Tuesday, October 3, 2017

Recent Dividend Increase

    As I go about my daily life, I am amazed at people who through money away.  I have worked with so many people, who can not wait to get their paycheck.  They have plans before they even get the money.  These types of people are broke within a couple days of receiving their pay check.  These type of people complain about power bills saying the power company is robbing us blind.  I often hear things like "Those greedy bastards make millions of dollars in profits this quarter".   I usually say things like, "Instead of complaining about their profits, "Why don't you invest in the power company to get a piece of their profits?"
 
   I like many others, like to make money while I sleep.  I own shares in a utility company called Emera Inc., whose ticker symbol is EMA.  Emera trades on the Toronto Stock Exchange.  Every time someone in Nova Scotia flicks on a light switch, Emera makes money. Emera has operations in other provinces,  the United States, and some other countries.

Conclusion:

      The board of directors of EMA recently announced a dividend increase of $0.17 annually.
The dividend is increasing from $2.09 per share per year to $2.26 per year.  This represents an increase of 8.13%.   This increase is well above an increase in inflation.

       I own 100 shares of EMA and therefore my annual dividend income will increase by $17.00.  This is equivalent of my investing $485.71 of my own money.

       I have owned EMA for a few years now and have been rewarded with multiple dividend increases over years.

Disclosure:  Long EMA

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 Income Update: September 2017




      The month of September 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.

       
 Non-registered Account

  • Cineplex  (CGX) - $14.00
  • Enbridge (ENB) - $9.97
  • Enerplus (ERF)  -$ 5.58
  • Dream Office REIT   (D.UN)  - $52.58
  • High Liner Foods (HLF) - $14.00
  • Shaw Communications (SJR.B)    - $19.75

    TFSA
    • A&W Royalties Income Fund (AW.UN) - $5.05
    • Boston Pizza Royalties Income Fund   (BPF.UN) - $26.91
    • Canadian National Railway (CNR) - $15.68
    • Enbridge (ENB) - $20.13
    • iShares 1-5 yr Laddered Canadian Corporate Bond ETF (CBO) - $0.59
    • Cominar REIT (CUF.UN) - $16.72
    • Dream Office REIT   (D.UN)  - $14.00
    • Horizons Natural Gas Yield ETF (HNY)  - $5.03
    • Killam Properties REIT (KMP.UN) - $  15.60


    Total = $235.59
        
        I had a big position in D.UN that I did not account for until last September. As a result of this large position being added to the dividend income total, I did not do a year over year comparison for the previous 12 months.

        I received a total of $235.59 in dividend income for the month of September 2017.  This represents a 8.39% decrease from 3 months ago and 0.51% increase year over year.  The small increase year over year is a result of distribution cuts to D.UN and CUF.UN and offset increase unit numbers from these positions and some other transactions.

        I received $57.10 from option premiums in September 2017.

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

    How was your dividend income for September?

    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.






    Monday, October 2, 2017

    Portfolio Update: September 2017

      The month of September 2017 is now behind us.  Like any month, there is lots of news.  We have the ongoing battle with the price of a barrel of crude oil.  The price of oil effects the amount of jobs in the oil and gas industry.  It is often said that one rig creates 135 jobs directly and indirectly.

       Currently the United Conservative Party of Alberta is in the midst of a leadership race.  The Rachel Notley led NDP government has raised the minimum wage from $12.20 to $13.60 an hour on October 1.  I have noticed that a lot of places have already raised their prices to offset the minimum wage. Some analysts think that the increases to minimum wage in Alberta and Ontario at the drastic amounts will lead to lots of layoffs.

       I sold out of my position in TD.TO.  My average price was around $69.62, so I sold my 100 shares at $70.18.  The stock has risen some since then but I believe the stock will fall  below $70.00 again.  If my average price was lower,  I would not of sold my position.  Unfortunately, you or I cannot predict the right side of the chart.  Recently, the Trump administration wants to reduce taxes for Americans and American businesses.  TD has a lot of branches in the United States, so this news on potential tax cuts could be putting upward pressure on the stock.  I will invest in TD Bank again if the stock falls below the price I am willing to buy.

       We often hear that lots of people do not get enough seafood in their diets. People are often stretched for times these days as lives seem to be always busier.  People often end up going to a restaurant they cannot afford or going to get fast food.  An alternative to this is to buy frozen stuff and cook at home.  High Liner Foods (ticker symbol HLF.TO ) is one such company that is in this space.  High Liner Foods is a market leader in the frozen fish market which has products for residential consumers and business customers.  High Liner Foods is also a supplier to McDonald's Restaurants.  I purchased 100 shares of High Liner Foods at $13.45 per share foe a total cost of $1349.95 including commissions.  I now own 200 shares of High Liner Foods..

        Another way of making money in the markets is to sell option premiums.  I sold one put option contract in RY.TO  with a October 20 2017 expiration day for a total premium of $21.05 including commissions.  The stock was trading higher, so I wrote a covered call for RY.TO with an October 20 2017 expiration date for total premium of $36.05 including commissions.  Therefore, I collected $57.10 in option premiums for this stock. The covered call is currently way in the money.

         Last September, I started to included my position in Dream Office REIT (ticker symbol D.UN) in my margin account. I also have a position in D.UN inside my TFSA.  So starting this month when I post about my dividend income, I will do a year over year comparison on top of the three month comparison.

    As of  Sept 1,  the value of the portfolio is $106918.63 $104445.31 This is a 2.37% increase over last month's total.  The spreadsheet in the investment tab above has been updated.


    Disclosure:  Long D.UN, RY.TO

    Please Note:  All stocks are from the Toronto Stock Exchange except TTR which trades on the Venture Exchange.
    .

    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.





    Thursday, September 21, 2017

    Recent Purchase

          As investor, our goal is invest in companies that are undervalued. Similarly, we prefer to buy things such as groceries, clothes, vehicles etc. when they are on sale.  But investors often struggle to pull the trigger when a stock he or she has been following falls in value.  This might be due the fear of being wrong  and possibly the stock falling even more in price.

        High Liner Foods (ticker symbol HLF.TO) trades on the Toronto Stock Exchange.  HLF.TO is a market leader in the frozen fish market.  Their products are available in grocery stores and restaurants in both Canada and the United States.  High Liner Foods is a supplier of fish products to McDonald's Restaurants.

        I initiated a position in HLF.TO when the stock was trading near $20 per share.   After this purchase the stock fell in value.  I then added to my position, which you can about here.  

         The stock has come under pressure due to a major recall.  Products were recalled due to a milk allergen that was not listed on the label. This recall involved products that were sold in Canada only. Nonetheless, this recall cost approximately $9 million dollars and will affect the earnings going forward.  Obviously, this will have a large negative effect on earnings.

         The last couple of days, including today, the stock hit a new 52 week low.  This provided a yield of over 4%, which is larger than the stock's own 5 year average.  Today, I decided to act and add to my position.  Warren Buffet says, "We tend by be greedy when others are fearful, and be fearful when others are greedy.

    Conclusion:

        On Sept 21, my limit order of 100 shares at $13.45 was filled.  The fill price was exactly $13.45.  This was a 52 week low until shortly after the stock fell to $13.37 before rebounding.

           This purchase adds $56.00 to my annual dividend income based of the annual dividend rate of $0.56 per share.  I now own 200 shares of HLF.TO.

          I believe the recall is mostly factored into the current price of the stock. I believe the stock will stay below $15.00 for the remainder of the calendar year.

    Disclosure: Long HLF.TO

    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.


    Sunday, September 3, 2017

    Dividend Income Update - August 2017




          The month of August 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 barrel of crude oil continues to channel between $45 to $50 per barrel of WTI crude oil.  In Canada, most of the oil and gas is located in Alberta.  During the month of August, Alberta's finance minister informed the country that they are reducing the budget expectations for the price of oil.  Initially, the Alberta Finance Minister was basing his budget on $55.00 per barrel of crude oil.  Their basing their predicting on $49.00 per barrel of crude oil.  So, we will see if they change anything going forward.

            During the month of August, Alberta officially came out of their 3 plus year recession. It is believed the growth is going to be slow going forward.  Alberta is also dealing with the increase in minimum wage going up to $13.60 on October 1 from $12.20.

            Going forward, Cominar REIT will be paying a smaller distribution.  August was the first month of receiving a reduced distribution from Dream Office REIT

            During the last month or so, companies have reported their earnings.  Bank of Nova Scotia, Royal Bank and Canadian Imperial Bank of Commerce have raised their dividends in August.  The Bank of Montreal did not raise their dividend.  TD Bank, unlike the other big banks in Canada, raises its dividend annually instead of twice a year.
          
           One thing for sure, is that I was paid dividends and distributions for being a shareholder or unit holder in  various companies or funds. In  Sept 2016, the Dream Office REIT in the margin account will be counted as dividend income  for the first time.

     Non-registered Account

    • Bank of Montreal (BMO) - $31.50
    • Enerplus (ERF)  -$ 5.58
    • Emera (EMA) - $52.25
    • Dream Office REIT   (D.UN)  - $52.58
    • Shaw Communications (SJR.B)    - $19.75
    • TD Bank (TD) - $60.00

      TFSA
      • A&W Royalties Income Fund (AW.UN) - $5.05
      • Boston Pizza Royalties Income Fund   (BPF.UN) - $26.91
      • iShares 1-5 yr Laddered Canadian Corporate Bond ETF (CBO) - $0.59
      • Cominar REIT (CUF.UN) - $21.56
      • Dream Office REIT   (D.UN)  - $14.00
      • Horizons Natural Gas Yield ETF (HNY)  - $4.57
      • Killam Properties REIT (KMP.UN) - $  15.60


      Total = $309.94
          
          As the amount of distribution from D.UN inside my margin account, will have a large impact on the comparison of dividend income from 12 months ago. This dividend income total of $309.94 represents an decrease of 8.07% from 3 months ago.

            Recently, I wrote about purchasing more units of D.UN inside a margin account.  Starting in September, the distribution from this D.UN inside the margin account will be included in my dividend income. It was now been a year since including the D.UN distributions within my margin account in my dividend income reports. So the next dividend income report will have the year of year comparison also.

          I received $0.00 from option premiums in August 2017.

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

      How was your dividend income for August?

      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.





      Friday, September 1, 2017

      Portfolio Update - Aug 2017

              The month of August 2017 is now behind us. Canada's economic engine, the province of Alberta, has officially came out of the recession it was in for the last 3 years.  Although the Alberta recession is officially over, it is going to be a very long and slow grind back to anything near the glory days.  The Alberta government has said prior to the recession being over that they are changing there number of a barrel of oil they are basing their budget on going forward.  Alberta NDP changed there number of $55 per barrel of crude oil to $49 per barrel. Alberta does not have a sales tax and gets a lot of revenue for oil and gas royalties.

            I had no option trades for the month of August.

            Cineplex Inc. (CGX.TO) recently released its quarterly earnings.  The stock fell after the earnings by a large amount.  The stock fell over $15 over the next couple of weeks, before rebounding to $38.13 as of the time of this writing.  Of course, none of us can time the market and I purchased 100 shares at $43.85.  Currently, CGX.TO pays an annual dividend of $1.68, so this purchase adds $168.00 to my annual dividend income.

            I purchased 100 shares of Royal Bank of Canada (RY.TO) at $93.55.  After the purchase, RY.TO released their earnings.  RY.TO announced a dividend increase from $3.48 to $3.64 annually, which represents a 4.60%.  Royal Bank of Canada has raised their dividends twice of year for the past several years.  This purchase adds $364.00 to my annual dividend income.

           I added to my Horizon's Natural Gas Yield ETF (HNY.TO) inside my TFSA.  I purchased 2 units at $12.19 per unit.

          On September 1, Enbridge paid a dividend. I am currently dripping these shares directly with the transfer agent.  I also sent a check earlier in the month which means the shares are purchased the same day as the dividend payment date.  I purchased 2.505 shares at $49.90 for a total cost of $125.00.  The reason this price is higher than the DRIP price indicated below is the Enbridge offers a 2% discount of shares purchased with reinvested dividends.

      Shares Acquired Through DRIP


      0.204 shares of ENB.TO @ $48.90 for a total cost of $9.97 (Transfer Agent)           

      I recently wrote about Dream Office REIT after they made an announcement. They are once again, cutting their annual distribution by around 33% starting with July's distribution which will be paid on August 15.  There annual distribution will be cut from $1.50 per unit to $1.00.  So, my annual dividend income will be cut by approximately $400.00.

      As of  Sept 1,  the value of the portfolio is $104445.31 This is a 1.142%  increase over last month's total.  The spreadsheet in the investment tab above has been updated.


      Disclosure:  Long D.UN, ENB.TO,HNY.TO, CGX.TO, RY.TO

      Please Note:  All stocks are from the Toronto Stock Exchange except TTR which trades on the Venture Exchange.
      .

      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.




      Wednesday, August 23, 2017

      A Safe Investment in Canada?

              In Canada, we have very limited in terms of good companies to buy.  Unlike the NYSE or Nasdaq, the markets in Canada are mostly mining, energy, and financials.  Canada does not have investments like Coca-Cola, Pepsi, Johnson & Johnson, Clorox, Proctor & Gamble.  Canada has Cott Corporation, listed on the TSX and the NYSE, for beverage companies.  Cott's soda beverages are no where as tasting as a Coke Product or Pepsi product.

             Unless you have been hiding under a rock, the big 5 Canadian banks are known as some of the best banks in the entire world.  These big 5 banks are Royal Bank of Canada (RY),  Bank of Nova Scotia (BNS), Toronto Dominion Bank (TD), Canadian Imperial Bank of Commerce (CM), and Bank of Montreal (BMO).  The Bank Act means no individual can own more than 10% of any bank.

             I currently own shares in all 5 banks as they have been paying out dividends as follows:
      • Royal Bank of Canada (RY) - started in 1870
      • Toronto Dominion Bank (TD) - started in 1857
      • Bank of Nova Scotia (BNS) - started in 1832
      • Bank of Montreal (BMO) - started in 1829
      • Canadian Imperial Bank of Commerce (CM) - started in 1868 
             All 5 of these banks trade on the Toronto Stock Exchange and the New York Stock Exchange. How profitable are these banks?  I often hear people say something along the lines of one of these banks made over $2 billion in profit last quarter.  I usually just shake my head as it is evident these type of people are not investors in these stocks and likely have no stock market investments.

              Prior to the opening bell on August 23,   Royal Bank of Canada announced a dividend increase from  $3.48 to $3.64 annually.  This represents an increase of 4.6%, which is above the rate of inflation.  The big banks have been raising dividends twice a year for the past several years, except TD Bank raises their dividend annually.  On average the banks dividend raises average average over 6% annually.  I currently own 100 shares of RY.TO, so this dividend increase raises my annual dividend income by $16.00.

            Some other stocks that are in a lot of Canadian portfolios are CP Rail, CN Railway, and Enbridge Inc. The dividend yield for CP Rail and CN Railway is usually under 2%.  The railroads are great investments to own for a long time because the barriers of entry are so high.  Transportation by rail is more environmentally friendly than transporting by truck.

      Do you own any shares in any of these companies?

      Disclosure:  Long BNS.TO, CM.TO, RY.TO, BMO.TO, TD.TO, CNR.TO and ENB.TO

      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.


           

      Monday, August 7, 2017

      Recent Purchase

            As we go about our lives day by day, we must look for opportunities that can be of benefit to us.  These opportunities can come in from different areas such as a new career, new business idea, new investment etc.  In some cases the opportunity may be there in front us, but we are totally blind to the opportunity.  In a lot cases, the individual must be in a position to take advantage of the opportunity.

            For investors, we are on the lookout for opportunities as this is the peak of earning season for publicly listed companies.  Some companies report before the opening bell, while others report during the trading session or after the market closes on a giving day. These date and time of these earning releases is known in advance as a company must announce on a prior date, the exact time and date they are going to release earnings and a possible conference call to discuss the results.

           Cineplex Inc. (CGX.TO) released its earnings on August 2.  The quarter was a lackluster one and investors sold off there shares.  The share price had fallen to $41.50 before rebounding.  Some of the highlights are as follows:
      • Earned $1.4 million (or $0.02 per share) in the last quarter, down from $7.2 million (or $0.12 per share) a year earlier
      • Revenue of $364.1 million, up from $338.0 million for the same period last year
      • Amusement Revenue was $45.7 million, compared to $24.6 million a year ago
      • Media revenue was $36.6 million for the quarter, compared to $40.2 million in the same quarter from last year.
      • Attendance was approximately 16.5 million, slightly down from 16.9 million from a year ago.
      • Food Service revenue was $101.4 million, compared to $96.8 million for the same quarter a year ago
      • Box Office revenue per customer was $10.86, compared to $9.89 a year ago
      • Concessions revenue per customer was $6.03, compared to $5.74 for the same quarter last year
      Cineplex is mostly a theatre company, but the company is diversifying its business in other areas of entertainment.  These new venues are Rec Rooms complexes, which include eateries, live entertainment, and games. The have launched Rec Rooms in some locations already, and plan to expand across Canada.

      A couple of weeks ago, CGX.TO announced an exclusive partnership with Topgolf Entertainment complexes, which combine a driving range with other entertainment options over the next several years.

      Conclusion:

              The company has missed lower earnings for the past 5 quarters.  The struggling economy in Alberta for the last 3 years  has hurt their earnings.  When the economy of Alberta struggles, the rest of the country feels it. Some people avoid going to the movies due to the cost. These costs consists of the price of a ticket plus the price of concessions. The price of a ticket can be reduced depending on the day and time of the week an individual goes to watch a movie.

      Click to Enlarge

        CGX.TO is down 17.08 % over the last month. I do believe people are not going to stop going to the movies.  I do believe movie goers , will not spend as much on concessions with the possibility of a recession around the corner.

         On August 4, I purchased a 100 shares of CGX.TO at $43.85 per share for a total cost of $4389.95 including commissions. 

      Click to Enlarge

        Currently $CGX.TO pays an annual dividend of $1.68 per share per  year.  This purchase adds $168 to my annual dividend income.

         I will sell covered calls against this position in the future.  I will update my investment tab spreadsheet in early September to reflect this new purchase.

      Disclosure:  Long CGX.TO
      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.

      Saturday, August 5, 2017

      Is The Dividend or Distrubition Safe?

           As an investor I am like most people, I want to get paid via a dividend or distribution.  Any investor loves dividend increases.

           Every time a company makes an announcement regarding their dividend or distribution, the result can be one of four things:  dividend or distribution can be increased, decreased, ssuspended, or remain the same.

           I recently wrote about a REIT that I owned has lowered its annual distribution.  Since writing that post, I received another distribution payment and increased the number of units via drip.  Going forward the drip will be turned off.  Dream Office REIT (D.UN.TO) reduced its annual distribution rate from $1.50 to $1.00 effective with the July 2017 distribution and corresponding August 15th. I currently own 631 units in my margin account and 168 units in my TFSA.  That means my annual dividend/distribution income will be reduced by $399.50.

            Another REIT that I owned, Cominar REIT (CUF.UN.TO) just released earnings in the past week. They also announced  a distribution cut from  $1.47 per unit per year to $1.14 per unit per year. This reduction will start with the August distribution to be paid out September 15th. I currently own 176 units in my TFSA.  This reduction will reduce my annual dividend / distribution by another $58.08

            Besides holding CUF.UN.TO inside my TFSA account,  I hold CUF.UN.TO in small savings account.  The interest rate for high interest rate savings account are so low that it is actually laughable.  So I started a small experiment with a few positions. These 2 positions are 26 units of HNY.TO and 152 units of CUF.UN.TO.  Horizon's Natural Gas Yield ETF has ticker symbol HNY.TO.  So for this savings account, my annual distribution is reduced by $50.16My adjusted cost base of CUF.UN.TO is $14.25 per unit.

           This distribution cuts are proof it is best to diversify. A reasonable portfolio should be around 15 to 20 positions with their weights more equal to each other. When there is a cut to a major holding and not many positions, you will feel it more as a greater percentage of your income is lost. 

      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.

      Wednesday, August 2, 2017

      Dividend Income Update - July 2017




            The month of July 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 barrel of crude oil continues to channel between $45 to $50 per barrel of WTI crude oil.

              Emera Inc. reported its earnings and there was no dividend increase announced.  This payment on Aug 15th will be the 5 quarter of a quarterly dividend of $0.5225 per share. Emera Inc. (EMA.TO) is a utilities company involved with the transportation and distribution of energy.  Emera Inc. is a partner in the controversial Muskat Falls project. The Muskrat Falls project is a Hydro Electric Project the will create electricity from the falls to supply Newfoundland and Nova Scotia. The electricity will come to Nova Scotia via a subsea cable and land on the Eastern shore of Nova Scotia. This project is currently over budget.
      .

            One thing for sure, is that I was paid dividends and distributions for being a shareholder or unit holder in  various companies or funds. In  Sept 2016, the Dream Office REIT in the margin account will be counted as dividend income  for the first time.

       Non-registered Account

      • Bell Canada Enterprises (BCE) - $71.75
      • Bank Of Nova Scotia (BNS) - $15.20
      • Canadian Imperial Bank of Commerce (CM) - $35.56
      • Enerplus (ERF)  -$ 5.58
      • Dream Office REIT   (D.UN)  - $78.50
      • Roger's Communications Class B (RCI.B) - $96.00
      • Shaw Communications (SJR.B)    - $19.75
      • Bank Of Nova Scotia (BNS) - $25.21  (Transfer Agent) 

        TFSA
        • A&W Royalties Income Fund (AW.UN) - $5.05
        • Boston Pizza Royalties Income Fund   (BPF.UN) - $26.91
        • iShares 1-5 yr Laddered Canadian Corporate Bond ETF (CBO) - $0.62
        • Cominar REIT (CUF.UN) - $21.44
        • Dream Office REIT   (D.UN)  - $ 20.88
        • Horizons Natural Gas Yield ETF (HNY)  - $5.83
        • Killam Properties REIT (KMP.UN) - $  15.60
        • TFI International (TFII) - $9.50


        Total = $453.38
            
            As the amount of distribution from D.UN inside my margin account, will have a large impact on the comparison of dividend income from 12 months ago. This dividend income total of $453.38 represents an increase of 1.455% from 3 months ago.

             Dream REIT has reduced the amount of distribution they pay monthly which was announced in February 2016.  Dream Office REIT again reduced their annual distribution again and will take effect with the July 2017 distribution to be paid on August 15.  Recently, I wrote about purchasing more units of D.UN inside a margin account.  Starting in September, the distribution from this D.UN inside the margin account will be included in my dividend income.

            I received $68.05 in option premiums for July  2017.

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

        How was your dividend income for July?

        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.




        Portfolio Update - July 2017

                The month of July 2017 is now behind us.  We have seen the markets hits new all time highs a few times, usually the results of strong earnings from selective companies.

             We have seen strengthening of the Canadian dollar, equivalent of a decrease in the US dollar.  The price of a barrel of crude oil continues to channel for the most part between $45 and $50.  As a result of the low oil prices, the province of Alberta continues to struggle with its finances and it's overall economy.  Alberta is the only province in Canada that does not have a sales tax, as the GST of 5% is a federal tax. Alberta government receives royalties from the oil and gas activity, which greatly affects the government's revenue.

             As earnings are reported on a daily basis in the short term, is going to affect the markets positively or negative.


        Shares Acquired Through DRIP


        3 Unit of D.UN.TO @ $19.84574 for a total cost of $59.54 (Margin Account)

        1 units  of CUF.UN @ $13.12431 for a total cost of $13.12 (TFSA)

        1 unit of D.UN @ $19.84574 for a total cost of $19.85 (TFSA)

        0.324878 shares of BNS.TO @ $77.5984 for a total cost of $25.21 (Transfer Agent)           

            I have turned off all DRIPs in my margin and TFSA accounts. They only drips turned on will be for BNS.TO and ENB.TO directly with the transfer agent.  These 2 positions are shown in the investment tab spread sheet with the color orange.

        I recently wrote about Dream Office REIT after they made an announcement. They are once again, cutting their annual distribution by around 33% starting with July's distribution which will be paid on August 15.  There annual distribution will be cut from $1.50 per unit to $1.00.  So, my annual dividend income will be cut by approximately $400.00.


        As of August 1,  the value of the portfolio is $104451.57. This is a 1.148%  increase over last month's total.  The spreadsheet in the investment tab above has been updated.

        Note:  I do  have 2 short put option contracts currently in my portfolio as of Aug 1.

        Disclosure:  Long D.UN, ENB.TO, CUF.UN, BNS.TO

        Please Note:  All stocks are from the Toronto Stock Exchange except TTR which trades on the Venture Exchange.
        .

        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.



        Sunday, July 30, 2017

        Benefits Of The Rate Hike For Investors

                The FED and the Bank of Canada have recently raised their interest rate by 25 bps each.  What does that mean?  It meant the cost of borrow money will increase and payments on variable rate mortgages and lines of credit will be increased immediately. Consumers and businesses will have their expenses increases due to the cost of borrowing increasing.  Shortly after the Bank of Canada raising their rate by 25bps, the big 5 banks in Canada followed suit within 24 hours.

                 A way for banks to make money is too have savings accounts.  The bank then takes the money savers deposit and lend it out at a higher interest than they pay the saver.  The bank "promises" the saver that for the use of the saver's money, they will be paid interest.

                 A lot of banks have not raised their rates on the savings accounts along the rates on their lines of credit, loans and mortgages.  So that means the bank will make more money. Therefore the shareholders of the banks will likely be rewarded with increased profits and therefore possible larger dividend increases than the banks have recently done.

        Conclusion

             I am a shareholder in 4 of the 5 big banks.  Currently, the only bank stock I do not own is Royal Bank.  So, if North America does no go into recession in the near future then the banks will do well.  I always hear people complain how profitable the banks are each quarter.  My response to them if they are talking directly to me is "With them being so profitable, do you own any shares in any of them?".  I will often get a snarl or " I am too poor to invest!!" response.

             There are ways to invest with very little money.  A person can buy stocks the old way directly through the transfer agent.  How this works, at least in Canada, is that you go to a website like www.dripprimer.ca and try to buy a share of a company.  I will talk about the way I have done through this site.  I posted a message on the share board looking for a share of Enbridge (ENB) and BNS.  Eventually, some will respond and agree to sell you a share.  You then send the person a check with that amount agreed upon. In return, you will get an actual share certificate with your name and I believe your new account number will show up.  The transfer agent sends you the share certificate and not the individual.  The seller as to follow steps outlined by the transfer agent to make their transaction to go smoothly. Once the share certificate is received the buyer can make purchases directly with the transfer agent for that particular stock operating within the guidelines outlined in the company's DRIP program.  Most of the times, investing this way you get to purchase shares at a discount with reinvested dividends.  The downside you do not know the price of shares when you make purchases of additional shares directly with a check or a debit from your bank account.  When buying stocks this way, you directly own the shares in your name.  When you purchase the shares in a brokerage account, you do not own the shares directly but are given all the rights of shareholder ownership  such has voting, dividends, distributions, buyouts, and interest.

            In United States, Capital One (formerly Sharebuilder) allows you purchase fractional shares and the entire dividend gets reinvested. I believe if you put in the order Monday night, to invest X amount of dollars into "ABC", then the shares are purchased the following day.  With Capital One, you can also buy shares like any other brokerage and pay a commission of around $7.00.  Also, with Capital One, you can turn the drip on or off with a click of the mouse.  Most brokerages you have to call or e-mail the brokerage to tell them to turn the drip on or off for each stock in the account.

        Friday, July 21, 2017

        Turning Off The Taps A Bit

        Over the past couple of years I have had DRIPs turned on for a few positions. I haved DRIPped shares and units of Boston Pizza Royalties Income Fund (BPF.UN), Cominar REIT (CUF.UN), Dream Office REIT (D.UN), Killam Properties REIT (KMP.UN), Enbridge (ENB.TO) and Bank of Nova Scotia (BNS.TO). Some of these positions are through the brokerage while others are directly with the transfer agent. The latter is the basically the "old" way of buying stocks where you get actual stock certificate. The downside of the "old" way of purchase stocks is that you do not have control over the purchase price or sell price as you just send in a check and the shares or units are purchased on a certain date. Also the purchase prices could be averages of the last few days or some other criteria that would be often spelled out in the documentation.

        Recently, I have had DRIPs turned on the Enerplus Corporation (ERF.TO), D.UN, CUF.UN, BNS.TO, and ENB.TO. The DRIPs for BNS.TO and ENB.TO are directly with the transfer agent and these positions are in the investment tab spreadsheet and have partial shares. Some brokerages off partial shares, but they are few and far between.

        I have turned off my DRIPs for D.UN, CUF.UN, and ERF.TO. The dividend payout for ERF.TO is no where close to being able to purchase 1 whole. D.UN was dripped in both my TFSA and margin accounts. I have turned off the DRIPs due to my current financial situation. I would prefer to keep the DRIPs on for both D.UN and CUF.UN as these positions are trading above my average cost basis per share.

        I am keeping the DRIPs on for ENB and BNS with the transfer agents. For disclosure, I also have positions in ENB in my TFSA and BNS in my margin account.

        The benefits of DRIPs, is that it is a way to acquire more assets for doing basically nothing. Also, a lot of DRIPs have discounts on the shares purchased with re-invested dividends. Does this apply to DRIPs by brokerages? Some brokerages pass the discounts along while others do not. My brokerage, Questrade, does not pass the discount along.

        There is also some posts on DRIPs in my DRIP tab above.

        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.




        Friday, July 14, 2017

        What Happened to Big Banks After The Rate Hike?

                 I recently wrote about the recent rate hike by the Bank of Canada.  On July 12th, the Bank of Canada announced that they are increasing the interest rate from 0.75% to 1.00%.

                Shortly afterword the rate hike, the big banks raised their rates.  Royal Bank of Canada even raised the rate prior to the rate hike on their 1,3, and 5 year terms by 0.20%.

                The chart below compares how the big banks on the Toronto Stock Exchange have done this week.  The announcement was 10am Eastern Standard Time on Wednesday.  As we can see from the chart, the Canadian Imperial Bank of Commerce was the leader over the last week.

        Click to Enlarge



                 As you can see, the investors and trades liked the rate increase.  Royal Bank (RY.TO) went up the morning of the rate increase but dropped  back down.  As state above, RY raised their 1,3, and 5 year term rates by 0.20% prior to the rate hike, and the rate hike was likely factored in. When people go get a mortgage or renew their fixed rate mortgage will have higher payments.

             After the rate hike, Royal Bank was the first to raised there prime rate from 2.70% to 2.95%.  The other 4 big banks followed suit.  The increase in the prime rate affects loans, variable rate mortgages and line of credit. Anybody with variable rate loans, lines of credits, and variable rate mortgages will see an immediate increase in their payments due to higher interest rates.

              Why is the rate hike good for the banks?  The rate hike means more profits for the big 5 banks. The big 5 banks do not immediately increase the rates on their savings accounts, therefore the spread of interest paid to savers and the interest the banks received from payments of individuals or companies is larger.

               The banks offer very low interest rates on their respective savings accounts.  This makes savers to look elsewhere for yield, and they usually turn to the stock market for dividends and interest. This is why the stock market is trading near all time highs as their is more buyers than sellers for majority of blue chip stocks.

               Currently I own shares in 4 of the big 5 banks. I do not own RY.TO as of this date.  The big 5 banks in Canada are known around the world to be some of the best run banks in the  world.

              How do you like the rate hike by the Bank of Canada?

        Disclosure: Long TD.TO, BNS.TO, CM.TO, BMO.TO

        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.



        Thursday, July 13, 2017

        Bank of Canada Announcement

                 I recently wrote on the possible rate increase by the Bank of Canada.  This made the markets relatively quiet.  Although investors and analysts were factoring in a rate increase, there is always the possibility of a rate remaining unchanged.  Some analysts and people in the higher ups on the corporate ladder in the big 5 banks said it is not a good time to raise rates.  This is largely due to the economy in Alberta being in the gutter and the housing prices in Vancouver and Toronto.

                Although housing remain expensive in Fort McMurray and Calgary, the economies of these 2 Alberta cities is struggling.  There has hint of optimism in the air in Calgary in recent months.  The Alberta government based their budget on the price of a barrel of crude oil averaging $55 per barrel. Well, three and a half months into Alberta's fiscal year, an oil is currently trading around $46.00. The price of oil has not come close to $55 per barrel.  The price of oil actually dipped below $43.00 per barrel a few months ago.  Some analysts are predicting oil to go to $80 dollars a barrel while others believe oil will trade between $45 and $55 per barrel for the foreseeable future.

               At 10am eastern standard time on July 12, the Bank of Canada governor raised the interest rate from 0.50% to 0.75%, which is a 25 basis point increase.  This is on the heels of the Fed raising the rate in the United States recently.  Did the governor of the Bank of Canada raise the rate because the FED raised their rate?  Our economies are different.  The economic engine of Canada currently is Alberta.  With Alberta having a carbon tax along with the low oil prices, this is making companies hesitant to drill for oil.

              The increase by the Bank of Canada has lead, to no surprise, the big banks increasing their rates. So borrowing money will be more expensive for mortgages and loans.  I believe this could affect interest rates on line of credits and credit cards in the very near future.

        Conclusion

             I believe the Bank of Canada should not of raise the rate due to the state of our economy.  Although Canada is doing well as a whole, there are provinces struggling with their economies and finances.  We hear every month recently that jobs have been created.  These jobs are often part time jobs though.  People often have to work 2 or 3 jobs to get by nowadays.  Also with part time jobs, their are no benefits which adds a lot of expenses to people who have lots of medical expenses.

            Vancouver and Toronto have home prices that are through the roof.  On the other extreme, we have houses that are super cheap as their are not buyers available.  For Vancouver and Toronto, people are paying over a million dollars on average for a home.  The mortgages will come with high payments.  With the rate increase, when it comes to a new mortgage or renewables, the payments on their mortgages will be higher.  This 25 basis point increase is the first time, the Bank of Canada has raised rates in over 7 years.

           North America, as a whole, as not seen a recession since the financial crisis of 2008-2009.  History has shown that a major recession occurs every 8-10 years.  When recessions do occur, the interest rate by the Bank of Canada and the FED usually decreases by a few percentage points.  See, the FED and Bank of Canada raises the interest rate to slow the economy.  Likewise, the effect of decreasing the interest rate, is to in courage people  to spend money as they have more money available due to lower payments.

           In the past several years, we have seen people buy homes for the first time due to the low rates.  These people might be OK now, but when time comes to renew their mortgages, their payments will be higher.  The term of mortgages are 1, 3, or 5 years.  See, a mortgage could have an amortization of 25 years but a mortgage has to be renewed towards the end of the term.  The United States, unlike Canada, can have an amortization of say 30 years and have a 30 year term mortgage. This is advantageous to US residents who take out mortgages when interest rates are low as they are right now.

           On the flip side, there is no major announcements of the banks raising the interest rate on savings account. The bank that I have my high interest savings account, if you can call it that, has not increased their rates as the time of this writing.  However, prior the interest rate hike by the Bank of Canada, Tangerine is paying an interest rate of 2.97% on new deposits up to a maximum $500000 for a few months.  Currently , the interest rate is 0.80% for Tangerine high interest savings accounts and the Tax Free Savings accounts.

           Some analysts and investors believe we will see another rate increase by the Bank of Canada this year.  This possible future rate increase is believed, by many, is going to happen in December 2017.

        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.



             

        Saturday, July 8, 2017

        Possible Rate Hike Next Week

                 In the years between 2007 to 2009, the world experienced the biggest recession since the Great Depression. This recession is commonly referred to the subprime meltdown or the financial crisis.  As a result of this, the interest rates in the United States and Canada were lowered to below 1% by the Federal Reserve and the Bank of Canada, respectively.

                 With the interest rates so low, it made borrowing money cheaper.  At the same time, savers felt the pinch as they were getting little to no interest on their high interest savings account or GICs.  GICs, equivalent of CDs in the United States, is a guaranteed investment certificate. The low interest rates mean lower mortgages for people who are renewing their mortgages and buying there first house.
           

                These  people who took out mortgages to buy a house might be in for a shock in the future.   When their term of the mortgage is near done, the individuals will have to renew their mortgage for another term.  When this time comes, the interest rates will likely be higher than they currently at this point in time.  This means that they will have higher mortgage payments in the immediate future.

                Recently, the Fed raised the interest rate from on June 15 2017 from 1% to 1.25%.  Previously, they raised it from 0.75% to 1% in March.





               Currently north of the 49th parallel has Bank of Canada interest rate of 0.50%.  Bank of Canada has not raised its rate in over 7 years. The consensus is the Bank of Canada is going to raised the rate to 0.75% this coming week.







               During the last week, Royal Bank has raised their rates on their 1 , 3, and 5 year-term mortgages by 0.20% each.  Has history has shown, usually all the other banks in Canada follow by raising some of their rates.

               Canada has a excellent jobs report during the last week, fuelling the likelihood of them raising their rate for the first time in 7 years.  Although Canada has strong economy, their economic engine is the province of Alberta. Alberta has been hit extremely hard since late 2014 with low oil prices.  Alberta received money from oil and gas royalties, which have been falling due to low oil prices and exploration companies not drilling as much due to the low oil prices. In Canada, the wealthy provinces help out the not so wealthy provinces via transfer payments. The 2 provinces that do this are Alberta and Ontario.  In Alberta, there has been massive layoffs in the oil and gas sector and companies the service the oil and gas sector.  In my case, the latter applies.  My company has since closed their doors in November 2016.

         Conclusion:

             People from all over Canada, work in the oil and gas industry in Alberta.  The oil and gas industry is spread out over British Columbia, Alberta, and Saskatchewan.  Most of the oil and gas in in Alberta.  People fly in and fly out of the jobs , besides the people who work nearby.  The reason is the a lot of the shifts in the oilfield and oilfield service companies are  like 15 days on and 6 days off or 14 days on and 7 off. For oilfield services, the workers involved in field operations are on call 24/7 along side with showing up to work at their shops. For example at a previous job I did years back, the shift would start Wednesday at 8am.  I would have to show up to work and if their was no rig book for our services within a day, I would work in the shop.  If an exploration company booked our services for later in the day or evening, our team would decide a plan of action.  This could be going home to sleep, what time to meet back at the shop, and what route to take to rig.   For oil rig workers such as drillers, roughnecks and derrick hands, their shifts 12 hours long and they stay in camps or nearby hotels on off time.

              Some analysts in Canada are on the record saying that this is not the right time for Bank of Canada to raise its rates. Besides what is going on with the economy is Alberta, there is a potential for a major housing crisis in Toronto and Vancouver. These two cities have extremely high prices on homes compared  to the rest of Canada.  Calgary is not far behind.

            North America has not had a recession since 2009.  With interest rates so low, a recession now would be horrendous.  It would likely mean negative interest rates. The Fed and Bank of Canada raise their rates in order to slow the economy down.  During a recession the price of oil usually goes lower.  I believe the Bank of Canada, should really think twice of raising the rates at this time. Alberta does not have a sales tax, whereas all other provinces and territories in Canada do have a sales tax in one form or another.

            It does appear rather odd to have the stock market in Canada flirting with all times highs despite having price of oil below $50 dollars per barrel.  Neither Alberta or Canada are members of OPEC, which is the Organization of Petroleum Exporting Countries.  The price of oil will have a huge negative effect on Alberta for years to come.

        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.



        Monday, July 3, 2017

        Dividend Income Update - June 2017




              The month of June 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 barrel of crude oil has falling during the month, and it currently sits $47.00 per barrel as the time of this writing.  The price of oil previously dropped to below $43.00 per barrel in the last week and a half.

                The Bank of Canada is hinting at a rate increase possibly next week.  If so, it will be the first time the interest rate would be increase in 7 years.  When interest rate is increase, usually the banks are not far behind raising their rates.  Basically, it cost more to borrow money and current interest payments for most people will be higher.

                I personally believe Alberta is going to struggle for the next few years. As we are due to for major recession , if history repeats itself, in the next few years, the price of oil usually remains low or decreases.

              One thing for sure, is that I was paid dividends and distributions for being a shareholder or unit holder in  various companies or funds. In  Sept 2016, the Dream Office REIT in the margin account will be counted as dividend income  for the first time.

         Non-registered Account

        • Enerplus (ERF)  -$ 5.58
        • Dream Office REIT   (D.UN)  - $78.00
        • Highliner Foods (HLF) - $14.00
        • Shaw Communications (SJR.B)    - $19.75
        • Enbridge Inc. (ENB) - $9.85  (Transfer Agent) 

          TFSA
          • A&W Royalties Income Fund (AW.UN) - $5.05
          • Boston Pizza Royalties Income Fund   (BPF.UN) - $26.91
          • Canadian National Railway (CNR) - $15.68
          • iShares 1-5 yr Laddered Canadian Corporate Bond ETF (CBO) - $0.62
          • Cominar REIT (CUF.UN) - $21.32
          • Dream Office REIT   (D.UN)  - $ 20.75
          • Horizons Natural Gas Yield ETF (HNY)  - $3.90
          • Killam Properties REIT (KMP.UN) - $  15.60
          • Enbridge Inc.  (ENB) - $20.13


          Total = $257.14
              
              As the amount of distribution from D.UN inside my margin account, will have a large impact on the comparison of dividend income from 12 months ago. This dividend income total of $257.14 represents an decrease of 2.54% from 3 months ago.

               Dream REIT has reduced the amount of distribution they pay monthly which was announced in February 2016.  Recently, I wrote about purchasing more units of D.UN inside a margin account.  Starting in September, the distribution from this D.UN inside the margin account will be included in my dividend income.

              I received $59.10 in June  2017.

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

          How was your dividend income for June?

          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.



          Saturday, July 1, 2017

          Portfolio Update : June 2017

                  The month of June 2017 is now behind us. The markets have seen some major news during the month.  Amazon announced they are purchasing Whole Foods for around $13.7 Billion dollars. Warren Buffett's Berkshire Hathaway has made a deal to help out Home Capital Group. 

                  Home Capital Group is a Canadian public company that writes mortgages to people at a higher interest rates than at a bank. I have lost some money with Home Capital Group. So,  Home Capital Group has been in the news the last couple of months with Ontario Security Commissions investigation over the last year or so.  Savers who had the high interest savings accounts offered by Home Trust, part of Home Capital Group, pulled most of their money out of these accounts.  Banks depend on deposits by savers to be able to make mortgages and loans to their customers.

                  Home Capital Group received a $2 billion line of credit from HOOPP, which is Healthcare of Ontario Pension Plan.  The interest on the LOC was quite high, and the company decided to try to find a replacement source of cash to keep them solvent.

                 They were in discussions with several financial organizations, which included some Canadian Banks, but the felt Bershire Hathaway was the best source to help them out.  Warren Buffett, CEO of Berkshire Hathaway, offered a line of credit and equity ownership in the company. 



          Under the agreement, Berkshire will make an initial investment of $153.2 million for 16 million Home Capital shares at a price of $9.55, representing a 19.99 per cent stake in the company, subject to approval by the TSX.  
          Berkshire Hathaway has also agreed to make a second investment of $246.7 million for nearly 24 million shares at a price of $10.30, which would take its stake in Home Capital to 38.4 per cent, subject to shareholder approval. (Source www.ctvnews.ca)

                  Another major topic in the markets is the price of a barrel of crude oil.  The price per barrel of WTI crude oil had fallen to below $43.00 US per barrel, but rallied towards the end of the month close at $46.33 US per barrel. 

                   British Columbia, Canada had a provincial election recently in which the Liberals retained power.  The won 2 seats more than the NDP and the Green Party won 3 seats.  So NDP and the Green Party came to a agreement that would mean these 2 parties will work together.  Last week, the liberals lost a non-confidence vote in the legislature.  Their premier and Liberal party leader accepted the results of the vote and visited the Lt. Governor. The Lt. Governor has given the NDP the right to form the government.

                    So, now we will have NDP governments in both Alberta and British Columbia who are at "war" with each other.  Oil and gas plays a huge part in the economy of Alberta.  The federal government gave their OK for Kinder Morgan to build their pipeline from Alberta to the British Columbia coast.  The cost of this pipeline is $7.4 billion.  The NDP government and Green Party of British Columbia, along with environment activists and indigenous people.

                  I made a purchase in my margin account in a stock that does not pay a dividend.  Titanium Transportation Group Inc. is a transportation and logistics company based out of Bolton, Ontario.  This company was created in 2002 and went public in April 2015 with the ticker symbol of TTR.  TTR trades on the Venture Exchange in Canada.

                 I sold 2 put options in the month of June. I previously, had a put option expire on June 2.  The 2 short put options were 1 contract of $RY.TO with a strike price of $92.00.  The first short put option expired on June 16.  Few days after this expired I sold another put option for June 30 expiration.  I collected $24.05 and $35.05 in net premiums on the 2 short puts for a net profit of $59.10.

                 I made two small purchasing in my TFSA to add to my units of HNY.TO.  This is Horizon's Natural Gas Yield ETF. I purchased these units with small commissions (i.e. ECN fees) has my brokerage offers commission free ETFs.

          •  June 13  ->  4 units at $12.98 with $0.01 ECN fees
          •  June 19  ->   2 units at $12.72 with $0.01 ECN fees


          Shares Acquired Through DRIP


          4 Unit of D.UN.TO @ $19.32137  for a total cost of $77.29 (Margin Account)

          1 units  of CUF.UN @ $13.03499 for a total cost of $13.03 (TFSA)

          1 unit of D.UN @ $19.32137 for a total cost of $19.32 (TFSA)

          0.192 shares of ENB.TO @ $51.3021 for a total cost of $9.85 (Transfer Agent)           

          Please note, that the DRIPs inside my margin account and TFSA are synthetic drips which indicate the distribution or dividend must be enough to purchase whole shares. 

          I recently wrote about Dream Office REIT after they made an announcement. They are once again, cutting their annual distribution by around 33% starting with July's distribution which will be paid on August 15.  There annual distribution will be cut from $1.50 per unit to $1.00.  So, my annual dividend income will be cut by approximately $400.00.


          As of July 1,  the value of the portfolio is $103266.23. This is a 1.485%  decrease over last month's total.  The spreadsheet in the investment tab above has been updated.

          Note:  I do not have any option contracts currently in my portfolio as of July 1.

          Disclosure:  Long D.UN, ENB, CUF.UN, TTR.V, HNY.TO

          Please Note:  All stocks are from the Toronto Stock Exchange except TTR which trades on the Venture Exchange.
          .

          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.






          Friday, June 30, 2017

          When A Stock Doesn't Have Much Daily Average Volume?

                   What is the one thing that would cause a massive panic in people lives.  One thing we all take for granted.  When we drive or walk down a road we often do not think about it as it is all we know and we do not know any different.  I am talking about the trucking industry.  The saying "If you got it, a truck brought it" is so true.  The stones to make a retaining wall, the steel gates for businesses, cars, and gasoline at the gas station. A truck has to be utilized to bring all these to their current location in one form or another.
                 
                   Titanium Transportation Group Inc is a relatively new trucking company.
                
          Titanium Transportation Group Inc is a Canada-based transportation and logistics company, which offers its services in North America. It operates in various segments, including Truck Transportation, Logistics and Corporate. It provides freight transportation services to customers, including large multinational corporations across various industries, with truckload and cross-border trucking services, freight logistics, and warehousing and distribution services. It offers trucking services through a range of trailer types, including flatbeds, step-decks, heavy axle trailers and other specialty equipment, totaling approximately 400 power units and 1,000 trailers. It also provides a range of ancillary transportation services, such as third-party logistics and freight forwarding. It also offers warehousing and distribution services, including order management and fulfillment, shipment consolidation or de-consolidation, cross dock, and reverse logistics (refurbished and restock processes). Source: Google Finance
              Titanium Transportation Group Inc. was founded in 2002 as logistics broker.  Their first truck was purchased in 2005.  In 2007, Zzen Group made a private equity investment.   The company has made 7 acquisitions from April 2011 to March 2015. The company remained private up until April 2015 and then became a public company.  The are listed on the Canadian Venture Exchange under the ticker symbol TTR.  The company is headquartered in Bolton, Ontario.

               Currently the stock trades at $1.13 a share and has a market cap of $42.63 million.  According to a June presentation, Zzen Group owns 39.2% of the company, which corresponds to 14,657,482 shares.  Titanium had 37,388, 510 shares outstanding as of June. The next highest shareholder is the founder and CEO, Tim Daniels, who owns 9.8% of the company with 3,667,647 shares.

               TTR does not have very low trading activity with an average daily trading volume of approximately 3500 shares. The company has made some acquisitions after they went public.

               Over a span of 5 years there revenue has grown each year in 2 of the 3 segments.  The revenue consists of 3 segments which are corporate, logistics, and trucking.  The corporate segment has grown to  $116.6 million in 2016 from $32.7 million, which represents a compound annual growth rate of 37.42% over 5 years.  The logistics segment has grown to $33.9 million in 2016 from $15.8 million in 2012, which represents a CAGR of 21.03% over the last 5 years.  The trucking segment has grown to $84.0 million in 2016 from $17.2 million in 2012, which represents a CAGR of 48.66% over the last 5 years.

              TTR has grown revenues a lot over the last 5 years. As they are relatively a new company, they will be growing the company and likely not pay a dividend.  Could the company continue to grow?  The company has currently has over 400 tractors and over 1300 trailers.  The company does not do intermodal as of this time, from what I get from there website. I believe the company will get involved in intermodal by opening terminals in major markets in Canada or develop partnerships with major carries in different geographical locations. Canada has access to a lot of freight from all over the world via their ports located in Vancouver, Prince Rupert, Montreal and Halifax. Canada also has 2 class one railways in Canadian National Railway and Canadian Pacific Railway. 

             Conclusion:

            Trucks play an important vital role in our lives as everything moves by truck at one point or another. Trucking is a very cost intensive business, which affect the margins.

           I do believe this company will do well in the future, but will face some immediate future due to the high possibility of a recession. North America has not had a major recession since the 2008-2009.  A recession, on average, happens every 8-10 years. 

             Today, I ended up purchasing 1000 shares at $1.24 inside my margin account. I had limit orders in over several days but the price never went down to my limit price. Last night, I apparently mis-typed my limit price of $1.08 by typing $3.08.  Always double check or even triple check your orders when it comes to the markets.  The order got filled at $1.24 this morning at the market opening.  I guess I should be thankful as my purchase price got of been higher.  I will hold on to my shares for now as I do not expect the stock price to fall that much in value.  With the stock thinly traded, I do not expect much movement in the stock over the next few months unless a major announcement happens of some sort. This is a stock that an investor or trader has to be patient with and just go about other business.

             The company could be acquired by one of the major players in the industry.  I own shares currently in TFI International which is involved in Transportation and Logistics and Canadian National Railway.

          Disclosure:  Long TFII, TTR, CNR

          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.

          Monday, June 26, 2017

          Alberta Economy And The Price of Crude Oil

                   Alberta is a province in western Canada that is known for its oil and gas industry.  Alberta's neighboring provinces Saskatchewan to the east and British Columbia to the west has oil and gas as well.  These neighboring provinces do not have nearly the quantity of oil has Alberta.  Alberta has has the oil sands located in the Fort McMurray area.  Alberta is said to have the 3rd largest amount of crude oil in the world, behind only Saudi Arabia and Venezuela.  The east coast of Canada currently imports about $12 billion worth of oil for Saudi Arabia on a yearly basis.

                  A couple of months back, the Alberta finance minister released the budget for the upcoming fiscal year.  Finance minister Joe Ceci based his predictions on oil being $55 a barrel.  Why is this important to know?  Alberta does not have a sales tax, unlike all other provinces have a sales tax separate from the federal GST (Good and Services Tax) or a harmonized sales tax (HST).  The HST is a combined tax of the GST and provincial sales tax. Alberta gets tax money from royalities from the oil and gas industry on top of corporate taxes and personal income tax.  A few years back, Alberta was known for the Alberta Advantage due to its strong economy and low taxes.  The price of oil started to decline around Sept 2014 when it was trading at around $92 dollars. Since then we have seen government changes at the provincial and federal level.

               There are lots of Albertans who are out of work and are losing their homes.  The jobs they had in the oil and gas sector are not easily replaceable in terms of skill and wages.  People who work directly in the oil patch or with companies that involve workers going to rigs to do fracking, cementing, wireline operations etc. have cut back their staff by huge amounts of the last 3 years.  We have some pundits believing that Alberta is coming out of the recession.  I totally disagree as the recent optimism has subsided with oil fallen well below $50 a barrel. Currently, WTI crude oil is trading at $43.44 per barrel as of the time of this writing. Alberta is known has a high cost producer, unlike Saudi Arabia is a low cost producer. 

               The provincial government is going to be running a bigger deficit than they originally thought as oil patch activity is way down when oil prices at these levels.  Lots of people have moved out of Alberta, while some oil patch workers are hesitant to re-enter the oil and gas industry after the fallout due to the recession. There is still a net migration of people in Alberta despite the low oil prices.

               The scary part of the Alberta recession is that the stock markets are flirting with all time highs for Canada and the United States.  History has shown that recessions happen ever 8 to 10 years. These recessions affect the entire country or countries around the world.. Major recessions also cause crude oil to be low.

                Currently, there is an oversupply of crude oil and plus the surgence of renewable energy companies affecting the price of crude oil. Some countries are members of OPEC (Organization of Petroleum Exporting Companies) can sway the price of oil when OPEC member companies get together.  Canada unfortunately is not a member of OPEC. 

               Cities and towns in Alberta have been hugely affected by the low oil prices.  Calgary is said to have an office space vacancy nearing 35%.  Calgary is where a lot of oil and gas companies have their corporate headquarters.  Lots of small communities spread throughout Alberta are feeling the pinch as well as they get a lot of oil patch workers stopping in their communities for some food or lodging.

          Conclusion:

              The recession in Alberta affects the entire country has a whole.  Besides the workers inside its own border, people from all across the country come to work in Alberta.  These out of province workers spend money in their home regions which increases tax revenue for their respecting provincial governments.

               Personally, I do not believe the recession is even close to being over.  Every week, we hear in the business news that we have an oversupply of crude oil. Canadian companies are hesitant to drill when the prices are this low as their chance of not being profitable are too high.  Just a few months ago, I recall a person on Business News Network saying that a company in Alberta used to hire oil patch workers at $40 per hour and now hired some people back at only $15 per house. I believe oil will dip down to around $40 per barrel before he hit $45 per barrel again. 

               Often is says the one rig creates approximately 135 jobs both directly and indirectly.

                I do believe Alberta will have to institute  a sales tax within the next couple of years if this recession caries on. 

             What are your current thoughts on crude oil and the effects on the economy?

          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.