Net Worth Updates June 27

Today is June 27, 2020.  Although passive income through dividends and option premiums is my focus when it comes to investing, I decide to do a post about my current net worth.

What is net worth? Simply put, net worth is calculated by adding up all assets and subtracting the total of all liabilities.  Net worth is sometimes referred to as shareholder's equity.  Assets and liabilities are part of the balance sheet. 

Assets

Savings

The savings section is broken into 3 segments. This is a taxable high interest savings account, a TFSA savings accounts and combination stock investment and ETF investment.  The TFSA savings account has been removed due to low interest rate after the decrease in the interest rate by the Bank of Canada.  Bank of Canada is basically Canada's version of the federal reserve.

The taxable high interest savings acount, in which the interest rate is laughable, was with Tangerine.  It currently at 0.4%, which is down from 1.1% from about 7 months ago.  I switched to EQ Bank due to it having a 2.45% interest on their savings account at that time. 

The TFSA savings account was also with Tangerine.  I was frustrated with getting such a low interest rate with Tangerine.  I took the money out and placed it in non-registered high interest rate savings account with EQ Bank.  Unfortunately, the account did not disappear as interest was earned in the TFSA with Tangerine for the month I transferred the balance.  The balance is $0.18.  With a value this low, I do not even earn interest as the balance so low.  

On June 27, 2020, the value of the savings account is $2024.39. As of the time of this writing, the interest rate for EQ Bank is currently sitting at 2.00%.  The interest rate was reduced prior several months back as the Bank of Canada slashed interest rates due to the COVID19 pandemic.  I suspect EQ Bank may reduce their interest rate in the very near future. 

The stock and ETF investment involves a stock and an ETF that I hold within my margin account.  I keep the dividends and distributions received separate from the dividends I post in my dividend income updates.  

The stock is Inter Pipeline.  The ticker symbol is IPL and trades on the Toronto Stock Exchange.  I own 42 shares with an adjusted cost base of $901.80.  I received a total of $69.25 in dividends since initiating this position.  

I purchased an additional 14 units of BMO High Yield Covered Call ETF at a total cost of $203.32.  The ticker symbol is ZWC and trades on the Toronto Stock Exchange.  My brokerage has zero commissions on purchase of ETFs.  There is a small ECN fee which is a few pennies.  The purchase of these units resulted in $0.05 in ECN fees.  This ETF pays monthly.  I received a total of $6.16 in total distributions as of June 27.

On June 27 , the current value of this "stock / ETF account" is $924.21.  

Overall, the savings total is $2948.60.

Non-registered Accounts

The non-registered accounts consist of a margin account and 2 stocks held directly with the transfer agents.  The margin account is with Questrade.  The total value is $72115.38 as of June 27, 2020.  This is an increase of 10.15% since the last published net worth post. 

TFSA Investing Account

The TFSA investing account balance is $33381.31 as of June 27, 2020.  This account is with Questrade.  This is an increase of 14.9% since the last published net worth post.  

Trading Account

The trading account is with Questrade.  I currently still have the trade on in Mullen Group.  The ticker symbol for Mullen Group is MTL, and it trades on the Toronto Stock Exchange.  The stock price has increased over the past month or so, as the economy  As of March 28, the value of this account is $2827.23.

RRSP

I have transferred my RRSP from Tangerine to Questrade.  While at Tangerine, the RRSP was in the form of a high interest savings account.  Now at Questrade, I decided to put the money to work. 

I purchased 400 shares of Shaw Communications (SJR.B.TO) and wrote covered calls on that positions. The covered call premiums and the dividends collected were used to buy a Global ex-Canada ETF as it was commission free.  This ETF is XAW and is traded on the Toronto Stock Exchange.  

The covered call option was assigned this month.  So, what did I decided on for the immediate future.  I purchased 400 shares of Shaw Communications and looking to sell covered calls, which is just like last time.

The value of this account as June 27 is $12446.93.

Summary of Assets

Total Savings :  $2948.60 

Non-Registered accounts : $72115.38

TFSA Investing :  $33381.31

Trading Account: $2827.23

RRSP Savings Account:  $12446.93

Total Assets = $123719.45  (increase of 11.84% from 3 months ago)

Liabilities

The balance on my line of credit is $4586.74.  This is a decrease of $539.80, or  from 3 months ago. Since I rent and do not have collateral, the interest rate on this account is 5.66%.  I get charge an insurance fee when carrying a balance.  This insurance fee depends on the balance, therefore it changes every month.  

Conclusion

On June 27, 2020, my net worth is $119132.71.  This is a increase of $13634.12, or  12.92%, from 3 months ago.  

A large part of this increase is due to economies around the world starting to open up after the being shutdown in the middle of the COVID19 pandemic.  

To read my first  net worth update, click here.  

To read the second net worth update, click here. 

Disclosure:  Long IPL, ZWC, SJR.B, XAW

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

For the past several weeks, I was building up cash in my margin account.  I have been putting money into this account as my main savings account was built up to $2000.00.  

After the purchase I am about to mention, I will be putting money into my TFSA to make a future purchase.  I have not taken money out of my TFSA in a real long time.

During the past week, the stock market dropped a lot in one day.

Purchase

I was looking to purchase more shares of a stock I already owned in the margin account.  The three positions I was considering adding to were Bank of Montreal (BMO), Emera (EMA) and Intertape Polymer Group (ITP).

I decided to purchase Intertape Polymer Group.

Intertape Polymer Group Inc manufactures and sells a variety of packaging products. The firm's primary product categories include tapes, films, and woven coated fabrics. The company's tapes include pressure-sensitive and water-activated carton sealing tapes, and flatback, duct, double coated, foil, electrical, and filament tapes. Intertape's film products include stretch wrap, shrink film, air pillows used for protective packaging, and packaging machines. The woven coated fabrics include building and construction products and specialty fabrics. The majority of revenue comes from the United States. (Source : www.tmxmoney.com)

I purchased 70 shares of Intertape Polymer Group on June 11 for $12.05 per share.  The total cost of this purchase came to 848.70 including commissions. 

Intertape Polymer Group pays a quarterly dividend of $0.1475 USD per share, or $0.59 USD per share annually.  The company is headquartered in Montreal, Quebec, Canada.  The company makes most of its revenue in the United States. 

This purchases adds $41.30 USD to my annual dividend income. At the time of this writing, the exchange rate is  $1 USD: $1.36039 CAD.  I receive the Canadian equivalent in my brokerage account, which equates to $56.18 in annual dividend income.

The yield on cost, in terms of Canadian dollars, on this purchase 6.62%.

Conclusion

I believe this company will do well over time as the demand for their products will increase with a growing population.  A growing population along with e-commerce should mean a large increase in Intertape's products to meet the demand.  A lot of people have ordered more stuff online recently due to the COVID19 pandemic as a lot of businesses were forced to close their doors to the public.   Other businesses had to shutdown completely due to orders by their respective governments or chief medical officers of health.  

I was not planning on adding to this position, but the opportunity came up.  The company traded ex-dividend the following day of this purchase.  The purchase also diversifed my portfolio via sector diversification.  

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

Disclosure: Long ITP.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.

Dividend Income Update - May 2020

      

The month of May 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% 5.66% plus the insurance on the debt.  The decrease in the interest rate is a result of emergency rate cutes by the Bank of Canada over the COVID19 pandemic.  Right now, I am paying myself 15% to my margin account and 10% towards line of credit. The latter is not actually paying yourself first, but that is the percentage of income I am putting on my debt.  I am looking to make another purchase in margin account.  

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

       

 Non-registered Accounts

• Bank of Montreal (BMO) - $90.10 
• Emera Inc. (EMA) - $61.25
• Enerplus (ERF) - $7.32
  
• Shaw Communications (SJR.B)  - $19.75

Subtotal : $178.42

TFSA

• Cominar REIT (CUF.UN) - $13.44
• Killam Properties REIT (KMP.UN) - $17.11
• Royal Bank of Canada (RY) - $60.48

Subtotal: $91.03

Total = $269.45

 I received a total of $269.45 in dividend income for the month of May 2020.  This represents a 15.6% decrease from 3 months ago and 16.96% increase year over year.  

 The decrease from 3 months ago was rather large.  Three monthly payers suspended their dividends a few months ago.  

Boston Pizza Royalties Income Fund (BPF.UN) and A&W Royalties Income Fund (AW.UN) suspended their distributions due to uncertainty over COVID19.  A&W had to close their doors to inside sitting and basically do only drive thru or use 3rd party companies for deliveries.  Some of their restaurants had to close as they were located inside a mall in a food court setup.  At Boston Pizza, you could walk in to get your order as they do not have drive thru at their locations. 

The third monthly payer to stop their dividend was Cineplex (CGX).  Cineplex announced they will stop their dividend after the payment in February.  At that time, it was to make sure it kept their earnings to keep their debt down to satisfy their debt obligations in their friendly take over by UK-based Cineworld.  But the world had something else in store.  Cineplex had to close their theatres and all other entertainment venues due to COVID19.  As of today's date , all of these avenues are closed but might open this month some time.

 I received dividend / distribution income from 7 different companies.   

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

Portfolio Update - May 2020

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

The price of WTI crude oil per barrel is currently trading around $37 US. Just a few months ago I dropped a lot at once and actually was around - $40 US per barrel. That is actually negative $40 US per barrel. As the world economy is slowing getting going after almost a complete worldwide shutdown over COVID19, the demand for oil and gas has increased. Russia and Saudi Arabia had a price war which also dropped the price of oil.

The countries all over the world is slowly opening up their economies as a whole, while some countries have different areas opening up at different times. Most of these openings are still a far cry from what people consider normal. Face masks and face coverings are highly recommended when physical distancing is not possible.

 

Portfolio Activity

Margin Account Activity

There has been no buys or sells in this account.

TFSA Activity

There has been no buys or sells in this account. I have not taken any money out of this account in several months.

Shares Purchased Via DRIP

1 unit of CUF.UN @ $7.2935 for a total cost of $7.29 (TFSA)

2 shares of ERF.TO @ $3.4535 for a total cost of $6.91 (Margin Account)

0.736131 shares of BNS.TO @ $56.4845 for a total cost of $41.58 (Transfer Agent)

Cominar REIT pays a monthly distribution of $0.06 per unit per month, or $0.72 per unit annually. This DRIP adds $0.72 to my annual dividend income. The yield on cost for the DRIP unit is 9.88%.

Enerplus pays a monthly dividend of $0.01 per share monthly, or $0.12 per share annually. This drip adds $0.24 to my annual dividend income. The yield on cost for this DRIP is 3.47%.

Bank of Nova Scotia actually paid out their dividend on April 28. The drip shares did not show in my account to after the publishing of last month's post. Bank of Nova Scotia pays a quarterly dividend of $0.90 per share, or $3.60 per share annually. This drip adds $2.65 to my annual dividend income. The yield on cost for these DRIP fractional shares is 6.37%.

Enbridge, has suspended their DRIP program over a year ago. So, I receive a check in the mail for my Enbridge shares held directly with the transfer agent. If the DRIP program is re-instated, then my shares will DRIP automatically without any action on my part.

I have some other positions with the DRIP turned on, but might not have enough of a dividend to purchase a whole share. Boston Pizza Royalties Income Fund (BPF.UN) have suspended their dividend due to restrictions put in the place due to COVID19.

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

There has been no dividend increases in May 2020.

Dividend Decreases

There has been no dividend decreases in May 2020.

Summary:

As of June 3, 2020 , the total value of the portfolio is $111907.13. This is a 7.74% increase over last month's total.

The portfolio is estimated to produce an estimated $5129.12 in dividend income over the next 12 months. This is an decrease of $19.60 CAD , or 0.38%. Some of the dividends in the Canadian stocks section are paid in US dollars, which are converted to Canadian dollars. The US dollar has weakened over the last month which results in the lower exchange rate when converting US dollars to Canadian dollars.

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.

Did the pandemic change how you will live going forward regarding finances?

Disclosure: Long aforementioned stocks

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.