Recent Dividend Increase

        As investors in the stock market, we pay close attention to news releases and earning reports from companies that we have as part of our portfolio. One of the things we look for is a dividend or distribution increase.  Recently, I wrote about 2 dividend/distribution increases, which you can read about here.

      On February 27,  the Bank of Nova Scotia (BNS.TO) released its earnings and announced a dividend increase of $0.03 quarterly.  This increases the yearly dividend from $3.16 to $3.28 per share.  This represents an increase of 3.80%.  Except for Toronto Dominion Bank, the rest of the big 5 Canadian banks have been increase their dividend twice a year.

      I currently own a total of 55.965862 shares within my margin account and directly with the transfer agent. This $0.03 increase in the quarterly dividend increases my annual dividend income from BNS.TO by $6.72.  Every little bit counts.

      The $6.72 increase in my annual dividend income is equivalent to investing $192 of my own money at average yield of 3.5%. 

Disclosure: Long BNS.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.

Recent Dividend Increases

        I do not know about you, but the first think I check in the morning is to see if I got any dividend increases. Some of the headlines do not state "dividend increase" or "distribution increase" in the title of the headline.
        Ideally, we look for dividend increases that are above the rate of inflation.  Some people will complain about a 5% dividend increase.  Being an employee, how often do you hear people getting raises in the way of being called into the office of the boss and are given a raise.  Well, these raises are more difficult to come by.  The other type of "raise" that an employee receives is a cost of living increase.  This cost of living increase is more than likely to be across the board and is usually 3% or less.

Conclusion:

    During the past month, the Canadian banks started to report earnings.  The Canadian Imperial Bank of Commerce, or CIBC, reported their earnings and announced a dividend increase of $0.12 annually.  The dividend was increase from $5.20 to $5.32 annually, which represents an increase of 2.31%.  The Canadian banks have been raising their dividends twice annually the past several years. The TD Bank raises their dividend once a year.

   I own 28 shares of CIBC (ticker symbol CM.TO ), so this increase adds $3.36 to my annual dividend income.  This is equivalent to investing $96 of my own money at 3.5% yield.

    Killiam Properties REIT (ticker symbol KMP.UN.TO), reported earnings a few weeks back.  I did not see "distribution" increase in any headline title.  So, I clicked on a headline of their earnings release and discovered KMP.UN.TO increased their distribution.  KMP.UN.TO pays a monthly distribution, so the increase is to take effect for the March distribution that will be paid in April.  KMP.UN.TO increased their annual distribution from $0.62 to $0.64 per unit per year.  This represents a distribution increase of 3.23%.

  I own 302 units of KMP.UN.TO, the distribution increase adds $6.04 to my annual dividend / distribution income.  The is equivalent to investing $172.57 of my own money at an average yield of 3.5%.

Each an every increase helps.

Disclosure:  Long CM.TO, KMP.UN.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.

Recent Sale

     A stock that has been in the news the past year is Bombardier. What does Bombardier do as a company?

Bombardier Inc., together with its subsidiaries, manufactures and sells transportation equipment worldwide. The company operates in four segments: Business Aircraft, Commercial Aircraft, Aerostructures and Engineering Services, and Transportation. The Business Aircraft segment designs, manufactures, and provides aftermarket support for Learjet, Challenger, and Global business jets. The Commercial Aircraft segment designs and manufactures a portfolio of commercial aircraft in the 60- to 150-seat categories, including Q400 turboprops; the CRJ700 regional jets; and C series mainline jets, as well as provides aftermarket support services. The Aerostructures and Engineering Services segment designs and manufactures aircraft structural components, such as engine nacelles, fuselages, and wings; and provides aftermarket component repair, overhaul, and other engineering services. The Transportation segment offers a range of products and services in the rail industry, including trains, subsystems, system integration, signaling, and e-mobility solutions. The company was formerly known as Bombardier Limited. Bombardier Inc. was founded in 1942 and is headquartered in Montréal, Canada. (Source: Yahoo Finance) 

     Bombardier received a loan from the government in the past year.  This outraged a lot of people as they believe it is corporate welfare.  The company struggled enormously during the last few years which lead to them eliminating their dividend a couple of years.  Bombardier was getting behind on orders, which lead to disgruntled customers.

    I owned shares in BBD-B.TO for a few years at a price of $3.60 per share.  Over the past couple of years, the company struggled and this has been reflected in the stock price. The stock fell to $0.72 per share but has slowly rebounded.

    The stock has shown some upward momentum due to the issues with Boeing and the US government.  The US government wanted to impose a tariff of appromiately 292%.  Bombardier has a surprise win in a trade dispute with Boeing over the sale of it's C-Series passenger jets to Delta Airlines.  You can read more about the story here.

Conclusion:

     I believe rise in the stock price will not continue.  As Bombardier is unable to meet the production dates with some clients, the company will be negatively affected.  Therefore, the stock price will likely reflect the negative events that the company deal with.

     Last night, I put in a stop limit order to sell my 1000 shares of BBD.B.  I sold 1000 shares of BBD.B at $3.95 per share.  I only received one dividend why being a partial owner of BBD-B.

    I will attempt to put the money back to work for me in the next couple of weeks.

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 - January 2018

      

        The month of January 2018 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 Accounts 

• Bank of Nova Scotia (BNS) - $28.14  (transfer agent)
• Bank Of Nova Scotia (BNS) - $15.80
• Bell Canada Enterprises  (BCE) - $71.75
• CIBC  (CM) - $36.40
• Cineplex  (CGX) - $14.00
• Enerplus (ERF)  -$ 5.58
• Dream Office REIT   (D.UN)  - $52.58
• Rogers Communications Class B (RCI.B) - $96.00
• Shaw Communications (SJR.B)    - $19.75

TFSA

• A&W Royalties Income Fund (AW.UN) - $5.17
• Boston Pizza Royalties Income Fund   (BPF.UN) - $26.91
• iShares 1-5 yr Laddered Canadian Corporate Bond ETF (CBO) - $1.17
• Dream Office REIT   (D.UN)  - $14.00
• Horizons Natural Gas Yield ETF (HNY)  - $8.27
• Killam Properties REIT (KMP.UN) - $  15.60
• TFI International (TFII) - $10.50

Total = $421.62

   

    I received a total of $421.62 in dividend income for the month of January 2018.  This represents a 2.18%  decrease from 3 months ago and 1.979% increase year over year.  Cominar REIT had 2 distribution payments in December, which were the middle of the month and on the 29th of December.  Cominar REIT will not have a distribution payment in middle of January and will return to normal mid month payments in February. 

    I received $94.05 from option premiums within my investment accounts in January 2018.

    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 January 2018?

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 - January 2018

 The month of January is now behind us. The markets keep marching to new highs but huge drop the last day. The price of WTI Crude Oil is currently trading around $65 per barrel.  The cuts in production by OPEC and the cold weather that gripped most of North America for most of the month, have decreased the supply somewhat.  When it is colder, people have to use more natural gas to heat their homes and buildings.

    

  My covered call in QSR.TO expired on Jan 19 2018.  So, what did I do?  I sold another covered call in QSR.TO at $78  and a Feb 16 2018 expiration.  The net premium collected  was $94.05. So in 2 months I collected a total of $153.10 in option premiums. Selling covered calls increases your capital gains, reduces capital losses and is another way to collecting income from a position. 

    Canadian National Railway (CNR.TO) announced a 10.3% increase to its dividend. A 10.3% increase beats the rate of inflation. You can read about this post here.  

Shares Purchased Via DRIP

0.344979 of  BNS.TO @ $81.5702 for a total cost of $28.14 (Transfer agent)

Cominar REIT  (CUF.UN.TO) , was is dripped, did not a distribution in January as it pays a distribution twice in December. 

As of  Feb 3 2018, the value of the portfolio is $105525.23 This is a 4.74% decrease  over last month's total.  The spreadsheet he investment tab above has been updated.

On February 1 2018, I decided to increase the percent of paying myself first to 37%  from the previous amount of 21%. I paid myself 37% a few years ago.  

Disclosure:  Long CUF.UN, QSR.TO, CNR.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.