Recent Dividend Increase

I first started investing in TFI International in the 4th quarter of 2015 or the first quarter of 2016.  At the time of purchase, the company was known as Transforce.  The company decided to change its name to TFI International to better reflect its business activities.  The company, under its operating companies, delivers across Canada, United States and Mexico.  The company is headquartered in Canada.  

 TFI International trades on both the Toronto Stock Exchange and New York Stock Exchange under the ticker symbol TFII. 

TFI International is a North American leader in logistics and transportation. We are diversified across multiple geographies, industry verticals and business segments, including Package and Courier, Less-Than-Truckload, Truckload and Logistics. (Source: TFI International website) 

 

TFI International has over 80 operating companies and over 8400 drivers.  

On October 2, 2020, TFI International released its 3rd quarter earnings.  TFI International announced they are increasing their quarterly dividend from $0.26 to $0.29 CAD.  This represents an increase of 11.54%.     

I currently own 50 shares of TFII.TO.  This increase adds $6.00 to my annual dividend income.   

As of October 24, I am currently up 200.47% on this position and a yield on cost of 5.28%. 

Disclosure:  Long TFII.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.

Took a Detour in Finance

After my shares of Mullen Group were called away in my trading account, I thought I would take a gamble and try to make a quick trade.  See, my trading account is currently within my margin account. When I make a trade in the trading account all the money stays in the trading account.  

I "borrowed" the amount of balance in my trading account  to make a trade that I was expecting to be completed really quick.

I purchased 558 units of Boston Pizza Royalties Fund (BPF.UN.TO) for $6.82 per unit for a total cost of $3811.34 including commissions. I set a limit order to sell within a few days at $7.10 per unit.  The unit price went on a downward spiral a few weeks and even fell below $6.00 per unit.  

Due to the COVID19 pandemic their business lost lot of money as their were lockdowns and social distancing rules for businesses to follow.  Boston Pizza felt this very early in 2020 and as a result, Boston Pizza Royalties Income Fund suspended their distribution.  The fund made an agreement that they will not pay a distribution prior to October 1.   

Fast forward to October 2.  Trading of the fund was halted on the stock market during an announcement.  The fund announced that they will start to pay a distribution starting the end of October.  Shortly after the trading was resumed the price of the fund shot up over a dollar and some.

The sell order was actually filled at $7.20 per unit on October 2.  The proceeds of sale were 4010.07 including commissions.  

So, I made a profit of $198.73.

Also, in the first week of October, I received dividends from Roger's Communications Class B and Restaurant Brands International.  Between these 2 positions, I received $168.17 in dividends..

I received a GST rebate check from federal government of $112.75 on October 5. 

So, I decided to make  a detour from my current plan.  The current plan was paying myself 12% to savings to get up to $2000.00 balance.  While doing this, I was paying 15% of income on my line of credit.

Detour

I used the $168.17 in dividends, my GST rebate check of $112.75 and the profit of the trade $198.73  and decided to write a check for $750.00 to purchase more shares of Bank of Nova Scotia (BNS,TO) directly with the transfer agent. Since I am short by $270.35.

The detour will consist of paying myself 15% to investing and 12% to savings. I will make a line of credit payment if any money left over at the end of a month.  If the $750 is reached and my savings is not up to $2000.00, the I will then revert back to paying 15% income on line of credit.

When buying shares directly through the transfer agent, the investor does not get to choose the price of the shares. The shares, which will include fractional shares. are purchased on a set day set out by the company (Bank of Nova Scotia).  The new shares will be purchased on the dividend payment date for October.  The most recent closing price of BNS shares is $56.18, which means the stock is currently yielding 6.41%.

Disclosure:  - Also own BPF.UN in TFSA 

                    - Long BPF.UN, BNS.TO

Dividend Income Update - September 2020

  

      

The month of September 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 

Enbridge (ENB) - $21.29        (Transfer Agent)

Enbridge (ENB) - $243.00     (Margin Account)

Enerplus (ERF)  - $7.38

Intertape Polymer Group (ITP) - $23.38
Shaw Communications (SJR.B) - $19.75

Subtotal : $314.80


TFSA

A&W Royalties Income Fund  (AW.UN) - $3.80

Brookfield Renewable Partners Corporation (BEPC) - $4.58

Brookfield Renewable Partners LP (BEP.UN) - $18.92

Canadian National Railway (CNR) - $21.85

Cominar REIT (CUF.UN)    - $6.84

Enbridge (ENB) - $26.73
Killam Properties REIT (KMP.UN)    - $17.11

Subtotal: $99.83

Total = $414.63


I received a total of $414.63 in dividend income for the month of September 2020. This represents a 15.14% decrease from 3 months ago and 1.450% decrease year over year. 

The large decrease from 3 months ago was partial due to Restaurant Brands International (QSR) paying there dividend on June 30th.  Normally, Restaurant Brands International pays their dividend in first week of July.  The other reasons due to dividend suspensions or cuts from a few other positions. 

I received dividend / distribution income from 10 different companies. 

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

Click to Enlarge 

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

Click to Enlarge 

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 September 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 - September 2020

Note:  This report includes up to date of publication.  

The month of September 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.  With the colder weather upon us, more and more activities are happening indoors.  Students are back in school.  The COVID19 cases have increased in Canada.  Alarming number of daily cases occurring in Ontario and Quebec. 

In the last 72 hours, US president and the first lady have tested positive for COVID19.  With the US election to happen in first week of November, this is going play on minds of people in voting.  The election has never been stopped for anything before.

The price of oil has remains steady as the economy stumbles along.  

Portfolio Activity

Margin Account Activity

I had a trade on in this account that I will write about in the coming days.  The trade involved using "borrowed" money from my trading account.  The profit will be used for future investment purposes.    

TFSA Activity

On October 2, Boston Pizza Royalties Fund as announced they will start to pay a monthly distribution commencing with first payment at the end of October.  The distribution was suspended in early 2020 due to people staying home more and then government restrictions due to COVID19

The distribution prior to the suspension was $0.102 per unit monthly.  The new monthly distribution going forward is $0.065 per unit monthly. 

I currently own 239 units, so this distribution will add $15.54 to my monthly dividend income.  The position is still set up to DRIP.  

Shares Purchased Via DRIP

2 shares of ERF.TO @ $2.5435 for a total cost of $5.09 (Margin Account)

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 4.72%.

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 September 16, Emera (EMA.TO) increased the quarterly dividend from $0.6125 to $0.6375 per share, or from $2.45 to $2.55 per share annually.  This is an increase of 4.08%. 

I own 100 shares of Emera, so this increase adds $10.00 to my annual dividend income. 

Dividend Decreases

There was no dividend decreases in September 2020. 

Summary: 

As of October 3, 2020 , the total value of the portfolio is $111205.42. This is a 1.140% decrease over last month's total. 

The portfolio is estimated to produce an estimated $5389.13 in dividend income over the next 12 months. This is an increase of $206.20 CAD , or 3.98%. Some of the dividends in the Canadian stocks section are paid in US dollars, which are converted to Canadian dollars. 

With Boston Pizza Royalties Income Fund starting to pay a distribution again, Cineplex is the only position I currently own that does not pay a dividend.    

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

                
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.