I’ve spent a few years dithering about what to do with my RRSP, but since my income has increased over that time I can no longer ignore the tax advantages of making RRSP contributions.

After only contributing $1,500 to my RRSP in 2011, I’ve added $5,000 in 2012 and another $5,100 during the first 60 days of this year.  I’ve also budgeted to make another $10,000 in RRSP contributions during the remainder of 2013.

Related: RRSP Portfolio Update 2012

Here’s what I’ve done with my cash over the last 12 months.

  • Bought 200 shares of Rogers Sugar on August 23rd, 2012
  • Bought 250 shares of Rogers Sugar on November 30th, 2012
  • Bought 100 shares of SNC-Lavalin on November 30th, 2012
  • Bought 60 shares of Empire on January 10th, 2013
  • Bought 30 shares of BMO on February 20th, 2013

I like to buy blue-chip companies that tend to increase their dividends on a regular basis.  I believe these types of companies will deliver the highest returns over a long period of time.

RRSP Portfolio

Here’s a look at my RRSP portfolio as of March 22nd, 2013:

Symbol Shares Market Value Book Price Current Price Dividend
BMO

90

$5,743.80

$55.95

$63.82

2.96

BNS

45

$2,674.35

$42.64

$59.43

2.40

BCE

80

$3,736.80

$24.52

$46.71

2.33

CM

32

$2,602.24

$60.29

$81.32

3.76

COS

140

$2,977.80

$20.71

$21.27

1.40

EMP

60

$3,891.00

$59.07

$64.85

0.93

FTS

100

$3,370.00

$29.28

$33.70

1.24

GWO

150

$4,075.50

$26.33

$27.17

1.23

LIQ

160

$2,964.80

$11.61

$18.53

1.08

REI.UN

130

$3,537.30

$12.88

$27.21

1.41

RSI

450

$2,857.50

$6.23

$6.35

0.36

SNC

100

$4,219.00

$39.39

$42.19

0.88

SJR.B

100

$2,484.00

$20.38

$24.84

1.02

T

85

$5,918.55

$31.74

$69.63

2.56

TRP

60

$2,974.20

$37.91

$49.57

1.84

CASH

$8,412.45

Total

$62,439.29

This portfolio currently generates $2,278 in annual dividends.  Only two of the 15 stocks failed to increase their dividend in the last 12 months (LIQ, GWO).  Rogers Sugar paid out a special dividend of 36 cents per share earlier this year.

What To Buy?

I’m trying out a simple stock screener to find Graham-like Canadian dividend stocks to add to my watch list, but nothing has matched the criteria so far:

  1. Positive P/E Ratio less than 15
  2. Positive P/Book Ratio less than 1.5
  3. Dividend Yield more than 0%
  4. 1-Year Revenue more than $500 Million
  5. 5-year dividend growth rate more than 5%
  6. Dividend coverage between 5-95%

I’ve got a fair bit of cash sitting in my RRSP account so hopefully the market pulls back a bit so I don’t have to buy in at such a high value.

Related: The Pitfalls of Chasing the Highest Dividend Yield

What stocks are on your watch list right now?


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