The month of October 2024 involved another Bank of Canada interest rate announcement. On October 23rd, the Bank of Canada decreased the interest rate by 0.50%, or 50bps. The interest rate now stands at 3.75%.
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| (Source: Bank of Canada) |
The decrease in the interest rate means the people payments will decrease for variable rate loans, mortgages and lines of credit.
The lowering of the interest rate allows people to have more disposable income, with the hopes they go out and spend money to help the economy.
Also, in Canada, the Bloc Quebecois provided a deadline of October 29 for 2 of its bills to be passed in the House of Commons. The day as come and gone, and these 2 specific bills have not been passed. The leader of the Bloc is now working with other opposition parties trigger and election in a non-confidence motion against the current government.
As of Nov 3, the federal government is still in power.
South of the border, the US Election is coming up shortly to determine who will be next President of the United States. The current President, Joe Biden, has dropped out of the race.
The S&P500 was up 0.51% over the past month.
The S&P TSX Composite Index was up 1.20% over the past month.
Portfolio Activity
Margin Account Activity
There has been no activity in this account in October 2024.
TFSA Activity
On October 30th, I added 31 shares of Canadian National Railway (CNR.TO) at $152.90 for a total cost of $4744.85 including commissions. Currently, Canadian National Railway pays a dividend of $0.845 CAD per share quarterly, or $3.38 per share annually. The yield on cost of this purchase is 2.21%.
The yield on cost of 2.21% is 0.43%. or 43bps, above the stock's own 5 year average yield of 1.78%.
This purchase adds $104.78 CAD to my annual dividend income.
During the month of October, my 108 units of A&W Royalties Income Fund were converted to 105 shares of A&W Food Services of Canada Inc and cash via a merger. As part of this deal, I received $3.59 CAD cash in lieu of fractional shares.
Shares Purchased Via DRIP
1 unit of KMP.UN @ $19.6435 for a total cost of $19.64 (TFSA)
1 unit of SRU.UN @ $25.70378 for a total cost of $25.71 (TFSA)
3 share of AQN.TO @ $5.15385USD for a total cost of $21.29 CAD (TFSA)
1 units of BPF.UN @ $17.70152 for a total cost of $17.70 (TFSA)
2 shares of TD.TO @ $77.0244 for a total cost of $154.05 (TFSA)
1.150871 shares of BNS.TO @ $70.9376 for a total cost of $81.64 CAD (Margin)
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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
Dividend Increases
On October 21, TFI International (TFII.TO) increased their dividend from $0.40USD to $0.45USD per share quarterly, or from $1.60USD to $1.80 USD per share annually. This is an increase of 12.5%.
I currently own 50 shares of TFI International in my TFSA. This increase adds $10.00 USD to my annual dividend income. This is equivalent to $13.92 CAD.
Dividend Decreases
There were no dividend decreases in October 2024.
Summary:
As of November 3, 2024, the total value of the portfolio is $249265.26 CAD . This is a 0.728% decrease over last month's total.
The portfolio is estimated to produce an estimate $11851.50 CAD in dividend income over the next 12 months. This is an increase of of 153.52 CAD , or 1.312%. 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, and BPF.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.
