r/dividendscanada

Ex-Dividend Date: Aug 31

(Aug 31 & Sep 15 for semi-monthly ETFs)

Pay Date: Sep 8

(Sep 8 & Sep 22 for semi-monthly ETFs)

No Increases

Decreases:

$BIGY: from 0.3125 × 2 to 0.20 × 2

$EASY: from 0.31 × 2 to 0.255 × 2

Evolve ETFs:

$BIGY $CANY $INTY $EASY $SIXY

$TECY $BANK $UTES $OILY

$CUTE $QQQY $LIFE $CFIN $LEAD

$BASE $ESPX $CALL $EBNK $ETSX

​

About a month ago, I posted this $1,000 challenge portfolio here. The idea was simple: instead of chasing whatever stock was hot that week, I wanted to see what would happen if I spread $1,000 across 20 dividend-paying companies that I believed were undervalued.

I also wanted to make the experiment public so there was no hindsight involved. The original list was posted before I knew which companies would outperform and which ones would disappoint.

30 days later, the portfolio is up 6.24%.

The account is currently worth $1,084.50, including additional funds/dividends reflected in the account, with the brokerage showing +$63.73 (+6.24%) over the past month.

The original 20 companies were:

1. DOW — Dow

2. BDX — Becton, Dickinson and Company

3. GSK — GSK plc

4. MDT — Medtronic

5. PEP — PepsiCo

6. ELV — Elevance Health

7. CVS — CVS Health

8. PFE — Pfizer

9. BMY — Bristol Myers Squibb

10. WPC — W. P. Carey

11. LNC — Lincoln National

12. BEN — Franklin Resources

13. USB — U.S. Bancorp

14. STX — Seagate Technology

15. ADM — Archer-Daniels-Midland

16. KEY — KeyCorp

17. T — AT&T

18. VZ — Verizon

19. KHC — Kraft Heinz

20. NEM — Newmont

What interests me isn't really the 6.24%. Thirty days is far too short to declare victory on an investing strategy, and this portfolio will eventually have periods where it underperforms.

What I wanted to test was whether a diversified basket of beaten-down, dividend-paying companies selected primarily on valuation and fundamentals could produce competitive returns without relying on a handful of high-growth momentum stocks.

So far, the answer has been encouraging.

There have already been clear winners and laggards. STX has recently been one of the strongest movers, while other positions have contributed much less. That's exactly why I used 20 companies instead of trying to guess which two or three would perform best.

Diversification wasn't supposed to eliminate losers. It was supposed to make being wrong about a few companies survivable while allowing the stronger picks to pull the portfolio forward.

I'll keep posting updates whether the account is green or red. The more interesting test isn't what happens in the first 30 days. It's whether this portfolio can continue producing respectable total returns over 6 months, 12 months, and eventually longer while collecting dividends along the way.

For the value investors here: which of these 20 would you be most comfortable holding for the next five years, and which one would you remove today?

Original Post, https://www.reddit.com/r/ValueInvesting/s/WPijItCsXM

https://substack.com/@legitimaterisk/note/c-314871671?r=8pfry2

Over the common period shown, Ninepoint Enhanced Canadian HighShares ETF (ECHI) leads the peer group with a 38.27% cumulative total return, followed by Hamilton Enhanced Canadian Equity DayMAX ETF (CDAY) at 29.72%, Harvest Canadian High Income Shares ETF (HHIC) at 28.93%, Global X Enhanced S&P/TSX 60 Index Covered Call ETF (CNCL) at 26.73%, and Evolve Canadian Equity UltraYield ETF (CANY) at 25.66%.

Over the past month, HHIC leads at +6.37%, followed by ECHI (+5.61%), CNCL (+3.98%), CANY (+3.60%), and CDAY (+1.17%).

Over the past three months, CANY leads at +10.98%, followed by CNCL (+10.43%), CDAY (+8.55%), ECHI (+8.33%), and HHIC (+8.04%).

Over the past six months, CANY also leads at +17.00%, followed closely by ECHI (+16.37%), with CNCL (+14.94%), CDAY (+14.09%), and HHIC (+12.21%) rounding out the group.

Overall, performance leadership has varied by period: HHIC leads over one month, CANY over three and six months, while ECHI leads over the common period shown. The results highlight the meaningful differences in return profiles across Canadian equity-income strategies.

Over the one-year period, Hamilton Enhanced U.S. Covered Call ETF (HYLD) leads the peer group with a 31.01% total return. Global X Enhanced S&P 500 Index Covered Call ETF (XYLD) follows at 23.32%, ahead of Hamilton Enhanced U.S. Equity DayMAX ETF (SDAY) at 20.59% and Harvest Diversified High Income Shares ETF (HHIS) at 12.04%. Evolve US Equity UltraYield ETF (BIGY) does not yet have a one-year track record.

Recent performance shows different leaders. Over the past month, SDAY leads at +3.70%, followed by HYLD (+2.21%), XYLD (+1.40%), BIGY (+1.05%), and HHIS (+0.89%).

Over the past three months, SDAY also leads with an 11.90% return, followed by XYLD (+6.58%), HYLD (+4.71%), and HHIS (+1.05%). BIGY declined 11.96%.

Over the past six months, leadership shifts to HHIS at +24.53%, followed by HYLD (+22.22%), XYLD (+16.32%), SDAY (+8.87%), and BIGY (+1.50%).

Overall, HYLD leads over the one-year period, while SDAY has been strongest over the more recent one- and three-month periods and HHIS leads over six months. The results continue to show meaningful dispersion among U.S. equity-income strategies despite broadly similar income objectives.

NOTE: Margin Requirements on WealthSimple

GREEN 🟢 Tickers: 30%

BLACK ⚫ Tickers: 50%

RED 🔴 Tickers: 75% and Above

Leveraged:

$ETHY / $ETHY-U

$BCCL / $BCCL-U

$HHIS / $HHIS-U

$BTCY / $BTCY-U

$NVHE / $NVHE-U

$MSHE / $MSHE-U

$AMHE / $AMHE-U

$HYLD / $HYLD-U

Non-Leveraged:

$BCCC / $BCCC-U

$LLYH / $LLYH-U

$NVDH / $NVDH-U

$MSFH / $MSFH-U

$AMZH / $AMZH-U

$QQQY / $QQQY-U

$LIFE / $LIFE-U

$RSCC / $RSCC-U

$LEAD / $LEAD-U

$QQCC / $QQCC-U

$QMAX / $QMAX-U

$SMAX / $SMAX-U

$ESPX / $ESPX-U

$CALL / $CALL-U

$EBNK / $EBNK-U

$HHL / $HHL-U

$HTA / $HTA-U

$HBF / $HBF-U

$HUBL / $HUBL-U

$HPF / $HPF-U

$USCC / $USCC-U

Hello, hope everyone is having a wonderful time and enjoying the nice weather out. 

For those who tune in for the first time, this is a series of post where I update my journey of living off my Income portfolio (heavy leaned in Covered Call ETFs) and compares the drawdown to other popular ETFs portfolio such as VFV, XEQT, HYLD, and QQC to see how my portfolio would have performed if I stick to a more traditional holdings.  

**Please note that the screen shot is a day ahead of the record date**

The past few months our portfolio has been pretty flat and barely made any movement. Part of the portfolio is performing well, but some other part is under performing significantly.

Our ORCL option leaps have been the main drag on the portfolio returns (Margin Account). Mid month the portfolio dipped to around 280k but rebounded back by the time of recording.

For Living Expense CC portion of the portfolio, things are moving along normally. YTSL took a decent hit due to TSLA dropped quite a bit in price, but overall the portfolio is doing ok. We did manage to make quite a bit from put selling this month due to high volatility and tech earnings. All the put sold were of MU (Micron). They were mostly short term put selling. The IV on MU was pretty insane where you can be 20% out of the money on weeklies and still able to make trade that annualized over 25%. We were able to generate an extra 5k this month, all of which were reinvested in to QQQY.to. This month is definitely an anomaly, and it's not something I expect to happen every month.

I got some message asking about the portfolio holdings and why not I add X Y or Z. Personally I like to keep things as simple as possible (at least for the Living Expense portion of the portfolio). I also find a lot of CC ETFs are either paying too much or the yield generate from it doesn't really add up for me. I don't want to get technical, but we can see how the yield is generate based on the public option chains and determine if the yield the ETF is paying make sense or not. I can explain my rationale a bit more if anyone is interested.

Core Holdings: This portion of the portfolio acts like a backup per say. I'm not touching any distribution generated from this portfolio, and everything is reinvested. All the portfolio in CH are registered account.

Theoretical Portfolio:

QQC is now in a lead, though it did dip a bit from the recent tech sell off and hasnt fully recovered

XEQT is still going strong and performing steadily.

HYLD also been a solid performer despite all the volatility in the market. At a few points through out the last month, HYLD did outperform XEQT.

VFV is moving along well, but significantly underperformed all other portfolio. Though despite all the withdraws, it is still up a decent amount since we started tracking.

----

The goal currently is to build the cash pile back up to. This cash pile act as a spending cash and also an emergency fund. Ideally we want to be carrying at least 12 months worth of expense in cash.

Life stuff:

Not much is happening the past month, just same old hospitals and chill (lol)

If you've been following the journey about my mom's health. Things aren't great, but it's not getting worse which I am thankful for. We aren't losing hope!

Take care of your health and your loved ones everyone!

Have a good month!