Monday, June 3, 2019

Dividend Income Update - May 2019



      
        The month of May 2019 is another month of dividend income landing in my accounts. Recently, I switched my pay yourself first model to concentrate a little on debt repayment.  The interest on debt is 7.16% plus the insurance on the debt.  I currently pay myself 10% of income from job(s) and non-registered accounts to my TFSA.  The TFSA income is staying within the account.  I will deviate the 10% to savings account instead of to TFSA if a large expense comes up like a dental appointment.

       
 Non-registered Accounts
  • Bank of Montreal (BMO) - $35.00
  • Cineplex  (CGX) - $14.50
  • Emera Inc. (EMA) - $58.75
  • Enerplus (ERF)  -$ 5.58 
  • Shaw Communications (SJR.B)  - $19.75
Subtotal :  $133.58

TFSA
  • A&W Royalties Income Fund (AW.UN) - $5.85
  • Boston Pizza Royalties Income Fund   (BPF.UN) - $26.91
  • Cominar REIT (CUF.UN) - $13.02
  • Dream Office REIT   (D.UN)  - $14.00
  • Killam Properties REIT (KMP.UN) - $  16.61
  • Royal Bank of Canada (RY) - $20.40
Subtotal:  $96.79

Total = $230.37

    I received a total of $230.37 in dividend income for the month of May 2019.  This represents a 0.832% increase from 3 months ago and 11.93% decrease year over year.  

    I received dividend / distribution income from 11 different companies.   

     I received $170.10 in option premiums within my investment accounts in May 2019.

    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.

How was your dividend income for May 2019?

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.

Saturday, June 1, 2019

Portfolio Update - May 2019

The month of May 2019 2019 now behind us.
 

The new provincial government, the United Conservative Party  (UCP) , has been sworn in Alberta.  The UCP leader is Jason Kenny, who is now the premier.  Premier announced as expected that the first order of business is to repeal the Carbon Tax that was brought in by the previous NDP government of Alberta.

Although the bill to repeal the carbon tax has not been voted on, the carbon tax ended on May 30.  The bill will come to a vote on Monday, June 3.  The price of fuel had dropped very shortly after the carbon tax ended.

The federal government has yet to make a public statement about whether they will implement a federal carbon tax on Albertans. 

The Alberta government is also trying to pass an Open For Business Act that can affect a lot of things including holiday pay for employees.  From what I am reading, once this bill is passed a person will not receive any pay from a holiday unless they work on the holiday.  What is the point of having holidays anymore if you don't work on the day of the actually holiday?  So the employee will have less weekly pay for weeks that involve holidays.  The employer seems to be the one to benefit from this bill.  

The former Alberta NDP government announced they will lease rail cars to move Alberta oil via CP Rail (CP.TO) and CN Rail (CNR.TO).  The leasing of the rail cars is suppose to be a temporary solution as the government is hoping to start  the construction of the  Transmountain  pipeline expansion to the BC coast. 

Portfolio Activity

During the month of May,  a blockbuster announcement was made that Onex CEO Gerry Schwartz was buying WestJet Airlines for an all cash deal of $31 per share.  At the time of this announcement, WestJet airlines was trading around $18.00 per share. 


Before this announcement, I sold 2 puts in $WJA.TO on May 8 with a strike price of $18.00.  The expiration date for this trade is June 21, 2019.  I collected a premium of $78.05 after commissions. When the announcement was made that Onex is to acquire WestJet, the price of the stock shot up to around $30 per share.  So, the put option will not get assigned and I get to keep the premium.

 I still have an outstanding covered call on WestJet expiring July 19 2019.  The strike price is $24.00.  Currently, the option is trading at a very high price with the option way in the money.  I will monitor this to see if it goes down as I could buy the option back to keep my shares.  I do believe the sale will be approved by shareholders and will not be blocked by government.  

I purchased 50 shares of Intertape Polymer Group (ITP.TO) at $18.00 for a total cost of $904.95 including commissions on May 6. This purchase was in my margin account.  Intertape Polymer Group pays a quarterly dividend of $0.14 USD per share. As of the time of this writing, this purchase adds $37.92 CDN to my annual dividend income. 

I added to my Canadian Imperial Bank of Commerce "C.I.B.C"  (CM.TO) inside my margin account. On May 22, I purchased 12 shares at $107.90 for a total cost of $1299.79 including commissions.  CIBC currently pays a $1.40 quarterly, or $5.60 annually, per share dividend.  This purchase adds  $67.20 to my annual dividend income.  

On May 22, I also sold 3 $18 puts in ITP.TO with an expiration date of June 21, 2019. I received a premium of $92.05 after commissions.

The month of June, I will monitor the West Jet bid price for the $24 July 18, 2019 call option to see if goes lower.  If the short put on ITP.TO gets assigned, I will look to sell the position and start a new smaller position again. 

 Shares Purchased Via DRIP
 

1 unit of CUF.UN.TO @ $11.6535 for a total cost of $11.65 (TFSA)

I own 218 units of Cominar REIT (CUF.UN.TO). Currently, CUF.UN pays $0.72 per unit per year, or $0.06 per unit monthly. This DRIP adds $0.72 to my annual dividend income.


Please note that if some brokerages DRIP shares when there is no DRIP program by the actually company. This DRIP is when the brokerage buys the shares directly off the public market stock exchanges.
 

Dividend Increases

On May 9, Telus Corporation (T.TO) increased their quarterly dividend from $0.545 to $0.5625 per share. This is a 3.21% increase.  Telus has been raising their dividend twice a year for several years.  I currently own 24 shares of Telus inside my TFSA, so this increases my annual dividend income by $1.68.


On May 9, Cineplex (CGX.TO) increased their monthly dividend from $0.145 to $0.15 per share. This is a 3.45% increase. I currently own 100 shares of Cineplex, so this increased my annual dividend income by $6.00.

On May 29, Bank of Montreal (BMO) reported their quarterly earnings and increased their quarterly dividend from $1.00 to $1.03.  This is an increase of 3.00%.  BMO has been raising their dividend twice annually for the past several years.  I currently own 35 shares of Bank of Montreal, so this increased my annual dividend income by $4.20.


Dividend Decreases

On May 14, High Liner Foods (HLF.TO) announced a dividend decrease from $0.145 to $0.05 per quarter. This represents a decrease of 65.5%.  I currently own 306 shares of HLF.TO, so this decreases my annual dividend income by $116.28.

High Liner Foods stated they are trying to restructure their business and pay off debt. The import tariffs are also affecting their bottom line.  

Summary:
 

As of June 1 , the value of the portfolio is $123642.38. This is a 1.320% increase over last month's total.
 

The portfolio is estimated to produce $4897.22 in dividend income over the next 12 months.

The price of the call option on West Jet does not represent the exact bid price of the time of this writing.  
   
Disclosure: Long all aforementioned stocks except Onex and CP.TO.


Please Note: Positions in Restaurant Brands International (QSR.TO) and Intertape Polymer Group (ITP.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.
 

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.

Saturday, May 11, 2019

Recent Buy

As investors in the stock market, we aim to buy stocks that will be around tomorrow and years to come. As an added bonus, it is great to get paid a share of the profits in the form of dividends. Dividends are payments to shareholders as determined by the company's board of directors.

For Canadians, buying a stock on the Canadian stock markets means that dividends paid are eligible dividends. Eligible dividends are taxed at a lower rate than interest from bonds and savings accounts or a job.

THE PURCHASE

With the world population increasing year by year and expected to grow from over 7 billion to 9 billion by 2050, more and more products will be needed. These products are often shipped in boxes that are made of carboard and are sealed with tape.

Intertape Polymer Group Inc. is a recognized leader in the development, manufacture and sale of a variety of paper and film based pressure-sensitive and water-activated tapes, polyethylene and specialized polyolefin films, protective packaging, engineered coated products and complementary packaging systems for industrial and retail use. Headquartered in Montreal, Quebec and Sarasota, Florida, The Company employs approximately 3,500 employees with operations in 30 locations, including 22 manufacturing facilities in North America, three in Asia and one in Europe. (Source: Intertape Polymer Group Investor Relations)

Intertape Polymer Group (ITP.TO) makes products such as double coated tape, duct tape, lumber wrap, masking tape, electrical tape, water-activated tape, and stretch film. These products are used everyday by businesses and consumers.

Intertape Polymer Group's products are used in over 15 different markets including e-commerce, food processing, aerospace, transportation, and construction.

On May 6, I purchased 50 shares of ITP.TO at $18.00 per share for a total cost of $904.95 including commissions. This purchased occurred in my margin account.

ITP.TO currently pays a $0.56 USD per share annually, or $0.14 USD per share quarterly. The dividends received from this company will first be converted to Canadian dollars prior to landing in my brokerage account. At the time of this writing, the equivalent dividend in Canadian dollars is $0.75446894 per share per year. Based on this conversion, the yield on cost is 4.17%.

The purchase adds approximately $37.72 to my annual dividend income.

The ex-dividend date is June 13, which means I will receive the upcoming dividend. 


I will update my investing tab spreadsheet in early June with this purchase.

Disclosure:  Long ITP.TO


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.

Sunday, May 5, 2019

Dividend Income Update - April 2019



      
        The month of April 2019 is another month of dividend income landing in my accounts. Recently, I switched my pay yourself first model to concentrate a little on debt repayment.  The interest on debt is 7.16% plus the insurance on the debt.  I currently pay myself 10% of income from job(s) and non-registered accounts to my TFSA.  The TFSA income is staying within the account.  I will deviate the 10% to savings account instead of to TFSA if a large expense comes up like a dental appointment.

       
 Non-registered Accounts
  • Bank of Nova Scotia (BNS) -  $36.49  (Transfer Agent)
  • Bank of Nova Scotia (BNS) - $17.40
  • Bell Canada Enterprises (BCE) - $79.25
  • Canadian Imperial Bank of Commerce "CIBC" (CM) - $39.20
  • Cineplex  (CGX) - $14.50
  • Enerplus (ERF)  -$ 5.58 
  • Restaurant Brands International (QSR) - $65.78 
  • Rogers Communications Class B (RCI.B) - $100.00
  • Shaw Communications (SJR.B)  - $19.75
  • Telus Corporation (T) - $54.50
Subtotal :  $432.45

TFSA
  • A&W Royalties Income Fund (AW.UN) - $5.59
  • Boston Pizza Royalties Income Fund   (BPF.UN) - $26.91
  • Cominar REIT (CUF.UN) - $12.96
  • Dream Office REIT   (D.UN)  - $14.00
  • Killam Properties REIT (KMP.UN) - $  16.61
  • TD Bank  (TD) - $14.80 
  • TFI International (TFII) - $12.00
  • Telus Corporation (T) - $13.08
Subtotal:  $115.95

Total = $548.40

    I received a total of $548.40 in dividend income for the month of April 2019.  This is my highest total ever! This represents a 8.59% increase from 3 months ago and 10.8% increase year over year.  

    I received dividend / distribution income from 16 different companies.   

     I received $0.00 within my investment accounts in April 2019.

    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.

How was your dividend income for April 2019?

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.

Saturday, May 4, 2019

Portfolio Update: April 2019

The month of April 2019 is now behind us.
 

The provincial election in Alberta occurred on April 16, 2019.  The United Conservative Party won the election and the NDP became the opposition.  Prior to the election, the NDP was the government.  An important thing to note in this election was the fact all other provincial parties did not win any seats.  

On April 1, the federal Liberal government placed a $20 per tonne tax on carbon in Saskatchewan, Ontario, New Brunswick and Manitoba.  The Saskatchewan premier took the federal government to court over the carbon tax.  In the last few days the courts have stated that the federal government has the constitutional right to put a price on carbon.  All the other provinces and territories have a price on carbon or a cap and trade system that meets the government requirements. 

The price of a barrel of crude oil is just of $63 a barrel for WTI crude oil.


Portfolio Activity

Things have been quiet in terms of portfolio activity.


My covered call in WestJet Airlines (WJA.TO) is still trading out of the money.  WestJet has been affected by the grounding of the 737 Max 8 aircraft manufactured by Boeing.  Governments around the globe have grounded these planes and banned them flying into and out of their air spaces and between airports.


My covered call in Telus Corporation (T.TO) was assigned on April 18 as the option was trading in the money. You can read about this option assignment here.  This option assignment decreases my annual dividend income by $218.00.  This sale occurred in my margin account.  For full disclosure, I still own 24 shares of T.TO inside my TFSA. 

 Shares Purchased Via DRIP
 

1 unit of CUF.UN.TO @ $11.96855 for a total cost of $11.97 (TFSA)

0.495670 shares of BNS.TO @ $73.6176 for a total cost of $36.49  (transfer agent)

I own 217 units of Cominar REIT (CUF.UN.TO). Currently, CUF.UN pays $0.72 per unit per year, or $0.06 per unit monthly. This DRIP adds $0.72 to my annual dividend income.


I own 42.435888 shares of Bank of Nova Scotia  (BNS.TO) directly with the transfer agent.  Currently, BNS,TO pays a $3.48 per share dividend annually, or $0.87 per share quarterly. This DRIP adds $1.72 to my annual dividend income.
 

Please note that if some brokerages DRIP shares when there is no DRIP program by the actually company. This DRIP is when the brokerage buys the shares directly off the public market stock exchanges.
 

Dividend Increases

On May 3, A&W Royalties Income Fund (AW.UN.TO) reported earnings. As of the result of good earnings, AW.UN.TO increased their monthly dividend from $0.147 per unit to $0.154 per unit.  This represents an increase of 4.76%.  


I currently own 38 units of AW.UN.TO, so this increase my annual dividend income by $3.19. 

Dividend Decreases

I did not receive any dividend decreases during the month of April 2018.

Summary:
 

As of May 4 , the value of the portfolio is $122030.99. This is a 0.618% increase over last month's total.
 

 EDIT:  May 6. The correct value of the portfolio is $122030.99 on May 4.

Disclosure: Long all fore mentioned stocks.


Please Note: Positions in Restaurant Brands International (QSR.TO) and Brookfield Renewables Partners (BEP.UN) pay dividends and distributions in US dollars, respectively. My investment tab spreadsheet displays the Canadian dollar equivalent within 15 to 20 minutes of real time.
 

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.

Saturday, April 27, 2019

Recent Sale

 On October 1, 2018, I purchased 100 shares of Telus Corporation (T.TO) inside my margin account.  I purchased with the attention of selling covered calls.  A covered call is when you sell (or write) a call option when you own the corresponding number of shares for said contract.

When selling covered calls, the individual is obligated to sell their shares at or on expiration date.  For this obligation, the seller of the call option is paid upfront an option premium.  The option seller gets to retain this premium regardless if the stock moves up, down or sideways.  If the price of the stock is $0.01 above the strike price at expiration the option will be assignment.

The initial cost basis of the shares is $4743.30.

Total dividends received = $109.00
Total Options received = $78.10 ( $44.05 and $34.05 on 2 trades )
Option Assignment Fee = $24.95
Strike Price = $48.00

When a covered call is assignment, the premium is added to the proceeds of sale resulting in a larger capital gain or capital loss for tax purposes.

When the covered called is not assigned, the gross proceeds of sale is the premium received and the outlays and expenses is the commission for the option trade by your brokerage.  The adjusted cost basis is $0.00.


Summary:

Net profit on assignment = # of contracts * strike price * 100 shares + net premium - assignment fee
                                         = 1* $48 *100 + $34.05 - $24.95
                                         = $4809.10

For total return we use all the money received

Total return =[ (net profit on assignment + other premium received + divys )  / ACB on purchase]  - 1
                    = [($4809.10 + $44.05 + $109.00)  / $4743.30]  - 1
                    = 4.62%

The total return is not that high. In the past month, T.TO increased to over $50.00 per share and then retracted to mid $49.00.

Telus currently pays an quarterly divided of  $0.545.  This option assignment reduces my annual dividend income by $218.00 

I will update my investing tab spreadsheet in early May to reflect this transaction.


Disclosure:  - Own 24 shares of T.TO in my TFSA
                        - Long T.TO

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.

Saturday, April 13, 2019

Trading Account Update: April 2019

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 :                45
                               Total Capital added:    $250.00
                               Trading Acct Balance:  $3045.58
                               Average Drawdown:   $112.90
                               Average Loss:             $287.20
                               Average Accuracy:    82.22%
                               Average Risk:              $127.44
                               Average Reward:         $106.37
                               Average R/R :             1: 0.835


        I have been trading penny stocks, stocks, REITS and options.  Any dividends that will be received from this account will stay within the account. The accuracy rate is high. Does this mean that I am a super trader? No it does not.  The risk to reward ratio states of every $1.00 of risk there is reward of  $0.835.  Ideally, a trader should aim for a 1:2  risk to reward ratio which causes the accuracy rate to be lower.  I lost big on a trade as I did not put a stop in at the initiation of the PZA.TO trade.  The stock kept dropping and dropping, so I felt it was best to sell.   

      The drawdown above is inter-trade drawdown.  This type of draw down is the dollar amount the trade moves against you.  Why is it important to keep track of inter-trade drawdown?  It helps you know if you are picking good entry points.  It is normal for trades to have inter-trade drawdown. 

Note:  The trades are listed under the Trading Tab above with all the trades listed as of April 13, 2019

Note:  As of April 13, 2019, there is no active trades. 


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.