Since April of this year, 2025 and looking at the my stock charts, many have had a steady climb in price and the TSX has reached all time highs.
A common stock market quote: Last years highs are this years lows. Lows being a starting point for the year to hopefully track higher with stocks and indexes. The odd correction comes into it although with a shorter recovery time frame these past years, I find it a good time to buy at lower prices before they start moving up in price again after a correction.
July is a fairly quiet month for my Quarterly paying dividend stocks which are picked out of the top thirty by dividend yield in the TSX 60. Those stocks that have a dividend yield of 3% and up. The rankings change as stock price and dividend yield change opposite to each other. I want to see dividend growth as well every year.
Both top 5 Canadian banks, Bank of Montreal, BMO.TO and Royal Bank of Canada, RY.TO have ex-dividend dates in the next couple of weeks. RY.TO is on the 24th of July with a 4.05% increase added in and BMO.TO is on July 30th with a 2.52% increase factored in. This is the 2nd increase for both of these banks in 2025.
Expensive stocks but the popular partial share buying makes it affordable to accumulate over time. I'll buy additional ZWB.TO as well to boost income on a monthly basis with that bank ETF.
Another ETF that holds those 2 banks in it's top 10 holdings is RCDC, the RBC Canadian Dividend Covered Call ETF I've mentioned in past posts and recently increased it's distribution with a yield of 6.81%.
With covered call ETFs, you risk additional growth compared to an ETF like XEI, iShares S&P/TSX High Dividend Composite Index with a Total Return of 21.59% for 1 year (Total Return includes the monthly distributions) compared to RCDC with a 1 year total return of 18.1% but not too shabby. Your also getting more Return of Capital with RCDC which limits price growth some.
I don't dwell on those stats much as long as the ETFs are performing as I expected and provide monthly income.
I look forward to August when I'll be looking over some of my top yielding stocks with further buying such as the pipeline, Enbridge, ENB.TO.
There are multiple ways to build a portfolio and opinions on how to do it are many but I find what I call my Modified Beat The TSX is the plan for me with tweaks and additions along the way. It keeps me interested and invested and always learning while repurchasing with dividends and ETF distributions until either satisfied with the monthly income coming in or just keep accumulating.
To read up more on how the Beat the TSX portfolio has performed over the years, a great post here by Dale on Cut The Crap Investing about Picking Up the Pace in 2025
As I mentioned, I hold a modified version of the portfolio where I haven't owned AQN and sold BCE before the expected dividend cut. BCE.TO is back on my Watchlist to see if their finances improve going ahead adding subscribers and infrastructure in the US instead of paying down debt which many a BCE investor wanted see happen at the time instead of the US aquisition.
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