The month of July is now behind us. The big news in Canada is the start of the new PC government in Ontario, Canada having a session in the legislature. The Doug Ford led Progressive Conservatives won a majority on June 7 2018. A few weeks later the cabinet was named and the legislature was recalled for a session to start July 11 2018 to get down to business. This government is hoping they can restore confidence in Ontario and make Ontario the economic engine of Canada.
NAFTA is still not settled between United States, Canada and Mexico. The markets continue to march higher even with oil falling to below $70.00
The government of Canada in May announced $4.5 million deal acquire the assets of Kinder Morgan Canada. That deal is expected to be done by August. As of this time of this writing, the deal has not been finalized. The government of British Columbia, the western most province in Canada, are going to court to stop the expansion of the Kinder Morgan Pipeline.
The price of a barrel of crude oil for West Texas Immediate is trading at $68.58 US. Why do I keep mentioning the price of oil? Energy companies make up a large percentage of the capital markets in Canada. Also, the economic engine of Canada is Alberta, mostly to the oilfields directly or indirectly.
Portfolio Activity
During the month of July, there was 3 options trades started. During the month of June, I made 2 options trades at the beginning of the month and one towards the end of the month.
Rogers Communications raised in value to above the strike price and stayed there. Noticing the stock price was not receding to below the strike price of $65, I put a buy to cover order to closed the option and keep my shares. The lost on this option trade was $395.10.
Restaurant Brands International (QSR.TO) has increased in value and I wanted to keep my shares. The strike price of was $82.00. So, I sent in a buy to cover order to close the option trade. The lost on this option trade was $251.90.
The naked 2 put option contracts in WestJet Airlines (WJA.TO) with a strike price of $17 expired, and I keep the $68.05 in premium.
In July, I "rolled" my trade in QSR.TO by selling a coverd call with a strike price of $88 and Aug 17 2018 expiration date. I collected a premium of $54.05 after commissions. The stock is trading at $82.56.
I sent a personal check to the transfer agent for Bank of Nova Scotia. The shares purchased this way are purchased with no commissions. This is the old, old way of purchasing shares. The downside, you have no control over the purchase price of the shares. I purchased 4.244999 shares of BNS.TO at $76.5607 for a total of $325.00. Bank of Nova Scotia currently pays an annual dividend of $3.28 per share. Therefore, this purchase adds $13.92 to my annual dividend income. The yield on cost of this purchase is 4.28%.
Finally, the drip was turned on for High Liner Foods (HLF.TO). The stock has been trading a lot lower over the recent months. High Liner Foods over frozen fish products under High Liner and other named brands. Also, High Liner Foods provides the fish burgers for McDonald's Filet of Fish sandwiches.
Shares Purchased Via DRIP
0.387545 shares of BNS.TO @$76.8944 for a total cost of $29.80 (transfer agent)
As stated above, Bank of Nova Scotia pays a $3.28 per share per year dividend. Therefore, this purchase adds $1.27 to my annual dividend income. The yield on cost of this DRIP is 4.27%.
Dividend Increases
A&W Revenue Royalties Income fund (AW.UN.TO) increased their distribution from $1.656 to $1.692 per unit annually. This represents an increase of 2.17%. I currently own 38 units of AW.UN.TO. This distribution increase adds $1.37 to my annual dividend income. This distribution increase is the second one in under 6 months.
Summary:
As of August 3, the value of the portfolio is $117380.88. This is a 2.54% increase over last month's total. The spreadsheet investment tab above has been updated.
Disclosure: Long all mentioned stocks
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.
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.
sounds like a busy month pursuit!
ReplyDeletenice buys with bns. Can highliner drip? I have my whole account set to drip yet highliner never does.
nice portfolio increases. The options always seems interesting, still dont know enough though.
anyways keep it up
cheers
Passivecanadian,
DeleteI do not see anything on High Liner Foods website or a spread sheet for Canadian companies via dripinvesting.org for a DRIP.
My brokerage is Questrade. They do not apply drip discounts (if a stock has one) on to investors. I believe Questrade is just purchasing the shares on the open market at the going market price and not charging a commission. Like Questrade has their own DRIP.
So, if your brokerage passes the discount on to you then that might be that your brokerage is purchasing the shares directly form the particular company's treasury.
I will know when the dividend is paid if I am right.
For options, Rich Dad Advisor Andy Tanner does webinars from time to time which shows some basics on options. There is usually a discount on his products after the webinars. His website is www.thecashflowacademy.com
Also, www.tastytrade.com has a learning center about options. The founder is Tom Sosnoff, who is one of the cofounders of Think Or Swim. Lots of videos.
Options commissions and fees are expensive. The cheapest option in Canada Interactive Brokers. Cheaper commissions and no option assignment/exercise fee.
Love the portfolio total, a 2.54% gain on a 100K plus account is awesome work! Keep dripping your way to FI. :)
ReplyDeleteThanks for sharing. Best wishes and continued success on your personal journey! AFFJ
AFFJ,
DeleteThanks for dropping by. I drip some positions in sythetic drips and 2 drips (ones with fractional shares) with the transfer agent. The DRIPs in my brokerage account do not pass on any drip discounts as the shares are purchased directly on the open market.
The portfolio will grow slowly for a while as I am tackling my debt a bit.