Hello friends. It’s a new year. 😀 My investment strategy for 2017 was simple; to buy dividend growth stocks and alternative investments. Dividend stocks and alternative assets tend to grow in bull markets but also hold up well in recessions. The plan is to earn respectable returns while reducing risk to the downside. Here are my 2017 results.
Average return on investable assets = 18.9%
Overall I am quite thrilled with this outcome. 🙂 The broad Canadian stock market index (S&P/TSX Composite) returned about 9% in 2017. I remain convinced that a dividend based investment strategy works better than index funds.
Another variable that worked to my advantage is geographical diversification. Most equity markets in foreign countries performed extremely well. For example, the S&P 500 index in the U.S. gained 20%. Holding U.S. and European stocks helped me a lot this year.
The Best of 2017
Liquid’s Top 10 Best performing stocks of the year:
- Canopy Growth Corp (WEED) +213%
- Match Group Inc (MTCH) +82%
- Caterpillar (CAT) +64%
- Avigilon Corp (AVO) +63%
- Dollarama (DOL) +59%
- Amazon.com (AMZN) +58%
- Premium Brands Holdings (PBH) +55%
- Deere and Co (DE) +55%
- Blackberry (BB) +54%
- Netflix (NFLX) +53%
The Worst of 2017
Liquid’s Top 10 Worst performing stocks of the year:
- Crescent Point Energy (CPG) -45%
- High Liner Foods (HLF) -23%
- Cineplex (CGX) -22%
- Cameco Corp (CCO) -14%
- Viacom (VIAB) -10%
- Halliburton (HAL) -8%
- Keyera Corp (KEY) -7%
- Boardwalk REIT (BEI.UN) -7%
- Target Corp (TGT) -6%
- Goldcorp (G) -5%
We can’t win them all. But as long as we get it right most of the time then everything will work out eventually. 🙂
2017 Investment Breakdown
All returns mentioned below are internal rate of returns (IRR) unless otherwise stated.
Annual return = 16.3%
Net Asset Value = $190K
This includes my entire RRSP portfolio, most of my TFSA and a small cash account all held within TD Direct Investing. The combined return over the last 12 months was 16.28%.
I hold about 15 individual securities in my TD TFSA, and another 30 in my RRSP account. If you are interested to see exactly what they are I’ve listed all the stocks on my portfolio page. 😀
Note: Past performance doesn’t guarantee future results and readers should not take any stocks I buy as recommendations.
Interactive Brokers – Non Registered Portfolio
Annual return = 25.3%
Net Asset Value = $158K
This is where I have my margin account. I hold Canadian, U.S. and U.K. securities in here – mostly preferred stocks and dividend stocks due to the preferential tax treatment of their returns. One reason the return is so high in this portfolio is because I am using leverage (borrowing money to invest.)
Antrim Balanced Mortgage Fund
Annual return = 6.2%
Net Asset Value = $20K
This is a mortgage fund that’s held inside a TFSA. It’s a fixed income investment that offers steady and predictable interest payments every quarter. This is my largest mortgage investment corp (MIC) but I also hold smaller positions in publicly traded MICs in my TD portfolio.
Related Post: What are Mortgage Investment Corps?
If the stock market tumbles in 2018, private MICs such as Antrim should not be negatively affected. Below is a chart of the fund’s performance over the last 15 years. Despite a 38% drop in the stock market during the 2008 financial crisis, this mortgage fund continued to earn positive returns for investors throughout the recession.
MICs tend to underperform stocks in a bull market. But their purpose is to provide stability during tumultuous times. This is why I buy and hold them. Overall they represent a small portion of my investment portfolio (about 10%) but they are an invaluable part of my strategy to not get ruined in the next market crash.
Annual return = 11%
Net Asset Value = $22K
As discussed in my post last week this is my newest investment with only one year of return history. I think national GDP growth will slow down next year to 1% which may cause more delinquencies for private borrowers but we shall see what happens. Overall I am happy with the P2P lending platform.
Overall I have about $390K of investable assets which are all outlined in detail above. Additionally I have farmland equity worth $250K, and real estate equity in my condo worth $70K. This gives me a total net worth of about $700K after subtracting consumer debt. One thing I want to get into more is emerging market equities. This can be done by purchasing funds such as the iShares Core MSCI Emerging Markets ETF (XEC) in a discount brokerage account.
The majority of my investments have delivered returns that have either met or exceeded my expectations. I hope everyone had a great year and that 2018 will bring us continued prosperity and freedom. 😀
Random Useless Fact