Saturday, October 5, 2019

Dividend Income Update: September 2019



      
    The month of September 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 
  • Cineplex  (CGX) - $15.00
  • Enbridge (ENB) - $19.40  (Transfer Agent)
  • Enbridge (ENB) - $221.40 (Margin Account)
  • Enerplus (ERF)  -$ 5.58 
  • Intertape Polymer Group (ITP.TO) - $9.80
  • Shaw Communications (SJR.B)  - $19.75
Subtotal :  $290.93

TFSA
  • A&W Royalties Income Fund (AW.UN) - $6.04
  • Boston Pizza Royalties Income Fund   (BPF.UN) - $26.91
  • Brookfield Renewable Partners (BEP.UN) - $22.20
  • Canadian National Railway (CNR.TO) - $20.43
  • Cominar REIT (CUF.UN) - $13.26
  • Enbridge (ENB) - $24.35
  • Killam Properties REIT (KMP.UN) - $16.61
Subtotal:  $129.80

Total = $420.73

    I received a total of $420.73 in dividend income for the month of September 2019.  This represents a 6.29% decrease from 3 months ago and 10.3% decrease year over year.  The decrease from 3 months ago is due to selling High Liner Foods (HLF.TO) and Dream Office REIT (D.UN.TO). Last month was the last dividend payment I received from Dream Office REIT.

    I received dividend / distribution income from 11 different companies.   

     I received $0.00 in option premiums within my investment accounts in September 2019.  I did sell covered call in position that is used for a trade, so I will not include the option premium here. 


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 September 2019?

Disclosure : Long all securities above except HLF.TO and D.UN.TO

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.

Friday, October 4, 2019

Portfolio Update: September 2019

The month of September 2019 now behind us.

On September 11, the Prime Minister of Canada visited the governor general and started the federal election campaign. It is often said that this federal election will be the most important ever for Canada. The major issue of the election is climate change and how each party's plan would help Canada reach its Paris Accord targets by 2030.

As the polls show we could have a Conservative minority or Liberal minority, leaders from all parties are trying to win over voters by promising everything under the sun.

The Canadian federal election will occur on October 21, 2019.

The trade wars continue to play out between the United States and China. This along with the fears of a major recession have cause the stock markets in North America to have big raises and drops in recent weeks.

Portfolio Activity


Margin Account Activity

There is little activity in the margin account during the month of September.

I did make a trade in TFI International (TFII.TO). I purchased 200 shares of TFII.TO at $39.20 per share on September 24 for a total cost of $7844.95 including commissions.

On September 26, I then sold 2 covered call contracts on TFII.TO at net premium of $88.05 including commissions. The expiration date is October 18, 2019. The strike price is $40.00.

I am using any cashflow or capital gains from this trade to be directly applied to debt, which you can read about here. I will hold back $20.00 per month until the trade is closed out to cover margin debt interest on approximately $3000.00. To reflect this, I indicated this by red high lighting in the investment tab spreadsheet. I "borrowed" money from my trading account to reduce the amount of margin debt that was needed. Once this trade is closed, the money "borrowed" from trading account will be returned and the margin account will be in the black.

For Disclosure: I also own shares of TFI International inside my TFSA.

TFSA Activity


There was no purchases and selling in the margin account except a DRIP.

Shares Purchased Via DRIP

1 unit of CUF.UN.TO @ $12.5035 for a total cost of $12.50 (TFSA)

I now own 222 units of Cominar REIT (CUF.UN.TO). Currently, CUF.UN pays $0.72 per unit per year, or $0.06 per unit monthly, distribution. This DRIP adds $0.72 to my annual dividend income. The yield on this dripped unit is 5.76%.

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

On September 27, Emera Inc. increased their quarterly dividend from $0.5875 to $0.6125, or $2.35 per share annually to $2.45 per share annually. This is an increase of 4.26%. As of the time of this writing, I own 100 shares of EMA.TO. This increase adds $10.00 to my annual dividend income.

Dividend Decreases

There was no dividend decreases announced in the month of September.

Summary:

As of October 4 , the value of the portfolio is $124879.75. This is a 1.478% increase over last month's total.

The dividend increases increased my annual dividend income by $10.00. This is equivalent of investing $285.71 of my own money at 3.5%.

The portfolio is estimated to produce $5426.79 CDN in dividend income over the next 12 months.

I updated my investing tab spreadsheet.

Disclosure: Long CUF.UN, EMA, TFII (TFSA)

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.

Wednesday, October 2, 2019

Account Activity

      In recent weeks, the market has been going up and down a lot it seems with any major news story.  On top of that, Canada is in the middle of a federal election where there is no front runner and the prospects of a minority government, liberal or conservative, are high.
      
Account Activity

    I had no active trades in my trading account the past several weeks.  I also had around $1400 in my margin account.  So I decided to make another trade in the margin account by using the positive margin account balance, "borrowing" the balance of the trading account and using some margin to make a purchase.

    I purchased 200 shares of TFI International (TFII.TO) on the Toronto Stock Exchange.  TFI International is a large trucking company that operates under various subsidiaries in Canada, United States and Mexico.  

    I purchased 200 shares at $39.20 for a total cost of $7844.95 including commissions.  The reason that I used some margin to purchase a board lot of shares is to sell covered calls against the position.  

   On Sept 26, I sold 2 covered call contracts with October 18, 2019, expiration date and a strike price of $40.00.  I collected a net premium of $88.05 on this transaction for being the seller of the option.

   I purchased the 200 shares of TFI International prior to the ex-dividend date.  TFI International currently pays a quarterly dividend of $0.24 per share, or $0.96 per share annually.  So I will receive the quarterly dividend payment of $48.00 in the middle of October.  

   My plan is to use the premium collected, dividends and capital gain to help pay down debt. I will hold back around $5.00 to more than cover the margin interest per month.  Therefore, the dividend is not going to show up in my dividend tabs for the month.   If option expires than I will sell another covered call or place a limit order to sell at a higher price.

Disclosure: Long 50 shares of TFII.TO inside TFSA

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, September 5, 2019

Dividend Income Update: August 2019



      
    The month of August 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) - $36.05
  • Cineplex  (CGX) - $15.00
  • Emera (EMA) - $58.75
  • Enerplus (ERF)  -$ 5.58 
  • Shaw Communications (SJR.B)  - $19.75
Subtotal :  $135.13

TFSA
  • A&W Royalties Income Fund (AW.UN) - $6.04
  • Boston Pizza Royalties Income Fund   (BPF.UN) - $26.91
  • Cominar REIT (CUF.UN) - $13.20
  • Dream Office REIT   (D.UN)  - $14.00
  • Killam Properties REIT (KMP.UN) - $  16.61
  • Royal Bank (RY.TO) - $20.40
Subtotal:  $97.16

Total = $232.29

    I received a total of $232.29 in dividend income for the month of August 2019.  This represents a 0.833% increase from 3 months ago and 11.6% decrease year over year. 

    I received dividend / distribution income from 11 different companies.   

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

Monday, September 2, 2019

Trading Account Update: September 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 :                        47
                               Total Capital added:          $250.00
                               Trading Acct Balance:       $3281.33
                               Average Drawdown:          $111.75
                               Average Loss:                    $287.20
                               Average Accuracy:            82.98%
                               Average Risk:                    $126.47
                               Average Reward:              $106.96
                               Average Risk/Reward :      1: 0.846


        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 September 2, 2019

Note:  As of September 2, 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.




Sunday, September 1, 2019

Portfolio Update : August 2019

The month of August 2019 now behind us.
The federal government has not officially called the election but the election must happen, by law, in October. This is due to a law being passed that a federal election must happen every 4 years  on fix election dates, unless an election is called sooner.

The trade wars continue to play out between the United States and China. This along with the fears of a major recession have cause the stock markets in North America to have big raises and drops in recent weeks.

Portfolio Activity

Margin Account Activity


Margin Account Trade 
  On August 6, I purchased 300 shares of Telus Corporation (T.TO) at $47.10 for a total cost of $14134.95 including commissions. I bought these shares with the intent of selling in the near future for a profit. This profit was to go into savings or to pay down debt.

Over the next week, the markets dropped a lot in a few days. I decided to sell the 300 shares of Telus at a smaller profit than I was looking for to take advantage of opportunities. On August 14, I sold 300 shares of Telus Corporation at $47.60 for net proceeds of $14274.00 including commissions.  I now paid back my margin and the trading account balance that I borrowed to make the trade.
 

The profit of this trade was $139.05. The profit was used to pay down debt. 

Purchase #1
 

On August 15, I added to my position in Canadian Imperial Bank of Commerce "C.I.B.C" (CM.TO).  I purchased 45 shares of  C.I.B.C at a price of $98.00 for a total cost $4415.11 including commissions. At the time of this purchase, CIBC was paying a quarterly dividend of $1.40 per share quarterly, or $5.60 annually. This purchase added $252.00 to my annual dividend income. The yield on cost for this purchase was 5.71%.
 

Purchase #2
 

On August 15, I added to my position in Bank of Montreal (BMO.TO).  I purchased 50 shares of Bank of Montreal at a price of $92.00 per share for a total cost of $4605.12 including commissions. 

Bank of Montreal pays a dividend of $1.03 per share quarterly, or $4.12 per share annually. Therefore this purchase adds $206.00 to my annual dividend income. The yield on cost for this purchase was 4.47%.

TFSA Activity
 

Purchase #1
  On August 6, I added to my position in Royal Bank (RY.TO).  I purchased 9 shares of Royal Bank at $100.40 per share for a total cost of $908.58 including commissions.
 

As of August 6, Royal Bank paid a quarterly dividend of $1.02 per share quarterly, or $4.08 per share annually. Therefore, this purchase added $36.72 to my annual dividend income. The yield on cost for this purchase was 4.04%. Sale On August 15, I noticed a position that I owned has increased in value to a point were I felt it was time to sell. Dream Office REIT was trading near by adjusted cost base per share and has cut their distribution a couple times over the last 3 years. After the final distribution cut well over a year ago, the distribution has not been raised.
 

On August 15, I sold out of my position of 168 units in Dream Office REIT at price of $26.41 per unit. This sale resulted in a loss of less than $100.00.
 

Dream Office REIT paid a monthly distribution of $0.08333 per unit, or $1.00 per unit annually. This sale decreases my annual dividend income by $168.00.  
Purchase #2

On August 15, I added to my position in TD Bank (TD.TO). I purchased 25 shares of TD Bank at $71.57 per share for a total cost of $1794.29 including commissions.


TD Bank currently pays $0.74 per share quarterly dividend, or $2.96 per share annually. Therefore, this purchase adds $74.00 to my annual dividend income. The yield on cost for this purchase is 4.12%.

Purchase #3 


On August 27, I added to my position in Royal Bank. I purchased 27 shares at $97.50 per share for a total cost of $2637.54 including commissions.

At the time of this purchase, RY was paying $1.05 per share dividend, or $4.20 annually. Therefore, this purchase adds $113.40 to my annual dividend income. The yield on cost for this purchase is 4.30%.


The dividend rate is different for this transaction as the dividend was raised after the first Royal Bank purchase earlier in the month. 


There was no option trades during the month of August in the portfolio.

Shares Purchased Via DRIP


1 unit of CUF.UN.TO @ $12.34933 for a total cost of $12.35 (TFSA)
 

I own 221 units of Cominar REIT (CUF.UN.TO). Currently, CUF.UN pays $0.72 per unit per year, or $0.06 per unit monthly, distribution. This DRIP adds $0.72 to my annual dividend income. The yield on this dripped unit is 5.83%.

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


On August 8, Intertape Polymer Group (ITP.TO) increased their quarterly dividend from $0.14 USD to $0.1475 USD. This is an increase of 5.35% in terms of USD dollars. At the time of this writing, the exchange rate is 1.3311. I own 50 shares of Intertape Polymer Group. This increase adds $2.00 CDN to my annual dividend income.


On August 21, Royal Bank increased their dividend from $1.02 per share quarterly to $1.05 per share quarterly, or $4.08 per share annually to $4.20 per share annually. As of the time of this increase I owned 29 shares of Royal Bank. This increase adds $3.48 to my annual dividend income.
 

On August 22, CIBC increased their dividend from $1.40 per share to $1.44 per share quarterly, or from $5.60 per share to $5.76 per share annually. I own 110 shares of CIBC, therefore this increase adds $17.60 to my annual dividend income.

On August 27, Bank of Nova Scotia increased their dividend from $0.87 per share to $0.90 per share quarter. I own 65.097222 shares of Bank of Nova Scotia. This increase adds $7.81 to my annual dividend income.

Dividend Decreases

There was no dividend decreases announced in the month of August.

Summary:


As of September 1 , the value of the portfolio is $123060.32. This is a 0.992% increase over last month's total.

The dividend increases increased my annual dividend income by $30.89. This is equivalent of investing $882.57 of my own money at 3.5%.

The portfolio is estimated to produce $5417.45 in dividend income over the next 12 months.

Disclosure: Long CUF.UN, BNS.TO, RY.TO, CM.TO, BMO.TO, T.TO, ITP.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.

Thursday, August 29, 2019

Recent Purchase

A few weeks ago, I wrote about some activity in both my margin account and tfsa. With the ongoing trade wars mostly between China and the US along with other global issues, the markets have been going up and down by large amounts over the last several weeks.

After my trade of Dream Office REIT (D.UN) inside my TFSA, I wanted to put the proceeds of the sale to work. I wrote about purchasing TD Bank stock inside my TFSA, which you can read about by clicking on the link in the paragraph immediately above.

Purchase

I have been adding to my bank stocks or starting new positions in a bank over the past several transactions.

I went back and forth between 2 positions looking to put the money to work that was left over from the Dream Office REIT sale. The 2 stocks I was considering were Telus Corporation (T.TO) and Royal Bank (RY.TO). I already own shares in these 2 companies. Telus Corporation is telecommunications company. Telus offered a higher yield than Royal Bank.

I decided to purchase more shares of Royal Bank. The reason for this is I believe in the future the price of Royal Bank will grow more than Telus over the next couple of years.

On August 27, I purchased 27 shares of Royal Bank at $97.50 per share for a total cost of $2637.54 including commissions. This purchase brings my total share count to 56 shares.

Royal Bank currently pays a dividend of $1.05 per share quarterly, or $4.20 per share annually. This purchase adds $113.40 to my annual dividend income. The yield on cost of this purchase is 4.30%.

Royal Bank paid a dividend last week, so this purchase will be eligible for the next dividend in 3 months.


There is no cash available to make anymore purchases inside my TFSA in the near future. I will be looking to increase my position in Telus when funds are available and if the stock is trading at a good valuation. 

I will update my spreadsheet in early September with this transaction.
Disclosure: Long T.TO, TD.TO, RY.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.