Dividend Income Update: September 2019

      

    The month of September 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) - $221.40 (Margin Account)
• Enerplus (ERF)  -$ 5.58 
• Intertape Polymer Group (ITP.TO) - $9.80
  
• Shaw Communications (SJR.B)  - $19.75

Subtotal :  $290.93

TFSA

• A&W Royalties Income Fund (AW.UN) - $6.04
• Boston Pizza Royalties Income Fund   (BPF.UN) - $26.91
• Brookfield Renewable Partners (BEP.UN) - $22.20
• Canadian National Railway (CNR.TO) - $20.43
• Cominar REIT (CUF.UN) - $13.26
• Enbridge (ENB) - $24.35
• Killam Properties REIT (KMP.UN) - $16.61

Subtotal:  $129.80

Total = $420.73

    I received a total of $420.73 in dividend income for the month of September 2019.  This represents a 6.29% decrease from 3 months ago and 10.3% decrease year over year.  The decrease from 3 months ago is due to selling High Liner Foods (HLF.TO) and Dream Office REIT (D.UN.TO). Last month was the last dividend payment I received from Dream Office REIT.

    I received dividend / distribution income from 11 different companies.   

     I received $0.00 in option premiums within my investment accounts in September 2019.  I did sell covered call in position that is used for a trade, so I will not include the option premium here. 

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 September 2019?

Disclosure : Long all securities above except HLF.TO and D.UN.TO

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: September 2019

The month of September 2019 now behind us.

On September 11, the Prime Minister of Canada visited the governor general and started the federal election campaign. It is often said that this federal election will be the most important ever for Canada. The major issue of the election is climate change and how each party's plan would help Canada reach its Paris Accord targets by 2030.

As the polls show we could have a Conservative minority or Liberal minority, leaders from all parties are trying to win over voters by promising everything under the sun.

The Canadian federal election will occur on October 21, 2019.

The trade wars continue to play out between the United States and China. This along with the fears of a major recession have cause the stock markets in North America to have big raises and drops in recent weeks.

Portfolio Activity

Margin Account Activity

There is little activity in the margin account during the month of September.

I did make a trade in TFI International (TFII.TO). I purchased 200 shares of TFII.TO at $39.20 per share on September 24 for a total cost of $7844.95 including commissions.

On September 26, I then sold 2 covered call contracts on TFII.TO at net premium of $88.05 including commissions. The expiration date is October 18, 2019. The strike price is $40.00.

I am using any cashflow or capital gains from this trade to be directly applied to debt, which you can read about here. I will hold back $20.00 per month until the trade is closed out to cover margin debt interest on approximately $3000.00. To reflect this, I indicated this by red high lighting in the investment tab spreadsheet. I "borrowed" money from my trading account to reduce the amount of margin debt that was needed. Once this trade is closed, the money "borrowed" from trading account will be returned and the margin account will be in the black.

For Disclosure: I also own shares of TFI International inside my TFSA.

TFSA Activity

There was no purchases and selling in the TFSA account except a DRIP.

Shares Purchased Via DRIP

1 unit of CUF.UN.TO @ $12.5035 for a total cost of $12.50 (TFSA)

I now own 222 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 5.76%.

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

On September 27, Emera Inc. increased their quarterly dividend from $0.5875 to $0.6125, or $2.35 per share annually to $2.45 per share annually. This is an increase of 4.26%. As of the time of this writing, I own 100 shares of EMA.TO. This increase adds $10.00 to my annual dividend income.

Dividend Decreases

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

Summary:

As of October 4 , the value of the portfolio is $124879.75. This is a 1.478% increase over last month's total.

The dividend increases increased my annual dividend income by $10.00. This is equivalent of investing $285.71 of my own money at 3.5%.

The portfolio is estimated to produce $5426.79 CDN in dividend income over the next 12 months.

I updated my investing tab spreadsheet.

Disclosure: Long CUF.UN, EMA, TFII (TFSA)

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.

Account Activity

      In recent weeks, the market has been going up and down a lot it seems with any major news story.  On top of that, Canada is in the middle of a federal election where there is no front runner and the prospects of a minority government, liberal or conservative, are high.
      
Account Activity

    I had no active trades in my trading account the past several weeks.  I also had around $1400 in my margin account.  So I decided to make another trade in the margin account by using the positive margin account balance, "borrowing" the balance of the trading account and using some margin to make a purchase.

    I purchased 200 shares of TFI International (TFII.TO) on the Toronto Stock Exchange.  TFI International is a large trucking company that operates under various subsidiaries in Canada, United States and Mexico.  

    I purchased 200 shares at $39.20 for a total cost of $7844.95 including commissions.  The reason that I used some margin to purchase a board lot of shares is to sell covered calls against the position.  

   On Sept 26, I sold 2 covered call contracts with October 18, 2019, expiration date and a strike price of $40.00.  I collected a net premium of $88.05 on this transaction for being the seller of the option.

   I purchased the 200 shares of TFI International prior to the ex-dividend date.  TFI International currently pays a quarterly dividend of $0.24 per share, or $0.96 per share annually.  So I will receive the quarterly dividend payment of $48.00 in the middle of October.  

   My plan is to use the premium collected, dividends and capital gain to help pay down debt. I will hold back around $5.00 to more than cover the margin interest per month.  Therefore, the dividend is not going to show up in my dividend tabs for the month.   If option expires than I will sell another covered call or place a limit order to sell at a higher price.

Disclosure: Long 50 shares of TFII.TO inside TFSA

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.