Dividend Income Update - June 2024

                 

The month of June 2024 is another month of dividend income landing in my accounts. 

Due to becoming debt free, I changed my pay myself model. Starting the beginning of August 2021, I am paying myself 30%, just like before. This will now consist of 24% to investing, and 6% to savings.  The investment portion is going to my TFSA. Any money left over at the end of the month, I put towards investing on top of the money allocated from paying myself first. Hopefully, I can keep this up!

Update on paying myself first. At the start of August 2022, I now pay myself 35%.  This will consist of 25% to investing and 10% to savings. 

At the start of January 2024, I will now aim to allocate 27% to investing and 10% to savings. 

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

I received a total of $1067.79 in dividend income for the month of June 2024. This represents a  39% increase  from 3 months ago and a 59.7% increase  year over year.

The dividend from Enerplus contributes to the large increase from both 3 months ago and year over year.  Enerplus Corporation has been acquired by Chord Energy  of the United States.  Enerplus paid its normal dividend plus a second dividend as part of the merger.  

I received dividend / distribution income from 15 different companies.

I received $0.00 in option premiums within my investment accounts in June 2024.

Meta Platforms had a dividend payment of $5.00 USD.  After the 15% withholding tax, the dividend payment is $4.25 USD.  My brokerage account is said up to pay my stocks in CAD dollars, so the $ 4.25 USD is then converted to CAD dollars. 

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

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Most of my dividend income comes from my margin account.  As more investments and DRIPs are made inside TFSA, the percentage of dividend income for the TFSA is increasing.  

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

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In the pie chart, dividends percentages came in 1.6% (TTNM), REI.UN (0.9%), MTL (0.6%), and META (0.5%).

In first half of 2023, I received $3872.59 in dividends. In first half of 2024, I received $5302.92 in dividends. This is an increase of 36.93% YTD in 2024 over the same period in 2023. 

The graph below shows my total dividend income, as per the blog, since 2012. 

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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 June 2024?

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.

Portfolio Update - June 2024

 The month of June 2024 involved the Bank of Canada reduced the interest rate from 5% to 4.75%.  That means businesses or consumers with line of credit, variable rate loans and variable rate mortgages will have lower payments going forward.  

The Bank of Canada's interest rate next announcement will be on July 24.  

The most recent CPI (Consumer Price Index) in came at 2.90%.  The Bank of Canada's inflation target is approximately 2% inflation.  So, we might not see the interest rate reduced on July 24.

In the United States, the election of the next president is underway.  It appears that the current president and the person running for the democrats, Joe Biden, appears to be developing medical problems.  These medical problems, including probably developing dementia, will mean unable to serve due to medical reasons. 

This will have  a ripple effect across the world and will affect the markets.

The S&P500 was up 4.12% over the past month.  

The S&P TSX Composite Index was down 0.24% over the past month.

Portfolio Activity

Margin Account Activity

There has been no activity in this account during June 2024.   

TFSA Activity

On June 11, I purchased 170 units of Riocan REIT at $16.80 CAD per unit for a total cost of $2861.20 including commissions.  The ticker symbol is REI.UN and trades on the Toronto Stock Exchange.  Currently, Riocan pays a dividend of $0.0925 CAD per unit monthly, or $1.11 CAD per unit annually.  The yield on cost for this purchase is 6.60% .

This purchase adds $188.70 CAD to my annual dividend income.

Shares Purchased Via DRIP

5 shares of T.TO @ $20.34813 for a total cost of $101.74 (TFSA)

1 unit of KMP.UN @ $17.0235 for a total cost of $17.02 (TFSA)

1 share of BEPC.TO @ $28.57792 USD for a total cost of $39.15 CAD (TFSA)

1 unit of SRU.UN @ $21.93071 for a total cost of $21.93 (TFSA)

1 unit of BEP.UN @ $25.24204 USD for a total cost of $34.58 CAD (TFSA)

1 share of MFC.TO @ $35.05174 for a total cost of $35.05 (TFSA)

7 shares of TTNM.TO @ $2.2335 for a total cost of $15.63 (TFSA)

2 units of BPF.UN @ $16.0135 for a total cost of $32.03 (TFSA)

I have some other positions with the DRIP turned on but might not have enough of a dividend to purchase a whole share. 

My Enbridge position directly with the transfer agent is set up to DRIP.  Around November 2018, Enbridge stopped their DRIP program.  If Enbridge decides to start a DRIP, then my shares will start to DRIP again automatically.  

Dividend Increases

There was no dividend increases in June 2024

Dividend Decreases

There were no dividend decreases in June 2024. 

Summary: 

As of July 6, 2024, the total value of the portfolio is $226101.47 CAD. This is a 1.478% decrease over last month's total.  

The portfolio is estimated to produce an estimate $11573.81 CAD in dividend income over the next 12 months. This is an increase of $190.66 CAD , or 1.675%. Some of the dividends in the Canadian stocks section are paid in US dollars, which are converted to Canadian dollars.

Googlesheets is still not operating properly.  So, I had to manually enter the market value for the REITS, BEP.UN, BPF.UN, and AW.UN. 

 

Please Note: Positions in Enerplus Corporation (ERF.TO), Restaurant Brands International (QSR.TO) , Intertape Polymer Group (ITP.TO), Brookfield Renewables Corporation (BEPC.TO), and Algonquin Power and Utilities (AQN.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

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.ir financial situation and tolerance for risk.

Net Worth Update - June 22 2024

Today is June 22, 2024. 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 currently into 3 segments. The 3 parts are a "high" interest savings account, savings account, and an "investment" savings account.

The TFSA savings account was with Tangerine. I was frustrated with getting such a low interest rate with Tangerine. I took the money out and placed it in non-registered high interest rate savings account with EQ Bank. Unfortunately, the account did not disappear as interest was earned in the TFSA with Tangerine for the month I transferred the balance. The balance is $0.18. With a value this low, I do not even earn interest as the balance so low.  

On June 22, 2024, the value of the savings account with EQ Bank is $8675.38 . As of the time of this writing, the interest rate for EQ Bank is currently sitting at 2.50%.  The interest rate is the same as 3 months ago. 

The stock and ETF investment involves one stock and cash  that I hold within my margin account. I keep the dividends and distributions received separate from the dividends I post in my dividend income updates.

Currently, do not own any ETFs in this account since the last update.

I own 200 shares of TransAlta (TA.TO) and cash.

On June 22, 2024 , the current value of this "stock / ETF /cash account" is $2972.36 .  I have earned a total of $509.29 in total dividends/distributions in this account. 

Overall, the savings total is $11647.92

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 $120534.41 as of June 22, 2024. This is an decrease of 5.86% since the last published net worth post.

TFSA Investing Account

The TFSA investing account balance is $102135.40 as of June 22, 2024. This account is with Questrade. This is an increase of 1.841% since the last published net worth post.

Trading Account

The trading account is with Questrade. There is an active trade on this account.  I also have sold a covered call on this position, which is still active. As of June 22, 2024, the value of this account is $5642.73.

RRSP

As of June 22, 2024, I own 21 shares of CP Rail (Ticker Symbol  CP.TO) , 144 units of XAW, 200 shares of Emera Inc (EMA.TO) and 49 shares of Alimentation Couche-Tard  (ATD.B.TO)  

I also own 52 units of CASH.TO. 

I currently have a covered call on the Emera position.  

The value of this account as of June 22, 2024 is $23574.93 . This is an decrease of 1.852% from March 24, 2024.

Summary of Assets

Total Savings : $11647.92
Non-Registered accounts : $120534.41

TFSA Investing : $102135.40
Trading Account: $5642.73
RRSP Savings Account: $23574.93

Total Assets = $263535.39  (decrease of 2.24% from 3 months ago)

Liabilities

The balance on my line of credit is $0.00. 

I owe $2588.88 in my margin account.  The margin is in the Canadian dollar account within my margin account in Questrade.  The USD account in Questrade has a positive cash balance.

Summary of Liabilities

Credit Line = $0.00

Margin = $2588.88

Total Liabilities = $2588.88

Conclusion

On June 22, 2024, my net worth is $260946.51 . This is an decrease of $2481.84, or 0.942%, from 3 months ago.

The market continues to go up and down. During the last 3 months, we have seen the rise of inflation and the fears of a recession continue to take hold. 

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To read the eighteenth net worth update, click here.  

To read the fifteenth net worth update, click here. 

To read the sixteenth net worth update, click here. 

To read the seventeenth net worth update, click here.

To read the eighteenth net worth update, click here. 

Disclosure: - Long all aforementioned stocks
  

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.