Friday, January 3, 2020

Dividend Income Update : December 2019



      
The month of December 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. 

Note:  All the dividends and totals below are in Canadian Dollars. 
       
 Non-registered Accounts 
  • Cineplex (CGX) - $24.00
  • Enbridge (ENB) - $19.40  (transfer agent)
  • Enbridge (ENB) - $221.40 (margin account)
  • Enerplus (ERF)  -$ 5.58
  • Inter Tape Polymer Group (ITP) - $9.71
  • Shaw Communications (SJR.B)  - $19.75
Subtotal : $299.84

TFSA
  • A&W Royalties Income Fund (AW.UN) - $6.04
  • Boston Pizza Royalties Income Fund   (BPF.UN) - $26.91
  • Brookfield Renewable Partners LP (BEP.UN) - $21.92
  • Canadian National Railway (CNR) - $20.43
  • Cominar REIT (CUF.UN) - $26.64
  • Enbridge (ENB) - $24.35
  • Killam Properties REIT (KMP.UN) - $16.61
Subtotal: $142.90

Total = $442.74

 I received a total of $442.74 in dividend income for the month of December 2019.  This represents a 5.23% increase from 3 months ago and 7.49% decrease year over year.  

 The increase of 5.23% from 3 months ago was due to increasing my position in Cineplex Inc  and Cominar REIT paying distributions twice in the middle and end of the month.  Cineplex is currently in the process of being taking over by UK company called Cineworld.  Cineworld is offering $34 per share and to assume the all the debt and is subjected to Cineplex shareholder approval and regulatory approval.  

 The decrease of 7.49% year over year is due to the call option assignment of WestJet Airlines (WJA.TO) and the sale High Liner Foods (HLF.TO) which is offset by the increase in Cineplex dividend. 

 I received dividend / distribution income from 11 different companies.   

  I received $0.00 in option premiums within my investment accounts in December 2019.


I received a total of $4998.20 in dividends in 2019.  This is a 4.23% increase over the $4795.39 received for all of 2018.  I take money out of my margin account and allocate some of the margin account dividends to savings or TFSA via pay yourself first.  I did not do any withdrawals from my TFSA.  I am been paying down debt and trying to build my savings, so the portfolio contributions have trailed the contributions for savings.   

The increase for 2020 in its entirety will be much larger even with out adding a single penny to the accounts. 

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 December 2019?

Disclosure : Long all mentioned securities except HLF.TO and WJA.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.



Wednesday, January 1, 2020

Portfolio Update: December 2019

The month of December 2019 now behind us. Year 2019 is over and a new decade as started. 

Some provinces in Canada are continuing to fight the government when it comes to protecting the environment.  Climate change has become a major issue across the country and across the world.


On January 1, 2020, Alberta consumers will have to pay a carbon tax.  The carbon tax will be a federal carbon tax this time, whereas before it was provincial.  The new Alberta government cancelled the previous provincial carbon tax on May 30th, that was in place in Alberta.


Alberta and a couple of other provinces are taking the federal government to court and trying to stop the carbon tax.  This might cause investor uncertainty north the US border. 

Portfolio Activity

Margin Account Activity

There was no buys or sells in the margin account for December. 


Cineplex Inc. (CGX.TO) has a takeover in progress by UK-based Cineworld.  Cineworld has offered $34 per share subject to regulatory approval and approval by Cineplex shareholders.  Since this takeover announced, Cineplex at times as traded over $34 a share at various times. The CEO of Cineplex has said this is a great deal for Cineplex shareholders.

TFSA Activity

There was no purchases and selling in the TFSA account.

I continue to build up cash in my TFSA to make another purchase and at a good price.

There was no drip in Cominar REIT (CUF.UN.TO) in December as the distribution was not enough to purchase one unit. The price of the REIT has traded higher than my distribution amount in each of the last few months.  Cominar pays a distribution twice in December.  A distribution is paid middle of the month and a second one at the last day of the month.  


I turned on the DRIP for Boston Pizza Royalties Income Fund (BPF.UN.TO).  The units will start to DRIP at the end of January or end of February. 

Shares Purchased Via DRIP

There was no shares purchased via the DRIP during December The DRIP remains turned on for certain stocks as indicated in my investment tab spreadsheet.


One of my positions in Enbridge Inc is directly with the transfer agent.  This allows the full DRIP. I have elected to DRIP my shares.  Enbridge has cancelled their DRIP in November of 2018, but may re-instated in the future. If the DRIP is re-instated, my shares will automatically be set up for DRIP.  

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 December 3, Bank of Montreal  (BMO.TO) increased their quarterly dividend from $1.03 to $1.06, or $4.12 per share annually to $4.24 per share annually. This is an increase of 2.91%. As of the time of this writing, I own 85 shares of Bank of Montreal. This increase adds $10.20 to my annual dividend income. Bank of Montreal has been raising their dividend semi-annually for the last several years.


On December 10, Enbridge increased their quarterly dividend from $0.738 to $0.81, or $2.952 per share annually to $3.24 per share annually.  This is an increase of 9.76%.  As of the time of this writing, I own 359.278 shares of Enbridge.  This increase adds $103.47 to my annual dividend income.


Dividend Decreases

There was no dividend decreases announced in the month of December

Summary:

As I started to include my US position in my portfolio, I will once again include the information immediate below.

I decided to give a more accurate portfolio and included my US Stock portfolio along with the Canadian stock portfolio. I included the combined CAD amount for cash in all my postings but not the market value of the position.

I currently have one US position and it is held within my TFSA. The position is Facebook (FB). I have owned this position very near the IPO date or maybe even on the first day the shares traded.

I added a new sheet to my investment tab spreadsheet, showing this position and the USD cash position of both accounts. There is a small cash position within the US portion of margin account from a General Electric position I had years ago. Most of the cash as the result of the General Electric position was converted back into Canadian dollars.

The investment tab spreadsheet now has 2 sheets, one being the Canadian portfolio and one being a US portfolio. The latter is all in USD dollars. On the Canadian portfolio sheet, I take the sum of the US portfolio balance converted to CAD and the Canadian portfolio balance to give a total portfolio balance.

As of the time of this writing on January 1, 2020 , the total value of the portfolio is $129662.49 CAD. This is a 0.1645% decrease over last month's total.

The dividend increases have increased my annual dividend income by $113.67 CAD. This is equivalent of investing $3247.71 of my own money at 3.5%.

As of the time of this writing, the portfolio is estimated to produce $5647.85 CAD in dividend income over the next 12 months. This is an increase of $106.29, or 1.918%. Some of the dividends in the Canadian stocks section are paid in US dollars, which are converted to Canadian dollars.  This is the reason why the increase of $106.29 is less than the amount from the increase of dividend raises. 

I updated my investing tab spreadsheet.

Disclosure: Long all aforementioned stocks

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, December 28, 2019

Trading Account Update : December 28 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 :                        49
                               Total Capital added:          $250.00
                               Trading Acct Balance:       $3588.18
                               Average Drawdown:          $111.57
                               Average Loss:                    $287.20
                               Average Accuracy:            83.67%
                               Average Risk:                    $127.31
                               Average Reward:              $109.23
                               Average Risk/Reward :      1: 0.857


        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 2019 percentile gains

Click to Enlarge

Below is a chart showing my overall percentile gains from January 1, 2016, to December 28, 2019. 

Click To Enlarge


Note:  The trades are listed under the Trading Tab above with all the trades listed as of December 28, 2019

Note:  As of December 28, 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.

Tuesday, December 24, 2019

Net Worth Update

Today is Christmas Eve 2019.  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 broken into 3 segments. This is a taxable high interest savings account, a TFSA savings accounts and a stock investment.

The taxable high interest savings acount, in which the interest rate is laughable, is with Tangerine.  Tangerine is an online bank, that is owned by Bank of Nova Scotia.  On December 24, the value of this account is $496.79.  The current interest rate is 1.1%.

The TFSA savings account is also with Tangerine.  On December 24, the value of this account is $1046.47.  The current interest rate, like immediately above, is 1.1%. I have no put money in this account in a while.

The stock investment involves a stock that I hold within my margin account.  I keep the dividends received separate from the dividends I post in my dividend income updates.  The stock is Inter Pipeline.  The ticker symbol is IPL and trades on the Toronto Stock Exchange.  I own 42 shares with an adjusted cost base of $901.80.  The cash not including dividends is $10.36.  I received a total of $41.93 in dividends since starting this position.  On December 24, the current value of this "account" is $1007.79.  I have not added any money to this account.

Overall, the savings total is $2551.05.

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 $92439.79 as of December 24.

TFSA Investing Account

The TFSA investing account balance is $37860.96 as of December 24.  This account is with Questrade.

Trading Account

The trading account is with Questrade.  This is done within my margin account.  I keep track of the balance, market value and cost basis of the trades. I only have one trade going on at a time. As of December 24, the value of this account is $3588.18.

RRSP

My RRSP is with Tangerine.  I held their funds for a while and eventually sold the funds.  Therefore, the RRSP is basically in a savings account.  On December 24, the balance is $11995.93.  The interest on this account is 1.1%.  I am not sure what I am going to do with account.  Ideally, I would transfer it to a brokerage and to buy stock or ETF positions.  I might also take it out to pay of line of credit.  

The current state of the Alberta economy is why I am hesitant in doing anything with this account.  Alberta's economy is highly dependent on oil and gas production and oilfield services.  When these are doing well there are a lot of spin off jobs involving restaurants, hotels, etc.  Currently, the province of 0Alberta is struggling while countries with oil and gas assets are doing well. 

Summary of Assets

Total Savings :  $2551.05
Non-Registered accounts : $92439.79
TFSA Investing :  $37860.96
Trading Account: $3588.18
RRSP Savings Account:  $11995.93

Total Assets = $148435.91

Liabilities

The balance on my line of credit is $6500.00.  Since I rent and do not have collateral, the interest rate on this account is 7.16%.  I get charge an insurance fee when carrying a balance.  This insurance fee depends on the balance, therefore it changes every month.  

Conclusion

On December 24, 2019, my net worth is $141935.91.  

Disclosure:  Long IPL

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.

Tuesday, December 3, 2019

Dividend Income Update: November 2019



      
    The month of November 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. 

Note:  All the dividends and totals below are in Canadian Dollars. 
       
 Non-registered Accounts 
  • Bank of Montreal (BMO) - $87.55
  • Cineplex (CGX) - $15.00
  • Emera Inc. (EMA) - $61.25
  • Enerplus (ERF)  -$ 5.58
  • Shaw Communications (SJR.B)  - $19.75
Subtotal : $189.13

TFSA
  • A&W Royalties Income Fund (AW.UN) - $6.04
  • Boston Pizza Royalties Income Fund   (BPF.UN) - $26.91
  • Cominar REIT (CUF.UN) - $13.32
  • Killam Properties REIT (KMP.UN) - $16.61
  • Royal Bank of Canada (RY) - $58.80
Subtotal: $121.68

Total = $310.81

    I received a total of $310.81 in dividend income for the month of November 2019.  This represents a 3.38% increase from 3 months ago and 44.03% increase year over year.  

    My recent average down purchase involving Cineplex Inc. was done after ex-dividend date.  Therefore, there was no dividend paid out in November for this specific purchase.  

    I received dividend / distribution income from 10 different companies.   

     I received $0.00 in option premiums within my investment accounts in November 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 November 2019?

Disclosure : Long all mentioned securities

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.