In 2016, I took a significant step to embark on a sabbatical. My family and I packed into a compact RV and travelled all the way to Costa Rica.
After returning in 2017, I left my position as a private banker at National Bank to commit entirely to Dividend Stocks Rock. I also decided to take charge of my pension account at National Bank, creating and publicly managing this portfolio since 2017 as a practical case study.
In August 2017, I was credited $108,760.02 in a locked retirement account, which meant I couldn’t contribute additional funds, and growth would be achieved solely through capital gains and dividends. My aim was to openly share my portfolio management process, highlighting both successes and difficulties, to create educational opportunities.
Annual Portfolio Checkup
As 2025 draws to a close, it’s the right moment to thoroughly review my investments. I already initiated this last month by reducing my Apple shares to invest in Broadcom, a decision that was long overdue.
However, a year-end review goes beyond individual trades. It includes a detailed analysis across all portfolios to ensure alignment with my strategy. Maintaining this alignment fosters confidence and tranquility. First, let’s look at the results!
Performance in Review
Let’s analyze the figures as of November 5th, 2025 (pre-market):
– Initial investment in September 2017: $108,760.02
– Current portfolio value: $322,825.69
– Dividends paid: $5,278.71 (TTM)
– Average yield: 1.63%
– 2024 performance: +26.00%
– VFV.TO= +35.24%, XIU.TO = +20.72%
– Dividend growth: +12.22%
Total return since inception (Sep 2017 – October 2025): +196.82%
Annualized return (96 months): 14.57%
Vanguard S&P 500 Index ETF (VFV.TO) annualized return (since Sept 2017): 16.81% (total return 246.50%)
iShares S&P/TSX 60 ETF (XIU.TO) annualized return (since Sept 2017): 12.27% (total return 152.50%)
Year-End Portfolio Review Process
#1 Set the mandate
Revisiting your investment rationale is essential to filter out distractions. Concerns about missing trends like the AI bull market, or regrets about not investing in gold or Bitcoin, can distract you if they don’t factor into your strategy. The goal is to achieve your financial objectives, not to engage in retrospective analysis.
My objective is to build a portfolio of dividend growth stocks to support my retirement. I prioritize control (stock ownership) and understanding (knowledge of business models) over simply outperforming the market. While it’s gratifying to align with indices, my emphasis is on owning superior companies.
#2 Review asset, sector and stock allocation
With your investment aim established, it’s now time to evaluate your allocation parameters. Discussions may arise regarding the ideal position weighting in a portfolio, but the key is having guidelines. Specific percentages are less important than their ability to trigger action when necessary.
Clear rules eliminate uncertainty.
I strive for a complete stock investment. Ideally, no sector should exceed 20%, though up to 30% is permissible if diversified across different sub-sectors with minimal overlap.
The DSR PRO global view lets me consolidate all portfolios to review overall sector allocation.
As shown, my investments adhere to my philosophy. The portfolio displays diversification with two sectors at 21%.
The final allocation review includes assessing the largest and smallest holdings to mitigate risk (largest positions) and ensure effectiveness (smallest holdings). Guidelines can inform decisions. A satisfactory 2% weight for one may be a welcomed 4% for another.
Ideally, all positions would be around 3%. My successful stocks can rise to constitute up to 10% of my assets. I found that managing the Smith Manoeuvre portfolio introduced minor positions not held elsewhere, increasing the stock count to 39, with some negligible positions.
At the year’s conclusion, I will refine the Smith Manoeuvre portfolio to reduce smaller holdings.
I’ll examine each holding to determine whether to increase it to a full position (3%) or divest.
This analysis overlooks stock performance and emphasizes achieving a concise portfolio.
#3 Analyze weaker positions (dividend triangle)
Before re-evaluating any investment thesis, I use the dividend triangle to pinpoint companies facing challenges with revenue or EPS growth, such as Alimentation Couche-Tard. I will also investigate companies with lower-than-expected dividend increments, including Home Depot and Starbucks.
Conducted quarterly through the DSR PRO report, I already have a robust foundation to begin. Only those with a weaker dividend triangle or low PRO & Dividend Safety Scores warrant more intricate reviews.
#4 Trade
With buy lists and lesser