Trading Account Update - September 26 2021

      As previously stated on this blog, that I have started a trading account with a balance below $1000.00.   I started to add $50.00 every two weeks but that has stopped due to a recent job loss.  The following table shows my stats from the start of 2016:

                               

                               # of trades :                        56

                               Total Capital added:          $250.00
                               Trading Acct Balance:       $4347.77
                               Average Drawdown:          $173.14

                               Average Loss:                   $264.74
                               Average Accuracy:            83.93%
                               Average Risk:                    $185.11
                               Average Reward:              $111.31
                               Average Risk/Reward :      1: 0.601

        I have been trading penny stocks, stocks, REITS and options.  Any dividends that will be received from this account will stay within the account. The accuracy rate is high. Does this mean that I am a super trader? No it does not.  The risk to reward ratio states of every $1.00 of risk there is reward of  $0.595.  Ideally, a trader should aim for a 1:2  risk to reward ratio which causes the accuracy rate to be lower.  I lost big on a trade as I did not put a stop in at the initiation of the PZA.TO trade.  The stock kept dropping and dropping, so I felt it was best to sell.   

      The drawdown above is intra-trade drawdown.  This type of draw down is the dollar amount the trade moves against you.  Why is it important to keep track of inter-trade drawdown?  It helps you know if you are picking good entry points.  It is normal for trades to have intra-trade drawdown.  

Below is a chart of my 2021 percentile gains

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The above chart shows that the trading account has been down most of the year to date.  

Below is a chart showing my overall percentile gains from January 1, 2016, to September 26, 2021.

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Conclusion:

I have not gotten the results that I have wanted over the last couple of years. This is evident in the long roughly flat line in the chart above.  

I need to gain better entry points and to make sure to use a stop loss.  In the trading platform for my brokerage, you can put in a stop limit order when purchasing a stock via a bracket order.  

Note:  The trades are listed under the Trading Tab above with all the trades listed as of September 26, 2021

Note:  As of September 26, 2021, there is no active trades. 

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.

Net Worth Update - September 25 2021

 Today is September 25, 2021. 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 currently into 3 segments. The 3 parts are a "high" interest savings account, savings account, and an "investment" savings account.

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 25, 2021, the value of the savings account with EQ Bank is $1948.74. As of the time of this writing, the interest rate for EQ Bank is currently sitting at 1.25%. 

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.

I purchased an additional 1 units of BMO High Yield Covered Call ETF (ticker symbol ZWC.TO) at a total cost of $18.08 on July 8.  I purchased 10 units of this ETF on July 19 at a total cost of $179.24.  On September 20, I purchased 2 units of this ETF  at a total cost of $36.11.  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 $80.34 in total distributions as of September 25, 2021.

On August 31, I purchased 41 units of Transalta Renewables (ticker symbol  RNW.TO) at $19.52 per share for a total cost of $805.41.  Transalta Renewables pays a monthly dividend of $0.07833 per share.  I have not received any dividends from this position as of the time of this writing.  The purchase of this position was mainly due to selling my shares of Inter Pipeline (IPL.TO).

On September 25 , the current value of this "stock / ETF account" is $2081.29.   I have earned a total of $169.75 in total dividends/distributions in this account. 

Overall, the savings total is $4030.21. 

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 $105836.62 as of September 25, 2021. This is an increase of 0.865% since the last published net worth post.


TFSA Investing Account

The TFSA investing account balance is $57127.64 as of September 25, 2021. This account is with Questrade. This is an increase of 7.68% since the last published net worth post.

Trading Account

The trading account is with Questrade. There is an no active trade on in this account as of the time of this writing. As of September 25, 2021, the value of this account is $4347.77.

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.

As of September 25, 2021, I own 121 shares of CP Rail (Ticker Symbol  CP.TO) ,76 units of XAW, and 49 shares of Alimentation Couche-Tard  (ATD.B.TO).  The option is currently in the money and might get assigned. I have been buying the entire position of XAW using covered call premiums and dividends from the same position in which I sold covered calls.  CP Rail is down a lot from my purchase price, so there is currently no options on this position right now.   

The value of this account as of September 25, 2021 is $15139.93 . This is an decrease of 3.82% from June 27, 2021.

Summary of Assets

Total Savings : $4030.21
Non-Registered accounts : $105836.62
TFSA Investing : $57127.64
Trading Account: $4347.77
RRSP Savings Account: $15139.93

Total Assets = $186482.17  (increase of 2.74% from 3 months ago)

Liabilities

The balance on my line of credit is $0.00. This is a decrease of $193.33 from 3 months ago. I am currently debt free.

Conclusion

On September 25, 2021, my net worth is $186482.17. This is a increase of $5163.56, or 2.85%, from 3 months ago.


The market continues to go up. We are currently in the fourth wave of COVID19.  The fears of COVID19 once and awhile causes a major dip.  To prevent hospitals from being overwhelmed, more and more jurisdictions are implementing a vaccine passport system.  This involves showing proof of vaccination to attend things such as restaurants and major sporting events.  If you are not vaccinated, then you not be able to eat in at a restaurant or even attend in person classes at the University level

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To read the fourth net worth update, click here.

To read the fifth net worth update, click here.

To read the sixth net worth update. click here.

To read the seventh net worth update, click here.  

Disclosure: - Long CP, RNW, ZWC, XAW

EDIT:  Fixed the savings account section above.  

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 From Some Canadian Bloggers - August 2021

 In August 15, Justin Trudeau met with the governor general, Mary Simon, and asked her to dissolve parliament.  The outcome of this meeting meant a federal election will be called.  Prime Minister Trudeau announced the election will be held on Sept 20.  The length of the election campaign is 36 days, which is the minimum amount of days from calling an election and election day.

On September 20, voters can get an idea who will form government.  Normally, on the day of election, the citizens of Canada will know for certainty who is the next prime minister.  Due to the COVID19 pandemic, their was an increase in mail in ballots.  The mail-in ballots will not start to be counted until September 21, which is the day after the election.

Canada is now officially in a 4th wave of COVID19.  The number of cases has increase dramatically after the loosening of restrictions.

The outcome of the election and the 4th wave of COVID19, will definitely affect the markets.   

Let's get to the list of dividend income from some Canadian bloggers for August 2021. Of course, I first want to mention my own dividend income report.

My Dividend Snowball received $2249.27 in total passive income in August.  The amount of dividend income received was $1675.49.   

Passive Canadian Income received $1176.38 in total passive income in August 2021.  The amount of dividend income received was $322.99  and dripped 5 new shares.  

Reverse The Crush received $51.92 in dividend income.  This is a 42% YoY increase.  

Our Life Financial received $1206.94 in dividend income and 18 new shares via DRIP.  Also in the post, Our Life Financial mentions her new purchases during the month of August.      

Moneymaaster received $500.41 in dividend income and dripped 24 new shares/units to boost his future dividend income. 

Tawcan received $1776.26 in dividend income from 18 positions.  Tawcan also dripped 13 new shares. 

My Own Advisor shared his dividend income update with the world.  Although the actual amount of dividend income received in August is not mentioned, there is some great information in the post.    

Conclusion:


We all started with $0.00 of passive income and have grown our investments over time. Each "BUY" transaction can provide ongoing dividend income which may also be increased over time.

In Canada and the United States, many brokerage accounts offer commission free trades and/or commission free ETFs. You can get started on your investing journey with very little money.

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 Option Trade

As the stock market keeps booming along, investors can sometimes feel disappointed when looking for a yield that they feel comfortable to invest.  When the price of the stock goes up, this results in a yield going lower these two things are inversely correlated.

This past summer we have some the hottest temperatures on average since records were kept.  Western Canada has experienced a heat dome, which is the first time I seen this weather event happen in Canada.  A heat dome is a prolonged heat wave in which the temperatures at night remain very hot instead of going lower to a reasonable comfortable temperature.

The International Panel on Climate Change (IPCC) have come out with a report this past summer that climate change has been mostly caused by human activity.  In fact, the IPCC said this is "Code Red" for humanity.

We have seen more and more drastic weather events all around the world.

Can an investor take advantage of this major problem of climate change?

Recent Trade

On September 10, I sold 1  Oct15 2021 $28 NFI.TO put option at $0.35.  The net premium collected after commissions is $24.05.  The days to expiration (at time of trade) is 35.

I make money whether the stock goes up, down or sideways.

Scenario 1 :  Option Not Assigned

The return for 35 days if the stock remains above $28.00 is 0.859% (24.05/2800*100).  A 0.859% for just 35 days.  The annualized return (0.859/35*365) is 8.96%.  This annualized return (or yield) is significantly higher than the 1.25% interest for my current high interest savings account.

Actually, my return is actually higher.  My brokerage, Questrade, has a 30% margin requirement for New Flyer Group stock.  Therefore my return is actually 2.86% (24.05/(2800*.30)) for 35 days, or 29.9% annualized.  

Scenario 2 :  Option Assigned

If the price of the stock falls below $28.00 before or at expiration, I am obligated to be "put" 100 shares.  In fact, the option will be assigned at expiration if the stock is trading at any price below the strike price .  My brokerage as an option assignment/exercise fee of $24.95.

If the option is assigned my adjusted cost basis is as follows:

                

               Purchase price = Strike price*100 shares*# of contracts - net                                          premium received + option assignement fee

                                      = $2800-$24.05+$24.95

                                      = $2800.90

NFI Group currently pays a dividend of $0.85 per share annually.  Therefore the yield on cost would be 3.03%.

Summary:

New Flyer Group was trading at $29.49 per share at the time of the trade.  If the option is assigned, I will end of buying the shares at a 5.02% discount from $29.49.

Obviously, I would be better to get a higher premium, but I took what the market was given.  If I was with Interactive Brokers, there is no option assignment fee and option pricing is a lot lower.  If I was with one of the big 5 banks, the option assignment fee would be over $40.00.  

I took the premium collected and followed my pay myself first model I am currently have in placed.  

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 2021

             

      

The month of August 2021 is another month of dividend income landing in my accounts.  

Due to becoming debt free, I changed my pay myself model.  Starting the beginning of August 2021.  I am paying myself 30%, just like before.  This will now consist of 24% to investing, and 6% to savings.  The investment portion is going to my TFSA. Any money left over at the end of the month, I put towards investing on top of the money allocated from paying myself first.  Hopefully, I can keep this up!

 

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

Non-registered Accounts 

Bank of Montreal (BMO)           - $90.10

Emera Inc.  (EMA)                   - $77.78

Shaw Communications (SJR.B) - $19.75

Subtotal : $187.63

TFSA

A&W Royalties Income Fund  (AW.UN) - $5.70

Boston Pizza Royalties Income Fund (BPF.UN) - $16.58

Cominar REIT (CUF.UN) -    $6.84

Killam Properties REIT (KMP.UN)    - $17.11

Royal Bank of Canada (RY)   -  $60.48

Subtotal: $106.71

Total = $294.34

I received a total of $294.34 in dividend income for the month of August 2021.  This represents a 2.24% decrease from 3 months ago and 7.63% increase year over year.   

The decrease from 3 months ago was due to Enerplus stopped paying a monthly dividend after May 2021.  Enerplus switched to a quarterly dividend with first dividend payment date in mid June 2021.  Enerplus has also increased their dividend twice since beginning of May 2021.  

I received dividend / distribution income from  8 different companies.  

I received $0.00 in option premiums within my investment accounts in August 2021.

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

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Most of my dividend income comes from my margin account. 

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

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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 2021?

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 2021

 The month of August 2021 is now behind us. 

The major event of August was Hurricane Ida.  Hurricane Ida struck land in Louisiana on August 29 as a Category 4 storm.  It was very close to coming to a Category 5 storm.  As Hurricane Ida moved further inland, is caused even more flooding all the way up to Canada.  New York City was affected once again with massive flooding, including heavy flow of rushing water in its subway system.

The second major event was Taliban took control of Afghanistan once again. I expected that countries will not be reducing their defense budgets in near future.  

On August 15, the Prime Minister of Canada visited the governor general and dissolved parliament.  The federal election is scheduled for September 20.

Unfortunately,  COVID19 is still a major issue and affecting everything.  The delta variant has caused a quick increase in the number of positive cases.  This resulted in vaccine passports and proof of vaccination to do certain things. 

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.  This option expired worthless.

There was no further activity in this account.  I did not add money to the account, but the dividends remained in the account.

TFSA Activity

There has no activity in this account for August 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 unit  of BPF.UN.TO @ $14.3149 for a total cost of $14.31 (TFSA)

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 5.45%.

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 August 5,  Killam Properties REIT (KMP.UN) increased their distribution from $0.68 per unit to $0.70 per unit annually.  This is an increase of 2.94%.  The distribution is paid monthly.  

I own 302 units of AW.UN.  This increases adds $6.04 CAD to my annual dividend income.

On August 5,  Enerplus (ERF) increased their distribution from $0.035 CAD to $0.038 CAD per share quarterly, or from $0.132 CAD to $0.152 per share annually. This is an increase of 15.15%.  This is the second increase in 2021 after several years of a dividend that did not changed.

I currently own 753 shares of Enerplus.  This increase adds $15.06 CAD to my annual dividend income.  

On August 11, Intertape Polymer Group (ITP) increased their dividend from $0.1575 USD to $0.17 USD per share quarterly,  or from $0.63 USD to $0.68 USD per share annually.  This is an increase of 7.94%.

I currently own 120 shares of Intertape Polymer Group.  This increase adds $6.00 USD to my annual dividend income.  This is equivalent to $7.52 in Canadian dollars at the time of this writing.     

Dividend Decreases

There was no dividend decreases in August 2021. 

Summary: 

As of September 5, 2021 , the total value of the portfolio is $164465.88 . This is a 2.78% increase over last month's total. 

The portfolio is estimated to produce an estimated $5841.08 in dividend income over the next 12 months. This is an increase of $30.15 CAD , or 0.519%. 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