Recent Purchase

A few weeks ago, I wrote about some activity in both my margin account and tfsa. With the ongoing trade wars mostly between China and the US along with other global issues, the markets have been going up and down by large amounts over the last several weeks.

After my trade of Dream Office REIT (D.UN) inside my TFSA, I wanted to put the proceeds of the sale to work. I wrote about purchasing TD Bank stock inside my TFSA, which you can read about by clicking on the link in the paragraph immediately above.

Purchase

I have been adding to my bank stocks or starting new positions in a bank over the past several transactions.

I went back and forth between 2 positions looking to put the money to work that was left over from the Dream Office REIT sale. The 2 stocks I was considering were Telus Corporation (T.TO) and Royal Bank (RY.TO). I already own shares in these 2 companies. Telus Corporation is telecommunications company. Telus offered a higher yield than Royal Bank.

I decided to purchase more shares of Royal Bank. The reason for this is I believe in the future the price of Royal Bank will grow more than Telus over the next couple of years.

On August 27, I purchased 27 shares of Royal Bank at $97.50 per share for a total cost of $2637.54 including commissions. This purchase brings my total share count to 56 shares.

Royal Bank currently pays a dividend of $1.05 per share quarterly, or $4.20 per share annually. This purchase adds $113.40 to my annual dividend income. The yield on cost of this purchase is 4.30%.

Royal Bank paid a dividend last week, so this purchase will be eligible for the next dividend in 3 months.

There is no cash available to make anymore purchases inside my TFSA in the near future. I will be looking to increase my position in Telus when funds are available and if the stock is trading at a good valuation. 

I will update my spreadsheet in early September with this transaction.

Disclosure: Long T.TO, TD.TO, 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 Portfolio Activity

It has been a crazy couple weeks on the the stock markets across the world. Are we in a recession? Are the trade wars between US and China causing investors to pull out for the market? I believe some investors fear that we are in a recession at this time. I do believe the impact of the US-China trade wars are having the most impact on the markets at this time.

Margin Account Activities

Sales

On August 7, I mentioned that I made a trade inside my margin account involving Telus Corporation (T.TO).

After making the purchase at $47.10 per share, I put in a stop limit order at $48.10 per share. The stock has been under a little pressure over the last week as the stock recently missed earning expectations.

On August 14, I decided to cancel the stop limit order around noon and replace it with a trailing stop limit order at a lower price. By using a trailing stop limit order, I get to lock in some gains and at the same time possibly gain some more if the stock rises in value.

The stock seemed to go sideways for over a week, which is normal. The sell order was filled at $47.60 per share. The profit from the trade was immediately sent to my line of credit. I was looking for a larger gain but decided to lower the sell price due to the falling stock prices. As I was only taking the profit out, I could use the capital from the sale towards investments.

The money "borrowed" from the trading account was returned.

This sale decreases my annual dividend income by $675.00.

For disclosure, I am long Telus Corporation (T.TO) in my TFSA.

Purchases

The markets went down a lot over a couple of days. I wanted to take advantage of this by buying stocks at a lower price. Buying a stock at a lower price, results in a higher starting yield as price and yield are inversely correlated. The higher the starting yield means money working harder for you.

On August 15, I put in limit orders on 2 stocks I was looking to increase my position size and further grow my dividend income.

First Purchase

On August 15, I purchased 50 shares of Bank of Montreal (BMO.TO) at $92.00 per share for a total cost of $4605.12 including commissions.

Currently, Bank of Montreal pays a dividend of $1.03 per share quarterly, or $4.12 per share annually. This purchase adds $206.00 to my annual dividend income. The yield on cost for this purchase is 4.47%.

This purchase is not eligible for Bank of Montreal's next dividend on Aug 27, 2019, as the record date is August 1, 2019.

This purchase brings total number of shares in Bank of Montreal to 85 shares.

Second Purchase

On August 15, I purchased 45 shares of Canadian Imperial Bank of Commerce "C.I.B.C" (CM.TO) at $98.00 per share for a total cost of $4415.11 including commissions.

Currently, C.I.B.C pays a dividend of $1.40 per share quarterly, or $5.60 per share annually. This purchase adds $252.00 to my annual dividend income. The yield on cost for this purchase is 5.71%.

This purchase will be eligible for C.I.B.C's next dividend payment which is expected October 28, 2019, to shareholders on record of September 26, 2019. This is listed on their investor relations page as future notice that is subject to approval of board of directors.

This purchase brings total number of shares in C.I.B.C to 110 shares. I recently added shares of C.I.B.C twice with in they past 3 or 4 months.

TFSA Account Activities

Sales

Continuing with markets going down over the period as per above, I decided to take action in this account as well. I noticed Dream Office REIT (D.UN.TO) was trading close to my adjusted cost base per share. Dream Office REIT has reduced their distribution a few times over the past 4 years. The distribution as remained at $0.083333 per unit monthly, or $1.00 per unit annually.

So, I sold my 168 units of Dream Office REIT at $26.41 per unit for a total net proceeds of $4431.69 from the sale. My adjusted cost base was $4489.30. Therefore, the net loss is $57.61 excluding distributions.

This sale decreases my annual dividend income by $168.00.

Purchase

On August 15, I purchased 25 shares of TD Bank (TD.TO) at $71.57 per share for a total cost of $1794.29 including commissions.

Currently, TD Bank pays a dividend of $0.74 per share quarterly, or $2.96 per share annually. This purchase adds $74.00 to my annual dividend income. The yield on cost for this purchase is 4.124%.

This purchase is eligible for TD Bank's next dividend which is expected to be declared on August 29, 2019.

This purchase brings total number of shares in TD Bank to 45 shares.

Conclusion

My plan with the Telus trade in my margin account was to not to hold for very long and take the profit and put on line of credit. I took a smaller profit than I was looking for due to the prices of stocks falling in value that I wanted to purchase.

These 3 purchases are all Canadian Banks.

The yield on cost on all 3 purchases is north of 4%. The starting yields are all higher than the yield of the broader market.

I have invested a lot of money in Canadian banks the past several months. Canadian banks are known to be some of the best and financially banks in the world. Then banks are traded on both the Toronto Stock Exchange and New York Stock Exchange. My purchases were all done on the Toronto Stock Exchange. 

I will update my investing spreadsheet in earlier September with these transactions. 

Disclosure: Long T.TO, BMO.TO, CM.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.

Recent Buys

On Monday, the Canadian markets were closed as the first Monday of August is a civic holiday pretty much across the whole country.  Our neighbors to the south did not fare to well on Monday.  The Dow Jones closed on Monday down over 700 points.  When the markets fall by a few hundred points, a lot of investors sell as their fears start to get the better of them.

Like most Canadian investors, I do not have US funds in my brokerage account on hand.

On Tuesday morning, when the markets opened there was a sell off.  At the end of the trading day on Tuesday, the Dow Jones Industrial Average closed up around 325 points from the close on the previous trading day.  

First Purchase

I decided to put the cash sitting in my TFSA to work.  I placed a limit order for shares of Royal Bank of Canada (RY.TO).

I purchased 9 shares of Royal Bank at $100.40 per share for a total cost of $908.58 including commissions.

Currently, Royal Bank pays a quarter dividend of $1.02 per share, or $4.08 per share annually.  This purchase adds $36.72 to my annual dividend income.  The yield on cost for this purchase is 4.04%. This purchase will not be eligible for the dividend paid out on August 23 as the record date has passed.

This purchase brings my total shares in Royal Bank to 29 shares.  

Second Purchase

Unlike the first purchase, the second purchase was to initiate a trade within my margin account.  As I do not have any trades going on within my trading account, I decided to "borrow" the balance of my trading account and use the cash in my margin account to purchase 300 shares of Telus Corporation (T.TO).  I had to borrow about $550.00 on margin to have a multiple of a hundred shares.

I purchased 300 shares of Telus at $47.10 per share for a total cost of $14134.95 including commissions.

Currently, Telus pays a $0.5625 per share quarterly dividend, or $2.25 per share annually.  This purchase adds $675.00 to my annual dividend income.  The yield on cost for this purchase is 4.76%.

I do not plan on holding on to these 300 shares.  The plan is to collect some profits in a reasonable amount of time.  In fact, I placed a limit order to sell these shares.  If I receive any dividends from this purchase they will be counted has dividend income for the reports.  The profits on the sale will go towards savings or paying down my debt.   

For full disclosure, I am long shares of Telus within my TFSA. 

I will update my portfolio spreadsheet in early August to reflect both of these transactions if the Telus one is not sold by the time of the portfolio update.

Did you put money to work over the last couple of days?

Disclosure:  Long T.TO, 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.

Dividend Income Update: July 2019

      

    The month of July 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

• Bank of Nova Scotia (BNS) - $36.92  (transfer agent)
• Bank of Nova Scotia (BNS) - $17.40   (margin account)
• Bell Canada Enterprises (BCE) - $79.25
• Canadian Imperial Bank of Commerce "C.I.B.C"  (CM)- $56.00
• Cineplex  (CGX) - $15.00
• Enerplus (ERF)  -$ 5.58 
• Restaurant Brands International (QSR) - $64.64
• Rogers Communications Class B (RCI.B) - $100.00
• Shaw Communications (SJR.B)  - $19.75

Subtotal :  $394.54

TFSA

• A&W Royalties Income Fund (AW.UN) - $5.85
• Boston Pizza Royalties Income Fund   (BPF.UN) - $26.91
• Cominar REIT (CUF.UN) - $13.14
• Dream Office REIT   (D.UN)  - $14.00
• Killam Properties REIT (KMP.UN) - $  16.61
• TD Bank (TD) - $14.80
• Telus Corporation (T) - $13.50
• TFI International (TFII) - $12.00

Subtotal:  $116.81

Total = $511.35

    I received a total of $511.35 in dividend income for the month of July 2019.  This represents a 6.76% decrease from 3 months ago and 2.92% increase year over year. 

    I received dividend / distribution income from 16 different companies.   

     I received $0.00 in option premiums within my investment accounts in July  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 July 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: July 2019

The month of July 2019 now behind us.

Although the federal government did not call an election yet, the federal parties are getting ready as the election will happen in October 2019. By law, the election has to happen every 4 years if an election is not called before hand.

When in an election year, the markets could be affected and cause uncertainty with investors.

The struggles with China continue to play out. China has banned some agricultural products from Canada. This affects the transportation sector along with the agriculture sector is a large way. The products are most often transported by rail to the east and west coasts of Canada prior to being shipped over seas. The rails have solid earnings despite the these bans. The railroads continue to transport a lot of crude by rail as the pipelines are operating at capacity.

A major issue in the coming federal election is climate change. In Canada and around the world, we have seen the drastic effects of climate change. Canada has such a small population compared to countries like India, China and the United States. Most Canadians do not like the current action the federal government is doing which is mostly a carbon tax. Most people and businesses see this a tax grab. The other political parties have put their plan to attach climate change out to the public.

Portfolio Activity

On July 16 , I purchased 25 shares of Canadian Imperial Bank of Commerce "C.I.B.C." (CM.TO) at $102.40 for a total cost of $2565.04 including commissions. This purchase brings my total shares of C.I.B.C to 65 shares. This purchase adds $140.00 to my annual dividend income.

On July 22, I sold all 307 shares of High Liner Foods (HLF.TO) inside my margin account. High Liner Foods has been struggling the last couple of years which led to the dividend cut a few quarters back from $0.145 per quarter to $0.05 per quarter. This represents a cut of 65.5%. This sell substracts $61.40 from my annual dividend income. .


There was no option trades during the month of July.

Shares Purchased Via DRIP

1 unit of CUF.UN.TO @ $12.5235 for a total cost of $12.52 (TFSA)

0.523424 shares of BNS.TO @ $70.5356 for a total cost of $36.92 (transfer agent)

I own 220 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 5.75%.

I own 45.097222 shares of Bank of Nova Scotia (BNS.TO) as of this date. Currently, BNS.TO pays $3.48 per share per year, or $0.87 per share quarterly, dividend. This DRIP adds $1.82 to my annual dividend income. The yield on this dripped share is 4.93%.

I did purchase $150.00 worth of shares of Bank of Nova Scotia at the end of June, but these shares did not show up in the account prior to the record date. When investing directly through the transfer agent, the purchases occur on at date set by the company.

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

A&W Royalties Income Fund (AW.UN) increased their monthly distribution from $0.154 to $0.159 starting with the July distribution. This is an increase of 3.25%. This increase adds $2.28 to my annual dividend income. To find more about AW.UN with regards to their dividend, click here.

Dividend Decreases

There was no dividend decreases announced in the month of July.

Summary:

As of August 3 , the value of the portfolio is $121851.89. This is a 0.160% decrease over last month's total.

The portfolio is estimated to produce $4867.70 in dividend income over the next 12 months.

Disclosure: Long CUF.UN, BNS.TO, AW.UN, CM.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.