Recent Purchase

   

   

     As investors we can benefit by paying attention to trends.   A lot of politicians all over the world believe that climate change is the biggest problem facing the current generation and future generations. On April 22 2016, a lot of the countries signed on to the Paris Agreement.  The Paris Agreement is basically countries agreeing to take serious action on addressing climate change.

       In Canada, the federal liberal government decided to put a price on carbon.  The federal government will put a price on carbon in a province that does not implement their own carbon tax or cap and trade that meets the conditions set out by the federal government.

       In Alberta, the NDP provincial government started a carbon tax on January 1, 2017 at $20 a tonne and increase it $30 a tonne on January 1, 2018. The federal government wants $50 a tonne by 2022 for all provinces.  The carbon tax basically increases the cost of everything such has heating your home, the price of groceries and the price of gasoline.  The Alberta government said the money collected with the carbon tax will go to rebates and for green initiatives.   The Alberta government has recently said the further increases in the carbon tax will go towards general revenues.  

    Is there a way to benefit from the issue of climate change on a world scale as an investor and be paid for it?  In Canada, investors can purchase units in Brookfield Renewables Partners LP.

       Brookfield Renewable Partners L.P. owns a portfolio of renewable power generating facilities in the North America, Colombia, Brazil, Europe, and internationally. The company operates through Hydroelectric; Wind; and Solar, Storage, and others segments. It operates 840 generation facilities using hydro, solar, wind, biomass, and other renewable technologies. Brookfield Renewable Partners Limited operates as the general partner of Brookfield Renewable Partners L.P. The company was formerly known as Brookfield Renewable Energy Partners L.P. and changed its name to Brookfield Renewable Partners L.P. in May 2016. The company was founded in 1999 and is based in Hamilton, Bermuda. Brookfield Renewable Partners L.P. is a subsidiary of Brookfield Renewable Partners Limited. (source: Yahoo Finance

   Brookfield Renewable  Partners LP trades on the Toronto Stock Exchange and the New York Stock Exchange under the ticker symbols BEP.UN and BEP respectively.  

Conclusion:

   On April 25. I purchased 33 shares of BEP.UN at a cost of $38.48 per share for a total cost of 1274.91 including commissions.  Due to the tax treatment of BEP.UN distributions, I made this purchase in my tax free savings account. The purchase price was near the 52 week low for BEP.UN units.

    BEP.UN pays a quarterly distribution of $0.49 US per share. The dividends will show up in my account as the distribution expressed in Canadian dollars.  Based on the conversion of USD to CAD. at the  time of this writing, my annual dividend/distribution income will be increased by $83.07 to my annual dividend income.

   I do not have time right now to do a write a better report  With utilities it is often better to look at adjusted funds from operations instead of earnings.


  I will update my spreadsheet in early May with this purchase.

Disclosure: Long BEP.UN

Photo credit:  www.fool.ca
                       www.brookfield.com

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.

Option Assignment

     

    I recently wrote about selling 2 put contracts in WestJet Airlines (WJA.TO) at a strike price $23 and expiration date of April 20, 2018.

    Fast forward to Monday April 23, I was "put" 200 shares of WJA.TO as the share price was below $23 at the close on April 20th.  Puts can be exercised by the buyer anytime prior to expiration.  For example, if WJA.TO dropped to $21 per share then the buyer will likely notify there broker than they want to exercise (sell to close) their put contracts. Exercising a option involves notifying your broker and not the traditional way by clicking "Sell"".  At expiration, if your short option is $0.01 in the money then it is suppose to be automatically assigned.

  So my yield on cost is 2.491% with an adjusted cost base of $22.4845 per share. When short put options are assigned, the adjusted cost base for tax purposes consist of the following:

   ACB = (# of put contracts*100 shares*strike price) - (net premium received )+ (option assignment fee)

  This option assignment adds $112.00 to my annual dividend income.

   I plan to write covered calls on WJA.TO as their dividend has not been increase in the last few years.  Airline stocks are very cyclical and volatile due to the type of costs such as fuel and weather events.

Disclosure:  Long WJA.TO

Photo Credit: www.westjet.com

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 - March 2018

      

        The month of March 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 

• Cineplex  (CGX) - $14.00
• Enerplus (ERF)  -$ 5.58
• Enbridge (ENB) - $16.80  (Transfer Agent)
• Enbridge (ENB) - $201.30
• Dream Office REIT   (D.UN)  - $52.58
• High Liner Foods (HLF) - $29.00
• 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
• Canadian National Railway (CNR.TO) - $17.29
• Cominar REIT (CUF.UN) - $17.01
• iShares 1-5 yr Laddered Canadian Corporate Bond ETF (CBO) - $0.57
• Dream Office REIT   (D.UN)  - $14.00
• Enbridge (ENB) - $22.14
• Horizons Natural Gas Yield ETF (HNY)  - $8.01
• Killam Properties REIT (KMP.UN) - $  15.60

Total = $465.71

   

    I received a total of $465.71 in dividend income for the month of March 2018.  This is my highest montly amount of dividends received from the blog portfolio.  This represents a 73.8%  increase from 3 months ago and 76.5%  increase year over year.  

    I received $128.05 from option premiums within my investment accounts in March 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 March 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 - March 2018

 The month of March is now behind us. The markets were wild during the month.  I wish I had money available to invest, but I have a low cash position.  

    

  I currently have a WestJet Airlines (WJA.TO) short put with a strike price of $23 and expiration date of April 20 2018.  I sold two put contracts in WJA.TO, which you can read about here.

  I did not have any other trades beside the short put option in WJA.TO.  I have a limit order in to start a new position in my TFSA. I want the price to fall some in order to initiate my position, which is a position I have never owned or traded before.

 

   Cominar REIT (CUF.UN.TO)  announces they are decreasing their annual distribution from $1.14 to $0.72.  Previously, CUF.UN.TO reduced their annual distribution from $1.47 to $1.14 per unit, which represents a decrease of 22.44%. This previous decrease started with the August 2017 distribution which was paid out on mid October 2017.  From last August to April 2018, the distribution was reduced by 51.02%.

   Currently, I am dripping CUF.UN.TO to lower cost basis.  As of the current price, the amount of monthly distributions will not be enough to purchase a unit in CUF.UN.TO.  I will continue to hold CUF.UN.TO, but I am skeptical on the possible growth of the REIT in the near term. .

Shares Purchased Via DRIP

1 unit of  CUF.UN.TO @ $13.22285 for a total cost of $13.22 (TFSA)

As of  April 1 2018, the value of the portfolio is $106285.01.  This is a 1.111% increase  over last month's total.  The spreadsheet he investment tab above has been updated.

Disclosure:  Long CUF.UN,

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.