Saturday, May 31, 2008

What I Have In My Portfolio

My stock portfolio mainly consists mostly of dividend paying stocks and REITs. This is where I make most of my money. Most of the dividend paying stock I have you will find on such lists as S&P/TSX Canadian Dividend Aristocrats index (see and then look for this index under indices) plus I have some pipelines and an odd assortment of stocks I found interesting. I have been through some bear markets and what has happen is that the value of my stock portfolio has gone down, but my dividend paying stocks have continued to pay dividends. In fact, in bear markets, my dividend income has always gone up; even though the value of my stocks has gone down.

I believe that you must also have fun investing, and that is why I have an assortment of stocks I found interesting.

I bought some 400 shares of Bombardier (TSX-BBD.B) in 1987. Since then it has split 4 times and now I have 6400 shares. It had a huge run up in 2000 and has taken it on the chin until very recently. I must admit I did not think it would crash the way it did. It had always been an excellent stock in the past, just rising and splitting and rising and splitting. I guess I am lucky it is now improving, but even at the current price I have made an average annual rate of return of some 16% on this stock. (I did better with Nortel as I knew it had a checkered past and sold half of my stock at $85, thinking it was too high. I had bought Nortel stock, plus got some via BCE.)

I bought some Research In Motion (TSX-RIM) at end of 1999 and in the first part of 2000. I like tech stocks. I have managed this better than Bombardier. I paid some $12,800 for this stock. I have since sold off about $30,000 (when it has split) and the stock I have left is worth some $60,000. According to Quicken, I have made an average annual return of some 29% on this stock. I would probably have done better on Bombardier if I had sold some when it was high. Well, you live and you learn.

I have bought some nice dividend paying stock when I have sold RIM stock. I will sell some more when it splits again, or gets too high. I will use any money to again buy some nice dividend paying stock.

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