Portfolio Update: November 2019

The month of November 2019 now behind us.

The federal government on November 20 announced the new cabinet. The prime minister kept Bill Morneau as his minister of finance. If a new finance minister was chosen, I think it would of caused some market turmoil for a few days.

The major news event in Canada, which affected both Canada and the United States, was the strike at CN Rail (CNR.TO CNI). CN Rail serves 9 ports, 3 coasts between Canada and the United States. The strike lasted for about a week, but caused layoffs in other businesses due to the importance of CN Rail getting their goods and commodities to market. Quebec faced a major shortage of propane. CN Rail was operating at like 10% capacity during the strike.

Once the strike was over, CN started up operations the following business day at 6am local time for each of its locations. The federal government did not meet and pass legislation to force workers get back to work.

Portfolio Activity

Margin Account Activity

On November 5, I averaged down on my position in Cineplex Inc (CGX.TO). Cineplex Inc. operates movie theatres in Canada along with other entertainment establishments. Cineplex is in the transition phrase of being a movie theatre company to an entertainment company. I purchased 60 shares at $22.33 for a total cost of $1344.96 including commissions.

Cineplex pays a monthly dividend. I purchased the shares after the ex-dividend date, so the dividend paid on November 29 did not include dividends from the new shares.

TFSA Activity

There was no purchases and selling in the TFSA account.

I continue to build up cash in my TFSA to make another purchase and at a good price.

There was no drip in Cominar REIT (CUF.UN.TO) in November as the distribution was not enough to purchase one unit. The price of the stock has traded higher than my distribution amount in each of the last two months.

Shares Purchased Via DRIP

There was no shares purchased via the DRIP during November. The DRIP remains turned on for certain stocks as indicated in my investment tab spreadsheet.

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 November 7, Telus Corporation (T.TO) increased their quarterly dividend from $0.5625 to $0.5825, or $2.25 per share annually to $2.33 per share annually. This is an increase of 3.56%. As of the time of this writing, I own 24 shares of Telus. This increase adds $1.92 to my annual dividend income. Telus has been raising their dividend semi-annually for the last several years.

Dividend Decreases

There was no dividend decreases announced in the month of November

Summary:

As I started to include my US position in my portfolio, I will once again included the information immediate below.

I decided to give a more accurate portfolio and included my US Stock portfolio along with the Canadian stock portfolio. I included the combined CAD amount for cash in all my postings but not the market value of the position.

I currently have one US position and it is held within my TFSA. The position is Facebook (FB). I have owned this position very near the IPO date or maybe even on the first day the shares traded.

I added a new sheet to my investment tab spreadsheet, showing this position and the USD cash position of both accounts. There is a small cash position within the US portion of margin account from a General Electric position I had years ago. Most of the cash as the result of the General Electric position was converted back into Canadian dollars.

The investment tab spreadsheet now has 2 sheets, one being the Canadian portfolio and one being a US portfolio. The latter is all in USD dollars. On the Canadian portfolio sheet, I take the sum of the US portfolio balance converted to CAD and the Canadian portfolio balance to give a total portfolio balance.

As of November 30 , the total value of the portfolio is $129876.08. This is a 2.26% increase over last month's total.

The dividend increases increased my annual dividend income by $1.92 CAD. This is equivalent of investing $54.86 of my own money at 3.5%.

The portfolio is estimated to produce $5541.56 CDN in dividend income over the next 12 months. This is an increase of $113.49, or 2.09%.

I updated my investing tab spreadsheet.

Disclosure: Long all aforementioned stocks

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.

Recent Purchase

    When it comes to investing in the market, an investor has to try to look for opportunities as prices vary one day to the next.  Some times they purchases will turn out to be good and others time not.  When you purchase  a stock at a lower price you are lower your possible losses and introducing a margin of safety.

   I had some cash on hand in my margin account and was looking to put it to work.  I have not added any cash to this account in several months.

Purchase

Their was a run up in the stock price for the big 5 banks, so I did not feel comfortable adding to my positions at this time.  Also, Enbridge is a large part of my portfolio so that was not an option at this time.

I added to my purchase of Cineplex (CGX.TO). 

Cineplex Inc., through its subsidiaries, operates as an entertainment and media company in Canada and internationally. It operates through three segments: Film Entertainment and Content, Media, and Amusement and Leisure. The Film Entertainment and Content segment operates film theatres; and provides food and in-theatre amusement services, as well as rents theatre and digital commerce. The Media segment provides in-theatre advertising services; and designs, installs, and operates digital signage networks, as well as offers advertising on networks. The Amusement and Leisure segment operates and distributes amusement, gaming, and vending equipment; and operates social entertainment destinations comprising gaming, entertainment, and dining facilities, as well as facilitates tournaments, leagues, and gaming ladders for the competitive gaming community. The company operates theatres under the SilverCity, Galaxy Cinemas, Scotiabank Theatres, Cineplex Cinemas, Cineplex VIP Cinemas, Famous Players, and Cinema City brands. As of October 21, 2019, it operated 165 theatres in Canada, including 6 theatres and a VIP Cinemas in Saskatchewan. Cineplex Inc. was founded in 2003 and is headquartered in Toronto, Canada. (Source: Yahoo Finance)

The stock has been struggling over the past few years.  The theatre portion of the business has been dealing with declining attendance for decades. Cineplex makes alot of money at the concession stands. We all have been shocked by the price of popcorn and other snacks at the concession stands. 

Cineplex and other theatres have to complete with online streaming services such as Netflix.  People now can more easily by big screen TV such has 52 inch size.  The old TVs of that size were extremely heavy to difficult to move around in a house.  People can buy stereo systems that can give you the sound of like being a theatre.  Most people will still prefer to go to the movies, but they go way less often due to the cost.

Cineplex was been in recent years converting from a movie company to an entertainment company.  An example is the Rec Room part of their business.  Rec Room is a destination for "eats and entertainment" for adults in various cities.  These cost a lot upfront to build, so this will have a negative effect on revenue for a few years.

I added to my position in Cineplex with a purchase of 60 additional shares.  I purchased the 60 shares on November 5 at $22.33 per share for a total cost of $1344.96 including commissions. 

Currently, Cineplex pays a monthly dividend of $0.15 per share, or $1.80 per share annually.  This purchase adds $108.00 to my annual dividend income.  The yield on this purchase is 8.03%.

Conclusion

I previously purchased 100 shares of Cineplex at $43.85 per share for a total cost of $4389.95. These 100 shares were purchased on August 4, 2017.

The adjusted cost base of the combined 160 shares is $35.84 per share.  

I did not see any hint of insider selling in the past 6 months or so. With the upfront cost of them expanding their business into new Rec Rooms and other areas away from the movie theatres.

I would of put my money in a stock with a lower yield, if I did not already own this stock.  

I will update my investment spreadsheet in early December with this purchase.

Disclosure:  Long CGX.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.

Trading Account Update: November 9,2019

As previously stated on this blog, that I have started a trading account with a balance below $1000.00.   I started to add $50.00 every two weeks but that has stopped due to a recent job loss.  The following table shows my stats from the start of 2016:

                               

                               # of trades :                        48
                               Total Capital added:          $250.00
                               Trading Acct Balance:       $3520.13
                               Average Drawdown:          $109.73
                               Average Loss:                    $287.20
                               Average Accuracy:            83.33%
                               Average Risk:                    $125.17
                               Average Reward:              $110.26
                               Average Risk/Reward :      1: 0.881

        I have been trading penny stocks, stocks, REITS and options.  Any dividends that will be received from this account will stay within the account. The accuracy rate is high. Does this mean that I am a super trader? No it does not.  The risk to reward ratio states of every $1.00 of risk there is reward of  $0.881.  Ideally, a trader should aim for a 1:2  risk to reward ratio which causes the accuracy rate to be lower.  I lost big on a trade as I did not put a stop in at the initiation of the PZA.TO trade.  The stock kept dropping and dropping, so I felt it was best to sell.   

      The drawdown above is inter-trade drawdown.  This type of draw down is the dollar amount the trade moves against you.  Why is it important to keep track of inter-trade drawdown?  It helps you know if you are picking good entry points.  It is normal for trades to have inter-trade drawdown. 

Note:  The trades are listed under the Trading Tab above with all the trades listed as of November 8, 2019

Note:  As of November 9, 2019, there is no active trades. 

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: October 2019

      

    The month of October 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. 

Note:  All the dividends and totals below are in Canadian Dollars. 

       

 Non-registered Accounts 

• Bank of Nova Scotia (BNS) - 18.00 (Margin Account)
• Bank of Nova Scotia (BNS) - 40.59 (Transfer Agent)
• Bell Canada Enterprises (BCE) - $79.25
• Canadian Imperial Bank of Commerce "C.I.B.C" (CM)- $158.40
• Cineplex  (CGX) - $15.00
• Enerplus (ERF)  -$ 5.58
• Restaurant Brands International (QSR) - $65.73
• Rogers Communications Class B (RCI.B) - $100.00
  
• Shaw Communications (SJR.B)  - $19.75

Subtotal :  $502.30

TFSA

• A&W Royalties Income Fund (AW.UN) - $6.04
• Boston Pizza Royalties Income Fund   (BPF.UN) - $26.91
• Cominar REIT (CUF.UN) - $13.32
• Killam Properties REIT (KMP.UN) - $16.61
• TD Bank (TD) - $33.30
• TFI International (TFII) - $12.00
• Telus Corporation (T) - $13.50

Subtotal:  $121.68

Total = $623.98

    I received a total of $623.98 in dividend income for the month of October 2019.  This is the first time I ever received over $600.00 of dividend income in a month.  This represents a 22.0% increase from 3 months ago and 38.3% increase year over year.  The increase is mostly due to increasing my position in C.I.B.C and re-initiating a position in TD Bank over the past year.

    I received dividend / distribution income from 15 different companies.   

     I received $0.00 in option premiums within my investment accounts in October 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 October 2019?

Disclosure : Long all mentioned securities

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: October 2019

The month of October 2019 now behind us.

The federal election in Canada was on October 21. The outcome of the federal election was a Liberal minority government. Justin Trudeau remains Prime Minister unless a coalition between the other federal parties is formed.

In Canada, there are a lot of political parties at the federal level. Some of never one a seat. Currently, 5 of these parties are talked about and referred to mostly in the media. The are Liberal party, Conservative Party, Green Party, New Democratic Party (NDP), Bloc Quebecois, and People's Party of Canada.
 
With a minority government, the government can fall if it loses a confidence vote in the House of Commons more easily than a majority. In a majority situation, enough of their own MPs voting with the government must show up to outnumbered the total MPs present from all the people voting against the government.

There is still trouble in the Canadian oil patch. Husky Energy recently announced layoffs. Encana Corporation announced they are moving to the United States and changing the name of the company.

Portfolio Activity

Margin Account Activity

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

My trade in TFI International (TFII.TO) is completed as the covered call option was assignment on October 18, 2019. As stated in last month's update, capital gains, option premiums and dividends will be all used to pay down debt minus the cost of the margin which was under $15.00.

Other than the TFI International sale, there were other selling of positions.
 
The only purchase within the margin account was the result of a drip.

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

TFSA Activity

There was no purchases and selling in the TFSA account.

There was no drip in Cominar REIT (CUF.UN.TO) in October as the distribution was not enough to purchase one unit after a slight increase in the price of the REIT.

Shares Purchased Via DRIP

0.536792 shares of BNS.TO @ $75.6159 for a total cost of $40.59 (Transfer agent)

I now own 45.634014 shares of Bank of Nova Scotia directly with the transfer agent. Currently, BNS.TO pays $3.60 per share per year, or $0.90 per share quarterly, dividend. This DRIP adds $1.93 to my annual dividend income. The yield on this dripped unit is 4.76%.

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 October 24, TFI International increased their quarterly dividend from $0.24 to $0.26, or $0.96 per share annually to $1.04 per share annually. This is an increase of 8.33%. As of the time of this writing, I own 50 shares of TFII.TO. This increase adds $4.00 CAD to my annual dividend income.
Dividend Decreases

There was no dividend decreases announced in the month of October

Summary:
 
I decided to give a more accurate portfolio and included my US Stock portfolio along with the Canadian stock portfolio. I included the combined CAD amount for cash in all my postings but not the market value of the position.

I currently have one US position and it is held within my TFSA. The position is Facebook (FB). I have owned this position very near the IPO date or maybe even on the first day the shares traded.

I added a new sheet to my investment tab spreadsheet, showing this position and the USD cash position of both accounts. There is a small cash position within the US portion of margin account from a General Electric position I had years ago. Most of the cash as the result of the General Electric position was converted back into Canadian dollars.

The investment tab spreadsheet now has 2 sheets, one being the Canadian portfolio and one being a US portfolio. The latter is all in USD dollars. On the Canadian portfolio sheet, I take the sum of the US portfolio balance converted to CAD and the Canadian portfolio balance to give a total portfolio balance.
 
As of November 2 , the total value of the portfolio is $127003.04. This is a 1.700% increase over last month's total. This increase is completely due to including the market value of my Facebook shares. Otherwise, the total would be a slight negative decrease over last month's total.

The dividend increases increased my annual dividend income by $4.00 CAD. This is equivalent of investing $114.29 of my own money at 3.5%.

The portfolio is estimated to produce $5428.07 CDN in dividend income over the next 12 months.

I updated my investing tab spreadsheet.

Disclosure: Long CUF.UN, TFII, BNS

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.