The month of March 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.
The price of a barrel of crude oil remains near the $50.00 a barrel. As the energy sector is struggling with the price, other industries are benefit from the lower price of barrel of crude oil. A company such as Delta Airlines can hedge themselves against the price of oil by buying a call option on the price of oil. Delta Airlines would pay a premium for the right, but not the obligation to purchase crude oil at a giving price within a certain time frame. So if the price of crude oil rises during this time, Delta can exercise their option and pick it up at the lower price. Jet Fuel is derived from crude oil, so there price of crude oil and jet fuel are nearly correlated.
With this energy industry struggling, I am putting my money in other areas. Some industry professionals believe that oil prices could remain like this to up to 3 years.
Non-registered Account
- Enbridge (ENB) - $3.27
- Enerplus (ERF) -$ 46.80
- Just Energy (JE) - $90.13
- Killam Properties (KMP) - $5.75
- Shaw Communications (SJR.B) - $19.75
- Boston Pizza Royalties Fund (BPF.UN) - $23.87
- Claymore 1-5 yr Laddered Corporate Bond (ETF) - $0.91
- Cominar REIT (CUF.UN ) - $5.39
- Dream Office REIT (D.UN) - $ 16.61
- Enbridge (ENB) - $15.35
- Killam Properties (KMP) - $ 14.50
This total represents a 7.95% decrease from 3 months ago and 8.86% increase year over year. One of my positions, Bombardier Inc Class B, did not pay a dividend in March as the suspended their dividend. The company is going through a management position and has pushed the date out for the CSeries delivery (Source: www.financialpost.com).
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 $1155.47 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.
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.
Those reits are comin thru for u. I see u quite bullish on KMP, I have never given them a good look, seems like they have decent history
ReplyDeleteAsset Grinder,
DeleteThe REITs do provide a lot of monthly cashflow for me. As far as KMP goes, they are set up as a corporation, which gives an investor the benefit of them paying a dividend instead of a distribution. So you do not have to worry about return of capital for adjusted cost basis when held outside a registered account.
As with REITs, KMP needs to use FFO or AFFO to be properly evaluted. So P/FFO or P/AFFO would give a better sense of the ratio then P/E ratio. Unfortunately this is a little extra work as google finance, yahoo finance, etc use only P/E which means the investor has to do a little extra work on their part
Thanks for sharing your recent dividend income update with us. Though a decrease from last quarter you are still up year over year which is the name of the game. There will always be those inevitable dividend cuts and eliminations but that's why we diversify.
ReplyDeleteDivHut,
DeleteThanks for dropping by. Unfortunately, dividend cuts happen from time to time but I am still incredibly blessed to have this much dividend income coming in . A few years ago, I had zero dividend income.