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My latest crack at a "Retirement Portfolio"

Thursday, September 23, 2021

How I would invest $10,000

I have a friend with $10,000 to invest. This is money that they can afford to lock away for three or four years. There is no chance that even in an emergency they would require this money. This money is truly available for investing, no string attached.

I'd buy a stock selling at a discount to it's high for the past year and it must offer a decent dividend. I want a solid company as I like to sleep at night. I want a stock in a company I can trust, one in which I have faith. I don't want to have to be checking it's gains or losses too frequently. It should be a buy-it-and-forget-it stock. ENB (Enbridge), T (Telus) and TD all meet these criteria.

To decide how much of each stock I should own, I created a simple spreadsheet. See below. (It didn't copy and paste perfectly but you will get the idea.) I insist on a minimum yield of 4%. This mix yields 4.89% today.






Invest

$10,000




Stock Price Tdy Dividend Dividend % to own Quantity Total Dividend 12-Month High % Off Its High Investment
TD $82.20 $3.16 3.84% 33.00% 40 $126.40 $89.12 7.76% $3,288.00
ENB $50.42 $3.34 6.62% 34.00% 67 $223.78 $51.34 1.79% $3,378.14
T $28.72 $1.26 4.40% 33.00% 115 $145.45 $29.99 4.23% $3,302.80















Yearly $495.63
Cash $9,968.94





Yield 4.96%
Balance -$9,968.94

 

I opened a simulated portfolio using Portfolio Manager in TD WebBroker. This pseudo portfolio tracks the performance of the $10,000 portfolio suggested by the spreadsheet.

 Will my friend take my advice and go for the safety of diversity offered by investing in three areas of the market: financials, pipelines and telecoms? Will the attractive dividend income, almost 5%,  grab their attention and commitment? I'll have to call my friend tomorrow and discover what was decided.

   


  • Sept. 22, 2021 -- $10,000 to invest
  • Oct. 22, 2021 -- Value of Portfolio has climbed to $10,330  (Telus is the drag on the portfolio.)
  • Sept. 24, 2021 -- $10,009.23 Portfolio balance at close.
  • Nov. 5, 2021 -- $10,606.03