FFJ Portfolio - August 2022 Report

This FFJ Portfolio - August 2022 Report discloses my investment activity.

Purchases

Up until the last few days of August, the valuation of several holdings was less attractive than in May - July. I, therefore, limited my purchases to the addition of 50 Home Depot (HD) shares on August 2 @ ~$301.64.

On August 16, HD released its Q2 and YTD2022 results and the share price surged to ~$331. In this post, I disclose my decision to wait for HD's valuation to return to an acceptable level before acquiring additional shares.

Fast forward to the end of August, and HD's share price has plunged to ~$288. Its valuation, and that of several other holdings, has improved relative to mid-August. I am, however, in no hurry to add to positions because I think there is a very strong probability valuations will become more attractive.

Despite only one outright purchase, I did receive additional shares in the following companies because of the reinvestment of dividend income.

  • AT&T (T) - subsequently exited
  • Abbvie (ABBV)
  • Apple (AAPL)
  • Bank New York Mellon (BK)
  • Blackstone (BX)
  • Carrier Global (CARR)
  • Hormel Foods (HRL)
  • Mastercard (MA)
  • Paychex (PAYX)
  • Verizon (VZ) - subsequently exited
  • Emera (EMA.to)
  • SMART Centres Real Estate Investment Trust (SRU-UN.to)
  • The Bank of Montreal (BMO.to)
  • The Royal Bank of Canada (RY.to)
  • The Toronto-Dominion Bank (TD.to)

Divestitures

Following a review of my holdings, I exited non-core holdings in which I had no intention of acquiring new shares.

I disclosed my exit from TELUS International (TIXT.to) in this post and Cisco (CSCO) in this post.

My exit in AT&T (T) and Verizon (VZ) on August 17 and TELUS (T.to) on August 24 was disclosed in my Avoid Scotiabank Despite Its Attractive Valuation post.

New Positions

I initiated no new positions in August.

Dividend Income

The income from the holdings within the FFJ Portfolio is accessible here.

During the month, the holdings within the FFJ Portfolio generated the following dividend income:

  • 'Core' accounts: ~$1,780 CDN and ~$2,612 USD
  • 'Side' accounts: ~$2,171 CDN and ~$749 USD.

August, November, February, and May are the 4 months of the year with the lowest level of dividend income.

YTD dividend income is:

  • 'Core' accounts: ~$13,911 CDN and ~$22,225 USD
  • 'Side' accounts: ~$15,434 CDN and ~$11,999 USD
  • YTD total: ~$29,345 CDN and ~$34,224 USD

Despite the elimination of some positions, I still expect FFJ Portfolio dividend income of ~$44,500 CDN and ~$58,500 USD in 2022 because I continue to add to various positions and some companies are increasing their dividend.

Holdings

The January - August 2022 FFJ Portfolios are accessible here. The following is a recap of the monthly portfolio totals:

January 2022

Core Accounts: ~$773,000 CDN and ~$1,858,000 USD

Side Accounts: ~$666,000 CDN and ~$1,475,000 USD

Total: ~$1,439,000 CDN and ~$3,333,000 USD

February 2022

Core Accounts: ~$778,000 CDN and ~$2,014,000 USD

Side Accounts: ~$672,000 CDN and ~$1,465,000 USD

Total: ~$1,450,000 CDN and ~$3,479,000 USD

March 2022

Core Accounts: ~$810,000 CDN and ~$2,118,000 USD

Side Accounts: ~$696,000 CDN and ~$1,554,000 USD

Total: ~$1,506,000 CDN and ~$3,672,000 USD

April 2022

Core Accounts: ~$770,332 CDN and ~$2,026,487 USD

Side Accounts: ~$658,363 CDN and ~$1,514,137 USD

Total: ~$1,428,695 CDN and ~$3,540,624 USD

May 2022

Core Accounts: ~$784,833 CDN and ~$2,133,728 USD

Side Accounts: ~$661,080 CDN and ~$1,499,998 USD

Total: ~$1,445,913 CDN and ~$3,633,726 USD

June 2022

Core Accounts:  ~$742,473 CDN and ~$2,006,645 USD

Side Accounts:  ~$595,911 CDN and ~$1,401,823 USD

Total:  ~$1,338,384 CDN and  ~$3,408,468 USD

July 2022

Core Accounts:  ~$794,405 CDN and ~$2,230,466 USD

Side Accounts:  ~$644,255 CDN and ~$1,539,292 USD

Total:  ~$1,438,660 CDN and  ~$3,769,758 USD

August 2022

Core Accounts:  ~$740,560 CDN and ~$2,064,323 USD

Side Accounts:  ~$637,547 CDN and ~$1,478,073 USD

Total:  ~$1,378,107 CDN and  ~$3,542,396 USD

NOTE: The values reflected above exclude investments in several tax-efficient accounts for which I do not disclose details.

Final Thoughts

Valuations were attractive in May, June, and July. Through most of August, however, it became increasingly difficult to identify attractive opportunities. I, therefore, severely curtailed my purchases and exited a few non-core positions.

Most recently, stock prices have come under pressure. Hopefully, this is just the beginning of a more pronounced broad market correction.

I wish you much success on your journey to financial freedom.

Note: Please send any feedback, corrections, or questions to [email protected].

Disclaimer: I do not know your circumstances and am not providing individualized advice or recommendations. I encourage you not to make any investment decisions without conducting your research and due diligence. You should also consult your financial advisor about your specific situation.

I wrote this article myself and it expresses my own opinions. I am not receiving compensation for it and have no business relationship with any company whose stock is mentioned in this article.