Wealth-Builder Model Portfolio (CDN) – Quarterly Review – As of July 31, 2025
Posted by BM on August 25, 2025
“I measure our progress primarily on the basis of the income we are collecting and the growth of that income through dividend increases.”
- Josh Peters
This real-money portfolio is designed to demonstrate the power of dividend growth investing, but before we dive in, let’s talk about what we know and everyone else misses.
Most investors obsess over short-term capital gains. We don’t.
That’s our philosophy. Growing dividends drive long-term returns. As dividends rise, so do stock prices and portfolio values. The key? Process and Patience.
Don’t just take our word for it, see the results yourself.
With an initial capital investment of $100,000, consistent annual contributions of $12,000, and a disciplined dividend reinvestment strategy, we're working toward a powerful long-term goal:
💰 $1,000 in monthly dividend income by year 10.
This milestone isn’t just about income, it’s a testament to the power of patience, compounding, and intentional portfolio construction.
We’re also on track to grow our portfolio’s value beyond $500,000 in that same timeframe.
In an era of instant gratification, this approach reinforces the value of staying the course and letting time do the heavy lifting.
SUMMARY
✅ We receive dividend income from 20 companies spanning 8 sectors of the Canadian economy.
✅ This quarter, there were dividend announcements from three of our holdings.
✅ We increased our capital stake in one existing holding, strengthening our portfolio.
✅ Dividend income was $984.32 last quarter, and our annualized income is now $3,888
✅ Portfolio performance: The year-to-date total return (including dividends) is 13.94%, and since its inception (May 2022), the portfolio has delivered an annualized total return of 10.0%.
Background
Dividend growth investing is a long-term investment strategy that involves selecting quality stocks with a history of consistently increasing dividends and holding them for the long term.
The Magic Pants Wealth-Builder Model Portfolio (CDN) is a real-money, real-time portfolio demonstrating the principles and practices of dividend growth investing. The portfolio was launched on May 1, 2022, and has been managed in real-time since. Its primary goal is to generate a steadily increasing stream of dividends paid by quality Canadian companies. The secondary goal is to build a portfolio that generates above-average total returns over the long term (5-10 years). When I speak of average, I mean the index. In Canada, our objective is to beat the TSX Composite Index in total returns over this period.
The point here is that dividend growth investing and maximizing total returns aren't mutually exclusive.
All the decisions to buy, hold, and sell securities are real decisions about handling money. The portfolio is intended to serve as a blueprint for constructing a dividend growth portfolio, and as a living example of how dividend growth investing works.
Quarterly Portfolio Review
One of our practices is to give the Magic Pants Wealth-Builder Model Portfolio (CDN) a checkup four times a year (at the end of July, October, January, and April). The basic questions are:
✔ How is the portfolio doing?
✔ Is it tracking towards its goal?
✔ How is each position doing?
✔ Should changes be made?
Let’s dive in!
