Monday, April 5, 2021

Dividend Income Update - March 2021

        



      
The month of March 2021 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 2021.  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 am hoping I can keep this up! 
 
Note: All the dividends and totals below are in Canadian Dollars.


Non-registered Accounts 
  
Enbridge (ENB) - $21.95  (Transfer Agent)
Enbridge (ENB) - $250.50 
Enerplus (ERF)  - $7.48
Inter Tape Polymer (ITP) - $23.55
Shaw Communications (SJR.B) - $19.75

Subtotal : $323.23


TFSA

A&W Royalties Income Fund  (AW.UN) - $5.13
Boston Pizza Royalties Income Fund (BPF.UN) - $16.25
Brookfield Renewable Partners LP (BEP.UN) - $29.90
Brookfield Renewable Partners Corporation (BEPC) - $4.55
Canadian National Railway (CNR) - $23.37
Cominar REIT (CUF.UN) -    $6.84
Enbridge (ENB) - $27.56
Fortis Inc (FTS)  - $8.59
Killam Properties REIT (KMP.UN)    - $17.11

Subtotal: $139.30


Total = $462.53


I received a total of $462.53 in dividend income for the month of March 2021.  This represents a 1.639% increase from 3 months ago and 6.76% increase year over year. 
  

I received dividend / distribution income from  12 different companies. 

I received $0.00 in option premiums within my investment accounts in March  2021.

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. 


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


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The dividend from Fortis is for 17 shares.  My recent purchase of Fortis inside my TFSA occurred after the ex-dividend date.   

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 March 2021?


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.


Friday, April 2, 2021

Portfolio Update - March 2021

The month of March 2021 is now behind us. 

During the month of March, the Supreme Court of Canada ruled the carbon tax is constitutional.  Ontario, Saskatchewan, and Alberta believe the carbon tax will hurt their economies as it will make everything more expensive.  Renewable energy will become more of a focus.  


Portfolio Activity

Margin Account Activity

There was no activity in this account during March  2021.

TFSA Activity

There was no activity in this account during March 2021. 


Shares Purchased Via DRIP

1 shares of ERF.TO @ 6.9235 for a total cost of $6.92 (Margin Account)

1 unit  of BPF.UN.TO @ $12.9135 for a total cost of $12.91 (TFSA)


Enerplus pays a dividend of $0.01 per share monthly, or $0.12 per share annually. This drip adds $0.12 CAD to my annual dividend income. The yield on cost for this DRIP is 1.73%.

Boston Pizza Royalties Income Fund pays a distribution of $0.065 per unit monthly, or $0.78 per unit annually.  This drip adds $0.78 CAD  to my annual dividend income.  The yield on cost for this DRIP is 6.04%.

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.  

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

There was no dividend increases in March 2021.

Dividend Decreases

There was no dividend decreases in March 2021. 

Summary: 

As of April 2, 2021 , the total value of the portfolio is $144234.93. This is a 9.36% increase over last month's total. 

The portfolio is estimated to produce an estimated $5678.99 in dividend income over the next 12 months. This is an decrease of $5.72 CAD , or 0.1006
%. 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

Sunday, March 28, 2021

Net Worth Update - March 28 2021

   Today is March 28, 2021.  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 March 28, 2021, the value of the savings account with EQ Bank is $2295.56. As of the time of this writing, the interest rate for EQ Bank is currently sitting at 1.50%.  I had two $300.00 GICs which have matured and have been paid out to this particular savings account. 

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 $84.37 in dividends since initiating this position. 

Currently, Inter Pipeline is in the midst of a hostile takeover by Brookfield.  Brookfield is offering $16.50 CAD per share for all remaining shares that it does not already own.  Inter Pipeline highly recommends its shareholders reject this offer stating that it undervalues the business of Inter Pipeline.   

I purchased an additional 8 units of BMO High Yield Covered Call ETF at a total cost of $131.95 on January 27.  I purchased an additional 8 units of BMO High Yield Covered Call ETF at a total cost of $129.15 on January 29. 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 $0.06 in ECN fees.  This ETF pays monthly.  I received a total of $42.02 in total distributions as of March 28, 2020.

On March 28, the current value of this "stock / ETF account" is $1703.72.  

Overall, the savings total is $3999.28

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 $95689.05 as of March 28, 2021. This is an increase of 15.62% since the last published net worth post.

TFSA Investing Account

The TFSA investing account balance is $48606.73 as of March 28, 2021.  This account is with Questrade.  This is an increase of 14.93% since the last published net worth post.  

Trading Account

The trading account is with Questrade.  There are currently no active trades.   As of March 28, 2021, the value of this account is $4345.75.

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 March 28, 2021, I own 200 shares of Fortis and 47 shares of XAW.  I currently have a covered call on this Fortis position.  This strike price is $54.00.  The option is currently in the money and might get assigned. 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 March 28 is $14342.16. This is an increase of 4.88% from December 25, 2020.

Summary of Assets

Total Savings :  $3999.28 
Non-Registered accounts : $95689.05
TFSA Investing :  $48606.73
Trading Account: $4345.75
RRSP Savings Account:  $14342.16

Total Assets = $166982.97  (increase of 14.17% from 3 months ago)

Liabilities

The balance on my line of credit is $2103.59.  This is a decrease of $833.02  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 March 28, 2021, my net worth is $164879.38. This is a increase of $21555.50, or  15.04%, from 3 months ago.  

Vaccines are being delivered across the world and more and more people are getting their vaccinations.  Places across the world are starting to open up and loosing restrictions.  Medical professionals are calling for extreme lockdowns across many jurisdictions as they believe the variants of COVID19 are more fatal and can spread rapidly than the regular COVID19 virus.  

A few states in the United States have open up 100% by removing restrictions and only recommending people for health guidelines including wearing a mask.

On the trade front, the Suez Canal is currently blocked by a large containership.  The ship called Ever Given.  There is a lot of stories going around on how and why this happened.  One of these stories, is that the Ever Given lost power during a severe sand storm  and the officers could not steer the ship.  Currently, there are over 300 ships off all types waiting to pass through the Suez Canal.


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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

To read the fifth net worth update, click here

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