Disclaimer: This blog article is for informational purposes only and should not be considered financial advice. Everyone’s financial situation is unique. Always consult with a qualified financial advisor or planner to assess your individual circumstances before making financial decisions.

If I Had a Million Dollars to Invest in the Market

Have you ever wondered what you would do if you had a million dollars to invest? The smartest way to make that money work for you is by focusing on dividend-paying stocks, ETFs, and monthly income funds. These investments generate a steady cash flow while allowing your portfolio to grow over time. My strategy would emphasize Canada’s major banks and the CIBC Monthly Income Fund (CIB512), both of which have a track record of resilience and consistent payouts.

1. Portfolio Breakdown: Dividend-Paying Stocks, ETFs & Monthly Income

A well-structured investment portfolio should balance growth and passive income. Here’s how I would allocate a million dollars:

a) Canadian Bank Stocks – 20% ($200,000)

Canada’s Big Five banks have a history of paying reliable dividends for over 150 years. Even during financial downturns, they have continued to reward investors with steady payouts, making them one of the safest long-term investments.

Top Canadian Banks for Dividend Stability:

• Royal Bank of Canada (RY) – Canada’s largest bank, with strong global exposure.
• Toronto-Dominion Bank (TD) – Consistent dividend growth and strong U.S. presence.
• Bank of Nova Scotia (BNS) – High dividend yield and international exposure.
• Bank of Montreal (BMO) – Recent expansion in the U.S. through Bank of the West acquisition.
• Canadian Imperial Bank of Commerce (CM) – Slightly higher yield, solid dividend history.

These banks typically yield 4-6% annually, offering both dividend growth and long-term price appreciation.

b) Dividend ETFs & Monthly Income Funds – 40% ($400,000)

To further diversify and strengthen my investment strategy, I’d allocate a significant portion to dividend-focused ETFs and CIBC Monthly Income Fund (CIB512), ensuring a balance between yield and growth.

Top Dividend ETFs for Stability & Growth:

• SCHD – Schwab U.S. Dividend Equity ETF, strong mix of high-yield and growth stocks.
• VYM – Vanguard High Dividend Yield ETF, focusing on high-yield U.S. stocks.
• DGRO – iShares Dividend Growth ETF, targeting companies with increasing dividends.
• ZDV – BMO Canadian Dividend ETF, providing exposure to Canadian dividend stocks.
• JEPI – JPMorgan Equity Premium Income ETF, yielding ~8-10% using covered calls for extra income.

CIBC Monthly Income Fund (CIB512) – 10% ($100,000)

One of my favorite investments for steady monthly income is the CIBC Monthly Income Fund (CIB512), which has been providing reliable payouts for over 25 years.

Why CIB512?

• Launched in 1998, offering over two decades of stable income.
• Consistent monthly payouts – Since 2014, it has paid $0.06 per unit every single month.
• Strong holdings in Canadian banks, utilities, and high-quality dividend stocks.
• Provides a steady cash flow, ideal for passive income or reinvestment.

Example: $100,000 Investment in CIB512

• At an average price of $11.70 per unit, I would own ~8,500 units.
• Each unit pays $0.06 per month, meaning:
• $0.06 × 8,500 units = $510 per month
• $6,120 per year in passive income

This passive income can be used for lifestyle expenses, reinvestment, or other financial goals.

c) High-Yield Dividend Stocks – 20% ($200,000)

For an even higher passive income stream, I’d invest in these high-yield dividend stocks:

• Enbridge (ENB) – ~6-7% yield, a key energy infrastructure provider.
• Realty Income (O) – Monthly dividend payer (~5% yield), known as “The Monthly Dividend Company.”
• Pembina Pipeline (PPL.TO) – Strong ~6% yield.
• Altria (MO) – High dividend yield (~8%).
• AT&T (T) – Reliable telecom dividend (~6-7%).

d) Bonds & Cash – 10% ($100,000)

While dividend stocks and funds are my focus, having some cash and bonds provides additional stability:

• Bonds (70%) – A mix of government and corporate bonds for steady returns.
• Cash Reserves (30%) – Held in a high-yield savings account for liquidity.

Final Thoughts

If I had a million dollars to invest, I would focus on dividend-paying stocks, ETFs, and CIBC Monthly Income Fund (CIB512) for both immediate income and long-term wealth accumulation.

A $100,000 investment in CIB512 alone would provide $510 per month in passive income, allowing for reinvestment or financial flexibility.

What would you do with a million dollars? Let me know in the comments below!