Portfolio Update - December 2022

The month of December 2022 is now behind us.

The inflation is taking its toll on the economy.  The price of food, gasoline, and utilities remain high.  The price on carbon adds another layer to this increase.  The inflation is also due to cost of shipping as there is a huge backlog of ships at ports that are waiting to be offloaded.

The cost of living continues to go up.  Many provincial governments has provide help in many ways.  Some provinces reduced the provincial portion of fuel tax and provided a $50 rebate for electricity costs.  

COVID19 is affecting China once again.  This will slow down the supply chain once again.

Here in Canada, the new variant of COVID19 virus has started to be detected in Canada. 

The Rogers Communications take over of  Shaw Communications is one step closer to be done.  It has been several months.  People think this deal could mean higher costs for wireless and wireline services as there would be less competition.  

Another major issue facing Canada is the amount of extreme weather events over the past couple of months.  These extreme weather events include major cold spells in Alberta, large amount of snow in the lower mainland of BC, and severe winter storms in Ontario.  

Portfolio Activity

Margin Account Activity

There was no activity in the account during the month of December 2022.   

TFSA Activity

On December 12, I purchased 57 units of Brookfield Renewable Partners LP (BEP.UN) at $36.30 per unit for a total cost of $2074.25 including commissions.

Brookfield Renewable Partners LP pays their distribution in US dollars, but trades on the Toronto Stock Exchange.

Brookfield Renewable Partners LP currently pays a distribution of $0.30375 USD per unit per quarter, or $1.215 per unit annually.

The purchase adds $69.26 USD to my annual dividend income.  At the time of this writing, this is equivalent to $93.14 in Canadian dollars.

The yield on cost, using the Canadian dollar equivalent, is 4.49%. 

Shares Purchased Via DRIP

3 unit of BPF.UN.TO @ $15.16 for a total cost of $45.48 (TFSA)

7 shares of TTNM.TO @ $2.14973 for a total cost of $15.05 (TFSA)

1 share of MFC.TO @ $23.84995 for a total cost of $23.85 (TFSA)

1 unit of KMP.UN @ $16.53 for a total cost of $16.53 (TFSA)

1 share of FTS.TO @ $54.32515 for a total cost of $54.33 (TFSA)

2 shares of ERF.TO @ $22.49 for a total cost of $44.98 (Margin)

Boston Pizza Royalties Income Fund (BPF.UN.TO) pays a distribution of $0.102 per unit monthly, or $1.224 per unit annually.  The fund also paid a special distribution of $0.085 per unit. Both the regular and special distribution were paid out as one distribution.  This drip adds $3.67 CAD to my annual dividend income.  The yield on cost for this DRIP is 8.07%.

Titanium Transportation Group (TTNM.TO) pays dividend of $0.02 per share quarterly, or $0.08 CAD per share annually.  This drip adds $0.56 CAD to my annual dividend income.  The yield on cost for this DRIP is 3.72%.

Manulife Financial Corporation (MFC.TO)  pays dividend of $0.33 CAD per share quarterly, or $1.32 CAD per share annually.  This drip adds $1.32 CAD to my annual dividend income.  The yield on cost for this DRIP is 5.53%

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 4.23%.

Fortis  Inc. (FTS.TO)  pays dividend of $0.565 CAD per share quarterly, or $2.26 CAD per share annually.  This drip adds $2.26 CAD to my annual dividend income.  The yield on cost for this DRIP is 4.16%.

Enerplus Corporation (ERF.TO) pays a dividend of $0.06 USD per share quarterly, or $0.24 USD per share annually.  This drip adds $0.48 USD to my annual dividend income.  At the time of this writing, this is equivalent to $0.65 CAD.  The yield on cost, using the Canadian dollar equivalent, for this DRIP is 1.435%.

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.  

Dividend Increases

On December 1, Bank of Montreal increased their dividend from $1.39 CAD to $1.43 CAD quarterly, or from $5.56 CAD to $5.72 CAD per share annually.  This is an increase of 2.88%.  

At the time of the press release, I own 85 shares of Bank of Montreal.  This increase adds $13.60 to my annual dividend income.

On December 1, Canadian Imperial Bank of Commerce increased their dividend from $0.83 CAD to $0.85 CAD quarterly, or from $3.32 CAD to $3.40 CAD per share annually.  This is an increase of 2.41%.  

I own 220 shares of Canadian Imperial Bank of Commerce.  This increase adds $17.60 CAD to my annual dividend income. 

On December 1, TD Bank increased their dividend from $0.89 CAD to $0.96 CAD per share quarterly, or from $3.56 CAD to $3.84 CAD annually.  This is an increase of 7.87%.

I currently own 88 shares of TD Bank.  This increase adds $24.64 CAD to my annual dividend income. 

On December 8, Boston Pizza Royalties Income Fund  (BPF.UN) increased their distribution from $0.10 CAD to $0.102 CAD monthly, or from $1.20 CAD to $1.224 CAD per share annually.  This is an increase of 2.00%.  

I owned 271 units of Boston Pizza Royalties Income Fund at the time of this press release.  This increase adds $6.50 CAD to my annual dividend income.

Dividend Decreases

There were no dividend decreases announced in December 2022.  

Summary: 

As of January 7, 2022, the total value of the portfolio is $184452.06. This is a 1.493% decrease over last month's total.  

The portfolio is estimated to produce an estimated $7864.12 in dividend income over the next 12 months. This is an increase of $181.33 CAD , or 2.36%. Some of the dividends in the Canadian stocks section are paid in US dollars, which are converted to Canadian dollars.

My projected annual dividend income increased approximately $62.34 CAD through dividend increases.  This is equivalent to investing $1781.14 of my own money at a 3.5% yield 

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. 

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.