Saturday, February 22, 2020

Recent Dividend Increase


Investing in a dividend growth stock has a few great rewards.  Of course, the most important is the increase in the dividend means more money in your pocket.   When a dividend increase is announced, it signals to investors that a company awarded investors for a good few quarters and believe the next few quarters will be great for the company.

On February 21, Royal Bank of Canada reported their earnings.  Royal Bank of Canada trades on both the New York Stock Exchange and Toronto Stock Exchange under the ticker symbol RY.

With this earnings report, Royal Bank announced an increase in their quarterly dividend from $1.05 to $1.08 per share, or from $4.20 to $4.32 per share annually.  This represents an increase of 2.86%.  This increase might seem small, but Royal Bank has been announcing dividend increases semi-annually for the past several years.

I own 56 shares of RY.TO inside my TFSA.  This dividend raise increased my $6.72 to my annual dividend income.

During the last quarter, Bank of Nova Scotia (BNS) announced they will be going to annual dividend raises starting with Q2 earnings release in 2020.  TD Bank (TD_has been doing annual dividend raises for the past several years.  I believe the other 3 big 5 banks might change to annual dividend raises in the next couple of years.

Disclosure: Long RY, BNS, TD

Photo Credit : royalbank.com

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.

Saturday, February 15, 2020

Results of Recent Poll

Towards the end of last month, I put a poll on my twitter feed. The results are as per the graphic below.  This is a snapshot of my tweet .




As per the graphic, 159 voted in the poll that was conducted over a 72 hour period.

The winner was Canadian National Railway, or CN Rail.  

CN Rail 

CN Rail trades under the ticker symbol CNR on the Toronto Stock Exchange and CNI on the New York Strong Exchange.  CN Rail is headquartered in Canada.  It is often said to be the best Class 1 railroad in North America. CN Rail serves 3 coasts.  These 3 coasts are the west coast and east coast of Canada, and the Gulf Coast of the United States.

The railroads have a huge barrier to entry due to the costs involved to start a railway and other things like land acquisition.

Brookfield Renewables

Brookfield Renewables Partners LP trade on the Toronto Stock Exchange under the ticker symbol BEP.UN.  The company also trades on the New York Stock Exchange under the ticker symbol BEP.  This company is the biggest player in the renewable energy space.  Climate Change is believed to be the biggest challenge of our time.

Some of the other players in this space in Canada have done very well as of last.  These companies are Transalta Renewables (RNW.TO) and New Flyer Group (NFI.TO).  New Flyer Group is actually a bus manufacturer.  As more and more municipalities have ordered buses to replace the existing fleets, they are ordering electric buses instead of diesel buses.  In some cases, the buses could be recharged through wind power or solar power.

Royal Bank Of Canada

Royal Bank is biggest of the big 5 banks.  The stock trades on both Toronto Stock Exchange and New York Stock Exchange under the ticker symbol RY.   Over the last couple of years, Royal Bank has reported on average net income around $3 billion per quarter.  Royal Bank is Canada's biggest bank by market capitalization.

TD Bank Group

The TD Bank Group consists of Toronto Dominion Bank and its subsidiaries.  This company is headquartered in Canada and has a big presence in the United States.  TD Bank Group trades on both the Toronto Stock Exchange and New York Stock Exchange under the ticker symbol TD.

Conclusion

My first choice would be CN Rail.  With the large moat and the importance of this railway to both Canada and the United States.  CN Rail is the only railway that serves the Port Of Halifax on the east side of Canada and Port of Prince Rupert on the west coast of Canada.  CN Rail's biggest shareholder is Bill Gates, who we all know as the former CEO and co-founder of Microsoft.  

Disclosure: Long CNR, TD, RY, BEP.UN


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.

Saturday, February 8, 2020

Recent Dividend Increases

Over the last couple of weeks a few stocks I owned have reported earnings.  These stocks are Canadian companies but trade on both the Toronto Stock Exchange and the New York Stock Exchange.  These stocks are in 2 complete different industries.

First off, Canadian National Railway, aka CN Rail, reports earnings on January 28.  CN Rail trades on both Toronto Stock Exchange and New York Stock Exchange under ticker symbols CNR and CNI, respectively.



Q4 2019 vs Q4 2018
  •  Revenues of 3.584 billion CAD, which is a decrease of 6%
  •  Adjusted diluted EPS of $1.25 CAD, which is a decrease of 16%
  • Operating ratio of 66.0%, which is an increase of 4.1 points
  • Adjusted operating ration of 65.2%, which is an increase of 4.0 points
  • Operating income of $1.218 billion CAD, which is a decrease of 16%.
During Q4 2019, CN had an 8 day labour strike.  The lead to masses loss of revenue as the trains were only operating at a 10% capacity.  

The economy is starting to slow, which affects the transportation industry.  

CN Rail network involves serving 3 coasts.  Due to winter in Canada, the trains must be shorter in length due to the effect the cold has on air brake lines.  This leads to a higher operating ratio compared to the average for the year.

CN announced a dividend increase of 6.97%.  The quarterly per share dividend was increased to $0.575 CAD from $0.5375 CAD, or $2.15 CAD per share annually  to $2.30 CAD per share annually.  I currently own 38 shares of CNR.TO.  Therefore, this increase adds $5.70 CAD.

This dividend increase represents the 24th consecutive year that the dividend was raised.  CN Rail became a public company in 1995. 

Second Raise

On Feb 6, Bell Canada Enterprises ( ticker symbol: BCE) released its Q4 earnings and full year earnings. 

Some of the highlights of the Q4 earnings release are as follows:
  • Net earnings increased 12.6% to $723 million CAD
  • Net earnings attributable to common shareholders grew 10.9% to $672 million CAD, or $0.74 per share.  This is an increase of 8%.
  • Q4 cash flows from operating activities increased 16.9% to $2.091 billion CAD
  • Q4 free cash flow of $894 million CAD contributed to 7% growth  for full year 2019. 
BCE announced a dividend increase with the earnings release.  The dividend was increased from $0.7925 per share quarterly to $0.8325 per share quarterly, or from $3.17 per share annually to $3.33 per share annually.  This represents an increase of 5.05%.  I currently own 100 shares of BCE.  Therefore, this increase adds $16.00 CAD to my annual dividend income.

Disclosure:  Long BCE, CNR

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.

Tuesday, February 4, 2020

Dividend Income Update - January 2020



      
The month of January 2020 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) - $41.07
  • Bank of Nova Scotia (BNS) - $18.00
  • Bell Canada Enterprises (BCE) - $79.25
  • Canadian Imperial Bank of Commerce "CIBC" (CM) - $158.40
  • Cineplex (CGX) - $24.00
  • Enerplus (ERF)  -$ 5.58
  • Restaurant Brands Intl (QSR) - $64.06
  • Roger's Communications Class B (RCI.B) - $100.00
  • Shaw Communications (SJR.B)  - $19.75
Subtotal : $510.11

TFSA
  • A&W Royalties Income Fund (AW.UN) - $6.04
  • Boston Pizza Royalties Income Fund   (BPF.UN) - $26.91
  • Killam Properties REIT (KMP.UN) - $16.61
  • TD Bank (TD) - $33.30
  • Telus (T) - $13.98
  • TFI International (TFII) - $13.00
Subtotal: $109.84

Total = $619.95

 I received a total of $619.95 in dividend income for the month of January 2020.  This represents a 0.646% decrease from 3 months ago and 22.8% increase year over year.  

 The decrease of 0.646% from 3 months ago was due to Cominar REIT paying distributions twice in December 2019 and purchase of more shares of Cineplex.  Cominar pays in the middle and end of the December, therefore there was no payment mid January.  Cineplex is currently in the process of being taking over by UK company called Cineworld.  Cineworld is offering $34 per share and to assume the all the debt and is subjected to Cineplex shareholder approval and regulatory approval.  The decrease due to no distribution from Cominar REIT (CUF.UN) was offset by the $9.00 in dividends from the new shares of Cineplex.

 I received dividend / distribution income from 14 different companies.   

  I received $0.00 in option premiums within my investment accounts in January  2020.

Below is a visual of my dividend totals for the last 5 years.  



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 January 2020?

Disclosure : Long all mentioned securities

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.




Saturday, February 1, 2020

Portfolio Update: January 2020

The month of January 2020 now behind us.  Some major things have happened in the world, which affect the markets in some way.

On January 1, 2020, Alberta consumers will have to pay a carbon tax. The carbon tax will be a federal carbon tax this time, whereas before it was provincial. The new Alberta government cancelled the previous provincial carbon tax on May 30th, that was in place in Alberta.


Some of the provincial governments are still fighting the federal government over the carbon tax, stating it is harming the economy has it makes everything more expensive for businesses and consumers.  This is causing investors to flee Canada or remain on the sidelines.

The Conoravirus has killed 259 people in China.  The virus has affected the airline industry over fears of the virus spreading.  The virus is believed to have started in China. Face masks have been flying off the shelves across the world.  Top officials in the medical arena said a vaccine is believed to be at least a year away.

Portfolio Activity

Margin Account Activity

There was no buys or sells in the margin account for January.

Cineplex has sent out proxy information for shareholders to vote on the sale of Cineplex to Cineworld.  Cineworld is based out of the UK.  Cineworld is offering to purchase Cineplex at $34 CAD per share.  This share price is around a 40% premuim to what Cineplex shares were trading the day prior to the announcement.


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.

I previously turned on the DRIP for Boston Pizza Royalties Income Fund (BPF.UN.TO). I received a unit with the distribution paid out in January.
 

Shares Purchased Via DRIP

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

1 unit of BPF.UN  @ $14.2735 for a total cost of $14.27  (TFSA)


Currently, Boston Pizza Royalties Income Fund pays a monthly distribution of $0.115 per unit, or $1.38 per unit annually.  This DRIP adds $1.38 to my annual dividend income.  The yield on this DRIP unit is 9.67%.


Bank of Nova Scotia paid a dividend on January 29.  The shares have no settled in my account as of the time of this writing.  

I have some other positions with the DRIP turned on, but might not have enough of a dividend to purchase a whole share.

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 January 13, Brookfield Renewable Partners LP (BEP.UN) increased their quarterly distribution from $0.515US to $0.5425US, or $2.06US per share annually to $2.17US per share annually. 


This is an increase of 5.33%. As of the time of this writing, I own 33 shares of Brookfield Renewable Partners LP. This increase adds $3.63US to my annual dividend income.  This position was purchased on the Toronto Stock exchange. At the time of this writing, this $3.63US is equivalent to $4.80CAD
 

On January 28, Canadian National Railway (CNR.TO) increased their quarterly dividend from $0.5375 to $0.575, or $2.15 per share annually to $2.30 per share annually. 

This is an increase of 6.98%. As of the time of this writing, I own 38 shares of CN Rail. This increase adds $5.70 to my annual dividend income.
 

Dividend Decreases

There was no dividend decreases announced in the month of December

Summary:
 

As of February 1, 2020 , the total value of the portfolio is $131039.49 CAD. This is a 1.062% increase over last month's total. 

The dividend increases have increased my annual dividend income by $10.50 CAD. This is equivalent of investing $300.00 of my own money at 3.5%.

The portfolio is estimated to produce $5666.50 in dividend income over the next 12 months. This is an increase of $18.65 , or 0.33% . Some of the dividends in the Canadian stocks section are paid in US dollars, which are converted to Canadian dollars.

Disclosure: Long all aforementioned stocks 

Edit (Feb 1 @ 12:00 MST) :  I updated the amount of people who died in China from the Coronavirus.  

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.

Friday, January 3, 2020

Dividend Income Update : December 2019



      
The month of December 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 
  • Cineplex (CGX) - $24.00
  • Enbridge (ENB) - $19.40  (transfer agent)
  • Enbridge (ENB) - $221.40 (margin account)
  • Enerplus (ERF)  -$ 5.58
  • Inter Tape Polymer Group (ITP) - $9.71
  • Shaw Communications (SJR.B)  - $19.75
Subtotal : $299.84

TFSA
  • A&W Royalties Income Fund (AW.UN) - $6.04
  • Boston Pizza Royalties Income Fund   (BPF.UN) - $26.91
  • Brookfield Renewable Partners LP (BEP.UN) - $21.92
  • Canadian National Railway (CNR) - $20.43
  • Cominar REIT (CUF.UN) - $26.64
  • Enbridge (ENB) - $24.35
  • Killam Properties REIT (KMP.UN) - $16.61
Subtotal: $142.90

Total = $442.74

 I received a total of $442.74 in dividend income for the month of December 2019.  This represents a 5.23% increase from 3 months ago and 7.49% decrease year over year.  

 The increase of 5.23% from 3 months ago was due to increasing my position in Cineplex Inc  and Cominar REIT paying distributions twice in the middle and end of the month.  Cineplex is currently in the process of being taking over by UK company called Cineworld.  Cineworld is offering $34 per share and to assume the all the debt and is subjected to Cineplex shareholder approval and regulatory approval.  

 The decrease of 7.49% year over year is due to the call option assignment of WestJet Airlines (WJA.TO) and the sale High Liner Foods (HLF.TO) which is offset by the increase in Cineplex dividend. 

 I received dividend / distribution income from 11 different companies.   

  I received $0.00 in option premiums within my investment accounts in December 2019.


I received a total of $4998.20 in dividends in 2019.  This is a 4.23% increase over the $4795.39 received for all of 2018.  I take money out of my margin account and allocate some of the margin account dividends to savings or TFSA via pay yourself first.  I did not do any withdrawals from my TFSA.  I am been paying down debt and trying to build my savings, so the portfolio contributions have trailed the contributions for savings.   

The increase for 2020 in its entirety will be much larger even with out adding a single penny to the accounts. 

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 December 2019?

Disclosure : Long all mentioned securities except HLF.TO and WJA.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.