Green's Portfolio Journey: From 2017 to the Cusp of a $100K Income Milestone

You know, it's quite something to look back and see how far an investment journey has come. For Green's portfolio, our adventure began way back in 2017, all with a clear vision: building a robust income stream, one that could eventually hit a significant $100,000 in annual passive income by 2026. It wasn't about chasing the latest hot stock or riding speculative waves; no, our focus has always been on steady, reliable dividend-paying companies. We're talking about businesses that are, frankly, a bit boring but oh-so-dependable, the kind that churn out cash flow year after year.

So, how did we fare in 2025, you might ask? Well, it's always a mixed bag when you compare your strategy to the broader market, isn't it? The portfolio started the year at around $1.38 million and, by January 2026, it had grown to approximately $1.45 million. That's a decent enough capital appreciation, about 5% for the year, which is certainly nothing to scoff at. But here's the kicker: the annual income, our north star, jumped from roughly $77,000 to an impressive $82,000. That 7% dividend growth for the year really outshone our initial 5% expectation, which frankly, felt pretty good!

Now, I'll be honest, when you stack that against the S&P/TSX Composite Index, our total return for the year (around 11.7%) didn't quite keep pace with the index's stellar 17.5%. And yes, it's human nature to look at those numbers and feel a pang of "what if?" But let's not forget the core philosophy here: this portfolio is designed for income, for stability, for providing a cushion, not necessarily for outperforming growth benchmarks in every single bull market. Our dividend yield, sitting pretty at 5.6%, was significantly higher than the TSX's 2.9%. That difference, for me, is the real win. It's about securing that regular cash flow, less about chasing volatile capital gains.

Our holdings, by and large, continue to be the tried-and-true Canadian giants. Think about the big banks – TD, Royal Bank, Bank of Nova Scotia, CIBC – the kind of institutions that form the backbone of our economy. Then there are the utilities and pipelines: Enbridge, TC Energy, Fortis, all delivering essential services and, crucially, consistent dividends. And let's not forget the telecoms like BCE and Telus, or some solid REITs. This mix is really about diversification within the 'safe and steady' category. It's about not putting all your eggs in one basket, even if all those baskets are, relatively speaking, quite sturdy. Currently, we're holding a bit of cash too, about 2.5%, just in case some tempting opportunities pop up or to simply act as a small buffer.

Looking ahead to 2026, the big goal looms large: crossing that $100,000 annual income threshold. We're currently sitting at $82,000, which means there's an $18,000 gap we need to bridge. Now, how do we get there? It’s not about suddenly getting aggressive or taking undue risks. That would betray the whole spirit of this portfolio. Instead, it’s about thoughtful, calculated moves, leveraging dividend growth, and making some tactical adjustments to our positions.

Of course, any investment plan needs to consider the wider economic landscape. Interest rates, for instance, are always a hot topic. While the consensus seems to lean towards potential rate cuts in 2026, we have to remain mindful. Lower rates could be a boon for many of our dividend-paying companies, potentially boosting their valuations and making their yields even more attractive. But there's also the ongoing debate about a 'soft landing' versus a potential recession, not to mention geopolitical uncertainties that can always throw a wrench into things. It’s a delicate balance, navigating these external factors while staying true to our core strategy.

So, with all that in mind, what's the game plan? The first step involves a bit of judicious trimming. Some of our long-standing positions, like TD, BNS, Royal Bank, Fortis, and Telus, have grown quite nicely, perhaps a bit too nicely in some cases, pushing their yields down or making them a larger percentage of the portfolio than initially intended. By slightly reducing our exposure to these, we can free up some capital – roughly $200,000, we estimate – to deploy into other areas where we see more immediate income potential or better long-term value.

Where will that capital go? Well, we're eyeing a few specific targets. BCE, for example, offers a very compelling yield right now, and while some worry about the telecom sector, its steady income stream aligns perfectly with our objectives. Inter Pipeline (now part of Pembina Pipeline, PPL.TO), with its robust cash flow and reinvestment potential, is another strong contender. And then there's Brookfield Asset Management (BAM), which offers a bit of diversification and exposure to growth without straying too far from our quality criteria. It’s about being proactive, not reactive, and carefully allocating capital where it can best serve our income goal.

Ultimately, the pursuit of that $100,000 annual income is more than just a number; it's a testament to the power of consistent, disciplined income investing. It's about patience, about choosing quality over flash, and about understanding that sometimes, the 'boring' path is the most rewarding one in the long run. We’re on the cusp of a significant milestone, and with careful stewardship and a clear focus, I’m confident we’ll get there, continuing to build a portfolio that truly works for us, providing that invaluable stream of passive income.