World Stock Watch

Unlock the Secrets of a 60-Year-Old Canadian’s $9,000 Monthly Dividend Portfolio

As the Federal Reserve cuts interest rates, investors are flocking to dividend-paying stocks for attractive income generation. In fact, First Trust estimates that dividend-focused ETFs saw a massive $4.5 billion in inflows in July and August alone. But which quality, inexpensive dividend stocks should you pick to boost your wealth?

Inspiration from a Successful Investor

Let’s take a cue from a 60-year-old Canadian investor who shared his remarkable story on Reddit’s r/Dividends community. With a staggering $110,666 in annual dividend income, he’s set to retire in two years. His portfolio is a testament to the power of disciplined investing and smart stock selection.

The Investor’s Winning Formula

So, what’s his secret? The investor attributes his success to dollar-cost averaging 15% of his income every month over the past 30 years. He didn’t start making over $150,000 a year until age 34, but his patience and perseverance paid off. Today, he’s reaping the rewards of his labor, with a portfolio worth $3.6 million.

Top Holdings Revealed

So, which stocks make up this investor’s winning portfolio? Here are some of his top holdings:

• Vanguard FTSE Canadian High Dividend Yield Index ETF (VDY.TO): Exposing investors to top high-yield Canadian dividend stocks, this ETF tracks the FTSE Canada High Dividend Yield Index.
• Enbridge (ENB.TO): With a dividend yield of 6.6%, this Canadian energy infrastructure company has consistently raised its dividends for over three decades.
• Brookfield Asset Management (BAM.TO): This Canadian alternative investment management company focuses on real estate, renewable power, infrastructure, credit, and private equity, offering a dividend yield of 3.3%.
• Canadian Natural Resources (CNQ.TO): With a dividend yield of over 4%, this company has consistently raised dividends for 24 straight years.
• Bank of Montreal (BMO.TO): This top high-yield dividend stock offers a dividend yield of over 4% and has seen its stock price rise 14% over the past year.
• Schwab U.S. Dividend Equity ETF (SCHD): Tracking the Dow Jones U.S. Dividend 100 Index, this ETF exposes investors to top dividend stocks trading in the U.S.
• Tourmaline Oil Corp. (TOU.TO): This Canadian natural gas company offers special dividends, making it a standout in the investor’s portfolio.
• Microsoft Corp (MSFT): With a recent 10% quarterly dividend increase, Microsoft offers a sweet spot between dividend income and capital gains through stock price appreciation.
• Broadcom Inc (AVGO): While known for its AI chips, Broadcom has a strong dividend growth track record, having raised its annual dividend for 13 consecutive years.

Takeaways from a Dividend Investing Pro

This investor’s remarkable story serves as a reminder that disciplined investing and smart stock selection can lead to financial freedom. By following his example and diversifying your portfolio with quality, inexpensive dividend stocks, you too can unlock the secrets of generating substantial passive income.