Recent Purchase: Step Back To Move Forward

I recently sold my Horizon's Natural Gas Yield ETF units inside my TFSA as the HNY.TO has increased in value.  I was looking to put the cash to work if the market provided an opportunity.

Today, I felt one of the stocks I recently purchased had a dip.  This stock is Royal Bank of Canada (RY.TO).  Royal Bank of Canada is one of the big 5 banks in Canada that is often regarded as being the best banks in the entire world. 

This stock was on my watch list and was looking to add to it.  Today, I noticed the big dip in the stock price and decided to take action.  I purchased 17 shares of RY.TO at a cost of $94.14 for a total cost of  $1605.39 including commissions.

Royal Bank of Canada currently pays an annual dividend of $3.92 per share. This purchase adds $66.64 to my annual dividend income.  The yield on cost for this purchase is  4.15%.

Owning a dividend growth stock like RY.TO is a lot better than owning an ETF.  Although the yield is lower with this purchase, but over time the dividend will be raised semi-annually like it has for several years.  Sometimes you have to step backward to move forward. 

I will update my investing tab spreadsheet in early December to reflect these changes. 

Please Note:  The stock also trades on the New York Stock Exchange under the ticker symbol RY.

Disclosure:  Long RY.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 position that I have held for a few years yield north of 6% annually and paid monthly.  Was it a REIT, ETF, or a regular stock? The position was the Horizon's Natural Gas Yield ETF.  The ETF had fallen on difficult times due to lower natural gas prices.

The investment objectives of Horizons HNY are to provide unitholders with: (i) exposure to the price of natural gas futures hedged to the Canadian dollar, less the ETF’s fees and expenses; (ii) tax-efficient monthly distributions; and (iii) in order to mitigate downside risk and generate income, exposure to a covered call option writing strategy. (Source:  Horizon's ETFs )

The downside of owning an ETF is that you have to pay management fees unlike owning a stock.  This cuts into your returns.  Although the yield was high, the price of the ETF traded below $13 for many months.  The monthly distribution is also different every month.

HNY.TO has increased in value recently, so I decided to sell my position at a profit.  Although HNY.TO provided income their is not much in terms of future growth.  The owned 121 units in my TFSA, that is currently shown in my portfolio.

This sale reduces my annual dividend income by approximately $80.00 per year. I say approximately as the distribution amount varies month to month.

My investing tab spreadsheet will be updated in early December to reflect this sale.

Disclosure: I also owned 337 units of HNY as part of a savings project.  I sold out of this position as well.

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

      As businesses grow and prosper, we stay along for the ride as investors to reap the rewards.  When we buy and hold stocks, we can  use the income paid out via dividends or distributions any way we like.  The best part is when the dividend or distribution is increased and all you had to do is be a shareholder.

First Raise

On November 6, A&W Royalties Income Fund announced their intention to pay a distribution for the period of October 1 to October 31 for shareholders on record November 15 and to be paid out on November 30.  A&W Royalties Income Fund announced a $0.143 monthly distribution which equates to $1.716 per unit annually. The increase from $1.692 to $1.716 represents an increase of 1.418%.

I currently own 38 units of AW.UN.TO.  This increase adds $0.912  to my annual dividend income.  This increase is the fourth one I received in less than 2 years of being an unit holder and the third increase from A&W Royalties Income Fund this year.

This increase is equivalent to investing $ 26.06 of my own money at 3.5% yield.

Second Raise

I recently purchased shares of Telus Corporation (T.TO) over 2 separate transactions.  Telus is one of the big 3 in Communications space in Canada.  The other 2 companies are Bell Canada Enterprises and Rogers Communications.  A fourth distant company is Shaw Communications.  For disclosure, I own own shares in all four of these companies.

On November 8, Telus released their earnings for the third quarter.   Telus increased their dividend from $0.545 from $0.525 quarterly, or from $2.10 to $2.18 per share per year. Telus has been increasing the dividend semi-annually over the pass several years.  This most recent increase represents an increase of 3.81%.

I currently own 124 shares of Telus, so this increase adds $9.92 to my annual dividend income.

This increase is equivalent of investing $283.43 of my own money at 3.5% yield.

Disclosure: Long T.TO, AW.UN.TO

Photo Credit : colourbox.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 - October 2018

      

        The month of October 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) - $17.00
• Bank of Nova Scotia (BNS) - $34.83 (transfer agent)
• Bell Canada Enterprises (BCE) - $75.50
• Canadian Imperial Bank of Commerce (CM) - $38.08
• Cineplex  (CGX) - $14.50
• Enerplus (ERF)  -$ 5.58
• Restaurant Brands International (QSR) - $57.30
• Rogers Communications Class B (RCI.B) - $96.00
  
• Shaw Communications (SJR.B)  - $19.75

Subtotal :  $358.54

TFSA

• A&W Royalties Income Fund (AW.UN) - $5.36
• Boston Pizza Royalties Income Fund   (BPF.UN) - $26.91
• Cominar REIT (CUF.UN) - $12.60
• Dream Office REIT   (D.UN)  - $14.00
• Horizons Natural Gas Yield ETF (HNY)  - $6.65
• iShares 1-5 yr Laddered Canadian Corporate Bond ETF (CBO) - $0.66
• Killam Properties REIT (KMP.UN) - $  16.11
• TFII International (TFII) - $10.50

Subtotal:  $92.79

Total = $451.33

    I received a total of $451.33 in dividend income for the month of October 2018.  This represents a 9.16% decrease from 3 months ago and 4.72% increase year over year.  

    The decrease of 9.16% from 3 months ago is attributed mostly to selling my Dream Office REIT position in my margin account which was offset of higher distribution from CUF.UN and the $US paid dividend by QSR. The dividend payment of QSR is the Canadian dollar equivalent that was deposited in my margin account. 

    I received $0.00 from option premiums within my investment accounts in October 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 October 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.

Trading Account Update: October 25 2018

As previously stated on this blog, that I have started a trading account with a balance below $1000.00.   I started to add $50.00 every two weeks but that has stopped due to a recent job loss.  The following table shows my stats from the start of 2016:

                               

                               # of trades :                44

                               Total Capital added:    $250.00

                               Trading Acct Balance:  $2754.37

                               Average Drawdown:   $111.40

                               Average Loss:             $287.20

                               Average Accuracy:    81.82%

                               Average Risk:              $126.25

                               Average Reward:         $102.02

                               Average R/R :             1: 0.808 

        I have been trading penny stocks, stocks, REITS and options.  Any dividends that will be received from this account will stay within the account. The accuracy rate is high. Does this mean that I am a super trader? No it does not.  The risk to reward ratio states of every $1.00 of risk there is reward of  $0.808.  Ideally, a trader should aim for a 1:2  risk to reward ratio which causes the accuracy rate to be lower.  I lost big on a trade as I did not put a stop in at the initiation of the PZA.TO trade.  The stock kept dropping and dropping, so I felt it was best to sell.   

      The drawdown above is inter-trade drawdown.  This type of draw down is the dollar amount the trade moves against you.  Why is it important to keep track of inter-trade drawdown?  It helps you know if you are picking good entry points.  It is normal for trades to have inter-trade drawdown. 

Note:  The trades are listed under the Trading Tab above with all the trades listed as of October 25 2018

Note:  I currently have a trade on which is the first trade since October 25 2018. 

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: October 2018

The month of October 2018 is now behind us.  What a month it has been!

The price of oil dropped a lot over the last month.  It now trades around $63.00 US per barrel for West Texas Intermediate.  Up here in Canada, the US is the only buyer of our oil so the price the US pays for our oil is at a big discount to the WTI price.  One of the reasons is that some of the oil from Canada is from the oilsands, which costs more to refine than sweet light crude oil.  Canada needs to expand the pipeline to the west coast that will make it possible to ship oil to other foreign markets.  Honestly, I can not see the government getting the approval to expand the pipeline from the National Energy Board.

In August, Canada became the owner of the current Kinder Morgan Pipeline in Western Canada.  Canada purchased the Canadian assets of Kinder Morgan after approval from the Kinder Morgan shareholders.

Now on to the roller coaster month in the stock market.  We have seen huge drops in the markets during some days in the month of October.  This is Mr. Market giving you opportunities with fallen prices, but you as an investor must first do your due diligence. The Bank of Canada followed the recent Fed announcement with increase the interest rate.  The purpose of increasing the interest rate is to slow economy.


Portfolio Activity

On October 1, I purchased 100 shares of Telus Corporation (T.TO) at $47.38 for a total cost of $4743.30  including commissions.  This purchase was in my margin account.   Telus Corporation provides communications services in TV, phone and internet.  Currently Telus Corporation pays a dividend of $2.10 per share per year.  This purchase adds $210.00 to my annual dividend income.  The yield on cost of this purchase is 4.43%.

On October 4, I purchased 24 shares of Telus Corporation (T.TO) at $45.80 for a total cost of $1104.15 per share per year. This transaction was inside my TFSA.  The purchase adds $50.40 to my annual dividend income.  The yield on cost of this purchase is 4.56%.

You can read about the Telus purchases here.

On Oct 9, I purchased 2 units of iShares 1-5 Yr Laddered Corporation Bond Index ETF (CBO.TO) inside my TFSA. The total cost including commissions and fees was $36.33.  My brokerage currently provides commission free ETFs on the buy side of the transaction.  All though the commission is free there was $0.01 fee for ECN fee. The amount of ECN fees increases as the amount of units increases.

Currently CBO.TO pays a distribution of 0.492 per unit per year.  The distribution is paid monthly. This purchase adds $0.98 to my annual dividend/distribution income.

On October 25, I purchased 3 shares of Royal Bank of Canada (RY.TO) at $94.57 for a total cost of $288.67 including commissions.  Royal Bank of Canada is one of Canada's big 5 banks.  Royal Bank of Canada has can have earnings of 3 billion dollars over a single quarter.  Currently, RY.TO pays a dividend of $3.92 per share per year.  This purchase adds $11.76 to my annual dividend income.  The yield on cost of this purchase is  4.07%.

There was no option trades initiated during the month.  I am currently looking to sell calls on WestJet Airlines and Telus Corporation in my margin account.  I was selling out of the money put options previously in WestJet, to possible average down my position of WestJet Airlines. With the interest rate in Canada at this time, I do not want to use margin due as the interest rate would be over 7% with my brokerage.


Shares Purchased Via DRIP

1 unit of CUF.UN.TO @ $11.21  for a total cost of $11.21  (TFSA)

0.495787 shares of BNS.TO @ $70.252 for a total cost of $34.83 (transfer agent)

Cominar REIT (CUF.UN.TO) currently pays an annual dividend of $0.72 per unit.  This DRIP purchase adds $0.72 to my annual dividend income.

Bank of Nova Scotia (BNS.TO) currently pays an annual dividend of $3.40 per share.  This DRIP purchase adds $1.69 to my annual dividend income.

Dividend Increases

TFI International (TFII.TO)  raised their dividend from $0.84 per share to $0.96.  This $0.12 increase is an increase of 14.29%.  I currently own 50 shares, so this increases my annual dividend income $6.00.

Summary:

As of November 2 , the value of the portfolio is $110560.52. This is a 3.81% decrease over last month's total. With the huge stock market drops in the past couple of weeks, this decrease was expected. 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.