Every few months I like to take a look at my portfolio holdings and examine my overall sector allocations to see if they meet my comfort level as to how my capital is distributed. As we all know, market forces affect certain sectors at different times throughout business cycles which can often throw many portfolio balances out of sync. I think we are all familiar with this phenomenon after witnessing the collapse of oil prices and the entire energy sector, and more, with it. Even without any new money invested, sector allocations can shift dramatically. I’m sure our portfolios looked a lot different at the start of 2016 with the January and February swoon compared to today. Even with the recent market decline, oil prices and energy related stocks have come back dramatically. REITs turned around as well as other commodity sensitive stocks like Archer-Daniels-Midland Company (ADM), Caterpillar Inc. (CAT), Dover Corporation (DOV) and more.

Below you will find my asset allocation for my dividend stocks. I still may be adding to my Canadian banks going forward but not as aggressively as in months past as valuations and yields are slightly less attractive than earlier this year. I still am looking to increase my health exposure via my REIT holdings in my IRA as well as other names already in my portfolio. As evidenced by my recent dividend income update, my past additions to my Canadian bank holdings have started to contribute to my overall dividend income in a more meaningful manner. All this shows is that my portfolio allocation to my Canadian banks are starting to become large relative to my other holdings. Something I need to keep in mind when considering adding to that sector. Another interesting point about my REIT sector allocation will come about this summer as REITs will become reclassified from being under the financial sector to a new separate real estate sector in the Global Industry Classification Standard. This no doubt will have profound effects on individual REITs and how the large money managers will trade this new sector. As you can see below, my REITs, in my IRA, are currently listed under the financial sector.

Brokerage Account

ROTH Account

IRA Account

How are your stocks allocated? What is your largest sector holding(s) and how do you feel about having a relatively high overweight sector in your portfolio? Please let me know below.