Recent Trades

   I recently wrote about a trade in my margin account, that you can read about here. I have traded the stock, Sherritt International, a few times before. I am currently still in this trade as the price of the stock as not risen to my exit point.
    During the month of February, I place a trade inside my tax free account for the same stock Sherritt International. My entry point was $2.10 a share for 750 shares in total.   Since I purchased an odd lot of shares, my commissions were a little bit higher.

 Sherritt International Trade in TFSA:

Initial Investment = 1582.67 (including $7.67 commissions)
Proceeds of Sale = 1829.83 ( including $7.67 commissions)
Profit = 1829.83-1582.67 = $247.16
ROI = 247.16/1582.67 = 15.62%


I also had another trade on in my TFSA that was completed. I recently wrote about purchase of shares of Bombardier Inc. Class B shares inside my TFSA, which you can read about here.  On February 2, 2015 , I sold my shares when the limit order was filled.  The details of this trade are shown below:

Initial Investment  = $1380.00 (including $5.00 commissions)
Proceeds of Sale = $1495.00 ( including $5.00 commissions)
Profit = $115.00
ROI =   $115.00/$1380.00 = 8.333 % 

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Disclosure:  1) Long BBD.B in margin account
                    2) Still own S.TO in my margin account as a trade

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.

Making Some Extra Cashflow

    During last week, I put in a limit order to sell a call option in TD Bank.  I sold 1 contract which represents 100 shares of stock. I currently own 100 shares of TD.TO, so this makes this a covered call.  When selling options, an individual is paid upfront a premium as the seller is obligated to sell 100 shares of the stock on or before expiration date at the strike price. The call option is for Mar 20, 2015 with an $56.00 strike price.

Click to Enlarge

I purchased TD stock when I sold a naked put option which was assigned due to the price of the stock fell below the strike price at the expiration date. You can read this transaction here.

Naked put assignment : $5553.90 cost basis
Dividends received :  $47.00
Option premium received for call option:  $99.05

If call option is assigned:
    Proceeds  = 100 shares *strike price = 100 * $56.00 = $5600
   
     Profit = ((Proceeds + call option premium received - option assignment fee) - Naked put assignment) + dividends received
                 = $5600 +$99.05 - $24.95 - $5553.90 +$47.00
                 = $167.20

ROI = Profit / Initial investment =
        = 167.20 /5553.90
        = 3.01 %

If the option is not called away, I will still own the stock and still keep the premium which I was paid right away. Please note that my strike price is $56.00 for both the put option I sold in 2014 and for this covered call transaction.

Disclosure: Long TD

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.

Recent Dividend Increases

 

     When you work at a job, you look forward to a raise, regardless of why.  These raises can come to just yourself or to every one in the form of a cost of living increase.  Psychologically, a raise that only yourself gets is a lot better.
    As an investor in a dividend growth stock, an investor can receive a raise in the form of a dividend increase. A dividend growth stock usually has a low yield due to a lot of investors buy shares in the so-called stable company that has a history of raising dividends.  Investors like to buy these stocks for the long term, so the price of the stock increases due to demand of buyers.

Recent Dividend Increases

       Four companies that have ownership in recently announced dividend increases. The 4 companies are Emera (EMA), Rogers Communications -  Class B shares (RCI.B), Shaw (SJR.B) and Bell Canada (BCE) .
        Emera recently raised its dividend from  $1.55 to $1.60 per share.  This represents a increase of 3.2% to the annual dividend.  I currently own 100 shares of EMA, so this represents a $5.00 increase to my annual dividend income. Although this is a rather small amount, every little bit helps. Emera also announced a dividend increase back in Sept 2014 from $1.45 to $1.55 per share.  So these increases represent roughly a 10.3 % of increases during the last 12 months.  Emera will pay a dividend this month, but the May dividend payment will be the first dividend payment under the new dividend rate.
         Rogers Communications has recently raised its dividend from $1.83 to $1.92, which represents an increase of 4.92% increase.  I currently own 100 shares of RCI.B , so this represents a $9.00 increase to my annual dividend income. The first dividend payment will be April 1.
         Shaw Communications has recently increased its monthly dividend  from  $0.091667 to $0.09875 per share.   I currently own 200 shares of SJR.B, so this represents $17.00 increase to my annual dividend income. The first monthly dividend payment of the increased amount will be near the end of March.
           Bell Canada Enterprises (BCE) recently released its quarterly earnings and stated that the company has seen an increased in profits of nearly 10% for the fourth quarter.  BCE also announced they will be increasing their annual dividend by 5.3% from $2.47 to $2.60.  I currently own 100 shares so this dividend increase adds $52.00 to my annual dividend income.

Conclusion

     I did not have to do any extra work to get these dividend increases. The companies continued to serve their customers and provide services to their customers to go about living their daily lives.  My annual dividend income increased $83.00 by doing absolutely nothing after the original research prior to starting the investment.

NOTE: All the stocks above were purchased on the Toronto Stock Exchange in Canada, as that is the country I reside in. Some of the stocks listed above are listed on the NYSE also but may not have the same ticker symbol.

Disclosure : Long EMA, RCI.B, BCE, SJR.B

Photo Credit : www.bornrich.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

Week End Reading - Feb 7 2015

 

As the weekend is coming to an end, it is time to share some of the posts I read over the last week that some of your readers might find interesting.

Dividend Stock Fish published an update about his stocksnowball portfolio.

Dividend Mantra published his January Dividend Income.  I always like to read other people's dividend income updates and see people snowball getting bigger and bigger.  Dividend Mantra also post about increasing passive income gives you more peace of mind and choices, which you can read about here.

Liquid Independence wrote about a different way to look at bank fees.  Instead of you paying the bank fees to hold "YOUR" money, why not have the bank pay you instead.  Liquid also had an interesting post about debt.

Tawcan wrote an interesting post on how him and his wife got started in dividend investing.

Brad, aka pullingmyselfup, of Sharpe Trade wrote a few posts about REITs. The first post is talks about what a REIT is and the second post is about FFO.

Susan Brunner wrote a couple of posts about Shaw Communications which you can read about here and here.  I own the class B shares of Shaw, which is listed on the Toronto Stock exchange.

Disclosure : Long SJR.B

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

Dividend Update - Jan 2015

     
      The month of January 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.

During the month of January  the price of crude oil per barrel went lower. On January 3, the price per barrel is $52.81 ( source: www.stockhouse.com).  The price of a barrel of crude oil ending January 30 was $47.85 as indicated in the chart below. From this same chart, we also can see the rise in crude oil prices.  A lot of non-investors seem to be likely this increase as the higher the price of oil then the more likely they will be able to have an well paying job in western Canada.

Non-registered Account

• Bell Canada - $61.75
• Enerplus (ERF)  -$ 46.17
• Bank of Nova Scotia (BNS) - $19.68
• Killam Properties (KMP)  - $5.75
• Rogers Communications (RCI.B) - $45.75
• Shaw Communications (SJR.B)    - $18.33

TFSA

• Boston Pizza  Royalties Fund (BPF.UN)   - $23.87
• Claymore 1-5 yr Laddered Corporate Bond (ETF) - $1.87 
• Dream Office REIT   (D.UN)  - $ 16.61
• Killam Properties (KMP) - $  14.40 

Total = $254.18

This total represents a 3.36% increase from 3 months ago and 8.656% increase  year over year.  The Cominar REIT distribution is paid out twice during December, which means there is no payment in Mid January for this REIT.   The Claymore 1 - 5 year Laddered Corporate Bond ETF, CBO, pay distributions twice during the month of January. This occured on January 6 and the end of January.

I also received another distribution payment of $56.00 for my swing trade in Dream Office 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 $1043.47 in distributions so far on this trade.

I will update my dividend income tab with the new amount. It is great to see money from passive income sources deposited into my brokerage account every single month.

I will update my dividend income tab above with this total.

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 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.