Dividend Income Update - December 2024

                       

The month of December 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 $1014.86 in dividend income for the month of December 2024. This represents a 0.279% decrease from 3 months ago and a 44.4% increase year over year.

I received dividend / distribution income from 15 different companies.

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

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

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

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

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In 2023, I received $8106.02 in dividends. In 2024, I received $11293.80 in dividends. This is an increase of 39.33% 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 December 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.

Portfolio Update - December 2024

 The month of December 2024 as end and what a month!

In Canada, The federal finance minister resigned the morning of the same day she was to present the fall economic statement.  The federal finance minister was offered another position in the federal cabinet, but resigned instead as she felt she didn't have the confidence of the Prime Minister.

The opposition parties were all over this and pushing more and more for the Prime Minister of Canada to resign.  The Prime Minister has cancelled all his year-end interviews with the major news channels and is keeping quiet.  

Parliament is set to resume on January 27 2025.  There has been ongoing calls for the Prime Minister to resign, including those in the liberal government. 

This ongoing tension is affecting the markets and business in Canada.  On top of this, Donald Trump will be sworn in as president of the US on January 20th.  Shortly after a US president is sworn in, there could be immediately changes that happen and these changes can affect the markets. 

The S&P500 was down 2.37% over the past month.  

The S&P TSX Composite Index was down 2.21% over the past month.

Portfolio Activity

Margin Account Activity

On November 18th, I sold 2 Dec202024 RCI.B.TO $49 put options at $0.65 for a net premium of $118.05 after commissions.  As the option seller, I am paid this net premium.

This option was assigned as the price of the stock was below $49.00 at expiration. 

Strike Price = $49.00

# of contracts = 2

Net Premium = $118.05

Assignment Fee = $24.95

The adjusted cost base of this purchase is $9706.90  (2*100*$49.00-118.05+24.95).  Currently,  Rogers Communicaton Class B  (RCI.B.TO) pays a dividend of $0.50 CAD per share quarterly, or $2.00 CAD per share annually.  The yield on cost for this purchase is 4.12%. 

This put option assignment adds $400.00 CAD to my annual dividend income.

TFSA Activity

There has been no activity in this account since the last update.   

Shares Purchased Via DRIP

1 unit of REI.UN @ $18.70201 for a total cost of $18.70 (TFSA)

1 unit of KMP.UN @ $17.7235for a total cost of $17.72 (TFSA)

1 unit of SRU.UN @ $25.47918 for a total cost of $25.48 CAD (TFSA)

7 shares of TTNM.TO @ $2.3235 for a total cost of $16.26 (TFSA)

1 share of MFC.TO @ $43.12926 for a total cost of $43.13 (TFSA)

1 share of AW.TO @ $36.73418 for a total cost of $36.73 CAD (TFSA)

2 units of BEP.UN @ $23.10927US for a total cost of $66.34 CAD (TFSA)

3  units of BPF.UN @ $17.7535 CAD  for a total cost of $53.26 CAD (TFSA)

5 shares of T.TO @ $19.64178 CAD for a total cost of $98.21 CAD (TFSA)

Brookfield Renewable Corporation (BEPC) changed its corporation structure with a share restructuring.  Therefore, at the time of this writing, a dividend was paid but there is no sign of new shares via DRIP.

  

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 December 3rd, Enbridge Inc  (ENB.TO) increased their dividend from $0.915 CAD to $0.9425 per share quarterly, or from $3.66 CAD to $3.77 CAD per share annually.   This is an increase of 3.01%.  

I currently own 359.278 shares of Enbridge. This increase adds $39.52 CAD to my annual dividend income.

On December 4th, Royal Bank of Canada  (RY.TO) increased their dividend from $1.42 CAD to $1.48 CAD per share quarterly, or from $5.68 CAD to $5.92 CAD per share annually.   This is an increase of 4.23%.  

I currently own 56 shares of Royal Bank. This increase adds $13.44 CAD to my annual dividend income.

On December 5th, Canadian Imperial Bank Of Commerce "CIBC"  (CM.TO) increased their dividend from $0.90 CAD to $0.97 CAD per share quarterly, or from $3.60 CAD to $3.88 CAD per share annually.   This is an increase of 7.78%.  

I currently own 220 shares of CIBC. This increase adds $61.60 CAD to my annual dividend income.

On December 5th, Bank of Montreal  (BMO.TO) increased their dividend from $1.55 CAD to $1.59 CAD per share quarterly, or from $6.20 CAD to $6.36 CAD per share annually.   This is an increase of 2.58%.  

I currently own 85 shares of Bank of Montreal. This increase adds $13.60 CAD to my annual dividend income.

On December 5th, TD Bank  (TD.TO) increased their dividend from $1.02 CAD to $1.05 CAD per share quarterly, or from $4.08CAD to $4.20 CAD per share annually.   This is an increase of 2.94%.  

I owned 205 shares of TD Bank the day of the announcement. This increase adds $24.60 CAD to my annual dividend income.

On December 9th, Boston Pizza Royalties Income Fund (BPF.UN) increased their distribution from $0.113 CAD to $0.115 CAD per unit monthly, or from $1.356 CAD to $1.38 CAD per share annually.   This is an increase of 1.77%.  On top of this increase, a one time special distribution was announced of $0.075 per unit.

Dividend Decreases

There were no dividend decreases in December 2024.  

 

Summary: 

As of January 4, 2025, the total value of the portfolio is  $254567.25 CAD . This is a 1.863% decrease over last month's total.  

The portfolio is estimated to produce an estimate $12998.88 CAD in dividend income over the next 12 months. This is an increase of of 626.98 CAD , or 5.07%. 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, and BPF.UN.

Dividend increases or decreases announced already for December 2024, will be included in the next portfolio update. 

 

Please Note: Positions in Restaurant Brands International (QSR.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 -December 25 2024

 Today is December 25, 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, novice 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 December 25, 2024, the value of the savings account with EQ Bank is $11688.12 . As of the time of this writing, the interest rate for EQ Bank is currently sitting at 1.75%.  Since the last net worth update, the Bank of Canada cut the interest rate two times.  The interest rate was cut by 0.50%, or 50bps, on October 23, 2024.  The interest rate was then cut by another 0.50%, 50bps, on December 11, 2024.

I opened up a novice Savings Account with EQ Bank.  A novice savings account is a new savings account offered by EQ Bank.  The novice savings account comes with one of 2 withdrawal options.  Currently, the options are an account with a 10 day withdrawal or an account with a 30 day withdrawal.  The current interest rates are 3.00% for the former and 3.05% for the latter.   

I opened an novice savings account (30 day) in November 2024.  Currently, the value of the account is $228.63.  The interest rate currently is 3.05%.  When a withdrawal is requested, it takes 30 days for the withdrawal to complete.  During the 30 days, the interest continues to accumulate. 

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, I do not own any stocks in this account.

I own 55 units of the Bank of Montreal Canadian Dividend ETF (ZDV.TO)  and cash.  The purchase of the ETF was first purchased after the last net worth update.

On December 20, 2024, I covered call on TA.TO was assigned at $15.50 per share.  

On December 25, 2024 , the current value of this "stock / ETF /cash account" is $4273.10 .  I have earned a total of $537.14 in total dividends/distributions in this account. 

Overall, the savings total is $16190.03.

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 market value is $135409.68 as of December 25, 2024. This is an increase of 3.42% since the last published net worth post.

TFSA Investing Account

The TFSA investing account balance is $122893.68 as of December 25 2024. This account is with Questrade. This is an increase of 1.32% 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 the most recent covered call expired worthless on December 20th of this month. As of December 25 2024, the value of this account is $6229.48

RRSP

As of December 25, 2024, I own 21 shares of CP Rail (Ticker Symbol  CP.TO) , 152 units of XAW, 65 shares of CN Rail (CNR.TO) and 49 shares of Alimentation Couche-Tard  (ATD.B.TO)  

I also own 52 units of CASH.TO. 

The value of this account as of December 25, 2024,  is $26022.97 . This is an increase of 2.96% from September 28, 2024.

Summary of Assets

Total Savings : $16190.30
Non-Registered accounts : $135409.68

TFSA Investing : $122893.68
Trading Account: $6229.48
RRSP Savings Account: $26022.97

Total Assets =$306746.11 (decrease of 3.00% from 3 months ago)

Liabilities

The balance on my line of credit is $0.00. 

I owe $11788.17 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 = $11788.17

Total Liabilities = $11788.17

Conclusion

On December 25, 2024, my net worth is $294957.94. This is an decrease of $2859.97, or 0.960%, 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 seventeenth net worth update, click here.

To read the eighteenth net worth update, click here. 

To read the nineteenth net worth update, click here.

To read the twentieth 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.