Skip to main content

Dianne Dachyshyn, 59

Occupation

French-immersion teacher

Story continues below advertisement

The portfolio

Includes: National Bank, Bank of Montreal, CIBC, Bank of Nova Scotia, Enbridge, Fortis, TransCanada Pipelines, RioCan REIT, H&R Block, Inter Pipeline Fund, Telus, TransAlta, Bell Aliant, BCE, Aflac, Abbott Laboratories, Baxter Corp., Kellogg's, Johnson & Johnson, PepsiCo, Dr Pepper Snapple Group.

The investor

Ms. Dachyshyn began investing with a private money manager who placed her money in a number of in-house funds.

But they did poorly and when she took her concerns to her adviser, she was simply told to buy more, and that with dollar-cost averaging, she would be wealthy down the road.

She began to see how much of her unimpressive returns were being siphoned off by the fund company's management fees and moved to a different firm, which not only pushed her to buy universal life insurance, but also to borrow to purchase more funds.

But it was the high management fees that led to her managing her own portfolio. "I asked [our adviser] how much we were paying in management fees, and he got exasperated and said, 'It's a very complicated formula.'"

Story continues below advertisement

Becoming her own adviser

Managing her money herself, she decided to go with big, blue-chip companies that have a track record of regularly boosting their dividend.

She is invested in some 40 companies, 12 of which are U.S. "I like the idea of long-standing viable companies that have proven themselves over time."

Why she favours DRIPs

Dividend reinvestment programs allow subscribers to use any dividends they earn to automatically purchase more shares. Investors can also usually make extra contributions. Either way, the DRIP not only saves them paying brokerage fees, they can also invest any amount they like, and can then own partial shares.

What about the paperwork?

Story continues below advertisement

One knock on holding individual DRIPs with a number of companies is the amount of paperwork required. But not all of her DRIPs do a monthly mailing, and Ms. Dachyshyn is more than happy to get them in the post and enter the figures into Quicken, a personal-finance software program. "It reinforces that I am doing a good thing for my financial future and I love to see the growth."

How she tackles losses

When I say that I don't mind losing money, what I mean is I prefer to take my losses and use them as learning experiences, rather than drowning in them or allowing them to paralyze me. I'm not that cavalier about it. I just prefer to take things in perspective. I know that I will make mistakes and I allow myself to be human. If I didn't, I wouldn't be able to sleep at night."

Best move

A small investment in Inter Pipeline Fund. She managed to make only one extra optional payment in May, 2009, but gets a kick out of the fact that a $100 investment at that time is now worth $301 just from having the dividends automatically reinvested. "It blows my mind how that little bit of investment is continuing to make great returns," she says. "It's like the little engine that could."

Worst move

Story continues below advertisement

Her biggest loss so far has been Yellow Media Inc., in which she invested in 2009, drawn by the high yield. That was a mistake because it was too high, she says. "There is a basic principal that if the yield is super high it's an indicator that it's not sustainable."

Advice

Don't jump on bandwagons, because there's usually a lot of excitement around them, but they don't necessarily deliver."

Special to The Globe and Mail

Want to share your strategies?

E-mail tony.martin@sympatico.ca

Story continues below advertisement

Report an error Editorial code of conduct
Tickers mentioned in this story
Unchecking box will stop auto data updates
Due to technical reasons, we have temporarily removed commenting from our articles. We hope to have this fixed soon. Thank you for your patience. If you are looking to give feedback on our new site, please send it along to feedback@globeandmail.com. If you want to write a letter to the editor, please forward to letters@globeandmail.com.

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff.

We aim to create a safe and valuable space for discussion and debate. That means:

  • Treat others as you wish to be treated
  • Criticize ideas, not people
  • Stay on topic
  • Avoid the use of toxic and offensive language
  • Flag bad behaviour

Comments that violate our community guidelines will be removed.

Read our community guidelines here

Discussion loading ...

Cannabis pro newsletter