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.

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.

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.
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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.