Recent Dividend Increase

The plant based burgers have started to become a goto burger place of choice for more people these days.  Also, the organic movement in general is gaining more momentum.  A documentary on Netflix called Knives and Forks have made people more aware of the benefits of eating a plant based diet.  

A&W Restaurants have for the past several years have changed they way make their food and where their food comes from at the beginning of the food chain.  Using meat from animals that were not giving antibiotics or growth via hormones for starters.

A&W released their earnings for their A&W Royalties Income Fund on July 24.  A&W announced a distribution increase from $0.154 to $0.159 starting with the July distribution to be paid on Aug 31.  This represents a distribution increase of 3.25%.  

I currently own 38 shares of AW.UN, so this increase adds $2.28 to my annual dividend income. This is equivalent of investing $65.14 of my own money at 3.5%.

A&W Royalties Income Fund has raised their distribution 5 times in last 13 months. The monthly distribution was increased from $0.138 to $0.159 over that time span, which is an increase 15.2%.

Immediately below, is a graph of the monthly distribution rate per unit over the past year.  

Monthly Distribution Rate Over Past Year

Immediately below, is the monthly distribution I have received over the past 12 months for owing 38 units of AW.UN. 

Distributions Received Over The Last Year. 

Summary:

A&W Restaurants have most of their restaurants in Western Canada, primarily in Alberta.  The restaurants have been effected by the fall of world oil prices over the past several years.  However, with more and more people looking for healthier food options these days, the restaurants have saw an increase in people over their competition like McDonald's.  

Disclosure:  Long AW.UN

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 Buy

 The expectation of a coming recession in the near future has been talked about in the financial media for the past several months. Some analysts are staying North America is actually in a recession right now.  This usually means investors start to fear they will lose money and start selling their holdings. This has happened in some sectors while others have been immune to the fears of investors.
 
 A example of a stock falling in price is TFI International (TFII.TO), that is headquartered in Canada. This is a trucking and logistics company that has operations in Canada, United States and Mexico. With the fears of the recession, investors have been selling this stock, as transportation companies have reduced earnings has there will be less freight.
 
During the month of June, my covered call in WestJet Airlines was assigned at $24.00 per share. During the first few weeks of May, Onex Corporation announced it is buying WestJet Airlines at $31.00 per share subject to approval of shareholders. The price of WestJet Airlines (WJA.TO) immediately increased from below $19.00 to around $30.00 a share.
 
 So, I was looking for an opportunity to put some of my money to work.
 
Purchase:
 
 I purchase 25 shares of Canadian Imperial Bank of Commerce "C.I.B.C" (CM.TO) on the Toronto Stock Exchange. C.I.B.C. is one of the big 5 banks and is part of the reputation of Canada having one of the best run financial institutions in the world.
 
 The other 4 banks are Bank of Montreal (BMO.TO), Royal Bank Of Canada (RY.TO), Bank of Nova Scotia (BNS.TO) and TD Bank (TD.TO). These banks are headquartered in Canada, but have operations in the United States and other countries. All 5 of the banks trade on both the Toronto Stock Exchange and New York Stock Exchange.
 
 On July 16, I added to my position in C.I.B.C by purchasing 25 shares at $102.40 per share for a total cost of $2565.04 including commissions.

 C.I.B.C pays an quarterly dividend of $1.40 per share, or $5.60 per share annually. This purchase adds $140.00 to my annual dividend income. The yield on cost for this purchase is 5.46%.
 
 C.I.B.C trades ex-dividend on June 27 2019, so this purchase is not eligible for the dividend payment on July 29 2019.
 
  I will update my investment tab spreadsheet in early August to reflect this purchase.
 
Conclusion:
 
I decided to add to my position in C.I.B.C as the stock has fallen from it's 52 week high of $125.21. The purchase price of $102.40 represents an 18.2% decrease in price from the 52 week high.
 
The P/E ratio at the time of this writing is 9.04, which is 158 bps below the stock 5 year average.
 
The stock is currently trading with a 5.45% dividend yield, which is 94bps above the 5 year average.
 
I would also like to note, that I purchased 12 shares of C.I.B.C on May 22 at $107.90 for a total cost of $1299.79.
 
With these 2 purchases, I now own 65 shares of C.I.B.C. I have owned the stock for several years.
 
What are you buying? Do you own any of the big 5 Canadian banks in your portfolio?
Disclosure: Long CM.TO, BMO.TO, RY.TO, BNS.TO, TD.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.

Dividend Income Update - June 2019

      

        The month of June 2019 is another month of dividend income landing in my accounts. Recently, I switched my pay yourself first model to concentrate a little on debt repayment.  The interest on debt is 7.16% plus the insurance on the debt.  I currently pay myself 10% of income from job(s) and non-registered accounts to my TFSA.  The TFSA income is staying within the account.  I will deviate the 10% to savings account instead of to TFSA if a large expense comes up like a dental appointment.

       

 Non-registered Accounts

• Cineplex  (CGX) - $15.00
• Enbridge (ENB) - $19.40 (Transfer Agent)
• Enbridge (ENB) - $221.40
• Enerplus (ERF)  -$ 5.58 
• High Liner Foods (HLF) - $15.30 
• Intertape Polymer Group (ITP) - $9.33
• Shaw Communications (SJR.B)  - $19.75

Subtotal :  $305.76

TFSA

• A&W Royalties Income Fund (AW.UN) - $5.85
• Boston Pizza Royalties Income Fund   (BPF.UN) - $26.91
• Brookfield Renewable Partners (BEP.UN) - $21.96
• Canadian National Railway (CNR.TO) - $20.43 
• Cominar REIT (CUF.UN) - $13.08
• Dream Office REIT   (D.UN)  - $14.00
• Enbridge (ENB) - $24.35
• Killam Properties REIT (KMP.UN) - $  16.61

Subtotal:  $143.19

Total = $448.95

    I received a total of $448.95 in dividend income for the month of June 2019.  This represents a 9.32% decrease from 3 months ago and 11.77% decrease year over year. 

    A major reason for the decline from 3 months and from last year was due to the 67% reduction of dividend by High Liner Foods.

    This was the first time I ever received a dividend from my new position in Intertape Polymer Group. 

    I received dividend / distribution income from 13 different companies.   

     I received $0.00 in option premiums within my investment accounts in June  2019.

  
    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 June 2019?

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 - June 2019

The month of June 2019 now behind us.
 
The newly formed Alberta government is trying to get out of the lease of rails cars setup by the previous NDP government.  These lease rail cars are suppose to help relieve the bottle neck of surplus oil in Alberta.  The cost of transporting crude by rail is significantly more expensive than by pipeline. Currently, the pipelines are at capacity.

The federal government announced for the third time the approval of the Trans Mountain pipeline expansion to the west coast. A few days later bill C48 and C69 were passed before the end of the spring session of parliament. These 2 bills, along with the members of parliament voting to declare Canada in a climate emergency and more protesters, leads me to believe that the pipeline expansion will not happen in the future.

Canadians will go to the polls in October.  This will affect how the Canadian markets will do in the next couple of months as the election will be about Climate Change, energy and jobs.
 
Portfolio Activity

In May 2019, Onex Corporation put in an offer to purchase WestJet at $31.00 per share pending regulatory approval and shareholder approval.  Recently, the federal Minister of Transport gave his OK for the deal. The WestJet Airlines shareholders have not yet voted on the deal.

 My $24 covered called in WestJet was assigned on June 10 with a settlement date of June 12.  June 12 was also the day the shares traded ex-dividend. Therefore, I did not receive the dividend paid on June 28.  WestJet Airlines pays a $0.14 per share quarterly, or $0.56 per share annual, dividend.  This option assignment of 200 shares reduces my annual dividend income by $112.00.


The short put options in WestJet Airlines (WJA.TO) and Intertape Polymer Group (ITP.TO) expired at expiration. 

 Shares Purchased Via DRIP
 
1 unit of CUF.UN.TO @ $12.4335 for a total cost of $12.43 (TFSA)

1 share of HLF.TO @ $8.7135 for a total cost of $8.71 (margin account)

I own 219 units of Cominar REIT (CUF.UN.TO). Currently, CUF.UN pays $0.72 per unit per year, or $0.06 per unit monthly, distribution. This DRIP adds $0.72 to my annual dividend income. The yield on this dripped unit is 5.79%.

I own 307 shares of High Liner Foods (HLF.TO).  Currently, HLF.TO pays $0.20 per share per year, or $0.05 per share quarterly, dividend.  This DRIP adds $0.20 to my annual dividend income.  The yield on this dripped share is 2.30%.

The shares of Enbridge that are held directly with the transfer agent normally drip.  Enbridge (ENB.TO) announced in November 2018 that it was cancelling its DRIP program, but may bring it back in the future.  

Please note that if some brokerages DRIP shares when there is no DRIP program by the actual company. This DRIP is when the brokerage buys the shares directly off the public market stock exchanges.
 
Dividend Increases
 
There was no dividend increases announced in the month of June.

Dividend Decreases

There was no dividend decreases announced in the month of June.
Summary:
 
As of July 1 , the value of the portfolio is $122046.97. This is a 1.290% decrease over last month's total.
 
The portfolio is estimated to produce $4773.36 in dividend income over the next 12 months. 
   
Disclosure: Long CUF.UN, HLF.TO, ITP.TO, ENB.TO.


Please Note: Positions in Restaurant Brands International (QSR.TO) and Intertape Polymer Group (ITP.TO) pay dividends in US dollars. Brookfield Renewables Partners (BEP.UN) pays distributions in US dollars. 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.