The month of October 2021 is now behind us.
The major story of October was the ongoing supply crisis happening in the global economy. This was brought on by the COVID19 pandemic. How you might ask? When the lockdowns occurred in places such as China, factories and other industries were closed down. When lockdowns started to end, the work at factories and other industries ramped up really quick.
Fast forward to the month of October, we currently have about 100 cargo ships sitting in waters near the port of Los Angeles. To make matters worse, this major port is not operating 24/7. President Joe Biden announced that the port will go to 24/7 to help reduce the back log. The port does not have the staff to be able to run 24/7. If and when new staff are hired, they will have to be trained. Majority of the freight from cargo ships destined for the United States arrives at 2 ports. These ports are the port of Los Angeles and another port on the east side of the United States.
COVID19 is still front and center in the news. More and more companies, and government entities have implemented a mandatory vaccination policy for their employees. This is causing major issues as people are refusing to get vaccinated or to partake in rapid testing at their own expense.
The price per barrel for crude oil is over $75.00 USD per barrel. This price for crude oil, government printing over over the years and the global shipping crisis, as increased the cost of living drastically. The price per barrel of oil is good for energy companies bottom line. A few energy companies have raised their dividends by a large amount over the last few months.
Portfolio Activity
Margin Account Activity
On September 10, I sold 1 NFI.TO October 15 2021 $28 put option and collected a premium of $24.05 after commissions.
The above option was assigned on October 15. I now own 100 shares of NFI Group. Currently, NFI Group pays a $0.2125 per share quarterly, or $0.85 per share annually. This purchase adds $85.00 CAD to my annually dividend income.
TFSA Activity
On November 5, I purchased 53 shares of Algonquin Power and Utilities (Ticker symbol AQN.TO ) at $17.78 for a total cost of $947.48 including commissions. I did not write a post about this transaction.
Algonquin Power and Utilities pays its dividend in US dollars. Alqonquin Power and Utilities pays a dividend $0.1706 USD per share quarterly, or $0.6824 USD per share annually.
This purchase adds $36.17 USD to my annual dividend income. This is equivalent to $45.06 in Canadian dollars at the time of this writing. The dividend is converted to Canadian dollars prior to being deposited in my brokerage account. The yield on cost of this purchase, using the Canadian dollar equivalent, is 4.76%.
There was no further activity in this account. I continue to add money to this account via paying myself first. All the dividends remained in the account.
Shares Purchased Via DRIP
0.704678 shares of BNS @ $82.2929 for a total cost of $57.99 (Transfer Agent)
2 shares of AQN @ $15.13 USD for a total cost of $37.43. (TFSA)
1 unit of BPF.UN.TO @ $14.71 for a total cost of $14.71 (TFSA)
Bank of Nova Scotia pays a dividend of $0.90 per share quarterly, or $3.60 per share annually. This drip adds $2.54 CAD to my annual dividend income. The yield on cost for this DRIP is 4.37%.
Boston Pizza Royalties Income Fund pays a distribution of $0.085 per unit monthly, or $1.02 per unit annually. This drip adds $1.02 CAD to my annual dividend income. The yield on cost for this DRIP is 6.93%.
Algonquin Power and Utilities pays a dividend of $0.1706 USD per share quarterly, or $0.6824 per share annually. This drip adds $1.36 USD to my annual dividend income. At the time of this writing, the Canadian dollar equivalent is $0.8502 per share. The yield on cost (using CAD) for this DRIP is 4.54%.
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 October 8, Boston Pizza Royalties Income Fund (BPF.UN.TO) increased their distribution from $0.065 to $0.085 per unit monthly, or from $0.78 to $1.02 per share annually. This is an increase of 30.77%.
I own 257 shares of Boston Pizza Royalties Income Fund at the time of the increase. This increases adds $61.68 CAD to my annual dividend income.
On October 20, A&W Royalties Income Fund (AW.UN.TO) increased their distribution from $0.15 to $0.155 per unit monthly, or from $1.80 to $1.86 per unit annually. This is an increase of 3.33%.
I own 38 units of A&W Royalties Income Fund. This increase adds $2.28 to my annual dividend income.
On October 28, TFII International (TFII.TO) increased their dividend from $0.23 USD to $0.27 USD per share quarterly, or from $0.92USD to $1.08 USD per share annually. This an an increase of 17.4%.
I own 50 shares of TFI International. This increase ads $8.00 USD to my annual dividend income. This is equivalent to $9.97 in Canadian dollars at the time of this writing.
Dividend Decreases
There was no dividend decreases in October 2021.
Summary:
As of November 5 2021 , the total value of the portfolio is $171773.70 . This is a 5.87% increase over last month's total.
The portfolio is estimated to produce an estimated $6136.44 in dividend income over the next 12 months. This is an increase of $197.95 CAD , or 3.33%. Some of the dividends in the Canadian stocks section are paid in US dollars, which are converted to Canadian dollars. This is the first time, I surpassed the $6000.00 amount in dividend income for the next 12 months.
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.
Note: Dividend increases or decreases announced in November 2021 will be mentioned in next portfolio update. The spreadsheet will be updated to reflect any corresponding increases or decreases at that 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
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