Dividend investor shouldn't ditch bonds just yet
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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.
Annual Income: $40,000
Level of investment knowledge: high
Portfolio size: $2.5-million
-Uses an adviser, but also has a self-directed account
Balanced mutual funds 42%
Individual stocks 30%
- 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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