Investing

Non Registered account holdings

  • Last Updated:
  • Sep 9th, 2021 2:35 pm
[OP]
Deal Guru
Dec 5, 2006
10656 posts
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Markham

Non Registered account holdings

I just opened a non registered account and I will use "spare" money to invest, those money are not from HELOC(don't want to touch anything related to my house), rather, those are the moneys that earn very little in my saving account and I have rainy day money aside.

In terms of holdings in non registered account, I am thinking the mix of individual stocks plus ETF. right now, I am thinking 5 banks and Telus as individual stocks plus some dividend ETF such as XDIV. I know ETF MER will eat some returns, but it also free my time to study each individual stocks fundamentals, price history and monitor when to buy those time consuming activities.

is this the right approach?

Thanks
26 replies
Sr. Member
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May 31, 2018
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Grab some ZDV for the divvies (.39 mer) and maybe CDZ (.66 mer) for some slightly different holdings to tide you over while you’re picking individual stocks. Throw in some ZCN (.06 mer) for most of the Canadian market and you won’t feel rushed into adding anything while you’re doing your research.
[OP]
Deal Guru
Dec 5, 2006
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FarmerHarv wrote: Grab some ZDV for the divvies (.39 mer) and maybe CDZ (.66 mer) for some slightly different holdings to tide you over while you’re picking individual stocks. Throw in some ZCN (.06 mer) for most of the Canadian market and you won’t feel rushed into adding anything while you’re doing your research.
Thanks.

I was thinking VDY, but ZDV might be better. It has less financial section exposure which compensate individual bank stocks
Jr. Member
Dec 3, 2019
168 posts
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Holding 5 banks together does not offer much in terms of diversification.

They all tend to move together based on Canadian economy. (Scotiabank has more non-Canadian exposure and TD has more US exposure)

Pick maybe 2 banks and the put rest in a different industry.
Sr. Member
Feb 14, 2005
709 posts
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Toronto
buysellbuy wrote: Holding 5 banks together does not offer much in terms of diversification.

They all tend to move together based on Canadian economy. (Scotiabank has more non-Canadian exposure and TD has more US exposure)

Pick maybe 2 banks and the put rest in a different industry.
+1. Not to mention XDIV also holds four of the five banks plus Telus. You’re better off just holding XDIV instead of the individual stocks.

For most diversification just buy XEQT or VEQT for 100% world equity exposure.

Is there a reason you’re gravitating to dividend-paying stocks?
[OP]
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Dec 5, 2006
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raxen wrote:
Is there a reason you’re gravitating to dividend-paying stocks?
I guess this question is for me

I just started non registered account, so try to play small and safe. I am thinking bank stocks since you can get both capital gains and dividend from those

I also will buy tdb902 as well.

Just try to start slowly in case get burned and don't want to continue. Especially since stock price is high now
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Dec 12, 2009
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OP, I constructed a dividend stock portfolio by deconstructing CDZ ETF, avoiding energy stocks. I am happy with the results so far.
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Sr. Member
Feb 14, 2005
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smartie wrote: I guess this question is for me

I just started non registered account, so try to play small and safe. I am thinking bank stocks since you can get both capital gains and dividend from those

I also will buy tdb902 as well.

Just try to start slowly in case get burned and don't want to continue. Especially since stock price is high now
Understandable as there’s always a correction looming, but what you’re describing is trying to time the market and it’s impossible to do. Lots of people have sat on the sidelines and missed out on the longest bull run in history thinking there’s a correction coming - myself included.

To ease your mindset, dollar cost average and keep the commissions and MERs as low as possible to maximize your returns. As long as you’re investing with a long time horizon in mind, and you have enough self control to stick with your plan, you’ll reap the rewards of compounding over time.

Psychologically the problem with buying individual stocks is the nature to buy high and sell low as soon as you read some news about a company which moves it’s price. You’re less likely to do so with ETFs.
[OP]
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Dec 5, 2006
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will888 wrote: OP, I constructed a dividend stock portfolio by deconstructing CDZ ETF, avoiding energy stocks. I am happy with the results so far.
Yes, I remember I saw you mentioned it a couple of times and I actually went to check CDZ before I posted this thread

I didn't follow your routine is i saw CDZ hold 86 holdings, So I am not sure how to weigh them at the beginning? Equal weight?

I feel my capability only allows me to manage less than 10 stocks or ETFs
Last edited by smartie on Sep 8th, 2021 7:06 pm, edited 1 time in total.
[OP]
Deal Guru
Dec 5, 2006
10656 posts
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Markham
raxen wrote: Understandable as there’s always a correction looming, but what you’re describing is trying to time the market and it’s impossible to do. Lots of people have sat on the sidelines and missed out on the longest bull run in history thinking there’s a correction coming - myself included.

To ease your mindset, dollar cost average and keep the commissions and MERs as low as possible to maximize your returns. As long as you’re investing with a long time horizon in mind, and you have enough self control to stick with your plan, you’ll reap the rewards of compounding over time.

Psychologically the problem with buying individual stocks is the nature to buy high and sell low as soon as you read some news about a company which moves it’s price. You’re less likely to do so with ETFs.
Yes, that's why I started non registered account. Have been playing around my registered account and finally decided to have a non registered account as well. Those money earned 1% returns in savings account now
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Feb 26, 2017
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I like the idea of Canadian dividend growth stocks in a unregistered account with something like XEQT. I wouldn't worry about it being diversified as you have your other accounts. Just add when something looks reasonably priced. Setting up an automatic purchase with an etf or an etf mutual fund would work well as well.
[OP]
Deal Guru
Dec 5, 2006
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Chance7652 wrote: I like the idea of Canadian dividend growth stocks in a unregistered account with something like XEQT. I wouldn't worry about it being diversified as you have your other accounts. Just add when something looks reasonably priced. Setting up an automatic purchase with an etf or an etf mutual fund would work well as well.
Thanks

Was thinking replicate subset of this plus tdb902. If the return is subpar, I have someone else to blame :)

https://docs.google.com/spreadsheets/d/ ... sp=sharing
Sr. Member
Dec 8, 2020
574 posts
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Toronto
non-registered casino money

OP as a park it & forget it 20 year time horizon

in this order DCA'ing (in a zero commission/low cost brokerage fee acct) you will buy maximum of the following in the order shown.

10 shares TQQQ

50 shares ZEB

150 shares EIT.UN

I would expect the total invested account value to grow 12%/yr ... combination of dividends/growth.
.
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smartie wrote: Yes, I remember I saw you mentioned it a couple of times and I actually went to check CDZ before I posted this thread

I didn't follow your routine is i saw CDZ hold 86 holdings, So I am not sure how to weigh them at the beginning? Equal weight?

I feel my capability only allows me to manage less than 10 stocks or ETFs
I have 24 Canadian dividend stocks. By no means did I create an exact likeness to CDZ. My weighting is not equal because I have excluded the energy sector and not every stock has provided the same gain. I was slightly overweight in the banks and they have been the best performers which means I am even more overweight in the financials. This does not bother me at all. Rebalancing comes at a cost. I have to pay taxes and will have less money to rebalance with. I have no delusions that I know which replacement stocks to buy that will do better than that I sell. At the end of the day, these are dividend income investments and that remains the focus. I will take action if any company appears to be at risk of continuing to pay the dividend. I am keeping it very simple.

BTW, the performance of your portfolio in the long term will be less about the technical aspects and more behaviorally driven. The more you are able to stay the course the better the outcome. Bias the holdings to whatever make you behaviorally content.
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Deal Addict
Jul 23, 2007
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I'm up to 31 individual Canadian dividend paying companies. This second non-registered portfolio got started in 2003, so it's been growing over a few years now. I try my best to diversify over seven sectors, but as the assets get larger, it's getting harder to add a meaningful percentage to any new added equity from a combination of savings and dividends received. Not a terrible problem to have I can assure you.

I don't spend a lot of time on this non-registered portfolio. No dividend cuts so far this calendar year, so that's kind of nice. Other than that, it all just seems to run by itself while I just get to collect the dividends which help keep us ahead of inflation.
[OP]
Deal Guru
Dec 5, 2006
10656 posts
5656 upvotes
Markham
will888 wrote: I have 24 Canadian dividend stocks. By no means did I create an exact likeness to CDZ. My weighting is not equal because I have excluded the energy sector and not every stock has provided the same gain. I was slightly overweight in the banks and they have been the best performers which means I am even more overweight in the financials. This does not bother me at all. Rebalancing comes at a cost. I have to pay taxes and will have less money to rebalance with. I have no delusions that I know which replacement stocks to buy that will do better than that I sell. At the end of the day, these are dividend income investments and that remains the focus. I will take action if any company appears to be at risk of continuing to pay the dividend. I am keeping it very simple.

BTW, the performance of your portfolio in the long term will be less about the technical aspects and more behaviorally driven. The more you are able to stay the course the better the outcome. Bias the holdings to whatever make you behaviorally content.
Stryker wrote: I'm up to 31 individual Canadian dividend paying companies. This second non-registered portfolio got started in 2003, so it's been growing over a few years now. I try my best to diversify over seven sectors, but as the assets get larger, it's getting harder to add a meaningful percentage to any new added equity from a combination of savings and dividends received. Not a terrible problem to have I can assure you.

I don't spend a lot of time on this non-registered portfolio. No dividend cuts so far this calendar year, so that's kind of nice. Other than that, it all just seems to run by itself while I just get to collect the dividends which help keep us ahead of inflation.
Thanks

Do you only hold canadian stock in non registered account ?
Deal Addict
Jul 23, 2007
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smartie wrote: Thanks

Do you only hold canadian stock in non registered account ?
In this second non-registered portfolio we hold only Canadian equities.

The first non-registered portfolio we owned previously, had a mix of Canadian, U.S. and ADR's for overseas companies. This portfolio got completely sold off in the late 1990's to provide a large down payment on our house.
[OP]
Deal Guru
Dec 5, 2006
10656 posts
5656 upvotes
Markham
Stryker wrote: In this second non-registered portfolio we hold only Canadian equities.

The first non-registered portfolio we owned previously, had a mix of Canadian, U.S. and ADR's for overseas companies. This portfolio got completely sold off in the late 1990's to provide a large down payment on our house.
Thanks

The reason your current portfolio only hold canadian equities is because tax efficiency or you are in the time to use dividend,so you need mitigate currency risk or simply Canadian equity is good enough for your goal?

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