In my recent sale of Tim Horton shares that I owned, I decided to receive some cash flow from the market. This cash flow is via option premiums which is another way to receive cash flow in the financial markets.
On September 25th, I sold a put option in Toronto Dominion (TD) for $0.82 per contract. The strike price is $56.00 and the option expires Oct 18, 2014. When you sell a put option, you receive payment immediately in the form of option premium. The premium is the money you receive for being obligated to purchase 100 shares of TD on or before October 18, 2014 if the option is exercised. The buyer of the put option has the right but not the obligation to sell 100 shares of TD before or on Oct 18, 2014. The net option premium is $71.05 after commissions.
On September 29, I sold a put option in Roger's Communications Class B stock (RCI.B) with an Oct 18, 2014 expiration date. I was paid a premium of $70.00 excluding commissions. The strike price is $42.00. I currently own 100 shares of RCI.B and if this option is exercised than my ACB will be reduced. The net option premium received was $59.05.
Disclosure : Long TD, RCI.B
DISCLAIMER:
Tuesday, September 30, 2014
Friday, September 26, 2014
Recent Dividend Increase
 |
| banjanreporter.com |
Friday, September 26th, Emera Inc. came out with an announcement. Emera announced they are increasing the annual dividend to $1.55 a year, or 0.3875 per share. This represents a increase of 6.9% over the old annual dividend of $1.45 a year. Emera target goal when it comes to the annual growth of the dividend is 6% for the next 5 years.
What is Emera and what does the company do?
Emera Inc. is an energy and services company that is headquartered in Halifax, Nova Scotia. The company currents has over $9.07 Billion in assets. The company is involved in the electricity generation, transmission and distribution as well as gas transmission and utility energy services. Emera owns 100% of Nova Scotia Power. They basically have a monopoly in that province. The distribution of power in the province is over their transmission lives. So if another company
generates energy in Nova Scotia they must sell it to Nova Scotia Power as they own all the transmission lines in the province. Emera Inc also has other companies in the power field such as Bangor Power and places in the Caribbean.
People need electrically to live their lives such as to cook, television, phones, cell phones, and the other comforts of life. So this company will do well in good times and bad times as electricity is a "necessity" of life. So I feel comfortable owning this stock going forward.
Disclosure: Long EMA.
DISCLAIMER:
Sunday, September 21, 2014
Recent Buys
Recently, I made 2 new purchases. As I recently sold off my Tim Horton's shares as I feel the new company will not be as shareholder friendly. The acquisition by Burger King will be heavily financed with borrowed money. So I believe that most of the profits from Tim Horton's will be used to pay down the debt instead of rewarding shareholders with dividend increases by the new created company, which is yet to be named.
On September 19, I purchased 1000 shares of Bombardier Inc Class B at $3.60 per share. The total cost was $3613.45. The commission is quite high at $13.45. I e-mailed my brokerage firm to find out why I am charged $3.50 extra in fees. I am usually charged a small amount extra for ECN fees but never that much.
I recently traded Bombardier Inc Class B within the last couple of months, which you can read about here .
Inside my TFSA, I added to my holding in CBO.TO on Sept 17, 2014. CBO is Claymore's iShares 1-5 year laddered coporate bond etf. The purchase of certain ETFs have free commission whereas the investor only has to pay additional ECN related fees. I purchased 3 mores shares of CBO.TO at $19.52 per share for a total of $58.57 including the fee charged of $0.01. I now have 14
shares of CBO.
I will update my investment tab in early October with the new purchases.
Disclosure: Long BBD.B , CBO
DISCLAIMER:
On September 19, I purchased 1000 shares of Bombardier Inc Class B at $3.60 per share. The total cost was $3613.45. The commission is quite high at $13.45. I e-mailed my brokerage firm to find out why I am charged $3.50 extra in fees. I am usually charged a small amount extra for ECN fees but never that much.
I recently traded Bombardier Inc Class B within the last couple of months, which you can read about here .
Inside my TFSA, I added to my holding in CBO.TO on Sept 17, 2014. CBO is Claymore's iShares 1-5 year laddered coporate bond etf. The purchase of certain ETFs have free commission whereas the investor only has to pay additional ECN related fees. I purchased 3 mores shares of CBO.TO at $19.52 per share for a total of $58.57 including the fee charged of $0.01. I now have 14
shares of CBO.
I will update my investment tab in early October with the new purchases.
Disclosure: Long BBD.B , CBO
DISCLAIMER:
Friday, September 12, 2014
Resent Sale
Over the last two to three weeks, one of the major stories was the purchase of Tim Horton's by Burger King. Under the new ownership structure, the new company will be a Canadian Corporation owned as follows: 3G Capital 51 %, Burger King 27% and Tim Horton's 22%. So, all current Tim Horton shareholders could combine to own 22% of the new formed company. I recently wrote a post about the possible purchase of Tim Horton's by Burger King . This post also tells you what choices the Tim Horton's investor have.
I recently sold my 100 shares in Tim Horton's in the last week. This buyout by Burger King is highly leveraged. So as I hear more and more people talk about this, I feel it would be better to sell the shares. For some reason the sale does not go through, the Tim Horton's stock price will drop probably in to the low $60's or high $50's. Currently, as Tim Horton's is near saturation in Canada, they are basically a "cash cow". I believe the cash from Tim Horton's will be used to help pay down the massive debt incurred to finance this transaction. With the cash going to pay down the debt, then the dividend, if any, with the new company will no grow quickly.
Purchase Price: $59.70
Commission on Purchase: $4.95
Sale Price : $89.25
Commission on Sale: $4.95
Total Dividends received: $96.00
Profit= 100*($89.25-$59.70)-2*4.95+96
= $3041.10
Return = Profit/investment
= $3041.10 / ( $5970+$4.95)
= 50.90 %
I will continue to follow the news on the possible buy out of Tim Horton's by Burger King.
DISCLAIMER:
I recently sold my 100 shares in Tim Horton's in the last week. This buyout by Burger King is highly leveraged. So as I hear more and more people talk about this, I feel it would be better to sell the shares. For some reason the sale does not go through, the Tim Horton's stock price will drop probably in to the low $60's or high $50's. Currently, as Tim Horton's is near saturation in Canada, they are basically a "cash cow". I believe the cash from Tim Horton's will be used to help pay down the massive debt incurred to finance this transaction. With the cash going to pay down the debt, then the dividend, if any, with the new company will no grow quickly.
Purchase Price: $59.70
Commission on Purchase: $4.95
Sale Price : $89.25
Commission on Sale: $4.95
Total Dividends received: $96.00
Profit= 100*($89.25-$59.70)-2*4.95+96
= $3041.10
Return = Profit/investment
= $3041.10 / ( $5970+$4.95)
= 50.90 %
I will continue to follow the news on the possible buy out of Tim Horton's by Burger King.
DISCLAIMER:
Wednesday, September 3, 2014
Dividend Income - August 2014
The month of August 2014 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
- Killam Properties (KMP) - $5.75
- Shaw Communications (SJR.B) - $18.33
- Enerplus (ERF) -$ 45.63
- Emera (EMA) - $36.25
- Killam Properties (KMP) - $ 14.15
- Dundee REIT (D.UN) - $ 16.61
- Cominar REIT (C.UN) - $5.28
- Boston Pizza Royalties Fund (BPF.UN) - $23.87
This total represents a 22.35% decrease from 3 months ago and 9.28% decrease year over year. The decrease from 3 months ago is that one of most monthly payers, Just Energy, changed their dividend payment schedule to quarterly with the first quarterly payment starting in September. Just Energy also reduced their dividend also to try to get the companies finances in order and to lower its dividend payout ratio. Some of my stocks I DRIP, so these companies paid slightly larger amount of dividends than before.
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 $763.47 in distributions so far on this trade.
Since Jan 2014, I received $1716.25 in dividends not including the distributions I receive in for 300 units of Dundee REIT in my margin account. The amount distributions that I received for 300 units of Dundee Real Estate Investment Trust since Jan 2014 equals $448.
I will update my dividend income tab with the new amount.
Disclosure : Long all securities above.
Photo Credit: www.mipaq,co.za
DISCLAIMER:
Monday, September 1, 2014
Portfolio Update - August 2014
The month of August 2014 is now behind us. The stock market keeps going higher and the S&P 500 went over 2000. I try to sell a put option in Roger's again by placing a limit order with a September 20th , 2014 expiration date and a $42 strike price. This was not executed.
I made a small purchase in my TFSA with the small amount of cash that was sitting in the account. I decide to put it too work and took advantage of free commission ETF offered by my broker. I purchased 11 shares of Claymore 1-5 Yr Laddered Corporation Bond ETF on the Toronto Stock Exchange, which you can read about here. The ticker symbol is CBO. I didn't purchased before the ex-dividend date so I did not receive a distribution for the month of August.
I also acquired 1 more share of Killam properties in my TFSA via DRIP at a cost of $10.60.
The big news for the month of August is the announcement of Burger King purchasing Tim Horton's for 12.5 Billion. I currently own 100 shares of Tim Horton's. I recently wrote a post on the 3 options of current shareholder of Tim Horton's have on the table.
As of Sept 2, 2014, the value of my portfolio stands at $75175.32. This is an increase of 5.761% over last month. This increase in mostly due to Tim Horton's going up from $65.00 to over $87.00 a share due to the announcement of being bought by Burger King.
I have updated my investment account tab above.
Disclosure: Long KMP.TO, THI.TO, CBO.TO, RCI.B.TO
DISCLAIMER:
I made a small purchase in my TFSA with the small amount of cash that was sitting in the account. I decide to put it too work and took advantage of free commission ETF offered by my broker. I purchased 11 shares of Claymore 1-5 Yr Laddered Corporation Bond ETF on the Toronto Stock Exchange, which you can read about here. The ticker symbol is CBO. I didn't purchased before the ex-dividend date so I did not receive a distribution for the month of August.
I also acquired 1 more share of Killam properties in my TFSA via DRIP at a cost of $10.60.
The big news for the month of August is the announcement of Burger King purchasing Tim Horton's for 12.5 Billion. I currently own 100 shares of Tim Horton's. I recently wrote a post on the 3 options of current shareholder of Tim Horton's have on the table.
As of Sept 2, 2014, the value of my portfolio stands at $75175.32. This is an increase of 5.761% over last month. This increase in mostly due to Tim Horton's going up from $65.00 to over $87.00 a share due to the announcement of being bought by Burger King.
 |
| Click to Enlarge (Tim Horton's Toronto Stock exchange) |
I have updated my investment account tab above.
Disclosure: Long KMP.TO, THI.TO, CBO.TO, RCI.B.TO
DISCLAIMER:
Subscribe to:
Posts (Atom)