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.