In the Canadian taxable portfolio I'll now be entering my fourteenth year of sector diversification.
That all got started after having invested going through the tech rise and then the subsequent collapse in the early 2000's. Next up was the financial crisis of 2008 to early 2009. Perhaps looking back it wasn't a good idea to have 50% of the portfolio in Canadian financial companies, but I got away with it because we only had one dividend cut from that sector in Canada. I've also been through the Black Monday crash of 1987, but then it seemed everything went down, but I didn't have a lot of money in these days and just held on like you were supposed to.
Come 2010 when the investment clouds seemed to dissipate I decided to reorganize the portfolio and become more sector oriented to protect it from any of my foolishness. That was the only reason at the time.
One bonus going forward was it allowed me to see what sectors were doing well and which were lagging. The laggards always got the fresh investment money from any pension savings combined with our dividends and it remains the same to this day. We now have seven Canadian sectors in this dividend paying portfolio.
As for this last four years being extremely unusual, what I have noticed is dividend growth has slowed in some cases, but many of the dividend yields have gone up considerably. Haven't seen anything like it since the late 1990's when investors were dumping the dividend stocks to buy the then skyrocketing tech sector.
That all got started after having invested going through the tech rise and then the subsequent collapse in the early 2000's. Next up was the financial crisis of 2008 to early 2009. Perhaps looking back it wasn't a good idea to have 50% of the portfolio in Canadian financial companies, but I got away with it because we only had one dividend cut from that sector in Canada. I've also been through the Black Monday crash of 1987, but then it seemed everything went down, but I didn't have a lot of money in these days and just held on like you were supposed to.
Come 2010 when the investment clouds seemed to dissipate I decided to reorganize the portfolio and become more sector oriented to protect it from any of my foolishness. That was the only reason at the time.
One bonus going forward was it allowed me to see what sectors were doing well and which were lagging. The laggards always got the fresh investment money from any pension savings combined with our dividends and it remains the same to this day. We now have seven Canadian sectors in this dividend paying portfolio.
As for this last four years being extremely unusual, what I have noticed is dividend growth has slowed in some cases, but many of the dividend yields have gone up considerably. Haven't seen anything like it since the late 1990's when investors were dumping the dividend stocks to buy the then skyrocketing tech sector.
Statistics: Posted by Stryker — Sun Jan 07, 2024 3:15 am — Replies 14 — Views 856