Portfolio Update - May 2022

The month of May 2022 is now behind us.

The Russian invasion of Ukraine is still the major topic in the news.  This has led to higher than average gas prices across the country.  This also leads to higher inflation as transportation costs by companies are eventually passed onto the consumer.  

A new health care issue has starting to spread fear within our borders.  This health care issue is monkeypox. After going through COVID19 pandemic, a lot of people are on edge when it comes to health care related issues.

The stock market is dropping as fears of a recession are taken hold across the world.  The S&P500 is down 14.34% YTD and the S&P TSX Composite Index is down 2.10% YTD.  The latter is not down as much as the former, and this is due to Canada has lots of energy companies in their index.   

The United Conservative Party of Alberta (UCP) members voted on the leadership of Jason Kenney.  The vote came in just over 51%.  Jason Kenney, the premier of Alberta, announced he will step down as leader as 51% is not enough to lead a party and keep the party united.  Kenney will stay on a leader and Premier until a new leader is chosen in a leadership race.

Portfolio Activity

Margin Account Activity

On May 5,  I sold 1 May 27 2022 $31.00 T.TO Put option at $0.45.  This result in a net premium of $34.05 after commissions.  The days to expiration was 22 days.  The option expired worthless at expiration.

On May 20, I purchased 30 shares of Restaurant Brands International (QSR.TO) at $64.00 per share for a total cost of $1925.06 including commissions.  Restaurant Brands International pays a dividend in US dollars.  Restaurant Brands International pays a dividend of $0.54 USD per share quarterly, or $2.16 per share annually.  At the time of this writing, the equivalent CAD dollar equivalent of 2.71998.  The yield on cost using the CAD equivalent dividend is 4.24%.

This purchase adds approximately $81.60 CAD to my annual dividend income at the time of this writing. 

TFSA Activity

On May 17, I exited my position in A&W Royalties Income.  I sold 38 units A&W Royalties Income Fund at $39.61 for proceeds of $1500.10 including commissions.  

A&W Royalties Income Fund pays a dividend of $0.155 per unit monthly, or $1.86 per unit annually.  I owned 38 units of A&W Royalties Income Fund.  This sales reduces my annual dividend income by $70.68 CAD.  

Shares Purchased Via DRIP

1 unit  of BPF.UN.TO @ $16.12 for a total cost of $16.12 (TFSA)

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 6.33%.

 

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 May 3, Mullen Group Ltd (MTL.TO) increased their dividend from $0.05 to $0.06 CAD per share monthly, or from $0.60 to $0.72 CAD per share annually.  This is an increase of 20%.

I currently own 100 shares of Mullen Group Ltd.  This increase adds $12.00 CAD to my annual dividend income.

On May 6, Telus Corporation (T.TO) increased their dividend from $0.3274 to $0.3386 per share quarterly, or from $1.3096 to $1.3544 per share annually.  This is an increase of 3.42%.

I currently own 48 shares of Telus.  This increase adds $2.15 CAD to my annual dividend income.

On May 12, Algonquin Power and Utilities (AQN.TO) increased their dividend from $0.1706 to $.1808 USD per share quarterly, or from $0.6824 to $0.7232 USD per share annually.  This is an increase of 5.98% when using US Dollars.  

I currently own 271 shares of Algonquin Power and Utilities.  This increase adds $11.06 USD to my annual dividend income. At the time of this writing, the Canadian dollar equivalent is $13.93.

On May 25, Bank of Montreal (BMO.TO) increased their dividend from $1.33 to $1.39 per share quarterly, or from $5.32 to $5.56 per share annually.  This is an increase of 4.51%.

I currently own 85 shares of BMO.  This increase adds $20.40 CAD to my annual dividend income.

On May 25, Bank of Nova Scotia  (BNS.TO) increased their dividend from $1.00 to $1.03 CAD per share quarterly, or from $4.00 to $4.12 per share annually.  This is an increase of 3.00%.

I currently own 86.655789 shares of Bank of Nova Scotia.  This increase adds $10.40 CAD to my annual dividend income.

On May 26, Royal Bank of Canada (RY.TO) increased their dividend from $1.20 to $1.28 per share quarterly, or from $4.80 to $5.12 per share annually.  This is an increase of 6.67%.

I currently own 56 shares of Royal Bank.  This increase adds $17.92 CAD to my annual dividend income.

On May 26, Canadian Imperial Bank of Commerce "C.I.B.C" (CM.TO) increased their dividend from $0.805 to $0.0.83 CAD per share quarterly, or from $3.22 to $3.32 per share annually.  This is an increase of 3.12%.

I currently own 220 shares of CIBC.  This increase adds $22.00 CAD to my annual dividend income.

I received 7 dividend increases for the month of May 2022.  My annual dividend income from these increases increased by approximately $98.80 CAD.

Dividend Decreases

There were no dividend decreases announced in May 2022.  

Summary: 

As of June 4, 2022 , the total value of the portfolio is $181950.22 . This is a 2.04% increase over last month's total. 

The portfolio is estimated to produce an estimated $6819.89 dividend income over the next 12 months. This is an increase of $89.39 CAD , or 1.33%. Some of the dividends in the Canadian stocks section are paid in US dollars, which are converted to Canadian dollars.

Please Note: Positions in Enerplus Corporation (ERF.TO), 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 December 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 and tolerance for risk.