I started saving in the 1970's. I had bonds, GICs, mutual funds and stocks. This was the 1970's and I at first did better with GIC's and bonds. I generally did better in stocks than mutual funds and sold my last mutual fund in 1999. I sold my last Index fund in 2006. I started to get rid of my bonds when interest rates went below 10% and sold my last bond in 1997. (My last bond was a 30 year bond with interest at 9.65%.)
I am now 100% into stocks with some cash in MMF and an ING account. This has to do with the times. You are making no money in interest bearing financial vehicles. I need cash to live off of and for my RRSP accounts so that I have cushion in order not to have to sell any stock for withdrawal purposes at disadvantaged time.
The vast majority of my stocks are dividend paying. I occasionally buy a stock without dividends to make some capital gain, but I do not consider them long term buys. For example I bought RIM in 1999 when it was a fast rising company. However, this has long been sold and I would not be interested in this company today.
My portfolio is currently giving me an overall yield of 3.55%. I have a mix of low (less than 2%), median (2 to 3%) and high (above 4%) yield stock with dividend growth in the low (rate of inflation), median (4 to 8%) and high range (over 10%). Talking about dividend yield and growth leads into my post about "Dividend yields on Original Investments". Click here to view this post.
I have been buying some dividend paying small caps. For example I have Evertz Technologies (TSX-ET), Automodular Corp (TSX-AM) and McCoy Corp (TSX-MCB). You can read about them on my blog. For my most recent blog entries on Evertz Technologies of June 2012, click here or here. For my most recent blog entries on Automodular Corp of June 2012, click here or here. For my latest entries on my blog on McCoy Corp, dated June 2012, click here or here.
I would probably not go into mutual funds again. ETFs and Index funds are still an interesting idea. I have an index fund in my US Currency Account to soak up my excess cash. However, this index fund is to soak up small amounts, it is not much of an investment.
I could use a ladder network of bonds to get a better interest rate for the cash in my RRSP accounts. However, it just seems to me to be lot of work for not much reward. I do have an ING account for excess cash from my Trading account. I have cash in a MMF paying 0.39% for my RRSP accounts compared to ING's 1.35% for cash involved with my Trading account.
On my Investment Talk blog I am today writing about The Keg Royalties Income Fund (TSX-KEG.UN, OHC-KRIUF). Today, I am discussing the stock price and what analysts say about the stock. To read about this stock go here....
This blog is meant for educational purposes only, and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. See my website for stocks followed and investment notes. Follow me on Twitter or StockTwits.