Portfolio Update - June 2022

 The month of June 2022 is now behind us.

The Russian invasion of Ukraine is still the major topic in the news.  When will this ever end? This has added to the inflation woes right across the world.  Here in Canada, gasoline is over $2.00 per liter in a lot of provinces. 

The Alberta government gave Albertans extended the relief at the pumps for another 3 months.  The provincial gas tax has been suspended for another 3 months starting July 1.  Gasoline is around $1.90 per litre in a major city in Alberta.  

We are inching closer to the federal conservative party electing a new leader.  This will push pressure on the federal liberal government to get their act together.

The stock market is dropping as fears of a recession are taken hold across the world.  We have seen interest rates rise and threat of more interest rate increases in the near future.  The S&P500 is down 20.25% YTD and the S&P TSX Composite Index is down 11.18% 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.   

With a recession , we see the stress on people's faces as the threat of layoffs increases.  As we have seen with COVID 19, no job is safe.  

Portfolio Activity

Margin Account Activity

On June 10, I sold 2 T.TO June 30 2022 $30 at $0.30 for a net premium of $48.05 after commissions.

This option was assigned at expiration as the option expired in the money. So, I now own 200 shares of Telus Corporation in my margin account.  The adjusted cost base of this purchase is $5976.90, or $29.88 per share.  Currently, Telus pays a dividend of $0.3386 per share quarterly, or $135.44 per share annually.  The yield on cost for this purchase is 4.53%.

This position adds $270.88 CAD to my annual dividend income.  I will sell covered calls on this particular position of Telus.

On June 30, Intertape Polymer Group was bought out and taken private.  I owned 120 shares of ITP.TO and received a capital gain near $3100, or 178%.  This gain does not include the dividends I received. 

The dividend was paid in US dollars. This sale decreased my annual dividend income by approximately $105.20 CAD 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.

The price dropped and I decided to buy the same amount of units again.  On June 13, I purchased 38 units of AW.UN at $37.85 for a total cost of $1443.25 including commissions.  

A&W Royalties Income Fund pays a dividend of $0.155 per unit monthly, or $1.86 per unit annually.  The yield on cost for this purchase is 4.90%.  

This purchase adds my annual dividend income by $70.68 CAD.  

Shares Purchased Via DRIP

1 unit  of BPF.UN.TO @ $14.66311 for a total cost of $14.66 (TFSA)

1 share of MFC.TO @ $21.86171 for a total cost of $21.86  (TFSA)

1 unit of KMP.UN @ $17.19 for a total cost of $17.19 (TFSA)

6 shares of TTR @ $2.291735 for a total cost of $13.75 (TFSA)

1  share of ERF.TO @ $21.34367 for a total cost of $21.34 (Margin)

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 6.96%.

Manulife Financial Corporation pays dividend of $0.33 per share quarterly, or $1.32 per share annually.  This drip adds $1.32 CAD to my annual dividend income.  The yield on cost for this DRIP is 6.04%.

Killam Properties REIT pays a distribution of $.058333 per unit monthly, or $0.70 per unit annually. This drip adds $0.70 CAD to my annual dividend income.  The yield on cost for this drip is 4.07%.

Titanium Transportation Group pays a dividend of $0.02 CAD per share quarterly, or $0.08 per share annually.  This drip adds $0.48 CAD to my annual dividend income.  The yield on cost for this drip is 3.49%.

Enerplus Corporation pays a quarterly dividend of $0.043 USD per share quarterly, or $0.172 per share annually.  This drip adds $0.172 USD to my annual dividend income.  This equivalent to $0.22 in Canadian dollars.  The yield on cost, using the Canadian dollar equivalent, is 1.03%. I currently have a small gain in Enerplus after the price has fallen in the last month. I regret not selling when it was up in the $21 range. 

 

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

There were no dividend increases announced in June 2022. 

Dividend Decreases

There were no dividend decreases announced in June 2022.  

Summary: 

As of July 1, 2022 , the total value of the portfolio is $169852.56  . This is a 6.65% decrease over last month's total.  That is a large decrease. 

The portfolio is estimated to produce an estimated $7123.83 dividend income over the next 12 months. This is an increase of $303.94  CAD , or 4.46%. 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.