Saturday, September 5, 2015

Portfolio Update - August 2015

       The month of August is now behind us. One major issue of the month continues  to be the low price per barrel of crude oil. There seems to be no hurry by OPEC to cut production. As Saudi Arabia is a very low cost producer, they are able to stomach these low prices. In western Canada, it costs a lot to drill a well due to the mountains and therefore have to drill deeper in hopes of finding oil or natural gas.
       The sell off in China is taking its toll on the market as well.  This can be advantageous to an investor in the accumulation stage as lower purchase prices means higher yield. A higher yield means your money is working harder for you. An investor has to believe in the company in order to stomach the falling prices.

     Three companies that I own shares in have raised their dividends.  First off was Emera Inc, who raised the annual dividend to $1.90 a share. This was followed by Royal Bank who raised their annual dividend to $3.16 a share. Shortly after Royal Bank raised their dividend, the Bank of Nova Scotia raised their annual dividend to $2.80 per share.  You can read about the dividend raises for Bank Of Nova and Royal Bank here.
     I own units in CBO, which is the I-shares Claymore 1-5 year Laddered Corporate Bond ETF.  This ETF pays monthly and the distribution is variable.  This past month I was paid $0.055 per share which is a decrease of about $0.01 per unit per month.
      I was not active in the accounts this month very much. I initiated an options trade on August 13 by purchasing call options in  Toronto Dominion Bank (TD) on a Canadian Exchange. I closed this trade on August 24 as my limit order was filled. The stock started to fall along with the rest of the market in a large amount so I decided to sell to cap my loss.  I still own 100 shares of TD in my margin account which I purchased months ago.

  I did acquire more shares through DRIPs.

Shares added due to drip

3 shares of ERF @ $8.29 for a total of $24.87
1 share of KMP @ $10.32 for a total of  $10.32
.325358 shares of BNS @  $63.62 for a total of $20.70.

      On July 29, Scotia Bank paid a dividend. I hold my BNS shares directly with the transfer agent. The entire dividend gets reinvested.  I received the dividend  but there is a delay in which the amount of shares purchased is known to the investor. I found out how much new shares were required in the first week of August.

     As of  Sept 4, 2015, the value of my portfolio stands at $75356.20 . This is an decrease of  4.933 % over last month. I will update my investing account tab above.

I adjusted the dividend rates on my investment tab spreadsheet including the distribution rate of CBO. For CBO, I took the distribution rate for August and pro-rated it for 12 months.

Disclosure: Long KMP,  ERF, RY,  BNS,  EMA, CBO, TD

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 NOT 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

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