r/dividendscanada

In January to March I loaded up my Margin account with VDY & XDIV ($30K each). I'm servicing the interest with cash (4.45% but since I can claim it it will effectively be 3% or so) and I am just dripping the dividends back into it. This is my first time using margin but have kept my LTV under 30% not including my gains.

I'm now +$10.5K in the green on this thing after these ETFs have continued to rip (fortunate timing I guess). I'm not a dividend investor, I'm a long-term growth investor (CAGE & XEQT anchor my TFSA, RRSP & non-registered accounts at about 70% total, the rest in other funds and stocks) and this is my first time dealing with margin. I got these ETFs as they're more tax efficient due to the CAD dividends and qualify to allow me to claim the interest on the margin loan.

Here's my dilemma, I just re-balanced my non-registered account and sold off a few positions. I'm totaling about $10K in capital losses from those moves which lines up with the $10K or so I'm up on these dividend ETFs.

Should I just cash out and consider this lucky timing? And take that $10K and invest it elsewhere since I can offset the capital gains tax? Or would you just let this thing ride? It's not quite a "house money" situation yet but the +$10K gives me a nice little buffer to absorb a downturn and ride it out without much fear of this house of cards collapsing (plus these are fairly stable holds in a downturn relatively speaking). Historically it looks like these ETFs can go sideways for years on end... I know you don't have a crystal ball, but the timing seems good here to either get out or let it ride. I've seen a lot of speculation online that these are about to run out of gas and the best of this run may be over...

Please correct me where I'm doing this wrong. Have a relatively modest portfolio with wealthsimple. Roughly 45% in xeqt, 45% in zwc, the remaining in msty which was a mistake as it is down 60%. I'm way up everywhere else, but I've lost $5K on msty, but I'm clear that I should just ride it out. It still pays monthly dividends, albeit small.

Question 1: should I cut my losses and sell?

Question 2: if I keep it, and the dividends keep coming, is there a way to not reinvest them back into msty? Could I redirect them to xeqt?

I am a year into investing, and have no one in my real life that I can ask.

For my Canadian investors, I was going to invest in USD ETF’s such as VTi and VXUS, but was told to invest in CAD ETF’s for now since USD ETF’s can eat you up in fees, VFV and XEQT are the 2 ETFS I was researching/told that’s good.

https://preview.redd.it/00fivibn0c2h1.png?width=1734&format=png&auto=webp&s=7e4b0ecc1bf445579a8b9115836f0b8e518e184a

I have most of my TFSA in XEQT and it’s been treating me well, but I’ve been following VDY, XEI, ZDIV and all these other Canadian dividend ETF, and they have been performing much better. I’ve heard dividend is better for retirees but it seems dividend is performing better overall. Is there any reason to not move into dividend ETF’s?

While the discourse frequently centers on the unsustainability of the current dividend payout ratio, I think most investors are forgettting to account for the company’s pivot from an intensive CAPEX cycle toward a phase of robust FCF generation.

With the 5G and PureFibre infrastructure rollouts done, management projects a 10% compounded annual growth rate in FCF through 2028, targeting $2.45 billion for the current fiscal year.

Also the appointment of Victor Dodig, former CEO of CIBC as CEO means the new goal will become balance sheet optimization and heavy monetization of TELUS Health.

PS: There's been a lot of dooming on Telus lately, and ofc "always inverse Reddit".

$BNS - 20% (big bank with biggest dividend payout/history)

$CNR - 20% (growth because I’m still young and can compound)

$XDIV - 10% (Canada Div etfs diversified with less banks)

$VDY - 10% (Canada Div with heavy bank holdings)

$XDU - 20% (U.S dividends to diversify in other countries)

$XEQT - 20% (for capital growth and diversification into the whole world while giving a small yield)

What are your guys thoughts on this portfolio?

Was debating maybe doing

30% CNR and 30% BNS instead

Edit: should I swap VDY with XDG?

I'm thinking XEI because of the % cap from each company, however I don't know if it's 100% eligible dividends.

XDIV is a great ETF, but too few companies to be compared to SCHD and VDY is market cap weighted unlike SCHD.

What's your take?

Although not a surprise, the $0.01/month cut came sooner than expected. The company has also indicated that Q2 is shaping up to be a turd. On reflection, their Q1 was weaker than many peers and after two years of dipping into their working capital reserve, this is a prudent move. Based on historical precedent, they may need at least a year to turn this ship around from a financial metrics perspective. Let's see if this gets pushed down towards $10-11.

Thoughts?

Hi guys, looking to make a dividend portfolio were it can be pretty much set and forget. Lower yields (2-5%ish) with safe and slow stock price appreciation.

I know there is a dividend ETF, but I’m hesitant to buy as the big banks are lifting all that up and could crash down when banks slow down (unless someone knows something I don’t, please make the case in the comments),

Right now I have two I’m thinking of buying

$CNR

$BNS

I’m also hesitant on $ENB just cause I’m a bigger believer in renewable energies and keep in mind I want this portfolio to be set and forget for 30+ years until I retire

Also note: I know that I should be investing in companies and taking bigger risks at my age, but honestly I’m done with investing. The last 6 years since I turned 18 I’ve been trading and obsessed with the stock market, turning 20k into 300k. I just want to set and forget and have some cash flow I can spend without buying and selling/managing stocks

Thank you all!!!!!

Found on MSN News:
https://www.msn.com/en-ca/money/topstories/two-taxpayers-in-trouble-with-cra-over-tfsas-got-their-day-in-court-one-went-well-the-other-did-not/ar-AA23cSKL?ocid=msedgdhp&pc=U531&cvid=6a06bdd0cb024b039d7a5b39f8c275c2&ei=40

FYI?

I have a solid TFSA with enb.to on DRIP and some orher are stuff -

FTS in my RRsp - and some other stuff

What do you guys recommend for dividend paying stocks for a FHSA?