Earlier in June, I highlighted PWF and JNJ as my short list of stocks for upcoming purchases for my dividend portfolio and I pulled the trigger with Power Financial Corp. A couple of weeks ago I added $5,000 to my TFSA (Tax Free Savings Account) and purchased PWF. I have not purchase JNJ because my focus was on my TFSA and, as Canadians, we have to pay taxes on US dividends in our TFSA but not in RRSP. I decided to keep my dividends working for me as efficiently as possible.
My TFSA has a good mix of holdings at the moment with most of the dividends buying back shares (All except CPG).
- Crescent Point Energy (CPG) – Yield of 6.38%
- Liquor Store (LIQ) – Yield of 7.17%
- Rogers Communications (RCI.B) – Yield of 3.67%
- Power Financial Corp. (PWF) – Yield of 4.70%
I am basically adding another financial to my portfolio with a large exposure to the life insurance industry since it owns nearly 70% of Great West Life (GWO). Historically, PWF has had very good dividend growth above 10% (expect for the past 2 years) along with a healthy dividend yield of 4.70%.
I recommend you read of couple of posts I did recently regarding the 10% rule for dividend growth and the impact it can have on your portfolio:
Readers: Did you manage to take a position during the market bottoms we have had? Or are you still waiting?