Week End Reading - June 27

 

Another work week has been completed.  The stock market keeps marching higher and higher as the days go by. As of June 27, 2014, S&P 500 is up 6.08% YTD and the TSX Composite Index in Toronto is up 10.81% YTD.

Are we due for a stock market correction in the near future? It will actually be quite nice especially when I am looking to buy more equity positions at the moment.

A few of my fellow bloggers, had some great post during the past week that are worth reading.

Dividend Mantra recently published a post on Frugal Fitness. In this post, Dividend Mantra spells out his weekly fitness routine that he does since making the journey home to Michigan from Florida. This article point what any person can do on a tight budget to get some exercise to make yourself feel better and healthy.

Liquid Independence over at freedomthirtyfiveblog.com recently published a post titled Options Trading Successful. The stock in question is Teck Resources Class B stock listed on the TSX in Toronto, Canada. Liquid Independence sold a naked put with a strike price of $23.00 and expiration date of June 21, 2014.  I recently sold my first naked put, which was in Rogers Communications Class B stock and it was assigned.

Kraig, over at createmyindependence.com, published a video podcast on reasons to ditch your job and start a business. When running a business it gives you more choices what to do with your time on a daily basis.

Dividend Stock Fish (DSF) recently posted about the Amazing History of Oil. As oil is important for every life, it is also a great dividend payer from the companies that are involved in sections of the oil industry. There is also a video  by DSF in this post in which he discusses the oil industry.

EDIT:  when you sell a put and have to purchase the 100 shares, it means the option was assigned.

Photo Credit : www.cafepress.com

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

Update on a few trades

In the past month, I sold a put option on Roger's Communication Class B shares listing on the Toronto Stock Exchange. In this post, I gave 3 scenarios about what happens if the market goes up, sideways or down.

The put had a strike price of $44.00, and I was paid a premium of $69.00 excluding commissions for making the promise to buy 100 shares  at the strike price before or on expiration day.  On Friday, June 23, the closing price of RCI.B shares were $42.84. The put option was assigned and the shares showed up in my brokerage account.

Recap:   Strike Price:   $44.00
              Premium paid:  $69.00-$10.95 commission = $58.05
              Option Assignment Fee : $24.95
        
              ACB = 100 shares * 1contract * $44.00-$58.05+$24.95
                       = $4366.90


               Average Price per share = ACB/ # of shares
                                                      = $4366.90/100 shares
                                                      = $43.6690 per share

Currently RCI.B is paying a quarterly divided of $0.46 or $1.83 annually.

                     Yield on cost = 1.83/43.6690
                                           = 4.191 %

My average price per share is lowered than if I had just bought the stock. Therefore my money is working harder for me.

In previous post on this trade, I wondered how the shares would show up in my brokerage account if assigned. It shows up as $44.00 as the average price, which is the strike price. So for tax purposes, I have to use the amount of $4366.90 as my ACB.

I plan to write cover calls on this position in Roger's.

I also made a trade in where I bought 6 contracts of a RY.TO $74.00 21 June 2014 put option. This trade did not go in my favor and expired worthless.

               Cost = premium - commission
                        = $270+$15.95
                        = $285.95

                Profit = 0-$285.95
                           = -285.95 = -100%


Disclosure : Long RCI.B

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

Name Changes

A blog that I follow, which is on my blog roll, has recently changed their website and gave it a new name.  Dividend Stock Fish (DSF) changed the name of his blog to www.stocksnowball.com. DSF also did a make over of his website. DSF also has a You Tube channel with a lot of great videos.

Dundee REIT has changed its name to Dream Office REIT. This took place in May 2014. The company still trades under its same ticker symbol. As of right now, they are in the process of making a new website but their old one for www.dundeereit.com.

I will update my blog roll and portfolio tab with the changes.


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

Weekend Reading - 2014 June 7

 

Another work week has been completed.  The stock market keeps marching higher and higher with little drops along the way.  This means an investor has to work even harder to find good quality stocks trading at reasonable prices. An investor must narrow their list of stocks to consider buying at this time and then research the company and its fundamentals in depth.

During this week, a few articles the I read that I would like to share from fellow bloggers.

Dividend Mantra, who has recently left his job in Florida to move to Michigan to be closer to is family, posted an article entitled Extreme Frugality Revisited.  Dividend Mantra is making sacrifices right now in his life to be closer to his family and doing things he enjoys.  One of his passions, is writing and inspiring people. It will be surprising to know that he actually stopped blogging for 3 months a few years ago and wasn't sure he was going to blog again.

Liquid Independence over at freedomthirtyfiveblog.com recently published a Fiscal Update for May 2014.  Liquid recently received his semi-annual rent check for his farms he leases to a tenant farmer in north eastern Saskatchewan, Canada. This  fiscal updates on a monthly basis shows how an average income earner can grow their wealth more quickly using leverage.

The Loonie Bin Blog recently posted a Dividend Income update for May 2014.  This individual won't invest unless he comes across a stock trading with  a decent price.

Over at $25000 Dividends, shared his Dividend Income Update for May 2014.

Dividend Stock Fish (DSF) recently posted a video on YouTube about DRIP - Dividend Reinvestment Plan  .  In the video, DSF also shows some of the resources he uses to find information about various dividend paying stocks.  I DRIP a few stocks in my brokerage accounts and 2 stocks directly with the transfer agent.

Kraig, over at Create My Independence, recently published a podcast  where he discusses some questions people struggle with in their lives. Kraig, in the last year, decided to leave is job and start his own business.

Photo Credit : www.cafepress.com

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 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 - May 2014

 The month of May 2014 is another month of increasing dividend income. 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

• Killam Properties (KMP)  - $5.75
• Shaw Communications (SJR.B)    - $18.33
• Just Energy (JE) - $47.88
• Enerplus (ERF)  -$ 45.63
• Emera (EMA) - $36.25

TFSA

• Killam Properties (KMP) - $  14.00
• Dundee REIT   (D.UN)  - $ 16.61
• Cominar REIT (C.UN) - $5.28
• Boston Pizza  Royalties Fund (BPF.UN)   - $23.87

Total = $213.60

This total represents a 1.007% increase from 3 months ago and 18.12%  year over year.  This is a small increase from 3 months ago, due to DRIP.

I also received another distribution payment of $56.00 for my swing trade in Dundee REIT in my non-registered account. This is not listed above since it is a trade, so I keep the money in the account and do not pay myself first with this payment. I have received $595.47 in distributions so far on this trade.

I recently also sold a put option in  Rogers Communications for a option premium of $58.05 after commissions. This amount is not included in my dividend income. If RCI.B falls below the strike price, I would be OK holding this stock.

I will update my dividend income tab with the new amount.

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 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 May 2014

 We are at the start of another month. The stock market keeps going higher and higher and it is getting more difficult to find stocks trading at reasonable prices.

During the month of May, I turned the DRIP back on for Just Energy. Just Energy had been trading recently above my cost basis of $8.05 a share. I had the DRIP turned off a few months ago to keep my cost basis from increasing.  On May 14, the price dropped over $2.00 a share. I which I would of sold my position at around $9.00 a share.

Just Energy

 I sold off my position in Chorus Aviation, as I decided I did not want to hold it very long. This stock trades below $5.00 and has one major customer which is Air Canada. Air Canada, by law, must fly to certain destinations in Canada even when it doesn't make money.

I decided to try another way of making money in the markets. I contacted my broker to get approval to Level 4, which will allow me to sell options.  I  SOLD a RCI,B.TO June 21 2014 44 Put for $0.69/contract. I sold contract, which equals 100 shares for a premium of $58.05 after commission. You can read about this  here.


In my TFSA, I acquired 1 share of Killam Properties @10.40 through DRIP.  I also have a trade on in my TFSA. The bought 6 contracts of RY.TO June 21 2014 $74.00 Put for a total cost of $285.95 including commissions. I did not mention this trade in a prior post.

I have updated my portfolio spreadsheet in the tab above. The current value of the portfolio is $67784.06 as of June 3.  This is an increase of 1.617 % from last month. I will gladly take this increase considering I had a major paper loss with the shares of Just Energy.


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