Saturday, August 1, 2020

Portfolio Update: July 2020

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

Covid19 is still the major news item of the day around the world.  As economies are loosening restrictions allowing people to get their lives back to somewhat normal, we see a drastic rise in new cases.  Stories of large gatherings happening such as parties or people in close proximity on a beach are major topics on the news.  Politicians who are part of the government for their state or province are furious.  The fear of a second wave grows more by the day.

The price of oil is steady at around $40 per barrel, but the price needs to be higher to be beneficial to western Canada as Western Canada is a high cost producer.  

Portfolio Activity

Margin Account Activity

There has been no activity in this account.  I have been building up cash within my TSFA, after adding to my position in Intertape last month.   


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. 
 

Brookfield Renewable Partners awarded their shareholders approximately 6 months ago with a unit split that would take affect in mid 2020.  A unit holder of BEP or BEP.UN would be award 1 unit of BEPC for every 4 units of BEP or BEP.UN that they hold on the record date. On July 30, I was expected to receive 8 units of BEPC, but those units have not appeared in my account as of this writing.  

A&W Royalties Income Fund (AW.UN) has re-instated a distribution after suspending it a few months back due to the COVID19 pandemic.  The new distribution is $0.10 per unit, or $1.20 per unit annually.  This is a 37.1% decrease over the previous distribution that was paid a few months back.  It sure beats having no distribution.  The first distribution payment started July 31. 

Shares Purchased Via DRIP

1 unit of CUF.UN @ $8.2635 for a total cost of $8.26 (TFSA)

2 shares of ERF.TO @ $3.5735 for a total cost of $7.15 (Margin Account)


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 8.72%.

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 3.36%.


My position in Bank of Nova Scotia that is directly with the transfer agent.  The dividend was paid on the July 29.  This is set up as full drip, but as the time of this writing the new DRIP shares have not appeared in my account.

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 July 2020. 

Dividend Decreases

There has been no dividend decreases in July 2020. 

Summary: 

As of August 1, 2020 , the total value of the portfolio is $110221.30. This is a 2.93% increase over last month's total.  As discussed above, Brookfield Renewable Partners (BEPC) shares have no appeared in my account.  The units of BEP.UN have fallen by over $15.00 when BEPC started trading on July 29.  

The portfolio is estimated to produce an estimated $5228.78 in dividend income over the next 12 months. This is an increase of $40.34 CAD , or 0.78
%. 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.

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