Portfolio Update - September 2024

  The month of September 2024 involved another Bank of Canada interest rate announcement.  On September 4th, the Bank of Canada decreased the interest rate by 0.25%, or 25bps.  The interest rate now stands at 4.25%.  

The decrease in the interest rate means the people payments will decrease for variable rate loans, mortgages and lines of credit.  

The lowering of the interest rate allows people to have more disposable income, with the hopes they go out and spend money to help the economy. 

Also, in Canada, NDP leader Jagmeet Singh "ripped" up the Supply and Confidence agreement signed with the Liberals in 2022.  The agreement consisted of the NDP Member so Parliament vote with the government of confidence related votes, and the Liberals to take action on NDP high priorities.  An example is free dental care for lower income families and seniors.

With the end of the agreement, the likelihood of an election is more likely sooner rather than later. 

The S&P500 was up  3.92% over the past month.  

The S&P TSX Composite Index was up 4.24% over the past month.

Portfolio Activity

Margin Account Activity

I sold a naked put option on Rogers Communications Class B shares once again.  I sold 2 November 15 2024 RCI.B.TO $49 at $0.22, for a total net premium of $32.05 after commissions. 

TFSA Activity

There has been no activity in this account.

Shares Purchased Via DRIP

1 unit of REI.UN @ $19.39971 for a total cost of $19.40 CAD (TFSA)

1 unit of KMP.UN @ $21.4535 for a total cost of $21.45 (TFSA)

1 unit of SRU.UN @ $27.20164 for a total cost of $27.20 (TFSA)

7 shares of TTNM.TO @ $2.2235 for a total cost of $15.56 CAD (TFSA)

1 share of MFC.TO @ $38.63792 for a total cost of $38.64 (TFSA)

1 units of BEP.UN @ $28.23168 USD for a total cost of $38.02 (TFSA)

1 share of BEPC.TO @ $32.83 USD for a total cost of $44.21 (TFSA)

1 units of BPF.UN @ $17.51146 for a total cost of $17.51 (TFSA)

4 shares of T.TO @ $22.55097 for a total cost of $90.20 (TFSA)

1 share of QSR.TO @ $71.04USD for a total cost of $96.30 (Margin)

1 unit of REI.UN @ $19.72263 for a total cost of $19.72 CAD (TFSA)

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I have some other positions with the DRIP turned on but might not have enough of a dividend to purchase a whole share. 

My Enbridge position directly with the transfer agent is set up to DRIP.  Around November 2018, Enbridge stopped their DRIP program.  If Enbridge decides to start a DRIP, then my shares will start to DRIP again automatically.  

Dividend Increases

On September 18, Emera Corporation (EMA.TO) increased their dividend from $0.7175 to $0.725 CAD per share quarterly, or from $2.87 to $2.90 CAD per share annually.   This is an increase of 1.045%.

I currently own 265 shares of Emera in my margin account.  This increase adds $7.95 CAD to my annual dividend income.

The increase in the dividend was not large as previous years.  With the high debt servicing costs and damage to their infrastructure due to natural disasters, has led to a more conservative dividend increase.  

On September 26, Fortis Inc (FTS) increased from $0.59 to $0.615 CAD quarterly, or from $2.36 from $2.46 per share annually.  This is an increase of 4.24%. 

I currently own 127 shares of Fortis.  This increase adds $12.70 CAD.  

Dividend Decreases

There were no dividend decreases in September 2024.  

 

Summary: 

As of October 12, 2024, the total value of the portfolio is  $251094.00 CAD . This is a 3.10% increase over last month's total.  

The portfolio is estimated to produce an estimate $11697.98 CAD in dividend income over the next 12 months. This is an increase of  of 65.69 CAD , or 0.0565%. Some of the dividends in the Canadian stocks section are paid in US dollars, which are converted to Canadian dollars.

Googlesheets is still not operating properly.  So, I had to manually enter the market value for the REITS, BEP.UN, BPF.UN, and AW.UN. 

 

Please Note: Positions in Enerplus Corporation (ERF.TO), Restaurant Brands International (QSR.TO) , Intertape Polymer Group (ITP.TO), Brookfield Renewables Corporation (BEPC.TO), and Algonquin Power and Utilities (AQN.TO)  pay dividends in US dollars. Brookfield Renewables Partners (BEP.UN) pays distributions in US dollars. My investment tab spreadsheet displays the Canadian dollar equivalent within 15 to 20 minutes of real time. 

Disclosure: Long aforementioned stocks

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.ir financial situation and tolerance for risk.

Net Worth Update - September 28 2024

 Today is September 28, 2024. Although passive income through dividends and option premiums is my focus when it comes to investing, I decide to do a post about my current net worth.

What is net worth? Simply put, net worth is calculated by adding up all assets and subtracting the total of all liabilities. Net worth is sometimes referred to as shareholder's equity. Assets and liabilities are part of the balance sheet.

Assets

Savings

The savings section is currently into 3 segments. The 3 parts are a "high" interest savings account, savings account, and an "investment" savings account.

The TFSA savings account was with Tangerine. I was frustrated with getting such a low interest rate with Tangerine. I took the money out and placed it in non-registered high interest rate savings account with EQ Bank. Unfortunately, the account did not disappear as interest was earned in the TFSA with Tangerine for the month I transferred the balance. The balance is $0.18. With a value this low, I do not even earn interest as the balance so low.  

On September 28, 2024, the value of the savings account with EQ Bank is $10205.66 . As of the time of this writing, the interest rate for EQ Bank is currently sitting at 2.25%.  The interest rate was reduced by 0.25%, or 25bps.  The Bank of Canada has deduced the interest rate for the first time in several years.  

The stock and ETF investment involves one stock and cash  that I hold within my margin account. I keep the dividends and distributions received separate from the dividends I post in my dividend income updates.

Currently, do not own any ETFs in this account since the last update.

I own 200 shares of TransAlta (TA.TO) and cash.

On September 28, 2024 , the current value of this "stock / ETF /cash account" is $3896.39 .  I have earned a total of $521.29 in total dividends/distributions in this account. 

Overall, the savings total is $14102.23

Non-registered Accounts

The non-registered accounts consist of a margin account and 2 stocks held directly with the transfer agents. The margin account is with Questrade. The total value is $130939.45 as of September 28, 2024. This is an increase of 8.63% since the last published net worth post.

TFSA Investing Account

The TFSA investing account balance is $121297.86 as of September 28 2024. This account is with Questrade. This is an increase of 18.77% since the last published net worth post.

Trading Account

The trading account is with Questrade. There is an active trade on this account.  I also sold a few covered calls on this position, and one of these is still active. As of September 28 2024, the value of this account is $6202.88.

RRSP

As of September 28, 2024, I own 21 shares of CP Rail (Ticker Symbol  CP.TO) , 144 units of XAW, 200 shares of Emera Inc (EMA.TO) and 49 shares of Alimentation Couche-Tard  (ATD.B.TO)  

I also own 52 units of CASH.TO. 

I currently have a covered call on the Emera position.  

The value of this account as of September 28, 2024 is $25275.49 . This is an increase of 7.21% from June 22, 2024.

Summary of Assets

Total Savings : $14102.23
Non-Registered accounts : $130939.45

TFSA Investing : $121297.86
Trading Account: $6202.88
RRSP Savings Account: $25275.49

Total Assets =$297817.91 (increase of 13.01% from 3 months ago)

Liabilities

The balance on my line of credit is $0.00. 

I owe $1279.35 in my margin account.  The margin is in the Canadian dollar account within my margin account in Questrade.  The USD account in Questrade has a positive cash balance.

Summary of Liabilities

Credit Line = $0.00

Margin = $1279.35

Total Liabilities = $1279.35

Conclusion

On September 28, 2024, my net worth is $296538.56 . This is an increase of $35592.05, or 13.64%, from 3 months ago.

The market continues to go up and down. During the last 3 months, we have seen inflation going down, but the fears of a recession continue to take hold. 

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To read the sixteenth net worth update, click here. 

To read the seventeenth net worth update, click here.

To read the eighteenth net worth update, click here. 

To read the nineteenth net worth update, click here. 

Disclosure: - Long all aforementioned stocks
  

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.

Dividend Income Update - August 2024

                   

The month of August 2024 is another month of dividend income landing in my accounts. 

Due to becoming debt free, I changed my pay myself model. Starting the beginning of August 2021, I am paying myself 30%, just like before. This will now consist of 24% to investing, and 6% to savings.  The investment portion is going to my TFSA. Any money left over at the end of the month, I put towards investing on top of the money allocated from paying myself first. Hopefully, I can keep this up!

Update on paying myself first. At the start of August 2022, I now pay myself 35%.  This will consist of 25% to investing and 10% to savings. 

At the start of January 2024, I allocated 27% to investing and 10% to savings. 

Starting July 2024, I started allocating 30% to investing and 10% savings.

Note: All the dividends and totals below are in Canadian Dollars

I received a total of $534.11 in dividend income for the month of August 2024.  This represents a  4.90% increase from 3 months ago and a  47.2% increase year over year.

I received dividend / distribution income from 9 different companies.

I received $0.00 in option premiums within my investment accounts in August 2024.

Below is a visual of my dividend totals for the last 5 years.

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Most of my dividend income comes from my margin account.  As more investments and DRIPs are made inside TFSA, the percentage of dividend income for the TFSA is increasing.  

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Next, I will show the percentage of total income for each position.

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In first eight months of 2023, I received $5180.66 in dividends. In first eight months of 2024, I received $7286.12 in dividends. This is an increase of 40.64% YTD in 2024 over the same period in 2023. 

The graph below shows my total dividend income, as per the blog, since 2012. 

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

Note: Any activity in my RRSP account is not included in these totals.

How was your dividend income for August 2024?

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 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.