Introduction
This update provides a comprehensive overview of an investment portfolio focused on generating consistent passive income through blue-chip dividend stocks and income-enhancing strategies.
The portfolio, valued at 1.14 million Canadian dollars, is divided into two main parts: the main portfolio and the retirement account. The main portfolio consists of two TFSA accounts and a non-registered cash account, from which the investor derives their monthly income. The retirement account includes RRSP and LIRA accounts, as well as their spouse’s RRSP.
In May 2023, the investor made changes to their retirement accounts, selling off their BDCX position due to its less appealing quarterly dividend payout. Though a small capital loss was incurred, dividends received offset this, resulting in a small profit. The capital was reinvested in high-yielding options such as SVOL, ALL-ARC, and CLIP.
Within the main portfolio, the investor holds various core holdings, including CLM, Asphalt, CEFD, HYGW, WR, and DHI. They increased their investment in CLM to $40,000, benefiting from a consistent high yield. CEFD, however, has been affected by the overall performance of the closed-end fund market, but the investor is considering adding more due to its potential.
Additionally, the portfolio includes allocations to volatile assets such as USO, TSLY, and CLIP, allowing the investor to take advantage of covered calls and higher premium rates. While these investments come with higher risks, they also offer potential rewards.
The overall structure of the portfolio is focused on generating consistent passive income and prioritizing long-term investments over short-term trading for capital gains. The investor utilizes tools like Passive to effectively manage and track their investments.
It’s important to note that the portfolio generates a monthly income, with an average yield of 21%. This income, when converted to Canadian dollars, is approximately $6,600, all of which is reinvested.
In terms of the main portfolio, significant changes have been made. Shares of ENS were sold, resulting in a capital gain of $700. The proceeds were used to purchase a new position in ENCC, a Canadian Oil and Gas covered call ETF. The decision to sell ENS shares and buy ENCC was based on higher yield and sector similarities. Other investments were made in call options and HDIF, which includes Canadian banks and a recently added travel ETF. Additionally, the investor added 5K to HMAX, focused on Canadian banks, and made a strategic move to swap out B-Max for GDV to increase yield and diversification.
The investor aims to optimize yield and increase income, analyzing each holding individually and considering potential dividend increases. The portfolio includes diverse securities such as covered call ETFs, Canadian banks, and Bitcoin. The investor acknowledges the possibility of dividend fluctuations due to volatility, with the primary goal of generating consistent monthly income.
Despite a 9.86% decrease in capital, the portfolio’s income has increased the annual yield to nearly 11%. The investor currently receives a monthly income just below $7,000, with expectations of surpassing $7,000 in the next update.
The investor also provides additional information on their loyalty membership program, Blossom app, private coaching sessions, and digital product. Referral links for Questrade and Passive are shared, along with details of their social media profiles.
Components of the Investment Portfolio
When it comes to building an investment portfolio focused on generating consistent passive income, it’s important to understand the key components that make up this strategy. In this chapter, we will explore the different parts of the investment portfolio and how they work together to achieve the desired outcome.
The portfolio is divided into two main parts: the main portfolio and the retirement account. Let’s take a closer look at each of these components.
Main Portfolio
The main portfolio consists of two Tax-Free Savings Account (TFSA) accounts and a non-registered cash account. These accounts are where the investor derives their monthly income.
Within the main portfolio, the investor holds various core holdings, including CLM, Asphalt, CEFD, HYGW, WR, and DHI. These investments provide consistent income and are considered to be the foundation of the portfolio.
One notable core holding is CLM, where the investor has increased their investment to $40,000. CLM has proven to be a reliable source of high yield, contributing significantly to the overall income generation of the portfolio.
While core holdings play a crucial role in generating income, the portfolio also includes allocations to volatile assets such as USO, TSLY, and CLIP. These investments allow the investor to take advantage of covered calls and higher premium rates, offering potential rewards amidst the higher risks associated with such assets.
Retirement Account
The retirement account includes Registered Retirement Savings Plan (RRSP) and Locked-In Retirement Account (LIRA) accounts, as well as the investor’s spouse’s RRSP. These accounts are designed to provide income during retirement.
In May 2023, the investor made changes to their retirement accounts. They sold off their position in BDCX due to its less appealing quarterly dividend payout. While this decision resulted in a small capital loss, dividends received offset this, ultimately leading to a small profit.
The capital from the sold position was reinvested in high-yielding options such as SVOL, ALL-ARC, and CLIP. This strategic move aimed to maximize income generation and optimize yield within the retirement accounts.
It’s worth mentioning that the overall structure of the portfolio prioritizes long-term investments over short-term trading for capital gains. The investor’s goal is to generate consistent passive income, which aligns with the philosophy of focusing on stable cash flow rather than speculative gains.
To effectively manage and track their investments, the investor utilizes tools like Passive, which provides valuable insights and helps streamline the investment process.
With a monthly income averaging a yield of 21%, the portfolio generates approximately $6,600 in Canadian dollars. It’s important to note that all of this income is reinvested, further compounding the growth of the portfolio.
In terms of recent changes within the main portfolio, there have been some significant moves. The investor sold their shares of ENS, resulting in a capital gain of $700. The proceeds from this sale were used to purchase a new position in ENCC, a Canadian Oil and Gas covered call ETF. This decision was based on the higher yield and sector similarities between ENCC and ENS.
Furthermore, the investor made investments in call options and HDIF, which includes Canadian banks and a recently added travel ETF. These additions were made strategically to optimize yield, diversify the portfolio, and take advantage of potential opportunities within these sectors.
Overall, the investor constantly analyzes each holding individually and considers potential dividend increases to further enhance the income generation of the portfolio. The portfolio includes a mix of diverse securities such as covered call ETFs, Canadian banks, and even Bitcoin, offering a well-rounded approach to income generation.
Despite a slight decrease in capital, the portfolio’s income has increased the annual yield to nearly 11%. Currently, the investor receives a monthly income just below $7,000, with expectations of surpassing $7,000 in the next update.
Aside from the investment portfolio, the investor also provides additional information on their loyalty membership program, Blossom app, private coaching sessions, and digital product. They also share referral links for Questrade and Passive, as well as details of their social media profiles.
In conclusion, the components of the investment portfolio described in this chapter give us a comprehensive understanding of how the investor is generating consistent passive income. By diversifying their holdings, strategically making adjustments, and prioritizing long-term investments, the investor is well on their way to achieving their financial goals.
Recent Changes and Strategies for Maximizing Income
In order to maximize income and generate consistent passive income, the investor has made several recent changes to their investment portfolio. These changes include diversifying their holdings, adjusting their allocations, and exploring new income-enhancing strategies.
One of the recent changes made by the investor was selling off their BDCX position in the retirement accounts. The decision was based on the less appealing quarterly dividend payout of the stock. Although a small capital loss was incurred, the dividends received from other investments were able to offset this loss, resulting in a small profit for the investor. The capital from the sale was then reinvested in high-yielding options such as SVOL, ALL-ARC, and CLIP.
In the main portfolio, the investor holds various core holdings that contribute to their monthly income. One of these core holdings is CLM, in which the investor has increased their investment to $40,000. This strategic move has been beneficial for the investor as CLM provides a consistent high yield. Another core holding, CEFD, has been affected by the overall performance of the closed-end fund market. However, the investor is considering adding more CEFD to their portfolio due to its potential for growth and income generation.
In addition to core holdings, the investor has also allocated a portion of their portfolio to volatile assets such as USO, TSLY, and CLIP. These investments allow the investor to take advantage of covered calls and higher premium rates, potentially resulting in increased income. However, it’s important to note that these investments also come with higher risks.
The overall structure of the portfolio is designed to generate consistent passive income and prioritize long-term investments over short-term trading for capital gains. The investor utilizes tools like Passive to effectively manage and track their investments, helping them stay on top of dividend payouts and monitor the performance of their portfolio.
With the current portfolio structure, the investor is able to generate a monthly income with an average yield of 21%. This income, when converted to Canadian dollars, amounts to approximately $6,600, which is then reinvested back into the portfolio. The investor’s goal is to increase their monthly income and optimize yield by analyzing each holding individually and considering potential dividend increases.
Despite a decrease in capital, the portfolio’s income has actually increased the annual yield to nearly 11%. Currently, the investor receives a monthly income just below $7,000, with expectations of surpassing $7,000 in the next portfolio update.
In order to further enhance their income generation and passive investing strategies, the investor also offers additional services and tools. They have a loyalty membership program, Blossom app, private coaching sessions, and a digital product that provide valuable insights and guidance in navigating the world of investing. The investor also shares referral links for Questrade and Passive, allowing others to benefit from these tools, and details of their social media profiles for further engagement.
In conclusion, the recent changes made to the investment portfolio, along with the strategies employed by the investor, have proven to be effective in generating consistent passive income. By diversifying their holdings, adjusting allocations, and exploring income-enhancing strategies, the investor has been able to optimize their income and achieve their goal of generating passive income through their investment portfolio.
Conclusion
After providing a comprehensive overview of the investment portfolio focused on generating consistent passive income, it is clear that the investor has put in significant effort and strategy to achieve their goals. The portfolio, valued at 1.14 million Canadian dollars, is divided into two main parts: the main portfolio and the retirement account.
In the retirement account, the investor made some recent changes by selling off their BDCX position and reinvesting the capital into high-yielding options such as SVOL, ALL-ARC, and CLIP. This decision was based on the investor’s desire to optimize income and maximize returns. While a small capital loss was incurred, the dividends received offset this, resulting in a small profit.
The main portfolio consists of two TFSA accounts and a non-registered cash account, from which the investor derives their monthly income. The investor holds various core holdings such as CLM, Asphalt, CEFD, HYGW, WR, and DHI. They have increased their investment in CLM due to its consistent high yield. Despite CEFD being affected by the overall performance of the closed-end fund market, the investor is considering adding more to their holdings in the future.
Additionally, the portfolio includes allocations to volatile assets such as USO, TSLY, and CLIP, which allow the investor to take advantage of covered calls and higher premium rates. While these investments come with higher risks, they also offer potential rewards.
The investor’s overall strategy focuses on generating consistent passive income and prioritizing long-term investments over short-term trading for capital gains. Their portfolio generates a monthly income, with an average yield of 21%, which amounts to approximately $6,600 when converted to Canadian dollars. The investor reinvests all of this income back into the portfolio.
It’s important to highlight the significant changes that have been made within the main portfolio. By selling shares of ENS and purchasing a new position in ENCC, a Canadian Oil and Gas covered call ETF, the investor has optimized their yield and increased income. Other investments have been made in call options and HDIF, which includes Canadian banks and a recently added travel ETF. The investor has also made strategic moves to increase yield and diversification by swapping out B-Max for GDV.
The investor’s goal is to continuously analyze each holding individually and consider potential dividend increases to optimize yield and generate consistent income from the portfolio. They acknowledge the possibility of dividend fluctuations due to volatility but remain committed to their primary goal of generating monthly income.
Despite a decrease in capital, the portfolio’s income has increased the annual yield to nearly 11%. The investor currently receives a monthly income just below $7,000, with expectations of surpassing $7,000 in the next update. This demonstrates the investor’s ability to adapt and make strategic decisions in the pursuit of their financial goals.
Overall, this overview offers a comprehensive and informative understanding of the investment portfolio, its composition, recent changes, and the investor’s strategies for generating consistent passive income. Through prudent decision-making, diligent analysis, and a focus on long-term investments, the investor has positioned themselves for financial success.
