Time again for the monthly Smith Manoeuvre Portfolio update, May 2008 edition. I asked during the last update whether or not I should keep these monthly portfolio posts going, or if I should space them out a bit. I think that most of you enjoy these posts, but some may find them boring. So, I have decided that I will keep this post going providing that I have made changes to the portfolio during the month.
For those of you just joining us, The Smith Manoeuvre is a Canadian wealth strategy that utilizes a home equity loan to invest in income producing assets. The result is a tax deductible loan and portfolio that increases as you pay down your mortgage.
Onto the portfolio. It seems that this past month, the Canadian markets have taken off again and have even reached new highs. The new highs made by the index were mostly due to RIMM and POT and would have been even higher if the financials took off.
In terms of trading, there weren’t any new positions initiated, but there have been a few additions to existing holdings RY, PWF, MFC, TRP
|Stock||Symbol||Shares||Avg Buy Price||Total||Div/Share||Avg Yield|
Total Portfolio Cost Base: $15,568.75
Total Dividends / Year: $615.35
As you can see, the portfolio is still heavily concentrated in financials with a sprinkle of utilities. This lack of diversity is inevitable when investing in Canadian dividend paying stocks.
The stock that I currently have my eye on is AGF Management (T-AGF.B) which is a mutual funds management company and sports a current dividend yield of 4.50%. It is currently on the dividend achievers list with a stock price that seems to be beaten up. I’ll have to do more research as to why it “appears” so cheap. Anyone have any ideas?