Portfolio Update - February 2020

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

The Alberta Court of Appeal voted 4 to 1 against the carbon tax, which the federal government implemented on January 1, 2020.  The implementation of this carbon tax meant their was a price on carbon in each province in Canada.  The federal carbon remains in Alberta as of the time of this writing.  The federal government will challenge the carbon tax at the Supreme Court of Canada.  Ontario and Saskatchewan are going to the Supreme Court of Canada after their respective Court of Appeal voted that the federal government has the right to put a carbon tax in place.

The Conoravirus which started in China has been spreading across the globe.  It is not an epidemic yet, but this is believed to cause investors to sell their positions.  As of this date, there is no vaccine and a vaccine is believed to be a year away.

In Canada, the a few hereditary chiefs of the Wet'suwet'en First Nation said no to a natural gas pipeline going through their territory.  The Wet'suwet'en First Nation's territory is located in British Columbia.  The band council and most people of the Wet'suwet'en First Nation want the pipeline through their territory as it would create jobs.  RCMP were already set up a location on this territory to help maintain peace due to contruction of the coastal gas pipeline being constructed through Wet'suwet'en territory.  Protestors started blocking major railway routes across Canada including the CN Rail line going through  Wet'suwet'en territory.  This has lead to layoffs at CN Rail and the national passenger train Via Rail. CP Rail and CN Rail cannot not runs their trains as per normal operations.  

These protests are by people in support of the hereditary chiefs of Wet'suwet'en First Nation that do not want the natural gas pipeline going through their territory.  Some of the protestors said they will remove their blockades if the RCMP move out of Wet'suwet'en territory.  Currently right now, the Minister of Crown-Indigenous Relations and her counter part in British Columbia are in meeting with the heriditary chiefs the last few days and talks are continuing. 

The markets across the world fell a lot during the last week, mostly over concerns of the coronavirus.   

Portfolio Activity

Margin Account Activity

There was no buys or sells in the margin account for February

Cineplex annoucement that their shareholders voted in favor of selling Cineplex to Cineworld for $34 per share.  The deal also was approved by regulators and is expected to close in the first half of 2020.

TFSA Activity

On February 27, TD Bank (TD.TO) reported their earnings. The earnings lead to the stock falling which also took into effect the fears of the Coronavirus, despite declaring a dividend increase of 6.76%.  I put my money to work and purchased shares of TD.  I purchased 17 shares of TD.TO at $69.45 for a total cost of $1185.66 including commissions.  

TD Bank pays a quarterly dividend of $0.79 per share, or $3.16 per share annually.  This purchase adds $53.72 CAD to my annual dividend income.  The yield on cost for this purchase is 4.53%.

Shares Purchased Via DRIP

1 unit of BPF.UN  @ $13.3035 for a total cost of $13.30 (TFSA)

0.565551 shares of BNS @ $72.6195 for a total cost of $41.07 (Transfer agent)

Currently, Boston Pizza Royalties Income Fund pays a monthly distribution of $0.102 per unit, or $1.224 per unit annually.  This DRIP adds $1.22 to my annual dividend income.  The yield on this DRIP unit is 9.20%.

Bank of Nova Scotia paid a dividend on January 29.  The shares did not settle in my account as of the time of last portfolio update.  Currently, BNS pays a quarterly dividend of $0.90 per share, or $3.60 per share annually.  This DRIP adds $2.04 to my annual dividend income.  The yield on cost of this DRIP is 4.96%. 

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 February 6, Bell Canada Enterprises (BCE.TO) increased their quarterly dividend from $0.7925 to $0.8325 per share, or $3.17 to $3.33 per share annually.  This is an increase of 5.05%.  I own 100 shares of BCE.TO.  This increase adds $16.00 CAD to my annual dividend income. 

On February 10, Restaurant Brands International (QSR.TO) increased their quarterly dividend from $0.50 USD to $0.52 USD, or $2.00 USD to $2.08 USD annually.  This is an increase of 4.00%.  I own 100 shares of QSR.TO. This increase adds $8.00 USD to my annual dividend income. This increase is equivalent to $10.73 CAD, as of the time of this writing. 

On February 12, Killam Properties REIT increased their monthly distribution from $0.055 per unit to $0.057 per unit, or $0.66 to $0.68 per unit annually.  This is an increase of 3.03%.  I own 302 units of KMP.UN. This increase adds $6.04 to my annual dividend income. 

On February 20, Royal Bank of Canada (RY.TO) increased their quarterly dividend from $1.05 to $1.08 per share, or $4.20 to $4.30 per share annually.  This is an increase of 2.86%. I own 56 shares of RY.TO.  This increase adds $6.72 to my annual dividend income.  Royal Bank of Canada has been doing semi-annual dividend raises for the past several years.

On February 26, Canadian Imperial Bank of Commerce "C.I.B.C" (CM.TO) increased their quarterly dividend from $1.44 to $1.46 per share, or $5.76 to $5.84 per share annually.  This is an increase of 1.389%. I own 110 shares of CM.TO.  This increase adds $8.80 to my annual dividend income. CIBC has been doing semi-annual dividend raises for the past several years. 

On February 27, TD Bank (TD.TO) increased their quarterly dividend from $0.74 to $0.79 per share, or $2.96 to $3.16 per share annually.  This is an increase of 

6.76%.  Excluding the purchase as per above, I owned 45 shares of TD.TO.  This increase adds $9.00 to my annual dividend income.
 

Dividend Decreases

On February 13, Boston Pizza Royalties Income Fund decreased their monthly distribution from $0.115 to $0.102 per unit, or $1.38 to $1.224 per unit annually.  This represents a decrease of 11.3%.  I owned 235 at the time of this annoucement.  This decrease substracts $36.66.

Summary:
 

As of February 29, 2020 , the total value of the portfolio is $123925.72 CAD. This is a 5.43% decrease over last month's total. This decrease is a result of the market sell off over the past trading week.

The dividend increases have increased my annual dividend income by $57.29 CAD. This is equivalent of investing $1636.86 of my own money at 3.5%. 

The dividend decrease reduced my annual dividend income by $36.66.  

The portfolio is estimated to produce an estimated $5749.57 in dividend income over the next 12 months. This is an increase of $83.07 , or 1.466%. 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 

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.