Portfolio Update - September 2018

The month of September is now behind us. The United States and Canada have still not ratified a new NAFTA , or North American Free Trade Agreement. One of the hot button issues for the United States is the 300% tariffs that Canada has on its imported dairy products. 300% is not a typo. This number is often quoted by the United States President , Donald Trump. President Trump has said something like "They say it 272%, but it is more like 300% !!".

In Canada, a new political party was formed at the federal level called The People's Party and the founder is former Conservative Maxime Bernier. One of Maxime Bernier's reason getting into politics is the issue of supply management. With Canada having tariffs on their dairy, it causes Canadian consumers to pay more for milk, poultry and eggs. The federal government and the other political parties believe supply management helps protects farmers and the control of safety for the industry. Maxime Bernier wants to abolish supply management and let the free market decide.

Personally, I will be surprised if the United States and Canada will come to a new NAFTA agreement without the issue of Canada's dairy tariffs being addressed.

An industry that has been showing some positive momentum is the oil and gas industry. At the time of this writing, the price of West Texas Intermediate barrel of crude oil is $73.25 US. With Canada being a high cost producer of oil and gas, a price over $70 per barrel will definitely help the industry and its corresponding stocks that are involved with the oil and gas industry.


Portfolio Activity

On September 10, I sold a put option contract in Restaurant Brands International (QSR .TO) with October 19 2018 expiration date. The strike price is $72.00. I collected premium of $64.05 after commissions. This trade was in margin account. For disclosure, I am long QSR.TO inside my margin account.

On September 11, I decided to add to my position in Cominar REIT (CUF.UN.TO) inside my TFSA that was trading at a 52 week low. Cominar REIT has reduced their distribution a few times over the last couple of years. When they reduced their distribution the last time, my monthly distribution was not enough to acquire a whole share for the DRIP. I purchased 30 units of CUF.UN.TO at $11.89 for a total cost of $361.76 including commissions. This new purchase adds $21.60 to my annual dividend / distribution income. Since I bought after the ex-dividend date, my DRIP will re-start for the September distribution that is paid near October 15th.

On September 19th, my short put options in West Jet Airlines (WJA.TO) expired as the price of WJA.TO stayed about the strike price of $17 dollars. For disclosure, I am long 200 shares of WJA.TO inside my margin account.

Shares Purchased Via DRIP

0.392 shares of ENB.TO @ $44.32  for a total cost of $17.37  (transfer agent)

5 shares of HLF.TO @ $8.04 for a total cost of $40.20 (margin account)

Enbridge (ENB.TO) currently pays an annual dividend of $2.684 per share.  This DRIP purchase adds $1.05 to my annual dividend income.

High Liner Foods (HLF.TO) currently pays an annual dividend of $0.58 per share.  This DRIP purchase adds $2.90 to my annual dividend income.

Dividend Increases

There was no dividend increases during September.

Summary:

As of September 30 2018, the value of the portfolio is $114936.47. This is a 1.157% decrease 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.

Please Note:  Positions in Restaurant Brands International (QSR.TO) and Brookfield Renewables Partners (BEP.UN) pay dividends and distributions in US dollars, respectively.  My investment tab spreadsheet displays the Canadian dollar equivalent within 15 to 20 minutes of real time.

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.