Jane's November 2024 Retirement Income Update: Closing Out Positions In The Financial Sector

2025-01-04 12:00:00 ET

Summary

• Canadian banks face challenges from borrower indebtedness, variable-rate mortgages, and a richly valued real estate market, prompting us to eliminate them from our portfolios.
• November saw dividend increases from Agree Realty, Concentrix, and Verizon, and significant trades in Wisconsin Electric Preferred and LyondellBasell.
• We are focusing on high-quality investments with compelling yields, especially in fixed-rate securities, to maintain and grow portfolio income amidst economic uncertainty.
• Jane's retirement accounts are estimated to generate a total annual cash flow of $34,509.68 for FY-2024, with a sustainable monthly income stream of $2,875.81.

For those who are familiar with my work you will be well aware of my aversion to the Canadian financial sector which was at one point considered among the most stable financial institutions in the aftermath of the Great Financial Crisis. The chart below uses January 1, 2008 as the starting point and shows that all five largest Canadian banks significantly outperformed the iShares US Financials ETF ( IYF ) in the aftermath of the GFC but that gap narrowed in 2015 and is now at a point where only one of the five Canadian banks is outperforming IYF's price appreciation....

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