Portfolio Update : July 2021

The month of July 2021 is now behind us. 

The hot weather continues in Western Canada.  Although Western Canada is not in a heat dome still, we are basically in a heat wave.  The difference between the two is that a heat wave will have significantly lower temperatures at night.  The province of British Columbia still have multiple wildfires.  Some of these forest fires are due to climate change. Real dry conditions mean that wooded areas can ignite very easily via a lightning strike, cigarette but thrown out a window etc.   

COVID19 is still the major topic of the news.  In Alberta, Canada, the province recently announced that on August 16, all restrictions will be removed.  On top of that, there will be no contact tracing and test numbers released.  Also, people who test positive for COVID19 will no longer have to self isolate.  In other words, COVID19 will be treated as a flu.  In order to get tested for COVID19, an individual will have to go to a doctor as their will no longer be testing clinics in major cities.  

In terms of the Alberta situation, the federal health minister penned a letter to the Alberta health minister asking to show scientific evidence to show the ending all restrictions is in the best interest of the health of its citizens.  As of August 5, kids under 12 are not eligible for a vaccine as there is no vaccine approved for kids under 12.

Countries around the world are starting to have outbreaks of COVID19, with the Delta variant leading the way in new cases of COVID19.  Countries are starting to strengthening their restrictions to help reduce the spread.

As investors, this will definitely affect the markets due to the fears of COVID19 and the ever increasing amount of major weather related disasters happening all around the world.  

Portfolio Activity

Margin Account Activity

On July 19, I sold 2 MTL.TO Aug 20 2021 $12 put contracts and collected a premium of $78.05 after commissions.  The company behind this ticker is Mullen Group, which is a company that owns various trucking companies in the oilfield services and regular transportation sector.  Mullen Group owns companies mostly in western Canada and recently expanded their presence in Ontario and south of the border.

The premiums received have been treated like income I would received from a job.  So I paid myself first by sending money to my TFSA, savings and rest for spending money.  

  

The amount of days to expiration is 32.  If the option expires, the return would be 3.25% for 32 days, or  37.1% annualized.

TFSA Activity

There has no activity in this account for July 2021.  I continued to build up cash in this position by paying myself first and keeping the dividends in the account.  

Shares Purchased Via DRIP

1 shares of AQN.TO @ $14.9786 USD for a total cost of $18.74 CAD (TFSA)

1 unit  of BPF.UN.TO @ $14.57 for a total cost of $14.57 (TFSA)

0.732334 shares of BNS.TO @ $78.284 for a total cost of $57.33.  (Transfer Agent)

Alqonquin Power and Utilities  pays a dividend of $0.1706 USD per share quarterly, or $0.6824 USD per share annually. This drip adds $0.6824 USD  to my annual dividend income. At the time of this writing, the canadian dollar equivalent is $0.853 per share annually.  The yield on cost (in terms of the CDN) for this DRIP is 4.55%.  

Boston Pizza Royalties Income Fund pays a distribution of $0.065 per unit monthly, or $0.78 per unit annually.  This drip adds $0.78 CAD  to my annual dividend income.  The yield on cost for this DRIP is 5.35%.

Bank of Nova Scotia currently pays a dividend of $0.90 per share quarterly, or $3.60 per share annually.  This drip adds $2.64 to my annual dividend income.  the yield on cost for this DRIP is 4.60%.

I have some other positions with the DRIP turned on, but might not have enough of a dividend to purchase a whole share. 

My Enbridge position directly with the transfer agent is set up to DRIP.  Around November 2018, Enbridge stopped their DRIP program.  If Enbridge decides to start a DRIP, then my shares will start to DRIP again automatically.  

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 July 28,  A&W Royalties Income Fund increased their distribution from $0.135 per unit monthly, to $0.15 per unit monthly.  This is an increase of 11.11%.  Although this is a substantial increase, the distribution is still below the pre-pandemic level.   

I own 38 units of AW.UN.  This increases adds $6.84 to my annual dividend income.

Dividend Decreases

There was no dividend decreases in July 2021. 

Summary: 

As of August 5, 2021 , the total value of the portfolio is $160019.57. This is a 1.175% increase over last month's total. 

The portfolio is estimated to produce an estimated $5810.93 in dividend income over the next 12 months. This is an increase of $14.23 CAD , or 0.245%. Some of the dividends in the Canadian stocks section are paid in US dollars, which are converted to Canadian dollars. 

Please Note: Positions in Restaurant Brands International (QSR.TO) , Intertape Polymer Group (ITP.TO), Brookfield Renewables Corporation (BEPC.TO), and Algonquin Power and Utilities (AQN.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 an