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Portfolio Checkup

Dividend investor shouldn't ditch bonds just yet Add to ...

This week's patient is considering adopting a dividend strategy targeting a yield of 3.7 per cent and wants to know if it makes sense. Rob Carrick, the Globe's personal finance columnist, and Rona Birenbaum, Queensbury Strategies investment adviser, offer their diagnoses

The No Worries Portfolio

The Question: I am thinking of adopting a dividend strategy targeting a yield of 3.7 per cent - does that make sense?
Assessment: Overall, this portfolio looks sound. Emphasizing dividends makes sense, but don’t ditch all your bonds. Remember the market crash of 2008.

Age: 65
Occupation: retired
Annual Income: $40,000
Level of investment knowledge: high
Portfolio size: $2.5-million
Pension: Yes

Portfolio Notes

-Uses an adviser, but also has a self-directed account
-Asset mix:

GICs                                       28%
Balanced mutual funds           42%
Individual stocks                    30%

Top Holdings:

  • iShares S&P/TSX Canadian Dividend Aristocrats Index Fund
  • Individual dividend stocks like TD Bank, Royal Bank and Canadian National Railways
  • RBC Monthly Income Fund
  • Fidelity Canadian Balanced Fund
  • PH&N Bond Fund

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