The Globe and Mail columnist John Heinzl reflects on the highs and lows of his 2024 dividend portfolio performance, uncovering key lessons and predictions for 2025.
When John Heinzl launched his Yield Hog Dividend Growth Portfolio in 2017, his primary objective was clear: to spotlight companies with long, consistent records of increasing dividend payouts. Seven years later, the strategy continues to deliver, generating robust cash flow that fuels Heinzl’s semi-retired lifestyle.
Strong Gains and Dividend Growth Dominate
In 2024, nearly every company in the portfolio—17 out of 19—raised their dividend or distribution payouts. Notable exceptions included SmartCentres Real Estate Investment Trust, which has maintained a steady distribution since 2020, and South Bow Corp., a new addition spun off from TC Energy Corp.
The overall income growth was remarkable. From its initial projection of $4,094 annually when launched with $100,000 in 2017, the portfolio’s income has soared to $7,995 annually—an impressive 95% increase. Heinzl emphasizes the ease of this growth: “I didn’t have to lift a finger to receive this extra income. The companies did all the work for me.”
In terms of overall performance, the portfolio grew to $177,597.61 by year’s end, reflecting a 17.4% total return, including dividends. While slightly lagging behind the S&P/TSX Composite Index’s 21.7% return, Heinzl expressed satisfaction, buoyed by the strong showing of several individual stocks.
Capital Power Corp., for example, delivered a total return of 78%, driven by rising demand from artificial intelligence data centers. Manulife Financial Corp. and Canadian Imperial Bank of Commerce were other standouts, with returns of 57% and nearly 50%, respectively.
Challenges Emerge Amidst Success
Despite these wins, the portfolio faced setbacks. Toronto-Dominion Bank’s stock struggled due to a money-laundering scandal that led to over $3 billion in fines and regulatory restrictions on U.S. operations. Nonetheless, TD raised its dividend by 3%, maintaining its reputation as a dividend growth stock.
BCE Inc., however, had a tougher year, weighed down by stiff wireless competition and a heavy debt burden. Its decision to pause dividend increases for 2025 prompted Heinzl to remove it from both his model and personal portfolios.
2025 Outlook: Optimism Amid Uncertainty
Looking ahead, Heinzl is cautiously optimistic, despite potential headwinds, including political and economic volatility under new U.S. leadership. While he anticipates slower overall market growth following two years of extraordinary returns, Heinzl remains confident in the resilience of dividend-focused investing.
“Just as in 2024, I expect the vast majority of companies in my model portfolio will raise their dividends again in 2025,” Heinzl concluded, reinforcing the strategy’s enduring appeal for generating reliable and growing income streams.