Portfolio Update - Jan 2016

    During the month of January at had 3 covered calls expire worthless on Jan 15.  That means I keep the stock and the premium.  I decided to try write covered calls again on the 3 stocks, which are RY, TD and QSR.  I was only lucky in writing one covered call.  The stock price of RY and TD had fallen a lot. Therefore the option premiums have been real small for my desired strike price.  On Jan 21, I wrote another covered call in QSR and collected a premium of $39.05 after commissions. 

    The price of oil fell below $30 dollars a barrel.  This has caused a lot of worry in the Canadian Stock Market causing the prices of energy stocks to go even lower.  Western Canada needs oil around $60 - $70 a barrel.  There continues to be layoffs in Western Canada.  The low price of oil is going to affect the entire country this year as the ripple effect of the layoffs will be more noticeable this year.  The amount of layoffs in the Alberta oil patch is the worse amount of layoffs since 1982.  The workers are having a difficult time trying to find other work as the jobs will often be know where near what they were paid before.

    A wrote a post about people opinions towards the banks. The banks in Canada have profits between 1 to 2 billion each per quarter.  The average person likes to complain that the banks make too much earnings.  As an investor, I would rather take advantage of these record profits by owning shares.  The shares I own will pay me dividends and increasing dividends over time.

   On January 2, I wrote about a recent sale inside my TFSA of shares of ERF. I decided to buy more shares again inside the TFSA for this, but forgot to write about it.  I acquired 160 shares again of ERF, but a cost of $4.40 per share.

Shares Acquired Though Drip

              5 shares of Enerplus @$3.2664 for a total of $16.33
              1 unit of Dream REIT @ $17.12 for a total of $17.12
             

    I was dripping shares of Killiam Properties (KMP) inside my TFSA.  However, during the month KMP switched from a corporation structure to a REIT structure.  There was no reinvestment on the payout.  I am also dripping Bank Of Nova Scotia directly with the transfer agent.  The dividend was paid a few days ago, the I will not know the number of shares acquired and at what price the reinvestment occurred until sometime next week.

    In a few days I will post my dividend income for January.  It was a great month for collecting dividend income.

     As of  Jan 31st,  the value of my portfolio stands at $77286.36. This is an decrease of  1.254% over last month. I will update my investing account tab above.

Disclosure: Long  QSR , BNS, ERF, D.UN,KMP.UN, RY, 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 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

Another Covered Call

    On January 15, I had 3 covered calls expire.   These covered calls were in TD Bank, Royal Bank, and Restaurant Brands International.

     The option premiums for the strike price I am looking are low for TD and RY. I looked out for several months.  The price of Restaurants Brands International is very volatile.  On January 21, I wrote a covered call for a premium of  $0.50 per contract. Since a contract represents a hundred shares, that is a premium of $50.00 excluding commissions.

Summary:

Option Premium including commissions = $39.05
Days to expiration = 29

Return =  $39.05/$5200
            = 0.751%

This represents a return of 0.75% for 29 days. Currently, my bank account pays 0.80% per year interest and I made 0.75% return in less than a month.  That is, if the stock is not called away prior to on the option expiration date. 

Annualized Return = .751%/29*365
                               = 9.452%

Disclosure : Long QSR , RY, 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.

How Often Is This Heard?

      As the days go by every year, we hear of the Canadian Banks making record profits.  When the banks announce there earnings, you often hear people say "the banks are crooks" or the banks made X amount of profit this quarter.
      Most people like to focus on the negative with the bank profits, but I like to focus on  how to benefit from these profits.  As an investor, these record profits are an opportunity.  The Canadian banks have been paying dividends for over 100 years.  The banks end up sharing these profits with investors in the form of rising dividends.  I currently only shares in 4 of these banks are and gladly will accept the dividends that are paid out to me.
       I can sleep well at night as I am comfortable knowing the banks in Canada are well run and follow strict rules .

 Disclosure: own shares in RY, TD, BNS, BMO and long all these stocks.

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 - Dec 2015

      The month of December 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 is currently around $33.00 a barrel.  Tensions appear to be brewing between Saudi Arabia and Iran.  This might cause the price of a barrel of crude oil to go down even further in the near future. 

        The low oil prices continue to have an effect on the economy in Western Canada.  Layoffs continue to happen in the energy sector and lots of office space becoming vacant in Calgary.  Calgary is a city in Alberta, that is corporate headquarters for a lot of companies in the energy sector.  People from all over Canada work in the oil field due to the types of shifts available.  Workers fly back and forth to work in the oil patch. 

      One this for sure, is that I was paid dividends and distributions for being a shareholder or unit holder in  various companies or funds.

 Non-registered Account

• Canadian National Railway (CNR) - $11.88
• Enbridge (ENB)  - $5.71
• Enerplus (ERF)  -$ 16.29
• Killam Properties (KMP)  - $5.75
• Shaw Communications (SJR.B)    - $19.75

TFSA

• Boston Pizza  Royalties Fund (BPF.UN)   - $25.34
• Cominar REIT (CUF.UN ) - $10.78 
• Dream Office REIT   (D.UN)  - $ 25.57
•  Enbridge (ENB)  - $15.35
• Killam Properties (KMP) - $  14.95 

Total = $151.37

        This total represents a 36.8 % decrease from 3 months ago and 42.5% decrease  year over year.  I use to own Just Energy, but has been sold in the past couple of months.  Enerplus has reduced their dividend.  These 2 reasons have resulted in the large decrease in the dividend income.

      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 $1659.47 in distributions so far on this trade.

     Killiam Properties has changed their corporate structure from a corporation to a REIT after January 1.  I will update my investing tab spreadsheet with the ticker symbol KMP.UN.
   
      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.

How was your dividend income for December?

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.

Recent Sale

    I recently wrote about buying an energy company inside my TFSA, which you can read about here.  The company has fallen on hard times due to the low price of a barrel of crude oil for the past year.  With the price of the stock low I decide to try to profit a small amount.  Enerplus pays a monthly dividend, but I bought on the ex-dividend date. So I will not be receiving the dividend near the middle of January inside my TFSA.
   
    On January 4th, I sold the stock for a small profit. The sell price was $5.02 per share, which was filled when the stock price reached my limit price.

Summary:

ACB = $760.71
Sell Price = $5.02 per share
# of shares= 160
Proceeds of sale including commissions = $798.04

Profit = $798.04-$760.71
          =  $37.33

Return = $37.33/$760.71
            = 4.91%

Disclosure: Long ERF (in margin account)

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 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

Portfolio Update - December 2015

    This was a slow month for me in terms of activity on the blog.  On Dec 24, I wrote about a new covered call in Restaurant Brands International (TICKER SYMBOL QSR).  My last covered call expired worthless so I decided to write another covered call to collect more option premium. Also during the month, a wrote a covered call in TD with a $56.00 strike price. It was difficult to find premium to write this call.  It would of been a lot easier if Interactive Brokers was my broker. If this TD call option gets assigned then my proceeds of sale with be slightly less than $5600.  I wrote a covered call a long time ago in this position that expired worthless.

    On Dec 31, I wrote about recent buy in Bank of Nova Scotia (BNS) in my margin account.  The stock is currently trading near a 52 week low and a yield of near 5%.  BNS is one of the big 5 banks in Canada, which are often regarded as the best banks in the world.  I also own BNS directly with the transfer agent and participate in a full drip.

    On January 1, I wrote about a recent buy in my tax free savings account.  Enerplus is an energy producer that is feeling the pain of low oil and natural gas prices.  They have operations in Canada and the United States.  I also own shares of ERF inside my margin account.

        As of  Jan 2  2016, the value of my portfolio stands at $78,267.63. This is an decrease of  3.18% over last month. I will update my investing account tab above.

Disclosure: Long  QSR, BNS, ERF, ENB, D.UN,KMP

EDIT  (Jan 3 2015) :    I acquired more shares through DRIPs in 4 different companies and purchased more shares in one of these specific companies.
             
              3 shares of Enerplus @$4.68 for a total of $14.04
              1 unit of Dream REIT @ $17.12 for a total of $17.12
              1 share of Killiam Properties @ $10.44 for  a total $10.44
              0.122 shares of Enbridge @ $46.84 for a total of $5.71 

I also purchased 2.929 shares of Enbridge at a cost of $47.80 per share directly through the transfer agent. This was for a total cost of $140.00 as there are zero commissions.  The out of pocket expense is basically the cost of a stamp to mail the check.

             
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 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

Recent Buy

            The oil and gas sector continues to feel the pinch as the price of a barrel of crude oil is below $40 a barrel currently.  Enerplus is a stock that I have held for a while.  They are a energy producer that has assets in Western Canada and the United States.   Enerplus is not immune to low oil prices, which has affected their bottom line and the price of their stock.

 Established in 1986, Enerplus is a North American energy producer with a portfolio of high-quality oil and gas assets in resource plays that offer significant organic growth potential. We are focused on creating value for our investors through the successful development of our properties and a monthly dividend to our shareholders. We are a responsible developer of resources that strives to provide investors with a competitive return comprised of both growth and income.(Source: www.enerplus.com)

     On Dec 29, I purchased 160 shares of ERF at $4.72 a share inside my TFSA.  I do not plan on holding this position, inside my TFSA, for a long duration of time.   

Click to Enlarge

     Enerplus currently pays a monthly dividend of  $0.03 per share. Therefore, my yield on cost is 7.57%.  So I will gladly accept this yield while waiting for the price of the stock to go up.


 I will update my investing tab spreadsheet in a few days to reflect this addition:

Disclosure: Long ERF inside my margin account

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.