Tuesday, October 3, 2017

Recent Dividend Increase

    As I go about my daily life, I am amazed at people who through money away.  I have worked with so many people, who can not wait to get their paycheck.  They have plans before they even get the money.  These types of people are broke within a couple days of receiving their pay check.  These type of people complain about power bills saying the power company is robbing us blind.  I often hear things like "Those greedy bastards make millions of dollars in profits this quarter".   I usually say things like, "Instead of complaining about their profits, "Why don't you invest in the power company to get a piece of their profits?"
 
   I like many others, like to make money while I sleep.  I own shares in a utility company called Emera Inc., whose ticker symbol is EMA.  Emera trades on the Toronto Stock Exchange.  Every time someone in Nova Scotia flicks on a light switch, Emera makes money. Emera has operations in other provinces,  the United States, and some other countries.

Conclusion:

      The board of directors of EMA recently announced a dividend increase of $0.17 annually.
The dividend is increasing from $2.09 per share per year to $2.26 per year.  This represents an increase of 8.13%.   This increase is well above an increase in inflation.

       I own 100 shares of EMA and therefore my annual dividend income will increase by $17.00.  This is equivalent of my investing $485.71 of my own money.

       I have owned EMA for a few years now and have been rewarded with multiple dividend increases over years.

Disclosure:  Long EMA

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.

Dividend Income Update: September 2017




      The month of September is another month of dividend income landing in my accounts. This money is used to help pay my expenses if it is needed. If the money is not needed, it is ALL used to purchase new investments to further increase my cash flow.

       
 Non-registered Account

  • Cineplex  (CGX) - $14.00
  • Enbridge (ENB) - $9.97
  • Enerplus (ERF)  -$ 5.58
  • Dream Office REIT   (D.UN)  - $52.58
  • High Liner Foods (HLF) - $14.00
  • Shaw Communications (SJR.B)    - $19.75

    TFSA
    • A&W Royalties Income Fund (AW.UN) - $5.05
    • Boston Pizza Royalties Income Fund   (BPF.UN) - $26.91
    • Canadian National Railway (CNR) - $15.68
    • Enbridge (ENB) - $20.13
    • iShares 1-5 yr Laddered Canadian Corporate Bond ETF (CBO) - $0.59
    • Cominar REIT (CUF.UN) - $16.72
    • Dream Office REIT   (D.UN)  - $14.00
    • Horizons Natural Gas Yield ETF (HNY)  - $5.03
    • Killam Properties REIT (KMP.UN) - $  15.60


    Total = $235.59
        
        I had a big position in D.UN that I did not account for until last September. As a result of this large position being added to the dividend income total, I did not do a year over year comparison for the previous 12 months.

        I received a total of $235.59 in dividend income for the month of September 2017.  This represents a 8.39% decrease from 3 months ago and 0.51% increase year over year.  The small increase year over year is a result of distribution cuts to D.UN and CUF.UN and offset increase unit numbers from these positions and some other transactions.

        I received $57.10 from option premiums in September 2017.

         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?

    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, October 2, 2017

    Portfolio Update: September 2017

      The month of September 2017 is now behind us.  Like any month, there is lots of news.  We have the ongoing battle with the price of a barrel of crude oil.  The price of oil effects the amount of jobs in the oil and gas industry.  It is often said that one rig creates 135 jobs directly and indirectly.

       Currently the United Conservative Party of Alberta is in the midst of a leadership race.  The Rachel Notley led NDP government has raised the minimum wage from $12.20 to $13.60 an hour on October 1.  I have noticed that a lot of places have already raised their prices to offset the minimum wage. Some analysts think that the increases to minimum wage in Alberta and Ontario at the drastic amounts will lead to lots of layoffs.

       I sold out of my position in TD.TO.  My average price was around $69.62, so I sold my 100 shares at $70.18.  The stock has risen some since then but I believe the stock will fall  below $70.00 again.  If my average price was lower,  I would not of sold my position.  Unfortunately, you or I cannot predict the right side of the chart.  Recently, the Trump administration wants to reduce taxes for Americans and American businesses.  TD has a lot of branches in the United States, so this news on potential tax cuts could be putting upward pressure on the stock.  I will invest in TD Bank again if the stock falls below the price I am willing to buy.

       We often hear that lots of people do not get enough seafood in their diets. People are often stretched for times these days as lives seem to be always busier.  People often end up going to a restaurant they cannot afford or going to get fast food.  An alternative to this is to buy frozen stuff and cook at home.  High Liner Foods (ticker symbol HLF.TO ) is one such company that is in this space.  High Liner Foods is a market leader in the frozen fish market which has products for residential consumers and business customers.  High Liner Foods is also a supplier to McDonald's Restaurants.  I purchased 100 shares of High Liner Foods at $13.45 per share foe a total cost of $1349.95 including commissions.  I now own 200 shares of High Liner Foods..

        Another way of making money in the markets is to sell option premiums.  I sold one put option contract in RY.TO  with a October 20 2017 expiration day for a total premium of $21.05 including commissions.  The stock was trading higher, so I wrote a covered call for RY.TO with an October 20 2017 expiration date for total premium of $36.05 including commissions.  Therefore, I collected $57.10 in option premiums for this stock. The covered call is currently way in the money.

         Last September, I started to included my position in Dream Office REIT (ticker symbol D.UN) in my margin account. I also have a position in D.UN inside my TFSA.  So starting this month when I post about my dividend income, I will do a year over year comparison on top of the three month comparison.

    As of  Sept 1,  the value of the portfolio is $106918.63 $104445.31 This is a 2.37% increase over last month's total.  The spreadsheet in the investment tab above has been updated.


    Disclosure:  Long D.UN, RY.TO

    Please Note:  All stocks are from the Toronto Stock Exchange except TTR which trades on the Venture Exchange.
    .

    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 21, 2017

    Recent Purchase

          As investor, our goal is invest in companies that are undervalued. Similarly, we prefer to buy things such as groceries, clothes, vehicles etc. when they are on sale.  But investors often struggle to pull the trigger when a stock he or she has been following falls in value.  This might be due the fear of being wrong  and possibly the stock falling even more in price.

        High Liner Foods (ticker symbol HLF.TO) trades on the Toronto Stock Exchange.  HLF.TO is a market leader in the frozen fish market.  Their products are available in grocery stores and restaurants in both Canada and the United States.  High Liner Foods is a supplier of fish products to McDonald's Restaurants.

        I initiated a position in HLF.TO when the stock was trading near $20 per share.   After this purchase the stock fell in value.  I then added to my position, which you can about here.  

         The stock has come under pressure due to a major recall.  Products were recalled due to a milk allergen that was not listed on the label. This recall involved products that were sold in Canada only. Nonetheless, this recall cost approximately $9 million dollars and will affect the earnings going forward.  Obviously, this will have a large negative effect on earnings.

         The last couple of days, including today, the stock hit a new 52 week low.  This provided a yield of over 4%, which is larger than the stock's own 5 year average.  Today, I decided to act and add to my position.  Warren Buffet says, "We tend by be greedy when others are fearful, and be fearful when others are greedy.

    Conclusion:

        On Sept 21, my limit order of 100 shares at $13.45 was filled.  The fill price was exactly $13.45.  This was a 52 week low until shortly after the stock fell to $13.37 before rebounding.

           This purchase adds $56.00 to my annual dividend income based of the annual dividend rate of $0.56 per share.  I now own 200 shares of HLF.TO.

          I believe the recall is mostly factored into the current price of the stock. I believe the stock will stay below $15.00 for the remainder of the calendar year.

    Disclosure: Long HLF.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, September 3, 2017

    Dividend Income Update - August 2017




          The month of August is another month of dividend income landing in my accounts. This money is used to help pay my expenses if it is needed. If the money is not needed, it is ALL used to purchase new investments to further increase my cash flow.

            The price of barrel of crude oil continues to channel between $45 to $50 per barrel of WTI crude oil.  In Canada, most of the oil and gas is located in Alberta.  During the month of August, Alberta's finance minister informed the country that they are reducing the budget expectations for the price of oil.  Initially, the Alberta Finance Minister was basing his budget on $55.00 per barrel of crude oil.  Their basing their predicting on $49.00 per barrel of crude oil.  So, we will see if they change anything going forward.

            During the month of August, Alberta officially came out of their 3 plus year recession. It is believed the growth is going to be slow going forward.  Alberta is also dealing with the increase in minimum wage going up to $13.60 on October 1 from $12.20.

            Going forward, Cominar REIT will be paying a smaller distribution.  August was the first month of receiving a reduced distribution from Dream Office REIT

            During the last month or so, companies have reported their earnings.  Bank of Nova Scotia, Royal Bank and Canadian Imperial Bank of Commerce have raised their dividends in August.  The Bank of Montreal did not raise their dividend.  TD Bank, unlike the other big banks in Canada, raises its dividend annually instead of twice a year.
          
           One thing for sure, is that I was paid dividends and distributions for being a shareholder or unit holder in  various companies or funds. In  Sept 2016, the Dream Office REIT in the margin account will be counted as dividend income  for the first time.

     Non-registered Account

    • Bank of Montreal (BMO) - $31.50
    • Enerplus (ERF)  -$ 5.58
    • Emera (EMA) - $52.25
    • Dream Office REIT   (D.UN)  - $52.58
    • Shaw Communications (SJR.B)    - $19.75
    • TD Bank (TD) - $60.00

      TFSA
      • A&W Royalties Income Fund (AW.UN) - $5.05
      • Boston Pizza Royalties Income Fund   (BPF.UN) - $26.91
      • iShares 1-5 yr Laddered Canadian Corporate Bond ETF (CBO) - $0.59
      • Cominar REIT (CUF.UN) - $21.56
      • Dream Office REIT   (D.UN)  - $14.00
      • Horizons Natural Gas Yield ETF (HNY)  - $4.57
      • Killam Properties REIT (KMP.UN) - $  15.60


      Total = $309.94
          
          As the amount of distribution from D.UN inside my margin account, will have a large impact on the comparison of dividend income from 12 months ago. This dividend income total of $309.94 represents an decrease of 8.07% from 3 months ago.

            Recently, I wrote about purchasing more units of D.UN inside a margin account.  Starting in September, the distribution from this D.UN inside the margin account will be included in my dividend income. It was now been a year since including the D.UN distributions within my margin account in my dividend income reports. So the next dividend income report will have the year of year comparison also.

          I received $0.00 from option premiums in August 2017.

           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?

      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.





      Friday, September 1, 2017

      Portfolio Update - Aug 2017

              The month of August 2017 is now behind us. Canada's economic engine, the province of Alberta, has officially came out of the recession it was in for the last 3 years.  Although the Alberta recession is officially over, it is going to be a very long and slow grind back to anything near the glory days.  The Alberta government has said prior to the recession being over that they are changing there number of a barrel of oil they are basing their budget on going forward.  Alberta NDP changed there number of $55 per barrel of crude oil to $49 per barrel. Alberta does not have a sales tax and gets a lot of revenue for oil and gas royalties.

            I had no option trades for the month of August.

            Cineplex Inc. (CGX.TO) recently released its quarterly earnings.  The stock fell after the earnings by a large amount.  The stock fell over $15 over the next couple of weeks, before rebounding to $38.13 as of the time of this writing.  Of course, none of us can time the market and I purchased 100 shares at $43.85.  Currently, CGX.TO pays an annual dividend of $1.68, so this purchase adds $168.00 to my annual dividend income.

            I purchased 100 shares of Royal Bank of Canada (RY.TO) at $93.55.  After the purchase, RY.TO released their earnings.  RY.TO announced a dividend increase from $3.48 to $3.64 annually, which represents a 4.60%.  Royal Bank of Canada has raised their dividends twice of year for the past several years.  This purchase adds $364.00 to my annual dividend income.

           I added to my Horizon's Natural Gas Yield ETF (HNY.TO) inside my TFSA.  I purchased 2 units at $12.19 per unit.

          On September 1, Enbridge paid a dividend. I am currently dripping these shares directly with the transfer agent.  I also sent a check earlier in the month which means the shares are purchased the same day as the dividend payment date.  I purchased 2.505 shares at $49.90 for a total cost of $125.00.  The reason this price is higher than the DRIP price indicated below is the Enbridge offers a 2% discount of shares purchased with reinvested dividends.

      Shares Acquired Through DRIP


      0.204 shares of ENB.TO @ $48.90 for a total cost of $9.97 (Transfer Agent)           

      I recently wrote about Dream Office REIT after they made an announcement. They are once again, cutting their annual distribution by around 33% starting with July's distribution which will be paid on August 15.  There annual distribution will be cut from $1.50 per unit to $1.00.  So, my annual dividend income will be cut by approximately $400.00.

      As of  Sept 1,  the value of the portfolio is $104445.31 This is a 1.142%  increase over last month's total.  The spreadsheet in the investment tab above has been updated.


      Disclosure:  Long D.UN, ENB.TO,HNY.TO, CGX.TO, RY.TO

      Please Note:  All stocks are from the Toronto Stock Exchange except TTR which trades on the Venture Exchange.
      .

      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, August 23, 2017

      A Safe Investment in Canada?

              In Canada, we have very limited in terms of good companies to buy.  Unlike the NYSE or Nasdaq, the markets in Canada are mostly mining, energy, and financials.  Canada does not have investments like Coca-Cola, Pepsi, Johnson & Johnson, Clorox, Proctor & Gamble.  Canada has Cott Corporation, listed on the TSX and the NYSE, for beverage companies.  Cott's soda beverages are no where as tasting as a Coke Product or Pepsi product.

             Unless you have been hiding under a rock, the big 5 Canadian banks are known as some of the best banks in the entire world.  These big 5 banks are Royal Bank of Canada (RY),  Bank of Nova Scotia (BNS), Toronto Dominion Bank (TD), Canadian Imperial Bank of Commerce (CM), and Bank of Montreal (BMO).  The Bank Act means no individual can own more than 10% of any bank.

             I currently own shares in all 5 banks as they have been paying out dividends as follows:
      • Royal Bank of Canada (RY) - started in 1870
      • Toronto Dominion Bank (TD) - started in 1857
      • Bank of Nova Scotia (BNS) - started in 1832
      • Bank of Montreal (BMO) - started in 1829
      • Canadian Imperial Bank of Commerce (CM) - started in 1868 
             All 5 of these banks trade on the Toronto Stock Exchange and the New York Stock Exchange. How profitable are these banks?  I often hear people say something along the lines of one of these banks made over $2 billion in profit last quarter.  I usually just shake my head as it is evident these type of people are not investors in these stocks and likely have no stock market investments.

              Prior to the opening bell on August 23,   Royal Bank of Canada announced a dividend increase from  $3.48 to $3.64 annually.  This represents an increase of 4.6%, which is above the rate of inflation.  The big banks have been raising dividends twice a year for the past several years, except TD Bank raises their dividend annually.  On average the banks dividend raises average average over 6% annually.  I currently own 100 shares of RY.TO, so this dividend increase raises my annual dividend income by $16.00.

            Some other stocks that are in a lot of Canadian portfolios are CP Rail, CN Railway, and Enbridge Inc. The dividend yield for CP Rail and CN Railway is usually under 2%.  The railroads are great investments to own for a long time because the barriers of entry are so high.  Transportation by rail is more environmentally friendly than transporting by truck.

      Do you own any shares in any of these companies?

      Disclosure:  Long BNS.TO, CM.TO, RY.TO, BMO.TO, TD.TO, CNR.TO and ENB.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.