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.