West Company Inc. (The) (NWC)

Wajax Corporation (WJX)

Canadian Imperial Bank Of Commerce (CM)

Total: $65,483.88

CIBC Dividend Growth Fund + CIBC Emerging Markets Index Fund + CIBC Monthly Income Fund: $3,402.50

Others: $1,159.90

NBI Income Fund: $1,232.99

Manulife Fidelity NorthStar GIF CAP

Manulife Simplicity Growth Portfolio 

Maritime Life CI Harbour Seg Fund

Maritime Life Fidelity True North Seg Fund

Manulife GIF MLIA B World Invest

Total: $8,336.14

Other various: $32,682.24

TOTAL: $112,297.65

Social Capital at Desjardins Membership share: $35

Online money: $41.65

Savings + Stocks, units, mutual funds + Tax-free Savings account + RRSP:

TOTAL: $413,311.52

On the date February 13,2023

Reflecting on my Investment Journey: A Detailed Review of My Debt and Portfolio Development from 2007 to Present

A few days ago, I received a special request on Twitter from @jdilillo suggesting an idea for my next blog post: a comprehensive review of my debt situation.

I accept the challenge, my friend! For the past 14 years, my personal finance has provided me with various subjects to write about and I've never grown tired of it. One subject I frequently address on my blog is my debt. However, I've never written a comprehensive review of my debt over the years, so let's get started!

I do discuss my debt regularly. Whenever I publish an update on my investment portfolio, I also update my debt situation at the same time. These posts are labeled "debt situation" and can be easily found on the right-hand side of my blog under the "LABELS" column. This makes it simple to review my debt situation over time.

The Early Days: 2007

So, let's take a trip back in time to August 13, 2007. I was 26 when I published my first blog post. At the start of my financial journey, I had a mix of credit card and student loan debt. Here's a snapshot of my financial situation at that time:

Total credit card debt: $2,815.85

Student loans: $12,369.03 at 8.75%

Total debt: $15,184.88

I never felt uncomfortable with debt, but I always knew that I needed to avoid or quickly pay off credit card debt. I started my financial journey with a student loan of less than $15,000, which is a manageable amount. Fortunately, I was able to progress in my education without taking on too much debt. I have always been good at managing my money, even as a teenager. I was born in 1980 and the Internet became available when I was around 15-16 or 17 years old. I remember going to the high school library to access the Internet. At the time, we didn't fully understand what we were looking at, and we would browse slowly on big, heavy computer screens. Social media didn't exist then, and we weren't exposed to as much advertising and social trends as today's teenagers are.

In my opinion, today's world is not conducive to saving money for young people. There are too many temptations, and social media is not helping the situation. In my day, we read books, played outside, and spent less time online. My fondest childhood memories are from playing in that sand pit that my father made for us behind the house. I loved playing with bricks, and we had plenty of them. Social media, YouTube, etc. have both good and bad aspects. On the positive side, for those who want to learn about saving money and investing, information is now more readily available than ever before. 

And that's because of the Internet. The abundance of information available online can be both good and bad. Ultimately, it is the responsibility of parents to educate their children about money matters. I was taught the importance of saving money, to avoid credit card debt, and to be mindful with my finances. Money was important, but not a source of stress or obsession. I believe that growing up in New Brunswick, as I did, helped shape my relationship with money in a positive way. Being raised in the 80s in a smaller town probably made life less stressful and more manageable than living in a big city, where life can be more complicated and expensive.

I remember that before starting my blog in 2007, I made payments of $1,000 per month for about 6 months straight on my student loan, and after that, I only made the minimum required payment. So my student loan debt was probably slightly over $12,000 when I completed my studies, but it never reached 40k or 50k. Today, everything is more expensive, including tuition fees. Many young people are starting their adult lives with a significant amount of student debt, which can be a difficult burden to bear.

I am aware that many millennials are facing complex financial situations due to high levels of student loan debt. Making minimum payments on these loans every month can make it challenging to save money. I have never had to deal with severe limitations, and I have always had a fair degree of freedom in my choices. Personally, I never experienced much stress in regards to paying off my student loan debt as it was small, and I could claim the interest on it as a deduction on my income tax. I view debt as a normal aspect of life, up to a certain degree.

In September 2007, I managed to pay down my credit card debt to $3,800.

Back in February 2008, it appears that I was still grappling with credit card debt.

In April 2009, this was my debt situation:

Student loan debt: $10,627.99

Credit card debt: $3,000 at 4.99% interest for 6 months

Credit line debt: $2,992.74

Total debt: $16,620.73

I recall receiving credit card balance transfer offers with low-interest rates, and I took full advantage of those opportunities at that time. Back then, there was no need to pay a current 1% balance, those were the good old days. I used the money to invest, of course.

In August 2009, I was still enjoying the benefits of credit card balance transfers, and I had a credit line debt...

"I have $4,813.02 on my TD credit line, and $2,675.53 on my TD Visa at a 3.99% interest rate. In about two weeks, I plan to transfer my debt from my TD Visa to an RBC Visa so I can take advantage of the 2.99% interest rate for a while, until I can get a third job or something."

I was ambitious, but I only dealt with small amounts.

2010: The Year I Opened My Margin Account

In February 2010, I took out a $10,000 RRSP loan.

Here's what my debt situation looked like in February 2010:

$8,517.94 at 4.75% = $404.60 in annual interest 

$4,817.03 at 3.5% = $168.60 in annual interest 

$4,436.21 at 3.9% = $173.01 in annual interest

$3,587.13 at 8% = $286.97 in annual interest

$10,000 at 4.75% = $475 in annual interest

Total debt: $31,358.31

Total annual interest: $1,508.18

Back in May 2010, I became interested in opening a margin account for my non-registered Canadian investment portfolio. In September 2010, I had a mix of student loan debt, RRSP credit line, and credit line debt, but no more credit card debt. In December 2010, I opened my margin account at TD Waterhouse. At the time, TD Waterhouse had an office located at the Eaton Center in downtown Montreal. I signed the papers for my margin account at that location. I still remember the day I opened my margin account because it was an exciting day for me. When I went back home, it was dark outside and there was a lot of snow.

When I opened my margin account on December 11, 2010, my non-registered portfolio was already established to a certain extent. At that time, the value of my non-registered portfolio was $72,232.12, while the value of my margin was $43,653.66. I had three years of experience investing in stocks. Although not a lot, I started investing just before the 2008 stock market crash, which in my opinion gave me the equivalent of ten years of experience. I believe I made the right decisions. When I opened my margin account, I did so because I wanted to have a greater holding than what I had at the time. I don't recommend that anyone start investing immediately with a margin account. It's better to first establish and build up your investment portfolio, observe its performance, gain some experience, and then consider opening a margin account.

I went from having a $0 debt on my margin account in 2010 to a $100,141.73 margin debt at 5% in August 2018. However, I only remained in the $100,000 margin debt range for a few months. At one point, I wasn't feeling comfortable anymore with my $100,000 margin debt situation. One reason was the uncertainty caused by President Donald Trump, and another reason was that I knew that at some point, the interest rate would eventually increase, and I didn't want to be stuck with a large $100,000+ margin debt. By November 2018, my margin debt had decreased to a more manageable level of $66,373.29, with an interest rate of 5.50%.

I went from having a $0 margin debt in 2010 to a $100,141.73 margin debt at 5% in August 2018. However, I only remained in that debt range for a few months. I started feeling uncomfortable with my debt situation due to uncertainty caused by President Donald Trump and the potential for an increase in interest rates. By November 2018, I reduced my margin debt to a more manageable level of $66,373.29, with an interest rate of 5.50%.

I feel comfortable when my margin debt is under $50,000. Currently, that debt is at $46,787.51 with an interest rate of 7.75%. I have been building up some savings and I am considering using it to partly pay down my margin debt. If I need money for any reason, I could withdraw it from my margin account. At 42 years old, I think it is the right decision.

You can follow me on Twitter, @SunnyJNB