Sunday, August 21, 2016

Recent Buy -- Changes

Image result for DREAM REIT

      On my dividend update posts I write something on the bottom about a REIT that I own in my margin account and that I do not account for the distribution as income.  The REIT is Dream Office REIT, which is an office REIT in Canada.

      Prior to Friday the adjusted cost base was near $32 per unit. This does not take into account the adjusted cost base will be lower from the Return of Capital.  As I owned this REIT for a few years, the Return of Capital , as part of the distributions, reduces the cost basis. I have owned this for awhile and collected about $2000 in distributions.  It has been difficult to find opportunities on the Toronto Stock Exchange as the telecoms, banks, and railroads are trading at or near their 52 week highs.  I do not see this rally in the price of oil as being substainable for the long term.  So Dream Office REIT, whose ticker symbol is D.UN, was trading near $16 per unit.  Why is the price so low?  D.UN has office space in Alberta and Alberta is going through a major depression due to the low oil prices.  The problems with less demand in office space in Alberta and a few other factors, have meant a distribution decrease in the past year of approximately 33%. 

     On Aug 19, 2016 , I purchased 300 units at $16.14 per unit for a total price of $4849 including commissions.  The annual distribution currently is 1.50 per unit. This purchase has $450 to my annual dividend income.

     So what is the change?  So previously I viewed the 300 units that I already owned as a trade and never accounted for the distributions as dividend income.   So, I decided to change the reason why I was holding the REIT in the margin account, and will now account for the distributions from these 300 units as dividend income.  This type of change is not something that should be done, as you enter into a position for a specific reason and it is best to stick with that reason.  This will be reflected in my distribution reports going forward starting with the dividend income report for the month of September.
   
    With 600 units of Dream Office REIT paying a monthly distribution of $75, my annual dividend income will increase by $900 a year.

Note:  I own 140 units of Dream Office REIT inside my TFSA also

I will update my investment tab spreadsheet in early September to reflect in increase of 300 units.

Disclosure:   Long D.UN

Photo Credit:  www.dream.ca

DISCLAIMER
I am not a financial planner, financial advisor, accountant or tax attorney. The information on this blog represents my own thoughts and opinions and should NOT be taken as investment or business advice.

Every individual should do their due diligence to make their own financial decisions based on their financial situation and tolerance for risk.

Friday, August 5, 2016

Dividend Update - July 2016




      The month of July is another month of dividend income landing in my accounts. This money is used to help pay my expenses if it is needed. If the money is not needed, it is ALL used to purchase new investments to further increase my cash flow.

       The markets continue to go higher in the month of July.  On the flip side, the price of a barrel of WTI Crude Oil fell below $40 dollars a few times.  With the price of oil near $40 dollars, this will continue to have a major effect on economies that are dependent on oil. 

      One thing for sure, is that I was paid dividends and distributions for being a shareholder or unit holder in  various companies or funds.

 Non-registered Account

  • Bell Canada Enterprises - (BCE) - $68.25
  • Enerplus (ERF)  -$ 5.58
  • Bank Of Nova Scotia (BNS)  - $22.93
  • Bank Of Nov Scotia  (BNS) - $14.40
  • Rogers Communications Class B (RCI.B) - $96.00
  • Shaw Communications (SJR.B)    - $19.75

TFSA
  • Boston Pizza  Royalties Fund (BPF.UN)   - $26.91
  • Claymore 1-5 yr Laddered Corporate Bond ETF (CBO)  - $0.68
  • Cominar REIT (CUF.UN ) - $5.39
  • Dream Office REIT   (D.UN)  - $ 17.50
  • Killam Properties REIT (KMP.UN) - $  15.10
  • Horizons Natural Gas Yield ETF - $3.08
  • Transforce (TFI) - $8.50

Total = $304.07

        This total represents a 4.60% decrease from 3 months ago and 0.566% decrease year over year.
      I also received another distribution payment of $37.50 for my swing trade in Dream Office REIT in my non-registered account. This is not listed above since it is a trade, so I keep the money in the account and do not pay myself first with this payment. I have received $1958.97 in distributions so far on this trade.  Dream REIT has reduced the amount of distribution they pay monthly which was announced in February.

     I will update my dividend income tab with the new amount. It is great to see money from passive income sources deposited into my brokerage account every single month.

How was your dividend income for July?

Disclosure : Long all securities above.

Photo Credit: www.mipaq,co.za

DISCLAIMER
I am not a financial planner, financial advisor, accountant or tax attorney. The information on this blog represents my own thoughts and opinions and should NOT be taken as investment or business advice.

Every individual should do their due diligence to make their own financial decisions based on their financial situation and tolerance for risk.


Thursday, August 4, 2016

Portfolio Update - July 2014

The month of July 2016 is now behind us.  What continues to be the big headline month after month?  The price of a barrel of WTI Crude Oil fell below $40.00.  In Canada and the United States we have stock markets that are at an all time high.  A province in Canada, Alberta, is feeling the full effects of the low oil prices.  We have companies that service the oil patch, who have laid off a large amount of their work force and reduced hours of most of their employees.

On July 27, the initiated a new position in HNY, which is the Horizons Natural Gas Yield ETF.  This purchased was done over two separate purchases on the same day.  I purchased 94 units for a total of $1490.07.  My brokerage offers free commission ETFs, but their were ECN fees of $0.329.  The distribution of this ETF is paid monthly and varies month to month.  July 27 was the ex-dividend date, so I am not eligible for the distribution payment that is paid this month.

Shares Acquired Through DRIPS

0.347633 Shares of BNS.TO @ $65.96 per share.
  
   As of 4 Aug 2016, the value of the portfolio is  $92717.06  This is a 5.74% increase over last month's total.  The spreadsheet in the investment tab above has been updated.


Disclosure: Long  all mentioned securities.

Disclaimer:

I am not a financial planner, financial advisor, accountant or tax attorney. The information on this blog represents my own thoughts and opinions and should be NOT taken as investment or business advice.

Every individual should do their due diligence to make their own financial decisions based on their financial situation and tolerance for risk

Saturday, July 30, 2016

Recent Buy

I had a cash position inside my TFSA, and decided to put the cash to work.  It is difficult to find opportunities on the Canadian markets.  The Canadian markets have a lot of energy companies, so I avoided any of these companies due to the low price of barrel of crude oil.

So, on July 27, I purchased 94 units of the HNY, which is the Horizon Natural Gas Yield ETF.  I have owned this ETF recently also.  My brokerage offers commission free ETFs.  So I made 2 trades to collect a total of 94 units at an average price of $15.848 for a total of $1490.07.  There is no commission charged for the buy transaction, but there are ECN fees of $0.33.

This is the Horizon Natural Gas Yield ETF.  The summary of the ETF, as per Yahoo Finance, is described below. 
      The investment seeks to achieve its investment objectives by gaining exposure to a portfolio of securities and other instruments that provide exposure to the price of natural gas futures contracts, or exchange traded funds that are directly or indirectly only exposed to natural gas and/or natural gas options, forwards and futures contracts on natural gas by entering into a forward purchase and sale agreement with the Bank Counter party pursuant to which it will gain exposure to the Natural Gas Portfolio. The Natural Gas Portfolio is comprised primarily of exchange-traded funds, which may or may not be managed by the Manager or its affiliates, that are directly, or indirectly, and only, exposed to natural gas or natural gas futures,and will include natural gas futures, financial swaps and total return swaps - Yahoo Finance
This ETF pays a monthly distribution and the amount of the distribution varies each and every month. July 27 is the ex-dividend date, so I will not receive the distribution payment in about 10 days time.

Disclosure: Long HNY

DISCLAIMER
I am not a financial planner, financial advisor, accountant or tax attorney. The information on this blog represents my own thoughts and opinions and should NOT be taken as investment or business advice.

Every individual should do their due diligence to make their own financial decisions based on their financial situation and tolerance for risk.

Wednesday, July 20, 2016

Option Trade

     July 15 was option expiration day for 2 of options that I had on.  One was a short put in Potash Corporation with a $21 strike price.  The second option was a covered call in Royal Bank with a strike price of $80.  The short put in Potash Corporation expired worthless. The covered call option in Royal Bank was assigned.

     As I believe Royal Bank is a well run company, I sold a put option with a $79.00 strike price and expiration date of July 29, 2016.  I collected a premium of $44.05 after commissions.  The duration of this trade is 11 days.

Summary of New Trade

Strike Price:  $79.00
Premium collected after commissions:  $44.05
Days to expiration :  11
Option Assignment Fee : $24.95

Scenario #1  -  Option not assigned 

Return  for 11 days =  $44.05 / $7900
                                = 0.558% 

This return of 0.558% is for ONLY 11 days.  Currently, the interest rate on my high interest savings account is 0.80% per year. 

Annualized Return:  ($44.05 / $7900) *365/11
                               = 18.50%

Scenario #2:   Option Assignment

Adjusted Cost Basis = $7900  - $44.05 +$24.95
                                    = $7880. 90

Current Annual Dividend = $3.24 per share

Yield = $3.24/(7880.90/100)
          = 4.111%
 

DISCLAIMER
I am not a financial planner, financial advisor, accountant or tax attorney. The information on this blog represents my own thoughts and opinions and should NOT be taken as investment or business advice.

Every individual should do their due diligence to make their own financial decisions based on their financial situation and tolerance for risk.



Monday, July 11, 2016

Trading Account Update

As previously stated on this blog, that I have started a trading account with a balance below $1000.00.   I started to add $50.00 every two weeks but that has stopped due to a recent job loss.  The following table shows my stats from the start of 2016:

                                # of trades :                 18
                               Total Capital added:    $250.00
                               Trading Acct Balance:  $ 1989.88
                               Average Drawdown:   $28.31
                               Average Loss:             $35.18
                               Average Accuracy:     88.89%
                               Average Risk:              $33.36
                               Average Reward:         $63.47
                               Average R/R :             1: 1.902

     
       I have been trading penny stocks, stocks, REITS and options.  Any dividends that will be received from this account with stay within the account.

Note:  The trades are listed under the Trading Tab above with all the trades listed as of July 10, 2016

DISCLAIMER
I am not a financial planner, financial advisor, accountant or tax attorney. The information on this blog represents my own thoughts and opinions and should NOT be taken as investment or business advice.

Every individual should do their due diligence to make their own financial decisions based on their financial situation and tolerance for risk.

Wednesday, July 6, 2016

Option Trade - Covered Call

       The markets have dropped during the early morning today over rising fears of the fallout from Brexit.   Britain voted in favor of exiting the European Union recently.  Investors and traders have to consider how this will affect businesses, international trade, commodities, and economies around the world.

       On July 6, I wrote a covered call in TD Bank with a strike price of $56.50 and collected a premium of $12.05 after commissions.  This is not a large sum but is income none the less. The amount of days to expiration is 23.  Sure, I could of collected a larger premium if the stock price rose after falling.

       The stock goes ex-dividend July 6  and a dividend payment date of July 31.  Since I already own the stock, I receive this dividend.  The annual dividend rate is $2.20 per share.  So since I own 100 shares of stock I will receive a dividend payment of $55.00.

Summary:

Strike Price:  $56.50
Days to Expiration = 23
Premium Received = $12.05 after commissions

Return for 23 days = $12.05/$5600
                               =  0.215%

Return Annualized = ($12.05/$5600) *(365/23)
                                = 3.415%

An annualized return of 3.415% is definitely higher than a interest received on a high interest savings account.

Note: For my broker, there is an option assignment fee for an option to be assigned or exercised.  This option assignment fee is $24.95


Disclosure: Long TD

DISCLAIMER
I am not a financial planner, financial advisor, accountant or tax attorney. The information on this blog represents my own thoughts and opinions and should NOT be taken as investment or business advice.

Every individual should do their due diligence to make their own financial decisions based on their financial situation and tolerance for risk.