In 2016, I made a significant choice: I took a sabbatical, traveled with my family in a compact RV, and visited Costa Rica.
Upon my return in 2017, I resigned from my position as a private banker at National Bank and devoted my full efforts to my project: Dividend Stocks Rock. I also decided to take charge of my pension account at National Bank. Since 2017, I have been managing and publicly overseeing this portfolio to illustrate and track a real-life case study.
In August 2017, I received $108,760.02 from a restricted retirement account, where growth occurs solely through capital gains and dividends as no additional capital can be added. I don’t disclose this portfolio’s performance to brag or suggest others should replicate my actions. My goal is to show our members how I handle my portfolio with full transparency, including monthly fluctuations. I hope my journey in portfolio management serves as an educational resource.
The Two Forces Currently Shaping Your Portfolio
I took a short pause, and now filling up my Jeep costs an extra $30. What happened?
There’s a lot of buzz in the present market, more than usual, noticeable from the rising number of emails I’ve received (keep them coming!).
Two primary factors are affecting the market at the same time. I aim to assist you in navigating through the uncertainty and clarify what this means for your portfolio:
1. AI is rapidly revolutionizing various industries, leading to swift stock price adjustments.
2. The conflict in Iran has caused oil prices to rise above $110 per barrel (temporarily), raising inflation worries.
These matters don’t necessitate panic. They require a composed mindset and a strategic response.
Let’s analyze these developments one by one.
But first, the outcomes!
Performance Analysis
Here are the figures as of March 9th, 2026 (pre-market):
Initial investment in September 2017 (without any additional capital): $108,760.02.
– Current portfolio value: $325,975.06
– Dividends received: $5,234.16 (TTM)
– Average yield: 1.61%
– 2025 performance: +7.34%
– VFV.TO= +12.18%, XIU.TO = +28.88%
– Dividend growth: +1.5%
Total return since inception (Sep 2017- February 2026): +199.72%
Annualized return (100 months): 14.08%
Vanguard S&P 500 Index ETF (VFV.TO) annualized return (since Sept 2017): 15.57% (total return 234.0%)
iShares S&P/TSX 60 ETF (XIU.TO) annualized return (since Sept 2017): 13.01% (total return 177.20%)
Dynamic sector allocation as computed by DSR PRO on March 9, 2026 (prior to the market opening).
Part 1: AI and Your Dividend Portfolio
What is Really Going On
Think of AI as comparable to the invention of electricity. In 1900, people didn’t panic about electricity jeopardizing their investments. They instead questioned which companies would prosper and which would lag.
This is the question for today.
The market is experiencing a definitive rotation. Dividend-paying stocks have fared well this year as investors shift from large-cap AI stocks to “traditional economy” sectors. The iShares Select Dividend ETF (DVY) has risen by nearly 8% year-to-date, while the S&P 500 is down 1%. The discrepancy may widen by the time you read this.
This transition is noteworthy.
However, AI doesn’t threaten all stocks. It’s dangerous for some but a chance for others. Recognize your holdings and the reasons behind them.
Emphasizing quality dividend growth increases your likelihood of success.
The Stocks That Should Concern You
Certain sectors are facing disruption risks due to AI. Software stocks (SaaS) declined significantly earlier this year after Anthropic’s new AI models managed tasks that businesses typically pay for using costly licenses. The iShares Expanded Tech-Software Sector ETF (IGV) has dropped nearly 17%.
This change is significant; the market signals something meaningful.
If you possess software stocks dependent on expensive licenses, reevaluate your investment reasoning. Not because I recommend selling, but the investment rationale may have altered. Whenever a thesis changes, adapt your position accordingly.
But what should YOU do, Mike?
This is a frequent inquiry. While you may wish to know my strategies regarding my investments, keep in mind that while you can follow my ideas, you can’t adopt my conviction. Therefore, my portfolio decisions may not align with your needs.
If you’ve kept up with my newsletter this year, you may have observed that I increased my investment in CGI (GIB.A.TO) and purchased a share of Constellation Software (CSU.TO).
Regarding CSU’s latest earnings:
Constellation Software reported mixed outcomes,