The defensive Canadian big dividend portfolio on the Monday Reads.

Canadian investors love their big dividends. The Canadian high dividend approach can also be arranged to create a more defensive portfolio. That can have a meaningful benefit for a retiree and for those who desire to own a portfolio with less volatility. That lower risk portfolio can be easier to handle in troubling times. Experiencing the positive reinforcement of a growing dividend stream can lead to better behaviour. Those growing dividends can help create more stable retirement funding with less sequence of returns risk. We’re building the Canadian big dividend portfolio on the Monday Reads.

Yes, there was no Sunday Reads. I was up in Haliburton at a friend’s cottage (getting the docks ready for winter) and we experienced a power outage. I had no internet. So we’ll have the Sunday reads on Monday.

On Saturday I offered the defensive big dividend portfolio that featured the Hamilton enhanced Utilities ETF. That offers investors the option to use an ETF that can bolt on defensive blue chip utilities. The ETF offers a current yield of over 6.6%. And by ‘bolt on’, you could add that ETF to your existing core Canadian ETF or stock portfolio. In the post I did a bolt-on to Vanguard’s High Dividend – VDY. You might use iShares XIU, or the BMO Low Volatility ETF or other as your core. Saturday’s post also offers up defensive options for U.S. and global markets.

AT QUESTRADE, YOU CAN BUY ETFS FOR FREE.

The Sunday reads on Monday

Let’s kick off at My Own Advisor, where Mark offers the more dividend increases edition. Last week delivered some very good news on the dividend front, especially for those in the Canadian energy dividend space. On Canadian Natural Resources (CNQ.TO) Mark offered …

The Calgary, Alberta-based company raised its quarterly dividend to 85 Canadian cents, as energy companies focus on returning the excess profit to shareholders. With this, the company has raised its quarterly dividend twice so far this year for a total combined increase of 45% to C$3.40 per share annually.

I hold CNQ and also Tourmaline (TOU.TO) that raised its dividend 11.1% and then offered a special dividend of $2.25 per share. My oil and gas exposure in my RRSP account is over 10%. Telus (T.TO) also offered a nice raise, and so on and so on.

Inflation watch

On Findependence Hub we take a closer look at inflation thanks to Alizay Fatema, Associate Portfolio Manager, BMO ETFs.

Here is a very good post on CTVnews.ca, showing the G7 inflation rates and interest rate hikes. You’ll also find the GDP growth and decline rates in recessions. It’s a very good interactive chart-fest.

This chart is interactive and will run to show G7 inflation rates from 2019 to present.

“When inflation has previously gone to levels as high as it is right now, it’s usually been slow to drift lower again,” a recent note by economists at Deutsche Bank warned. Their research shows that, historically, after spikes in the inflation rate, price increases were still above the pre-shock rate five years later.

The inflation watch was a topic on this week’s Making Sense of the Markets on MoneySense. Kyle also took a look at earnings on both sides of the border.

Dividend Hawk dives in a little deeper on the earnings front. The Hawk also offers the stock reads of the week. One of my favourites, CVS Health was mentioned …

CVS reports third quarter Non-GAAP EPS of $2.09, 6.09% over last year’s result and $0.10 higher than expected. Revenue improved 10% to $81.2 billion, $4.42 billion higher than expected. For full year 2022 management raised Adjusted EPS guidance range to $8.55 to $8.65 from $8.40 to $8.60 and raised cash flow from operations guidance range to $13.5 billion to $14.5 billion from $12.5 billion to $13.5 billion.

I have long suggested CVS as a wonderful play on the healthcare and pharma space. CVS was up 6.5% for the week, and is up about the same over the last year. The stock is hanging in there.

Covering the week we also look to Banker on Fire with the greatest hits, Volume – 42.

And here’s a topic and direction I’m interested in – retirement for introverts, on FiPhysician. We have embrace a lifestyle by design. That can be a little more of a challenge for those of us who lean to the more introverted life.

Dividend and portfolio updates

Rob at Passive Canadian Income offers his October update.

At Tawcan, Bob gives us his Q3 goals and resolutions update.

There’s a TFSA portfolio update on My Prudent Life.

And from Dividend Daddy –

My October 2022 dividend total is $6,676.33

This means that in October:

• I earned $215.37 every day from dividends ($6,676.33 / 31 days).
• I earned $39.74 per hour from dividends (assuming a 9-5pm job).
• I earned $8.97 every hour of every day of the month from dividends.
• My top 3 dividend earners this month were Bank/Utilities related with 38.5% of my monthly dividend total:
  1. Bank of Nova Scotia ($1,075.32) – 16.1% of my monthly dividend total
  2. TORONTO-DOMINION BANK ($911.36) – 13.7% of my monthly dividend total
  3. Algonquin Power & Utilities Corp ($583.08) – 8.7% of my monthly dividend total

And here’s the October update on Our Financial Life.

Always consider the cost of your Canadian home bias. And then in retirement, don’t sell yourself short by attempting to live off the dividends. The lower yielding stocks often offer better returns and allow for greater diversification. Head to stocktrades.ca for more info and ideas on that approach.

Thanks for reading. Have a great week. Don’t forget to follow this blog.

Cut The Crap Investments. Cut your fees.

You will earn a break on fees by way of many of these partnership links.

CANADA’S TOP-RANKED DISCOUNT BROKERAGE

Cut the Crap Investing readers can earn a break on fees at Questrade by way of that partnership link. At Questrade, you can buy ETFs for free.

I have partnerships with several of the leading Canadian Robo Advisors such as Justwealth, BMO Smartfolio ,Wealthsimple, Nest Wealth and Questwealth from Questrade.

Here’s Canada’s top-performing Robo Advisor, Justwealth.

Consider Justwealth for RESP accounts. That is THE option in Canada with target date funds that adjust the risk level as the student approaches the College or University start date.

RETIREMENT FUNDING PLANNING

The self-directed investor might consider the service provided by Mark Seed from My Own Advisor. He runs Cashflows & Portfolios where they will provide options for that optimal retirement funding strategy. That service is provided for a very reasonable fee.

If you do head to Cashflow & Portfolios, be sure to tell them Cut The Crap Investing sent ya.

OUR SAVINGS ACCOUNTS

Make your cash work a lot harder at EQ Bank. RRSP and TFSA account savings rates are at 2.0%. You’ll find some higher rates on GICs, recently updated and increased to 3-4%. They also offer U.S. dollar accounts. We use EQ Bank, they have been awesome.

OUR CASHBACK CREDIT CARD

We make between $50 to $70 every month! And that’s on everyday spending. There are no fees with …

The Tangerine Cash Back Credit Card

Last month we received $75 in cashback cash. We are spending too much, ha.

While I do not accept monies for feature blog posts please click here on the mission and ‘how I might get paid’ disclosures. Affiliate partnerships help me pay the bills for this site. That will allow me to keep this site free of ads and easy to read.