Monday, September 7, 2020

Dividend Income Update - August 2020

 



      
The month of August 2020 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% 5.66% plus the insurance on the debt. The decrease in the interest rate is a result of emergency rate cuts by the Bank of Canada over the COVID19 pandemic. Starting in August, I will change my pay myself first percentage. I will be paying 15% towards line of credit and 12% will go into savings. As my normal savings account is in the $2000 range, I have a couple of big expenses coming up. So, I will be putting money into savings until the $2000 amount is reached again.  
 
Why money going into line of credit at paying myself first at 15% and savings at 12%?  This is simply to get a better return on my money on a large scale.  When the savings hits north of $2000.00 again, I will go back to paying myself 15% to investing at 12% to line of credit.

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


Non-registered Accounts

Bank of Montreal (BMO) - $90.10
Emera Inc (EMA) - $61.25
Enerplus (ERF)     - $7.37
Shaw Communications (SJR.B)     - $19.75

Subtotal : $178.47


TFSA

A&W Royalties Income Fund   - $3.80
Cominar REIT (CUF.UN)    - $13.62
Killam Properties REIT (KMP.UN)    - $17.11
Royal Bank (RY) - $60.48

Subtotal: $95.01

Total = $273.48


I received a total of $273.48 in dividend income for the month of August 2020. This represents a 1.496% increase from 3 months ago and 17.7% increase year over year.

I received dividend / distribution income from 8 different companies.

I received $0.00 in option premiums within my investment accounts in August 2020.

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

Click to Enlarge



Most of my dividend income comes from my margin account. 




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




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 2020?


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.


Saturday, September 5, 2020

Portfolio Update : August 2020

 The month of August 2020 now behind us. Some major things have happened in the world, which affect the markets in some way.

COVID19 is still front and center in the news. More and more jurisdictions are bringing in mandatory masks laws or bylaws to help slow the spread of the virus.  Now is the ultimate litmus test for COVID19 is students heading back to the classroom.  If schools are forced to shut down, one parent will have to stay own from work or work from home.

The protesting in the United States continues and has put people on edge. This will have negative effects on the economy as truckers are not feeling safe to deliver the goods to stores in various locations.  When stores have less of a product, they often increase the price due to supply and demand scenario.


Portfolio Activity

Margin Account Activity

There has been no activity in this account.    


TFSA Activity

I built up some cash in this account. 
 I was looking for some stocks I was watching to fall to my target price.  I was looking at Fortis, Brookfield Renewable Partners, and TD Bank.  

I actually had a limit order for Fortis that was reached, but the shares were rewarded to someone else.  

Brookfield Renewable Partners (BEP.UN) fell below by target price of $60.00.  

On August 31, I purchased 20 shares of BEP.UN at $59.66 per share for a total costs of $1198.15 including commissions.  The distribution was reduced from $2.17 USD per unit to $1.736 USD per unit. The distribution reduction is a result rewarding shareholders of BEP (on the NYSE) and BEP.UN with 1 share/unit of BEPC for every 4 units of the former that they held on the record date.  BEPC is a different corporate structure and Brookfield believe this will help attract new investors to their company.

I now own 53 units of BEP.UN.  This purchase adds $34.72 USD to my annual dividend income.  The equivalent to $45.36 in Canadian dollars as of the time of this writing.  BEP.UN pays in distribution in US dollars, but trades on the Toronto Stock Exchange.   

The addition of 8 shares of BEPC as a result of holding 33 units of BEP.UN on the record date adds $13.89 USD to my annual divided income.  This is equivalent to $18.15 in $CAD as of the time of this writing.  


Shares Purchased Via DRIP

0.765618 shares of BNS.TO @ $55.1711 for a total cost of $42.24 (transfer agent)

1 unit of CUF.UN @ $7.01877 for a total cost of $7.02 (TFSA)

1 shares of ERF.TO @ $4.1635 for a total cost of $4.16 (Margin Account)


Cominar REIT pays a monthly distribution of $0.03 per unit per month, or $0.36 per unit annually going forward. This DRIP adds $0.36 to my annual dividend income. The yield on cost for the DRIP unit is 5.13%

Enerplus pays a monthly dividend of $0.01 per share monthly, or $0.12 per share annually. This drip adds $0.12 to my annual dividend income. The yield on cost for this DRIP is 2.88%.

Bank of Nova Scotia pays a quarterly dividend of $0.90 per share monthly, or $3.60 per share annually. This drip adds $2.76 to my annual dividend income. The yield on cost for this DRIP is 6.53%.


My position in Bank of Nova Scotia that is directly with the transfer agent.  The dividend was paid on the July 29.  The dripped shares showed up in my account on August 5.

I have some other positions with the DRIP turned on, but might not have enough of a dividend to purchase a whole share. Boston Pizza Royalties Income Fund (BPF.UN) have suspended their dividend due to restrictions put in the place due to COVID19. 

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


Dividend Increases

There has been no dividend increases in August 2020.

Dividend Decreases

Cominar REIT (CUF.UN) announced a distribution decrease from $0.72 annually to $0.36 annually. This is a decrease of 50%.  I own 228 units of Cominar REIT.  Therefore, this reduces my annual dividend income by $82.08.

Cominar REIT properties, which include office properties, are located in Ontario and Quebec.  Quebec has been the hardest hit province with COVID19, which is where most of Cominar REIT properties are located.  



Summary: 

As of September 4, 2020 , the total value of the portfolio is $112487.46 . This is a 2.06% increase over last month's total. 

The portfolio is estimated to produce an estimated $5182.93 in dividend income over the next 12 months. This is an decrease of $45.85 CAD , or 0.88
%. Some of the dividends in the Canadian stocks section are paid in US dollars, which are converted to Canadian dollars. The US dollar has weakened over the last month which results in the lower exchange rate when converting US dollars to Canadian dollars. 

Please Note: Positions in Restaurant Brands International (QSR.TO) , Intertape Polymer Group (ITP.TO), and Brookfield Renewables Corporation (BEPC.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
                - Only hold Fortis in RRSP, which is not part of these updates. 

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, August 24, 2020

Trading Account Update - August 24 2020

 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 :                        51
                               Total Capital added:          $250.00
                               Trading Acct Balance:       $3820.33
                               Average Drawdown:          $148.46
                               Average Loss:                    $287.20
                               Average Accuracy:            84.00%
                               Average Risk:                    $164.77
                               Average Reward:              $108.39
                               Average Risk/Reward :      1: 0.658

        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  $0.857.  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. 

Below is a chart of my 2020 percentile gains


Below is a chart showing my overall percentile gains from January 1, 2016, to August 24, 2019. 

Conclusion:

I have not gotten the results that I have wanted over the last couple of years. This is evident in the long roughly flat line in the chart above.  

I need to gain better entry points and to make sure to use a stop loss.  In the trading platform for my brokerage, you can put in a stop limit order when purchasing a stock via a bracket order.  

Note:  The trades are listed under the Trading Tab above with all the trades listed as of August 24, 2020

Note:  As of August  24, 2020, 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.

Sunday, August 23, 2020

International Diversification Via an Exchange Traded Fund

I have held Tangerine funds within my RRSP for a few years and then sold out.  I kept the cash with Tangerine as a high interest savings account for about 3 years.  The interest rate kept dropping and I got more and more frustrated.  I decided to make a move.

I transferred my RRSP to my brokerage to make better investments and hopefully better returns.

I decided to start off with international exposure.  I decided to go with XAW ETF based in Canada.  The ETF is actually called iShares Core MSCI All Country World ex Canada Index ETF.  To learn more about this ETF, click here.

I now own 35 units of this ETF.  I did not use my own money, except the capital to purchase other positions to help pay for it.


Steps:

- April 24  Purchased 400 shares of SJR.B 

- April 24 Sold 4 SJR.B covered calls with expiration May 15 2020 at $23 strike  for net premium of $206.05

- May 14 Bought 8 units of XAW ETF at $24.93 for a cost of $199.47 including ECN fees

- Covered call expires worthless

- May 19  Sold 4 covered calls on June 19 2020 $23 SJR.B for net premium of $226.05

- June 10 Bought 9 units of XAW at $27.36 for a cost of $246.27 including ECN fees

-June 19 Option assigned

- June 23 Purchased 400 shares of SJR.B

- June 26 Bought 10 units of XAW at $26.35 for a cost of $263.54 including ECN fees.

- July 2 Sold 4 covered calls with expiration August 21 2020 at $23 strike for net premium of $246.05

- August 12 Option assigned 

- August 14  Bought 1 unit of XAW at $28.27 with no ECN fees.

- August 17 Bought 200 shares of Fortis (FTS.TO)

- August 19 Sold 2 FTS.TO covered calls with September 18 2020 expiration at $54 for net premium of $108.05

- August 20  Bought 7 units of XAW at $28.11 for a cost of $196.79.

I received dividends as follows 
- May 28 2020    SJR.B  $39.50
- June 29 2020  SJR.B $39.50
- June 30 2020 XAW $3.93
- July 30 2020  SJR.B $39.50

I will be receiving the FTS.TO dividend of $95.50 on September 1.

Summary

Options premiums received = $206.05+226.05+ $246.05+$108.05
                                        = $786.20

Dividends/Distributions received = $39.50+$39.50+$39.50+$3.93
                                                = $122.43

Future FTS.TO dividend  = $95.50

The total amount is $1004.13

Purchased costs for XAW = $199.47+ $246.27+ $263.54+28.27+196.79
                                     = $934.34


You can see that my purchase of 35 units of XAW have been paid by a future dividend from Fortis, option premiums collected and payouts via both dividends and distributions.

Note: My RRSP is not part of the blog and therefore the dividends, distributions, RRSP portfolio value and option premiums are not part of my portfolio updates or dividend income updates.  The market value of my RRSP will appear in my net worth updates. 

Disclosure :  Long XAW.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, August 9, 2020

Weekend Reading - Canadian Edition

 Another crazy week in the markets and life in general.  COVID19 is still the major topic of the day.  Things that are of outmost importance such as climate change have taken a back seat.  In fact, a major piece of ice shelf in the far north broke off due to risen temperatures.  

More and more cities and tourist destinations have brought in mandatory masks and/or face coverings bylaws to help control the spread in their areas.  

In the United States, truckers have come under attack by "peaceful" protesters attacking their trucks and trailers.  Interstates are being blocked by protestors which affect the flow of goods within the United States and beyond.

Now, on to the things we do this weekend that can give us hope and inspiration.

First of all, I published my Portfolio Update and Dividend Income Update for July 2020.  

Some other bloggers in Canada wrote some fantastic post since the beginning of August.

 Jordan on his blog, Money Maaster,  wrote about his July 2020 dividend report and other news in his portfolio.  He is up to nearly $12000 in excepted forward annual dividend income.  

Graham from Reverse The Crush published his Dividend Income Report for July 2020.  Graham had outstanding year over year growth in dividend income!

Matthew from All About The Dividends published his July 2020 Dividend Income.  Check out his post for his record month.  All the cash he put to work is starting to pay off in remarkable ways. 

Mark from My Own Advisor published a post about his July 2020 Dividend Income Update.  

Bob from Tawcan wrote about Teaching Kids About Financial Independence.   

Rob over at Passive Canadian Income published his July 2020 Passive Income ReportRob collected income from 4 different sources.    

Liquid over at Freedom Thirty Five Blog wrote about The State of the Economy - 2020 and Beyond.  

Jessica over on her blog jessicamoorhouse.com discusses High-Interest Savings Accounts in Canada. Things have certainly changed due to COVID19 pandemic in 2020! 

Conclusion

I hope you enjoy the articles and are motivated to keep moving forward.