hey guys it's Adrian here the Canadian in a T-shirt and welcome to my Members Only video
where I'll be showing you what Canadian stocks I'm buying in my tfsa in September 2023 while
editing I decided to make this video public and free just like I did back in May I know
the markets have been scary for the past year and a half so I wanted to share my TFA portfolio with
all of you guys to hopefully put your mind at ease and share my thought process on some great
buying opportunities that I am jumping on it's been a while since I made a Members Only video
especially in my tfsa to be honest these past 2 months Money's been a little tight on my end
I've been caught up with Renovations on one of my rental properties and traveling across Canada
doing the blossom tour so I haven't really had the cash flow to invest but I was able to deposit
$1,000 into my tfsa you can see here I just made an instant deposit of $1,000 plus I also received
a bunch of dividends so after the the drips and reinvestments went through I was left with about
$300 so in total I have about 1,300 available in cash before we get into that let's look at
my tfsa portfolio as a whole as you guys know the Canadian Market has been in a downward slump
since the beginning of 2022 when interest rates started shooting up this is actually the lowest
point I've seen my TFA portfolio since really the 2020 lockdowns my TFA portfolio is definitely down
right now it's worth only about $80,000 and looking my capital gains I only have about
$1,600 of unrealized gains this is by far the lowest value I've seen in years you guys know me
you've heard this before I am not concerned about this short-term performance I care about Building
Wealth over the long term over years or decades and these high interest rates will not last
forever and in the meantime I'm still collecting dividend income every month and every quarter and
overall even though we're in a market low point I'm still in the green That's The Power of time
because I've been holding these Investments for many years most of my Holdings are still in the
green the only ones that are down right now are the REITs Real Estate Investment Trust and that's
because real estate is hit hardest when interest rates are high Plaza Reit and H&R Reit for H&R
Reit take away 20% cuz this wasn't a real drop 20% of the company actually spun off into a new
Reit primaris rate so in actuality H&R is only down about 3% we also have Canadian Tire reach
First Capital Reit and Allied properties that's an office re and that is by far my Biggest Loser
REITs are the only ones that are down across the board but other sectors like energy and utilities
are hurting you can see that Enbridge right now is basically broken even Canadian utilities are
down by a little bit Tellis is an interesting one if you look at Tellus I'm still in the green right
now by a little bit but I'm sure you guys have been aware the past year TS has been hit really
hard because they have high levels of debt with the higher interest rates it hurts even more so
for for a lot of new investors their Tes stock is down right now but for me I invested heavily in
TS at the lowest point during the crash of 2020 so that's why I'm still overall in the green as long
as you are Diversified and have a long-term time Horizon you're going to be okay and yes I don't
love seeing these low gains I missed the days when this number was 10 times higher but remember this
number here is just unrealized capital gains on top of that I'm also earning about $5,400 a
year in dividends that is tax-free passive income every year as always I include a link down below
to download this Excel dividend tracker totally for free so what am I going to buy today I'll be
buying one of my all-time favorites TD stock td.to this year has been rough for the financial sector
including TD Bank especially around March of 2023 when we saw the collapse of many US Regional Banks
including Silicon Valley Bank silvergate and First Republic Bank and this put the entire banking
industry into turmoil and TD was no exception especially considering how much exposure TD Bank
has in the United States and I look at that as a good thing these past couple of months we have
seen discounted prices but TD is not in trouble they are still incredibly profitable and secure
company looking from their previous highs we're down about 15% at about $83 that's okay that is
not a cause for concern I think of this as a good thing I can now buy this stock at a 15%
discount I can buy 15% more shares with the same amount of money I know this company will recover
I mean just zooming out this company's been around for almost 200 years and it's seen it all through
every financial crisis it has bounced back the 2008 housing crash the 2020 pandemic the Doom
Bubble at the time these crashes looked historic but zooming out over years and these crashes are
just just little bumps why are they so resilient they're not just a bank yes they are the second
largest bank in Canada after Royal Bank but on top of personal banking they also do corporate banking
Insurance products mortgages loans credit cards wealth management Enterprise services and more and
all of these services are always in demand year wrapped and for all of this they operate in Canada
but they've also been aggressively expanding in the US and that's a 10 times bigger Market and
this expansion has been very successful in fact right now TD Bank has more branches in the US than
they do in Canada that makes them one of the top 10 banks in the United States earlier this year
TD Bank was trying to acquire a large US Regional Bank called First Horizon Bank this was a $1 13
billion deal but with all the turmoil of the US Regional Bank closings they had to withdraw that
acquisition personally I think that was a good move especially given what was going on at the
time this is important just because the deal fell through doesn't mean that they lost that
money now they have that $13 billion on hand to reinvest and grow the company in other ways
they're going to be expanding organically in the US by opening more branches sure it's not as fast
as an acquisition but it's still a sustainable way to build their presence the biggest issue
on people's mind right now regarding TD stock is their latest quarterly returns which were
definitely a mixed bag they're still profitable but their expenses definitely did see an increase
a big factor here was the increased interest expense which makes sense as interest rates
rise companies that have significant debt will see an increase in this expense but the big one
is the provision for credit loss what exactly does that mean as interest rates rise we're
seeing a higher borrowing cost for customers that includes mortgages loans lines of credit
all of these are more expensive and a significant number of Canadians will not be able to make these
payment payments and pay back those loans TD has run those calculations and they anticipate
this loss and they record it as an expense in their books a provision for credit loss it's a
good thing that the banks plan ahead for this so that they won't get blindsided in the future and
remember to keep this in perspective this is a one-time expense it's not an ongoing annual
cost they didn't increase their operating costs and remember this phenomenon of rising interest
rates will not last forever and even with all of this TD is still profitable and I have no doubt
that the stock will recover I mentioned that with their extra cash on hand they're going to continue
to expand organically in the US but they're also going to be doing stock Buybacks in fact they're
going to be buying back 90 million shares of TD that represents almost 5% of available shares
so TD is going to be buying back those shares that reduces the supply increases the demand and
so we expect to see an increase in the share price that's good news for investors like me
and these BuyBacks instill confidence for me as an investor if the company is willing to buy back its
shares that means that they are committed to the long-term future of the company since I'm buying
TD at a 15% discount off of its highs I expect significant capital gains within the next year
on top of that I'm also locking in an inflated dividend yield the share price has dropped but the
dividend Remains the Same and so we're seeing an increased dividend yield of 4.78% we haven't seen
TD payout a dividend this High since the 20120 market crash so this yield is almost unheard of
so I'm very happy to seize this opportunity and lock in that higher dividend yield and remember
the yield is high just because the share price has dropped the dividend itself is very sustainable
with a payout ratio of only 48% less than half their profits go out as dividends so this is
definitely sustainable in fact TD has paid their dividend every single year for 166 years straight
and they increase their dividend almost every year their last dividend raise was back in January so
we can definitely expect another increase soon that's what we want to see consistent dividends
and growing dividends as the share price grows year after year this power is called yield on
cost and here here's an example if we buy TD stock today we're locking in that great dividend
yield of 4.78% and each share pays us 96 cents in dividends but as the dividend grows over time our
yield on cost our income on the money we initially put in is going to be even higher I love this fact
TD's dividend has more than doubled in the past 8 years 8 years ago back in 2015 TD stock was
only paying 47 cents per share in dividends so here we are 8 years later those same Shares are
paying more than double in dividends so our yield on cost has more than doubled and that's not our
only source of profit with TD stock doubling our passive income is already amazing on top of that
we've also seen long-term capital appreciation back in 2015 we were at a share price of around
$50 even now at a low point we're seeing a share price around $83 so in these 8 years we've seen
capital gains over 60% on top of doubling our dividend income that's why I love investing in
this company it's a dividend growth stock we get great dividend income today and increasing
dividends year after year plus long-term capital appreciation it's the best of all worlds so I
clicked the green buy button confirming my available cash I have 1,300 available but
I'll only buy about $11,000 today I take ,000 5 because I have to take away $5 in commission
fees I divide by the current share price 83.2 and I can afford to buy 12 shares of TD 12 shares buy
confirm the order click Send order boom order was filled I bought 12 shares of TD I went through
these buying steps very quickly but if you want to see how to buy a stock step by step watch this
qurate tutorial here and if you want to sign up with Quest Rate make sure you use my referral
link down below to get that $50 sign up bonus so I bought those T shares going to my balances you see
I have about $300 remaining in cash I'm going to be using that to buy one of my favorite dividend
ETFs and that's xei this ETF looks at the 250 largest companies in Canada and focuses on the
dividend players within that list so it contains companies like TD along with 75 other stocks this
fund focuses on dividends so no surprise it pays out a wonderful dividend yield of 5.2% %
and this dividend income is paid out monthly I've talked about xcii in detail in this video here so
check it out so click buy and I'm going to be spending all of my available cash so bring up
my calculator $310 with Quest trade I don't pay commission fees when I buy ETFs so I just divide
by the share price 2441 and I can afford to buy 12 shares so 12 shares buy confirm the order click
Send order and boom order was filled I bought 12 shares of XI just like I bought 12 shares of TD so
12 was my lucky number today back to my balances I only have $17 left can't do anything with that so
I'm done buying stocks for today last step is to update my Excel spreadsheet I now own 162 shares
of TD enter that book value that's how much I put in is 12459 so check this out with these shares
every 3 months I'm earning $155 in dividends that translates to $62 $22 a year in passive
income I'm using a max value of 100 that's well above the current share price of $83 but I just
want to give myself a buffer and ensure that my drips my Dividends are automatically reinvested
even as the share price grows which I expected to but I also bought xei I now own 183 shares
let's update that book value is 3,224 and this ETF is giving me $230 a year in dividends after
today's trades let's look at my totals this is an exciting number I'm now earning almost $55,000 a
year in dividends that's tax-free passive income in my tfsa and this is really cool I have a tfsa
book value of almost $1,000 you'll notice that this is well above the lifetime tfsa contribution
limit my tfsa isn't even maxed out yet but let's say that it was the maximum lifetime contribution
room that anyone can put into their t youa is $88,000 for the year 2023 so how is my book
value $122,000 Above This limit That's The Power of investing and reinvesting your profits whenever
I receive a dividend that money is reinvested either automatically through drips or manually
whenever I reinvest that increases my book value even though that money didn't come from my pocket
I didn't make a new tfsa contribution that's why my tfsa book value is significantly higher than
my contribution limit so I'm effectively gaining thousands of dollars of extra tfsa room for free
and the next time I see you guys I'm going to be bumping this number up to 100,000 I'm very excited
I hope you found this video helpful and I hope you enjoyed seeing a sneak peek of what my members
only videos look like if you want to see a full TSA and rrsp portfolio reveal as well as these
detailed breakdowns of what stocks I'm buying every month and if you want to help support my
channel hit the the join button down below if you just want to see a snapshot of my portfolio and
follow all of my trades and posts you can do that totally for free with the blossom social app I'll
include my referral link down below to sign up again this app is totally free and our community
has just crossed 50,000 Canadian investors I'm so excited to see us grow thanks for watching
and I'll see you guys on the next episode of the Canadian in a t-shirt bye [Music] guys [Music] he