Saturday, January 9, 2021

Dividend Income Update - December 2020

     



      
The month of December 2020 is another month of dividend income landing in my accounts. Recently, I switched my pay yourself first model once again.   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 the beginning of January 2020.  I am paying myself 30%.  This will consist of 15% to investing, 12% to debt, and 3% to savings.   I am treating paying debt as paying myself first, to insure I am actually doing it. If I try to pay down debt after spending money on expenses, I might not get the debt paid off in a reasonable time.  I hoping I can keep this up! 
 
Note: All the dividends and totals below are in Canadian Dollars.


Non-registered Accounts 
  
Enbridge (ENB) - $243.00  (Margin Account)
Enbridge (ENB) - $21.29   (Transfer Agent)
Enerplus (ERF)  - $7.45
Intertape Polymer Group (ITP) - $23.78
Shaw Communications (SJR.B) - $19.75

Subtotal : $315.27


TFSA

A&W Royalties Income Fund  (AW.UN) - $11.40
Boston Pizza Royalties Income Fund (BPF.UN) - $15.73
Brookfield Renewable Partners Corporation (BEPC) - $4.37
Brookfield Renewable Partners LP (BEP.UN) - $28.93
Canadian National Railway (CNR) - $21.85
Cominar REIT (CUF.UN)    - $13.68
Enbridge (ENB) - $26.73
Killam Properties REIT (KMP.UN)    - $17.11

Subtotal: $139.80


Total = $455.07


I received a total of $455.07 in dividend income for the month of December 2020.  This represents a 9.75% increase from 3 months ago and 2.78% increase year over year. 

The small increase year over year was result of Cineplex stopping their dividend in February 2020, and offset by the unit split of Brookfield Renewable Partners LP.  The unit split resulted in 1 shares of BEPC for every 4 shares of BEP.UN that was owned.  That resulted in 8 shares of BEPC.  

I received dividend / distribution income from  11 different companies. 

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

I recently purchased Fortis  (FTS.TO) in my TFSA.  This purchase was after the ex-dividend date.  Fortis pays a dividend on December 1. 

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




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 December 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, January 2, 2021

Portfolio Uodate - December 2020

 The month of December now behind us. The crazy year of 2020 is behind us.

The US election is still big news. The way the post election is turning out, I can't see Canada heading to a federal election while were still the midst of the pandemic.  The pandemic is actually getting worse in the second wave when compared to the first wave.      

In the last few days, Canadian politicians that travelled abroad are facing backlash from the public and from other politicians regardless of party affiliation.  Top medical professionals, premiers, prime minister, and health ministers have advised against travelling outside the country.

The S&P 500 finished up 15.5% in 2020.  The S&P TSX Composite Index finished  up 2.17%.  At the time of this writing, the price of a barrel of West Texas Intermediate Crude Oil is $48.42 USD per barrel 

Portfolio Activity

Margin Account Activity

There was no activity in this account.  I was able to keep all my dividends, instead of taking some money out.   

TFSA Activity

I was able to add cash to this account through paying myself first. 

On December 11, Brookfield Renewable Partners LP (BEP.UN) and Brookfield Renewable Partners Corporation (BEPC) had a 3:2 stock split.  This meant that I received 3 units or shares for every 2 units or shares that I owned.  

I owned 53 units of Brookfield Renewable Partners LP (BEP.UN) pre-split.  With the stock split, I now own 79 units. The 0.5 extra units is paid out as cash. 

I owned 8 shares of Brookfield Renewable Partners Corporation (BEPC) pre-split.  With the stock split, I now own 12 shares of BEPC.

The dividend and distribution for these 2 positions are the same amount.  Going forward, these get reduced by 3/2, or by 1.5, to reflect the 3:2 stock split.  These positions pay dividends and distributions in US dollars, so my investment tab spreadsheet  has the numbers converted to Canadian dollars.  

Shares Purchased Via DRIP

1 shares of ERF.TO @ $4.3135 for a total cost of $4.31 (Margin Account)

1 units of BPF.UN.TO @ $10.88157 for a total cost of $10.88 (TFSA)


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 2.78%.

Boston Pizza Royalties Income Fund pays a monthly distribution of $0.065 per unit monthly, or $0.78 per unit annually.  This drip adds $0.78 to my annual dividend income.  The yield on cost for this DRIP is 7.17%.

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 2 years ago, Enbridge stopped their DRIP program.  If Enbridge decides to start a DRIP, then my shares will start to DRIP again automatically.  

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 8, Enbridge Inc. (ENB.TO) increased their quarterly dividend from $0.81 to $0.835 per share, or from $3.24 to $3.34 per share annually.  This is an increase of 3.09%

I own 359.278 shares of Enbridge , so this increase adds $35.93 CAD to my annual dividend income. 

Dividend Decreases

There was no dividend decreases in December 2020. 

Summary: 

As of January 2, 2021 , the total value of the portfolio is $124729.59. This is a 0.843% decrease over last month's total. 

The portfolio is estimated to produce an estimated $5508.46 CAD  in dividend income over the next 12 months. This is an increase of $34.20CAD , or 0.625
%. Some of the dividends in the Canadian stocks section are paid in US dollars, which are converted 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
                
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 an

Friday, December 25, 2020

Net Worth Update - December 25, 2020

  Today is December 25, 2020.  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 4 segments. The 3 parts are a "high" interest savings account, savings account, 2 GICs, 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 December 25, 2020, the value of the savings account with EQ Bank is $1548.54. As of the time of this writing, the interest rate for EQ Bank is currently sitting at 1.50%.  This is down from 1.70% from 3 months ago.  The interest rate was cut due to the effects of the COVID19 pandemic on the economy.

This balance would be higher, but I used some cash to purchase 2 GICs of 3 month duration.  At the time of purchasing the GICs, the interest rate for the GICs was 1.70% and the same for the savings account.  

The first GIC matures on January 6, 2021 and the second matures on January 30, 2021.  The GICs are $300 investments with a 1.70% interest rate.  The value of these GICs are $600.00.  With a GIC, the interest is paid out at maturity.

The stock and ETF investment involves a stock and an ETF 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.  

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.  I received a total of $79.33 in dividends since initiating this position.  

I purchased an additional 2 units of BMO High Yield Covered Call ETF at a total cost of $30.37 on October 27.  The ticker symbol is ZWC and trades on the Toronto Stock Exchange.  My brokerage has zero commissions on purchase of ETFs.  There is a small ECN fee which is a few pennies.  The purchase of these units resulted in $0.01 in ECN fees.  This ETF pays monthly.  I received a total of $27.72 in total distributions as of December 25, 2020.

On December 25, the current value of this "stock / ETF account" is $1255.80.  

Overall, the savings total is $3404.52

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 $82761.69 as of December 25, 2020. This is an increase of 14.17% since the last published net worth post.

TFSA Investing Account

The TFSA investing account balance is $42291.25 as of December 25, 2020.  This account is with Questrade.  This is an increase of 16.06% since the last published net worth post.  

Trading Account

The trading account is with Questrade.  There are currently no active trades.   As of December 25, 2020, the value of this account is $4128.04.

RRSP

I have transferred my RRSP from Tangerine to Questrade in April 2020.  While at Tangerine, the RRSP was in the form of a "high" interest savings account.  Now at Questrade, I decided to put the money to work. 

As of December 25, 2020, I own 200 shares of Fortis and 45 shares of XAW.  I have wrote covered calls on the Fortis position but they have both expired worthless.  I have been buying the entire position of XAW using covered call premiums and dividends from the same position in which I sold covered calls. 

The value of this account as of December 25 is $13674.99. This is an increase of 2.05% from September 26.

Summary of Assets

Total Savings :  $3404.52 
Non-Registered accounts : $82761.69
TFSA Investing :  $42291.25
Trading Account: $4128.04
RRSP Savings Account:  $13674.99

Total Assets = $146260.49   (increase of 13.57% from 3 months ago)

Liabilities

The balance on my line of credit is $2936.61.  This is a decrease of $940.55 from 3 months ago. Since I rent and do not have collateral, the interest rate on this account is 5.66%.  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 25, 2020, my net worth is $143323.88. This is a increase of $18419.16, or  14.75%, from 3 months ago.  

COVID19 is front in center still all across the world.  With a few vaccines approved and vaccinations have started in the last week or so, people are starting to some some little light at the end of the tunnel.  In Canada, some provinces are experiencing record high COVID19 cases and have started lockdowns.   

The US presidential election was November 3rd.  This was an election like no other in history.  Due to fears of COVID19 spread, there was mail in ballots.  There was no way to 100% guarantee a person's identity.   How many votes did Donald Trump and Joe Biden actually get that were valid?   



To read my first  net worth update, click here.  

To read the second net worth update, click here

To read the third net worth update, click here

To read the fourth net worth update, click here.  

Disclosure: - Long IPL, ZWC, XAW, FTS
                 
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.