Thursday, January 8, 2015

Some investments holding up well

When my wife opened a tax free savings account she had very little money to shove into the plan. Because of the limited funds, she simply stuck all the money in some shares of  Dream Office REIT (D.UN).

Recently the stock started moving lower. Thanks to over a year of accumulated monthly dividends it took awhile for her account to descend into the red, but eventually it did. But today it is back in the black thanks to those same dividends that earlier provided some buoyancy. She is now almost six percent to the good. With interest rates at historic lows, this is not a bad yield. In seven days she will realize another dividend payment and the cushion sheltering her from a loss will grow yet again.

Like my wife, I have little money available to invest in a tax free savings account. But I divided my money between two companies: the Royal Bank and Norbord. My RBC share not only pay a nice dividend but have grown in value. Even with the recent downturn in financials, I am up about 74 percent on my investment. My Norbord is down if all one considers is the stock price but it is up almost 3.5 percent after the dividends are considered. Thanks to good luck and those nice dividends, my tax free savings account is up some 24.7% in very few years.

With the market battling to gain a little ground, with volatility the name of the present game, it is easy to lose faith in the market. At times like this, I like to stand back and look at the big picture. Where are my investments today compared to the day I retired? My investments are up. Way up. After removing tens of thousands to live in retirement, my retirement portfolio is up more than 55 percent.

Have I always made the wisest investment choices? No, but just how bad is something one can argue about over a beer. The dividends have been a godsend in retirement. At the end of the month I'll see how I am doing this year compared to two alternative investing approaches, both easily done: the TD Monthly Income fund and the Complete Couch Potato.

A reader recently made me aware of another TD fund that has performed very well over the years. I'm watching it and may blog on that fund at some later date. I may even buy a little for myself.


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