Weekend Reading – Beat the TSX (BTSX) shines
Welcome to a new Weekend Reading post: the Beat the TSX (BTSX) shines edition!
You can review some of my latest posts below:
I provided an update on our financial goals, including some plans related to semi-retirement!
I provided this latest dividend income update, highlighting we are 91% of the way there towards a major financial milestone!
Weekend Reading – Beat the TSX (BTSX)
If there was ever a year to have a bit/hint of a home-bias for investing, this might be it.
Headlining this Weekend Reading edition, as an owner of many BTSX stocks for almost 15 years now, I enjoyed Matt Poyner’s BTSX 2022 mid-year update.
As a primer or a reminder for the BTSX strategy:
- Step 1: Find the TSX 60 Index (see low-cost ETF XIU as a proxy) and sort by dividend yield. (Note: the TSX 60 via XIU is the current collection of market-cap weighted Canadian blue-chip companies)
- Step 2: Select the top-10 stocks via yield. (Note: see histories of companies with solid dividend payments; so in your list you are likely to find in the top-10 telcos, utilities, REITs, and financial stocks)
- Step 3: Buy those stocks in equal parts and hold stocks without fail for one year. (Note: this process is repeated every January/once per year)
Of course, my deviation to the entire BTSX strategy is I don’t sell stocks and repeat the process every year. I tend to buy and hold and buy these BTSX stocks some more, over time. Your mileage may vary.
The incredible success of the BTSX strategy is in the pudding, including year-to-date:
(Reference: Matt’s great site)
My simple conclusion?
- Buying and owning BTSX stocks can not only deliver near-term returns but it can also deliver multi-decade portfolio income and overall growth success.
- Buying and owning BTSX stocks can help you weather market calamity – including as a hedge for inflation, rising oil prices, and beyond – you get paid to be an investor via dividends and growing dividends.
- Buying and owning BTSX stocks can be a great complement to the broad, big world of investing, via low-cost ETFs beyond Canadian borders or by owning other stocks in other sectors that fit your financial goals and risk tolerance.
Although I own a few other stocks for diversification, beyond Canadian telcos, utilities, low-yielding but growth oriented stocks, and finally, Canadian financials, I remain steadfast the BTSX stocks as a core concept of your portfolio could serve many DIY investors very well.
Further Reading with Matt and I: how to Beat the TSX (BTSX) and why it works so well.
Morningstar shared some of the best Canadian bank stocks to buy in 2022:
Here are some very inpsirational dividend income updates:
Kudos to GenY Money for already surpassing her 2022 goal.
“My “hourly rate” is now $2.94 whether I’m eating or sleeping or mowing the lawn.”
Impressive update by Our Life Financial:
- “Total dividends received for June 2022 $3,406.10
- This is an increase of 57.17% YoY (June 2022 vs June 2021)
- 2022 total dividends received so far $17,620.32
- This means we’ve reached 50% of our $35,000 year-end goal”
Just wow from Dividend Daddy:
“My June 2022 dividend total is $6,310.72 This means that in June: I earned $210.36 every day from dividends ($6,310.72 / 30 days). I earned $35.86 per hour from dividends (assuming a 9-5pm job). I earned $8.76 every hour of every day of the month from dividends.”
Kudos to Matthew Freeman and his income journey.
“I do have some good news to share in regards to my dividend income, thanks to the semi-annual distribution payment from iShares Core MSCI All Country ex Canada ETC (Ticker: XAW) I received the highest amount of income for a single month ever. Compared to last June my income grew a whopping 48%. I received $954.58 this month from 18 stocks and one ETF.”
Jordan Maas continues to enjoy counting his dividends and whiskey tasting. Nice pairing, Jordan!
“Total Passive Income June 2022: $1273.40! *46% of this was 100% Tax Free!”
“To summarize, I made $1,282 in side hustle income in June 2022. I also had $2,120 income from passive sources which brings my total June 2022 extra income to $3,403.08 CAD which covers all our monthly expenses as a family of four.”
More Weekend Reading…
Speaking of ETFs above, Tom Drake highlighted some of the best ETFs in Canada to own.
From Tom’s list, I’m a big fan of the following:
- XIU for Canadian stocks.
- XAW for international stocks (beyond Canadian borders/ex-Canada).
From the Investment Executive, Canadian ETFs witnessed the largest outflows recently since 2013!
(People: you should be buying equities, not selling…sigh.)
“Almost $700 million flowed out of Canadian ETFs in June, the first negative month since before the pandemic and the largest drawdown since 2013, National Bank Financial reported on Tuesday. Equity ETFs lost $2.2 billion last month and cryptoasset ETFs saw redemptions of $697 million, accounting for 16% of the crypto category’s $1.8 billion in assets, the report said. Fixed income ETFs were the big winners, pulling in $2 billion.”
Nice reflections and milestones from Financial Mechanic related to her 5-year blogging anniversary!
Always a fine list of Sunday Reads courtesy of Dale Roberts at Cut The Crap Investing.
Over at Cashflows & Portfolios, what asset class returns could occur in the future?
Last but certainly not least, join me online later this month in a live Q&A!
I look forward to sharing much of what I write about on this site with you and others 🙂
Have a great weekend!