Sunday, November 1, 2015

Portfolio Update - Oct 2015

    The month of October was an interesting month.  The federal election in Canada came to a close on October 19.  As Canada is a big country across multiple time zones, the polls close in the Atlantic provinces while the polls from Quebec out to British Columbia have their polls still open.  So the results of the Atlantic provinces start coming in.  The downside to this is people, who vote towards the end of election day, can be persuaded to vote for a particular party they want in over another party.  The liberal picked up all 32 seats in Atlantic Canada. Quebec and Ontario was next to close their polls and starting counting the ballots. It started to look like the liberals were favored to win and therefore the government would be changing hands.  The Conservatives had a strong backing in western Canada, and still picked up a lot of seats.

    The liberals ended up with a majority government.  What does this have to do with investing?  During the election, the liberals put out a platform just like all parties do.  This shows us what the government plans to do with our tax dollars while in office.  If taxes get raised this will effect businesses investing in a certain jurisdiction.  The NDP government of Alberta released its first budget last week, which was after the federal election.  The Alberta election was on May 5 2015.
          A big oil and gas company, Royal Dutch Shell took action immediately took action after the Alberta NDP budget was released. Click the following video to find out what exactly Royal Dutch Shell did.(Source: Rebel Media)

     I wrote recently about selling a put option in Telus Communications, which you can read about here. This put option had an October 16 expiration date and was not assigned.  I get to keep the premium that was paid to me for selling the option.  My return for 16 days was 1.036%.

    I wrote about selling my position in Just Energy, which you can read about here.  I came out of this position with a profit.  The price of the stock is still up over $9.00 on the Toronto Stock Exchange. A private equity investment company is buying up a lot of shares still. This investment company is owned by Ron Joyce, who was the cofounder of Tim Hortons.  Tim Hortons was sold to Wendy's Restaurants and Ron Joyce became the largest shareholder of Wendys at the time.  Eventually Wendy's departed with Tim Hortons and became its own Canadian corporation again. Burger King eventually bought Tim Hortons and formed a new company called Restaurant Brands International which I currently own.

    On October 14, I purchased 100 shares of Restaurant Brands International, RBI, on the Toronto Stock Exchange.  This investment is the lowest I have paid for shares of this newly formed entity.  After seeing some weakness in the share price, I sold a covered call to collect a premium of $99.05 after commissions. The stock has gone a lot higher then the strike price of the option. So I am watching to see if the price of the option falls.  If the price of the option falls, I might buy back the option and then sell the stock which will be higher than my gain from the option being assigned. 

   On October 26, I entered a trade by purchasing 200 units of XDV, the iShares Canadian Dividend Select ETF.  My brokerage offers this ETF has commissions free. My entry price is $22.49.  I have a GTC order in to sell this.  XDV pays a monthly distribution, which I will collect while waiting for my sell order to be filled.

Shares added due to drip

3 shares of ERF @ $7.735 for a total of $23.21
1 share of KMP @ $10.00 for a total of  $10.22 inside TFSA

   I will also acquire more shares of Scotia Bank, which I own through the transfer agent. This is a full drip. I received the dividend of $21.54 last week. It usually takes 3 to 7 business days to find out the amount of new shares and at what price they are acquired at.
    As of  Nov 1 of  2015, the value of my portfolio stands at $81984.24. This is an increase of  4.253% over last month. I will update my investing account tab above.

Disclosure: Long  KMP, ERF,  RBI

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


  1. Can't go wrong adding more to BNS, especially at these low values and high yield. Thanks for sharing a new name, RBI as well. Never heard of that company before. Do you plan to add to any pother Canadian banks?

    1. DivHut,

      Thanks for dropping by. BNS is a great company to be a shareholder, along with the other major Canadian Banks.

      RBI, or Restaurants Brands International, was formed a year or 2 ago when Burger King acquired Tim Hortons. RBI was created to be the parent company of these two businesses. When RBI reports earnings, they seperate the two businesses as they are run independent of each other. This allows investors to get a better understanding of all financials matters of each company separately.