Finding inspiration for a retirement portfolio approach.

 

I like to read other blogs discussing retirement portfolios. I was just considering the portfolio suggestions posted by the "Cut the Crap Investing" blog. I under stand why all the ETFs mentioned are in the list except for the last one, the iShares bond fund XBB.TO.

Bonds I understand. Keep them to maturity and all your money comes back. You keep the interest payments. But not so with a bond-based ETF. First, the bonds will not be kept to maturity in all the cases of which I am aware. Often the bonds in the fund are sold when one year from maturity. The bonds may be sold at a loss.

I do not hold any bonds at all in my retirement portfolio. I do hold about 10% of my retirement funds in cash. It is in the mutual fund TDB8150 which is paying daily interest right now 4.3%. I find this approach better than shoving my loose cash into a bond fund ETF.

For the full story, click the link: The Simple 7 ETF Portfolio for Canadian Retirees.

Many see Scotia Bank as a buy.

 

The Scotia Bank (BNS) has been on a lot of buy lists for some time now. With the stock price threatening to hit a new low for the year, BNS is looking awfully good. Its dividend of $4.24 is yielding approximately 6.65%. Nice.

This may surprise you but I don't like to chase dividend yield. Too rich a dividend can be a warning. I have enough BNS in my retirement portfolio to satisfy my needs. I do not feel forced to buy more but as the price drops it becomes worth consideration.

I like to buy and hold and because of this I have missed a number of good sell moments. Now, I am changing my approach somewhat. When prices are quite depressed, buy. Hold while the price recovers and then sell some but not all the investment. Keep the core holding but reinvest the funds from the recent sale in another solid, dependable, dividend paying stock. In this way, one can build a more diversified portfolio delivering a solid dividend income.

TRP getting harder to resist

 

TC Energy Corporation (TRP) is getting harder and harder to resist. It is now yielding 7.02%. A very nice yield for anyone but especially appealing to retirees living on their dividend income.

TC Energy is a pipeline and an utilities operator. I understand TC Energy transports about 25% of the natural gas consumed in North America and operates Bruce Power, the nuclear generating facility on the shore of Lake Huron in Ontario. TC Energy is more exposed to the natural gas market than Enbridge, one of its main competitors.

A quick check of the Financial Times shows that TC Energy has:

• 15 analysts covering TC Energy expect the dividend to grow 3.39% in the upcoming fiscal year
• TC Energy Corporation had revenues for the full year 2022 11.88% above the prior year's results
• 17 analysts offering 12 month price targets for TC Energy Corp have a median target of 61.00. This is approximately a 14% increase from recent prices.

If I didn't already have exposure to TRP, I'd be a buyer at today's price. As it is, I am going to wait and see if TRP drops a little more than another two dollars. That would make a new low for the past year. I would find TRP irresistible at that point.