Net Worth Update - September 26 2020

 Today is September 26, 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 TFSA savings account was 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 September 26, 2020, the value of the savings account is $1513.75. As of the time of this writing, the interest rate for EQ Bank is currently sitting at 1.70%.  The interest rate was reduced prior several months back as the Bank of Canada slashed interest rates due to the COVID19 pandemic.  During the last 3 months the interest rate was reduced from 2.00% to 1.70%.

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 $74.29 in dividends since initiating this position.  

I purchased an additional 6 units of BMO High Yield Covered Call ETF at a total cost of $93.92 on August 31.  I purchased 1 unit of this ETF at a total cost of $15.50 on September 4.  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 $0.02 in ECN fees.  This ETF pays monthly.  I received a total of $15.40 in total distributions as of September 26, 2020.

On September 26, the current value of this "stock / ETF account" is $1115.88.  

Overall, the savings total is $2629.63.

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 $72492.77 as of September 26, 2020. This is an increase of 0.523% since the last published net worth post.

TFSA Investing Account

The TFSA investing account balance is $36438.52 as of September 26, 2020.  This account is with Questrade.  This is an increase of 9.16% since the last published net worth post.  

Trading Account

The trading account is with Questrade.  There are currently no active trades.   As of September 26, the value of this account is $3820.33.

RRSP

I have transferred my RRSP from Tangerine to Questrade in April 2020.  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 Shaw shares were called away.  

The covered call option on Shaw Communications was assigned for the second time.  I decided to purchase 200 shares of Fortis Inc (FTS.TO) and write covered calls on that position.

As of September 26, I own 200 shares of Fortis and 35 shares of XAW.  I have a covered call currently on the 200 Fortis shares.  

The value of this account as September 26 is June 27 is $13400.63. This is an increase of 7.66% from June 27.

Summary of Assets

Total Savings :  $2629.63 

Non-Registered accounts : $72492.77

TFSA Investing :  $36438.52

Trading Account: $3820.33

RRSP Savings Account:  $13400.63

Total Assets = $128781.88  (increase of 4.09% from 3 months ago)

Liabilities

The balance on my line of credit is $3877.16.  This is a decrease of $709.58 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 September 26, 2020, my net worth is $124904.72.  This is a increase of $5772.01, or  4.85%, from 3 months ago.  

A large part of this increase is due to economies around the world starting to open up more and more after the being shutdown in the middle of the COVID19 pandemic. The COVID19 numbers for various geographic areas are increasing which may lead to stricter restrictions and fines for individuals and businesses. 

To read my first  net worth update, click here.  

To read the second net worth update, click here. 

To read the third net worth update, click here.  

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

                 - Long SJR.B in my margin account

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 - August 2020

 

      

The month of August 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 cuts by the Bank of Canada over the COVID19 pandemic. Starting in August, I will change my pay myself first percentage. I will be paying 15% towards line of credit and 12% will go into savings. As my normal savings account is in the $2000 range, I have a couple of big expenses coming up. So, I will be putting money into savings until the $2000 amount is reached again.  

 

Why money going into line of credit at paying myself first at 15% and savings at 12%?  This is simply to get a better return on my money on a large scale.  When the savings hits north of $2000.00 again, I will go back to paying myself 15% to investing at 12% to line of credit.

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)     - $7.37
Shaw Communications (SJR.B)     - $19.75

Subtotal : $178.47


TFSA

A&W Royalties Income Fund   - $3.80
Cominar REIT (CUF.UN)    - $13.62
Killam Properties REIT (KMP.UN)    - $17.11

Royal Bank (RY) - $60.48

Subtotal: $95.01

Total = $273.48


I received a total of $273.48 in dividend income for the month of August 2020. This represents a 1.496% increase from 3 months ago and 17.7% increase year over year.

I received dividend / distribution income from 8 different companies.

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

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

Click to Enlarge

Most of my dividend income comes from my margin account. 

Next, I will show the percentage of total income for each position.

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.


Note: Any activity in my RRSP account is not included in these totals.


How was your dividend income for August 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 : August 2020

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

COVID19 is still front and center in the news. More and more jurisdictions are bringing in mandatory masks laws or bylaws to help slow the spread of the virus.  Now is the ultimate litmus test for COVID19 is students heading back to the classroom.  If schools are forced to shut down, one parent will have to stay own from work or work from home.

The protesting in the United States continues and has put people on edge. This will have negative effects on the economy as truckers are not feeling safe to deliver the goods to stores in various locations.  When stores have less of a product, they often increase the price due to supply and demand scenario.

Portfolio Activity

Margin Account Activity

There has been no activity in this account.    

TFSA Activity

I built up some cash in this account.  I was looking for some stocks I was watching to fall to my target price.  I was looking at Fortis, Brookfield Renewable Partners, and TD Bank.  

I actually had a limit order for Fortis that was reached, but the shares were rewarded to someone else.  

Brookfield Renewable Partners (BEP.UN) fell below by target price of $60.00.  

On August 31, I purchased 20 shares of BEP.UN at $59.66 per share for a total costs of $1198.15 including commissions.  The distribution was reduced from $2.17 USD per unit to $1.736 USD per unit. The distribution reduction is a result rewarding shareholders of BEP (on the NYSE) and BEP.UN with 1 share/unit of BEPC for every 4 units of the former that they held on the record date.  BEPC is a different corporate structure and Brookfield believe this will help attract new investors to their company.

I now own 53 units of BEP.UN.  This purchase adds $34.72 USD to my annual dividend income.  The equivalent to $45.36 in Canadian dollars as of the time of this writing.  BEP.UN pays in distribution in US dollars, but trades on the Toronto Stock Exchange.   

The addition of 8 shares of BEPC as a result of holding 33 units of BEP.UN on the record date adds $13.89 USD to my annual divided income.  This is equivalent to $18.15 in $CAD as of the time of this writing.  

Shares Purchased Via DRIP

0.765618 shares of BNS.TO @ $55.1711 for a total cost of $42.24 (transfer agent)

1 unit of CUF.UN @ $7.01877 for a total cost of $7.02 (TFSA)

1 shares of ERF.TO @ $4.1635 for a total cost of $4.16 (Margin Account)


Cominar REIT pays a monthly distribution of $0.03 per unit per month, or $0.36 per unit annually going forward. This DRIP adds $0.36 to my annual dividend income. The yield on cost for the DRIP unit is 5.13%. 

Enerplus pays a monthly dividend of $0.01 per share monthly, or $0.12 per share annually. This drip adds $0.12 to my annual dividend income. The yield on cost for this DRIP is 2.88%.

Bank of Nova Scotia pays a quarterly dividend of $0.90 per share monthly, or $3.60 per share annually. This drip adds $2.76 to my annual dividend income. The yield on cost for this DRIP is 6.53%.

My position in Bank of Nova Scotia that is directly with the transfer agent.  The dividend was paid on the July 29.  The dripped shares showed up in my account on August 5.

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 August 2020.

Dividend Decreases

Cominar REIT (CUF.UN) announced a distribution decrease from $0.72 annually to $0.36 annually. This is a decrease of 50%.  I own 228 units of Cominar REIT.  Therefore, this reduces my annual dividend income by $82.08.

Cominar REIT properties, which include office properties, are located in Ontario and Quebec.  Quebec has been the hardest hit province with COVID19, which is where most of Cominar REIT properties are located.  

Summary: 

As of September 4, 2020 , the total value of the portfolio is $112487.46 . This is a 2.06% increase over last month's total. 

The portfolio is estimated to produce an estimated $5182.93 in dividend income over the next 12 months. This is an decrease of $45.85 CAD , or 0.88%. 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) , Intertape Polymer Group (ITP.TO), and Brookfield Renewables Corporation (BEPC.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. 

Disclosure: Long aforementioned stocks

                - Only hold Fortis in RRSP, which is not part of these updates. 

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.