Portfolio Update - July 2024

 The month of July 2024 involved the Bank of Canada reduced the interest rate from 4.75% to 4.50%.  That means businesses or consumers with line of credit, variable rate loans and variable rate mortgages will have lower payments going forward.  

The Bank of Canada's interest rate  announcement was on July 24.  This is the second decrease in two months. The rate cut in June 2024 was also in 50bps, or 0.50%. 

Bank of Canada Interest Rate

In the United States, the Federal Reserved current has a targeted interest rate of 5.25%-5.%.  

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In the United States, their was an assassination attempt of former United States President Donald Trump.  By surviving the assassination attempt, this changed the race for the next president of the States.  The current President, Joe Biden dropped out of the race and endorse the current Vice President, Kamala Harris, as the nominee for the Democrats.

Back to Canada, the two Class 1 railways are facing possible strike action that could bring both the railways to a halt.  Right now, the 2 sides from each company are far apart in their negotiations with their own employees.  

 

Another thing the railways have to be concerned is wildfires that are currently out of control.  Recently, CN Rail had to suspend operations in Jasper National Park as a wildfire was burning out of control.

The S&P500 was down 3.96% over the past month.  

The S&P TSX Composite Index was down 0.07% over the past month.

Portfolio Activity

Margin Account Activity

On July 18, I sold 2 RCI.B.TO Aug162024 $48.00 Puts at $0.30 for net premium of $48.05 after commissions.

I kept the net premium collected inside the margin account.   

TFSA Activity

On August 1, I added 25  shares of Canadian National Railway (CNR.TO)  at $157.00 CAD per share for a total cost of $3930.04 including commissions.  Currently, CN Rail pays a dividend of $0.845 CAD per share monthly, or $3.38 CAD per unit annually.  The yield on cost for this purchase is 2.15% .

This purchase adds $84.50 CAD to my annual dividend income.

Shares Purchased Via DRIP

1 share of QSR.TO @ $69.61USD for a total cost of $94.76 CAD (Margin)

1 unit of KMP.UN @ $18.0935 for a total cost of $18.09 (TFSA)

1 unit of SRU.UN @ $23.65014 for a total cost of $23.65 (TFSA)

1 unit of REI.UN @ $16.77 for a total cost of $16.77 CAD (TFSA)

5 shares  of AQN.TO @ $6.18948USD for a total cost of $42.35 (TFSA)

2 shares of TD.TO @ $81.59905 for a total cost of $163.20 (TFSA)

1.292634 shares of BNS.TO @ $62.098 for a total cost of $80.27 (Transfer Agent)

2 units of BPF.UN @ $16.58115 for a total cost of $33.16 (TFSA)

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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 July 25, Mullen Group (MTL.TO) increased their dividend from $0.06 CAD to $0.07 CAD per share monthly, or from $0.72 CAD to $0.84 CAD per share annually. This is an increase of 16.67% . 

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

Dividend Decreases

There were no dividend decreases in July 2024. 

Summary: 

As of August 4, 2024, the total value of the portfolio is $237182.74 CAD . This is a 4.90% increase over last month's total.  

The portfolio is estimated to produce an estimate $11727.52 CAD in dividend income over the next 12 months. This is an increase of $153.71 CAD , or 1.328%. Some of the dividends in the Canadian stocks section are paid in US dollars, which are converted to Canadian dollars.

Googlesheets is still not operating properly.  So, I had to manually enter the market value for the REITS, BEP.UN, BPF.UN, and AW.UN. 

 

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.ir financial situation and tolerance for risk.