Recent Purchase

    Climate change was not taken serious until recently.  People, and even countries, said they will reduce their emissions or do other things to reduce the impact on the environment.  But, there was little action taking at any level.

Over the past years in the last couple of decades we have seen more and more devasting hurricanes, forest fires, droughts and air pollution.  It seems every single year is hottest year on record.

As an investor, you can take advantage now of opportunities as renewable energy is the future.  There will still be a need for oil and gas for several years, but there is going to be a major push for renewable energy.

Purchase

On May 4, I purchased 82 shares of Alqonquin Power and Utilities (AQN.TO) at $19.55 per share for a total cost of $1608.34 including commissions.   This purchase was made in my TFSA.

Algonquin Power and Utilities  currently pays a $0.1551 USD per share quarterly dividend, or $0.6204 USD per share annually.

This purchase adds $50.87 USD to my annual dividend income.  This is equivalent to $62.39 CAD.  

Disclosure:   Long AQN.TO

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.

Recent Purchases

Are you thankful to be able to flick a switch and have light in your house or apartment? Could you imagine your life without electricity? 

Recent Buy # 1 

Emera Inc. (EMA.TO) started from a single electric utility in Nova Scotia. The company has grown to be an energy company that serves over 2.5 million customers in Canada, the US and the Caribbean.

I did a stock analysis on Emera Inc last year, which you can read here. 

As of February 19, Emera is yielding 5.0%. This yield is 40 bps below the stock’s own 5 year average of 4.6%. The current yield is approximately 200 bps below that of the broader market.

In the early market hours on February 19, I purchased 22 shares of Emera Inc (EMA) at $50.47 for a total cost of $1115.37 including commissions.

Emera pays a quarterly dividend of $0.6375 per share, or $2.55 per share annually. The yield on cost for this purchase is 5.03%.

This purchase adds $56.10 CAD to my annual dividend income.

This purchase was in my margin account as it adds to my current position.

Recent Buy # 2 

Fortis Inc. is another utility. I recently started a position of Fortis within my TFSA. I previously did a stock analysis on Fortis, which you can read about here.

On February 19, I purchased 30 shares of Fortis at $50.78 for a total cost of $1528.46 including commissions.

Fortis pays a quarterly dividend of $0.505 per share, or $2.02 per share annually. The yield on cost of this purchase is 3.96%.

This purchase adds $60.60 CAD to my annual dividend income.

This purchase was made in my TFSA.

Summary:

Both of these purchases were in the utility space.  Also, both these companies provide some of their energy via renewables.  

I now own 122 shares of Emera in my margin account.

I now own 47 shares of Fortis in my TFSA.  For disclosure, I also have a position of 78 shares of Fortis in my trading account and 200 shares of Fortis in my RRSP.  In terms of the latter, I write covered calls on Fortis in order to use the option premium collected to purchase XAW.  XAW is ex-Canada Global ETF.  

These purchases add $116.70 CAD to my annual dividend income. 

I will update my investing spreadsheet in early March with these purchases.

Disclosure:  Long FTS.TO, EMA.TO, XAW.TO

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.

Recent Purchase

The markets have been going up and up almost everyday and it is harder to find opportunities to put cash to work.  

I had some money and decided to put the money to work in a stock I have been watching for some time.  

I did a stock analysis on Fortis Inc (FTS.TO).    The dividend was increased since I wrote that post. 

The stock has come under pressure as of late and is currently trading a lower price than when I wrote the linked post that mentioned previously.  That would indicate the stock is possibly more undervalued.

I had some money in my TFSA, and decided to take advantage of this opportunity.

Purchase

I purchased 17 shares of Fortis Inc (FTS.TO) at $51.12 per share for a total cost of $874.05 including commissions.

Fortis is currently paying a quarterly dividend of $0.505 CAD per share, or $2.02 per share annually.  

This purchase adds $34.34 to my annual dividend income.  The yield on cost for this purchase comes in at 3.93%.  This yield is 34 BPS above the stocks own 5yr average yield of 3.59%.

This purchase was made in my TFSA.  For disclosure, I do have a Fortis position in my RRSP, but I do not include the RRSP as part of the dividend income for the blog.  Also, I am selling covered calls in my RRSP on the Fortis position.

I will update my investment tab spreadsheet in a few days with this transaction.

Disclosure:  Long FTS.TO

Video credit : Fortisinc.com

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.

Took a Detour in Finance

After my shares of Mullen Group were called away in my trading account, I thought I would take a gamble and try to make a quick trade.  See, my trading account is currently within my margin account. When I make a trade in the trading account all the money stays in the trading account.  

I "borrowed" the amount of balance in my trading account  to make a trade that I was expecting to be completed really quick.

I purchased 558 units of Boston Pizza Royalties Fund (BPF.UN.TO) for $6.82 per unit for a total cost of $3811.34 including commissions. I set a limit order to sell within a few days at $7.10 per unit.  The unit price went on a downward spiral a few weeks and even fell below $6.00 per unit.  

Due to the COVID19 pandemic their business lost lot of money as their were lockdowns and social distancing rules for businesses to follow.  Boston Pizza felt this very early in 2020 and as a result, Boston Pizza Royalties Income Fund suspended their distribution.  The fund made an agreement that they will not pay a distribution prior to October 1.   

Fast forward to October 2.  Trading of the fund was halted on the stock market during an announcement.  The fund announced that they will start to pay a distribution starting the end of October.  Shortly after the trading was resumed the price of the fund shot up over a dollar and some.

The sell order was actually filled at $7.20 per unit on October 2.  The proceeds of sale were 4010.07 including commissions.  

So, I made a profit of $198.73.

Also, in the first week of October, I received dividends from Roger's Communications Class B and Restaurant Brands International.  Between these 2 positions, I received $168.17 in dividends..

I received a GST rebate check from federal government of $112.75 on October 5. 

So, I decided to make  a detour from my current plan.  The current plan was paying myself 12% to savings to get up to $2000.00 balance.  While doing this, I was paying 15% of income on my line of credit.

Detour

I used the $168.17 in dividends, my GST rebate check of $112.75 and the profit of the trade $198.73  and decided to write a check for $750.00 to purchase more shares of Bank of Nova Scotia (BNS,TO) directly with the transfer agent. Since I am short by $270.35.

The detour will consist of paying myself 15% to investing and 12% to savings. I will make a line of credit payment if any money left over at the end of a month.  If the $750 is reached and my savings is not up to $2000.00, the I will then revert back to paying 15% income on line of credit.

When buying shares directly through the transfer agent, the investor does not get to choose the price of the shares. The shares, which will include fractional shares. are purchased on a set day set out by the company (Bank of Nova Scotia).  The new shares will be purchased on the dividend payment date for October.  The most recent closing price of BNS shares is $56.18, which means the stock is currently yielding 6.41%.

Disclosure:  - Also own BPF.UN in TFSA 

                    - Long BPF.UN, BNS.TO

Recent Purchase

For the past several weeks, I was building up cash in my margin account.  I have been putting money into this account as my main savings account was built up to $2000.00.  

After the purchase I am about to mention, I will be putting money into my TFSA to make a future purchase.  I have not taken money out of my TFSA in a real long time.

During the past week, the stock market dropped a lot in one day.

Purchase

I was looking to purchase more shares of a stock I already owned in the margin account.  The three positions I was considering adding to were Bank of Montreal (BMO), Emera (EMA) and Intertape Polymer Group (ITP).

I decided to purchase Intertape Polymer Group.

Intertape Polymer Group Inc manufactures and sells a variety of packaging products. The firm's primary product categories include tapes, films, and woven coated fabrics. The company's tapes include pressure-sensitive and water-activated carton sealing tapes, and flatback, duct, double coated, foil, electrical, and filament tapes. Intertape's film products include stretch wrap, shrink film, air pillows used for protective packaging, and packaging machines. The woven coated fabrics include building and construction products and specialty fabrics. The majority of revenue comes from the United States. (Source : www.tmxmoney.com)

I purchased 70 shares of Intertape Polymer Group on June 11 for $12.05 per share.  The total cost of this purchase came to 848.70 including commissions. 

Intertape Polymer Group pays a quarterly dividend of $0.1475 USD per share, or $0.59 USD per share annually.  The company is headquartered in Montreal, Quebec, Canada.  The company makes most of its revenue in the United States. 

This purchases adds $41.30 USD to my annual dividend income. At the time of this writing, the exchange rate is  $1 USD: $1.36039 CAD.  I receive the Canadian equivalent in my brokerage account, which equates to $56.18 in annual dividend income.

The yield on cost, in terms of Canadian dollars, on this purchase 6.62%.

Conclusion

I believe this company will do well over time as the demand for their products will increase with a growing population.  A growing population along with e-commerce should mean a large increase in Intertape's products to meet the demand.  A lot of people have ordered more stuff online recently due to the COVID19 pandemic as a lot of businesses were forced to close their doors to the public.   Other businesses had to shutdown completely due to orders by their respective governments or chief medical officers of health.  

I was not planning on adding to this position, but the opportunity came up.  The company traded ex-dividend the following day of this purchase.  The purchase also diversifed my portfolio via sector diversification.  

I will update my investment tab spreadsheet in early July with this purchase.

Disclosure: Long ITP.TO

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.

Recent Buy

During the few stocks the stock markets have made huge swings in both directions across the entire world. From the oil price ware between brought on by Russia and Saudi Arabia to the World Health Organization has declared the Coronavirus a pandemic.

The Cononavirus has caused many countries to take drastic measures including banning incoming flights from hot zones. Sections of different countries are taking drastic measures from cancelling schools, banning social events of all types over a certain amount of people and governments announcing shutting down for weeks. Major sporting leagues such as NHL, NBA, WHL, AHL and MLB have suspended their seasons to protect the health of their players and fans.

Recently, Canada has another major issue to deal with major rail blockades that were setup causing shutting down major rail routes across Canada. This causes shortages of all different things from propane to consumer goods. The federal minister of Crown-Ingenious Relations and the British Columbia minster of Indian Affairs met with the hereditary chiefs of the Wetʼsuwetʼen first nation in Northeastern BC.

Individual companies have changed out they do things such has limiting interactions with their customers or clients to help prevent the spread of the virus.

I never saw people panic like this over a virus.

Recent Buy

Almost all my positions are now in negative territory. Anyone who has bought investments in the last several years have lost money. Best thing to do is not sell and ride it out.

I had some money I could put to work in my margin account. It was not much, but I felt I could make a position of average down a position.

I have owned Enerplus for several years. This company has fell out of favor with investors the last few years due to the major oil crash that started in 2015. Enerplus is an energy producer headquartered in Canada. Enerplus has increased their activity in the United States due to a better environment to be in the oil and gas business. Enerplus has reduced their activity in Canada due , in part, to regulations and other things making it difficult to conduct business and make a profit.

I owned 558 shares of Enerplus at the time of the purchase. The company had to reduce its dividend due to low oil prices and switching form an income trust to a corporation in Canada in 2011.

On March 10, my limit order was filled to purchase 170 shares of ERF.TO at $2.93 per share for a total cost of $503.30 including commissions. I now own 728 shares of Enerplus Corporation.

Enerplus pays a monthly dividend of $0.01 CAD per share. This purchase adds $20.40 CAD to my annual dividend income. The yield on cost for this purchase is 4.05%.

I have had the DRIP turned on for a few years but the wasn't enough to purchase a whole share. With the stock falling in price, I will see drip shares start to appear in my account in the next few days.

Conclusion

Would I had purchase shares if I had not have owned shares already? I would of definitely would of put my money elsewhere as their are lots of good opportunities in the markets at this time.

This purchase reduced my average cost base per share by over $4.00.

This stock was recently featured on BNN's market call a month ago, which you can watch here.

I am down a lot on the stock, so I will continue to hold for now.

I will update my investment tab spreadsheet in early April to reflect this purchase.

Disclosure: Long ERF

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.

Recent Buy

   What a crazy couple of weeks in the capital markets!  That last few days have been super crazy.  The markets fell over 10% which mean we are dealing with a market correction.  The situation could get worse before it gets better.  A couple of major factors that lead to these markets tumbling this week are the impacts of the coronavirus coupled with Russia and Saudi Arabia flooding the market with low priced crude oil.

Canada is a high cost producer of crude oil due to the oil being very low in the ground due to mountain range of western Alberta east of Edmonton.  Canada also has the oil sands in the northern part of Alberta.  The mining for oil located in the oil sands has very high cost and it is often said that $70 WTI price crude oil is needed to make it viable.

During this week, the Bank of Canada reduced it over night prime rate by 50bps or 0.50%.  This means will cost less to borrow money and the interest rates on savings will be decrease.

Markets go up and markets go down.  It is difficult to time the market.

Purchase

On May 10, I made 2 purchases.  I will talk about one of those purchases in this post.

Besides my positions for this blog, I have a few positions in savings.  I also have a regular high interest savings account as well.

Prior to today, I had one position in this account with some cash.  That position is 42 shares of Inter Pipeline (IPL.TO).  I kept the cash from the dividends in the account and added some extra cash in the account.  I had a total of $135.92 in cash in this account.  

My brokerage has commission free ETFs when purchasing units of ETFs.

With the $135.92 in cash, I purchased 9 units of BMO Canadian High Dividend Covered Call ETF.  The ticker symbol is ZWC.TO.  I purchased the 9 units at $15.25 for a total cost $137.28, which included ECN fees of $0.03.   This ETF is an ETF that is owned by Bank of Montreal which is a bank that I am a shareholder.  The yield on cost for this position is

BMO Canadian High Dividend Covered Call ETF has been designed to provide exposure to a dividend focused portfolio, while earning call option premiums. The underlying portfolio is yield-weighted and broadly diversified across sectors. The ETF screens for securities for dividend growth, sustainability and option liquidity. The ETF also dynamically writes covered call options. The call options are written out of the money and selected based on analyzing the option's available premium. The option premium provides limited downside protection. Source BMO

This ETF currently has 73 holdings, which you can discover by clicking here.

 The BMO Canadian High Dividend Covered Call ETF currently pays a monthly distribution of $0.11 per unit.  This position will pay me $0.99 per month in distributions .  The yield on cost basis is 8.65%.

With this purchase, there is a cash balance of -$1.36.  This cash balance will be in positive territory as Inter Pipeline will pay a dividend on March 16, 2020.

Summary:

This savings account in which I keep these 2 positions and cash is held within my margin account.  These positions are not reflected in my investing tab spreadsheet link above and are not mentioned in portfolio updates.  However, this savings account will be mentioned in future net worth posts under the savings section.

This position adds an extra $0.99 per month of income to this account.  The total income per month generated by this account is expected to be $6.98.

The distribution may be reduced in the coming months for this ETF due to the large reduction in prices of its various holdings and the difficult selling covered calls due to this deduction.

This is a 3 month chart of ZWC which includes today price action.

Click to Enlarge

I will purchase more units of ZWC if cash is available and at a good price.

Note:   This position will not be included in my portfolio updates or investing tab spreadsheet.  However, this position will be included in net worth updates.

Disclosure:  Long BMO, IPL, ZWC

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.

Recent Purchase

    When it comes to investing in the market, an investor has to try to look for opportunities as prices vary one day to the next.  Some times they purchases will turn out to be good and others time not.  When you purchase  a stock at a lower price you are lower your possible losses and introducing a margin of safety.

   I had some cash on hand in my margin account and was looking to put it to work.  I have not added any cash to this account in several months.

Purchase

Their was a run up in the stock price for the big 5 banks, so I did not feel comfortable adding to my positions at this time.  Also, Enbridge is a large part of my portfolio so that was not an option at this time.

I added to my purchase of Cineplex (CGX.TO). 

Cineplex Inc., through its subsidiaries, operates as an entertainment and media company in Canada and internationally. It operates through three segments: Film Entertainment and Content, Media, and Amusement and Leisure. The Film Entertainment and Content segment operates film theatres; and provides food and in-theatre amusement services, as well as rents theatre and digital commerce. The Media segment provides in-theatre advertising services; and designs, installs, and operates digital signage networks, as well as offers advertising on networks. The Amusement and Leisure segment operates and distributes amusement, gaming, and vending equipment; and operates social entertainment destinations comprising gaming, entertainment, and dining facilities, as well as facilitates tournaments, leagues, and gaming ladders for the competitive gaming community. The company operates theatres under the SilverCity, Galaxy Cinemas, Scotiabank Theatres, Cineplex Cinemas, Cineplex VIP Cinemas, Famous Players, and Cinema City brands. As of October 21, 2019, it operated 165 theatres in Canada, including 6 theatres and a VIP Cinemas in Saskatchewan. Cineplex Inc. was founded in 2003 and is headquartered in Toronto, Canada. (Source: Yahoo Finance)

The stock has been struggling over the past few years.  The theatre portion of the business has been dealing with declining attendance for decades. Cineplex makes alot of money at the concession stands. We all have been shocked by the price of popcorn and other snacks at the concession stands. 

Cineplex and other theatres have to complete with online streaming services such as Netflix.  People now can more easily by big screen TV such has 52 inch size.  The old TVs of that size were extremely heavy to difficult to move around in a house.  People can buy stereo systems that can give you the sound of like being a theatre.  Most people will still prefer to go to the movies, but they go way less often due to the cost.

Cineplex was been in recent years converting from a movie company to an entertainment company.  An example is the Rec Room part of their business.  Rec Room is a destination for "eats and entertainment" for adults in various cities.  These cost a lot upfront to build, so this will have a negative effect on revenue for a few years.

I added to my position in Cineplex with a purchase of 60 additional shares.  I purchased the 60 shares on November 5 at $22.33 per share for a total cost of $1344.96 including commissions. 

Currently, Cineplex pays a monthly dividend of $0.15 per share, or $1.80 per share annually.  This purchase adds $108.00 to my annual dividend income.  The yield on this purchase is 8.03%.

Conclusion

I previously purchased 100 shares of Cineplex at $43.85 per share for a total cost of $4389.95. These 100 shares were purchased on August 4, 2017.

The adjusted cost base of the combined 160 shares is $35.84 per share.  

I did not see any hint of insider selling in the past 6 months or so. With the upfront cost of them expanding their business into new Rec Rooms and other areas away from the movie theatres.

I would of put my money in a stock with a lower yield, if I did not already own this stock.  

I will update my investment spreadsheet in early December with this purchase.

Disclosure:  Long CGX.TO

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.

Recent Purchase

A few weeks ago, I wrote about some activity in both my margin account and tfsa. With the ongoing trade wars mostly between China and the US along with other global issues, the markets have been going up and down by large amounts over the last several weeks.

After my trade of Dream Office REIT (D.UN) inside my TFSA, I wanted to put the proceeds of the sale to work. I wrote about purchasing TD Bank stock inside my TFSA, which you can read about by clicking on the link in the paragraph immediately above.

Purchase

I have been adding to my bank stocks or starting new positions in a bank over the past several transactions.

I went back and forth between 2 positions looking to put the money to work that was left over from the Dream Office REIT sale. The 2 stocks I was considering were Telus Corporation (T.TO) and Royal Bank (RY.TO). I already own shares in these 2 companies. Telus Corporation is telecommunications company. Telus offered a higher yield than Royal Bank.

I decided to purchase more shares of Royal Bank. The reason for this is I believe in the future the price of Royal Bank will grow more than Telus over the next couple of years.

On August 27, I purchased 27 shares of Royal Bank at $97.50 per share for a total cost of $2637.54 including commissions. This purchase brings my total share count to 56 shares.

Royal Bank currently pays a dividend of $1.05 per share quarterly, or $4.20 per share annually. This purchase adds $113.40 to my annual dividend income. The yield on cost of this purchase is 4.30%.

Royal Bank paid a dividend last week, so this purchase will be eligible for the next dividend in 3 months.

There is no cash available to make anymore purchases inside my TFSA in the near future. I will be looking to increase my position in Telus when funds are available and if the stock is trading at a good valuation. 

I will update my spreadsheet in early September with this transaction.

Disclosure: Long T.TO, TD.TO, RY.TO

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.

Recent Portfolio Activity

It has been a crazy couple weeks on the the stock markets across the world. Are we in a recession? Are the trade wars between US and China causing investors to pull out for the market? I believe some investors fear that we are in a recession at this time. I do believe the impact of the US-China trade wars are having the most impact on the markets at this time.

Margin Account Activities

Sales

On August 7, I mentioned that I made a trade inside my margin account involving Telus Corporation (T.TO).

After making the purchase at $47.10 per share, I put in a stop limit order at $48.10 per share. The stock has been under a little pressure over the last week as the stock recently missed earning expectations.

On August 14, I decided to cancel the stop limit order around noon and replace it with a trailing stop limit order at a lower price. By using a trailing stop limit order, I get to lock in some gains and at the same time possibly gain some more if the stock rises in value.

The stock seemed to go sideways for over a week, which is normal. The sell order was filled at $47.60 per share. The profit from the trade was immediately sent to my line of credit. I was looking for a larger gain but decided to lower the sell price due to the falling stock prices. As I was only taking the profit out, I could use the capital from the sale towards investments.

The money "borrowed" from the trading account was returned.

This sale decreases my annual dividend income by $675.00.

For disclosure, I am long Telus Corporation (T.TO) in my TFSA.

Purchases

The markets went down a lot over a couple of days. I wanted to take advantage of this by buying stocks at a lower price. Buying a stock at a lower price, results in a higher starting yield as price and yield are inversely correlated. The higher the starting yield means money working harder for you.

On August 15, I put in limit orders on 2 stocks I was looking to increase my position size and further grow my dividend income.

First Purchase

On August 15, I purchased 50 shares of Bank of Montreal (BMO.TO) at $92.00 per share for a total cost of $4605.12 including commissions.

Currently, Bank of Montreal pays a dividend of $1.03 per share quarterly, or $4.12 per share annually. This purchase adds $206.00 to my annual dividend income. The yield on cost for this purchase is 4.47%.

This purchase is not eligible for Bank of Montreal's next dividend on Aug 27, 2019, as the record date is August 1, 2019.

This purchase brings total number of shares in Bank of Montreal to 85 shares.

Second Purchase

On August 15, I purchased 45 shares of Canadian Imperial Bank of Commerce "C.I.B.C" (CM.TO) at $98.00 per share for a total cost of $4415.11 including commissions.

Currently, C.I.B.C pays a dividend of $1.40 per share quarterly, or $5.60 per share annually. This purchase adds $252.00 to my annual dividend income. The yield on cost for this purchase is 5.71%.

This purchase will be eligible for C.I.B.C's next dividend payment which is expected October 28, 2019, to shareholders on record of September 26, 2019. This is listed on their investor relations page as future notice that is subject to approval of board of directors.

This purchase brings total number of shares in C.I.B.C to 110 shares. I recently added shares of C.I.B.C twice with in they past 3 or 4 months.

TFSA Account Activities

Sales

Continuing with markets going down over the period as per above, I decided to take action in this account as well. I noticed Dream Office REIT (D.UN.TO) was trading close to my adjusted cost base per share. Dream Office REIT has reduced their distribution a few times over the past 4 years. The distribution as remained at $0.083333 per unit monthly, or $1.00 per unit annually.

So, I sold my 168 units of Dream Office REIT at $26.41 per unit for a total net proceeds of $4431.69 from the sale. My adjusted cost base was $4489.30. Therefore, the net loss is $57.61 excluding distributions.

This sale decreases my annual dividend income by $168.00.

Purchase

On August 15, I purchased 25 shares of TD Bank (TD.TO) at $71.57 per share for a total cost of $1794.29 including commissions.

Currently, TD Bank pays a dividend of $0.74 per share quarterly, or $2.96 per share annually. This purchase adds $74.00 to my annual dividend income. The yield on cost for this purchase is 4.124%.

This purchase is eligible for TD Bank's next dividend which is expected to be declared on August 29, 2019.

This purchase brings total number of shares in TD Bank to 45 shares.

Conclusion

My plan with the Telus trade in my margin account was to not to hold for very long and take the profit and put on line of credit. I took a smaller profit than I was looking for due to the prices of stocks falling in value that I wanted to purchase.

These 3 purchases are all Canadian Banks.

The yield on cost on all 3 purchases is north of 4%. The starting yields are all higher than the yield of the broader market.

I have invested a lot of money in Canadian banks the past several months. Canadian banks are known to be some of the best and financially banks in the world. Then banks are traded on both the Toronto Stock Exchange and New York Stock Exchange. My purchases were all done on the Toronto Stock Exchange. 

I will update my investing spreadsheet in earlier September with these transactions. 

Disclosure: Long T.TO, BMO.TO, CM.TO, TD.TO
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.

Recent Buys

On Monday, the Canadian markets were closed as the first Monday of August is a civic holiday pretty much across the whole country.  Our neighbors to the south did not fare to well on Monday.  The Dow Jones closed on Monday down over 700 points.  When the markets fall by a few hundred points, a lot of investors sell as their fears start to get the better of them.

Like most Canadian investors, I do not have US funds in my brokerage account on hand.

On Tuesday morning, when the markets opened there was a sell off.  At the end of the trading day on Tuesday, the Dow Jones Industrial Average closed up around 325 points from the close on the previous trading day.  

First Purchase

I decided to put the cash sitting in my TFSA to work.  I placed a limit order for shares of Royal Bank of Canada (RY.TO).

I purchased 9 shares of Royal Bank at $100.40 per share for a total cost of $908.58 including commissions.

Currently, Royal Bank pays a quarter dividend of $1.02 per share, or $4.08 per share annually.  This purchase adds $36.72 to my annual dividend income.  The yield on cost for this purchase is 4.04%. This purchase will not be eligible for the dividend paid out on August 23 as the record date has passed.

This purchase brings my total shares in Royal Bank to 29 shares.  

Second Purchase

Unlike the first purchase, the second purchase was to initiate a trade within my margin account.  As I do not have any trades going on within my trading account, I decided to "borrow" the balance of my trading account and use the cash in my margin account to purchase 300 shares of Telus Corporation (T.TO).  I had to borrow about $550.00 on margin to have a multiple of a hundred shares.

I purchased 300 shares of Telus at $47.10 per share for a total cost of $14134.95 including commissions.

Currently, Telus pays a $0.5625 per share quarterly dividend, or $2.25 per share annually.  This purchase adds $675.00 to my annual dividend income.  The yield on cost for this purchase is 4.76%.

I do not plan on holding on to these 300 shares.  The plan is to collect some profits in a reasonable amount of time.  In fact, I placed a limit order to sell these shares.  If I receive any dividends from this purchase they will be counted has dividend income for the reports.  The profits on the sale will go towards savings or paying down my debt.   

For full disclosure, I am long shares of Telus within my TFSA. 

I will update my portfolio spreadsheet in early August to reflect both of these transactions if the Telus one is not sold by the time of the portfolio update.

Did you put money to work over the last couple of days?

Disclosure:  Long T.TO, RY.TO

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.

Recent Buy

 The expectation of a coming recession in the near future has been talked about in the financial media for the past several months. Some analysts are staying North America is actually in a recession right now.  This usually means investors start to fear they will lose money and start selling their holdings. This has happened in some sectors while others have been immune to the fears of investors.
 
 A example of a stock falling in price is TFI International (TFII.TO), that is headquartered in Canada. This is a trucking and logistics company that has operations in Canada, United States and Mexico. With the fears of the recession, investors have been selling this stock, as transportation companies have reduced earnings has there will be less freight.
 
During the month of June, my covered call in WestJet Airlines was assigned at $24.00 per share. During the first few weeks of May, Onex Corporation announced it is buying WestJet Airlines at $31.00 per share subject to approval of shareholders. The price of WestJet Airlines (WJA.TO) immediately increased from below $19.00 to around $30.00 a share.
 
 So, I was looking for an opportunity to put some of my money to work.
 
Purchase:
 
 I purchase 25 shares of Canadian Imperial Bank of Commerce "C.I.B.C" (CM.TO) on the Toronto Stock Exchange. C.I.B.C. is one of the big 5 banks and is part of the reputation of Canada having one of the best run financial institutions in the world.
 
 The other 4 banks are Bank of Montreal (BMO.TO), Royal Bank Of Canada (RY.TO), Bank of Nova Scotia (BNS.TO) and TD Bank (TD.TO). These banks are headquartered in Canada, but have operations in the United States and other countries. All 5 of the banks trade on both the Toronto Stock Exchange and New York Stock Exchange.
 
 On July 16, I added to my position in C.I.B.C by purchasing 25 shares at $102.40 per share for a total cost of $2565.04 including commissions.

 C.I.B.C pays an quarterly dividend of $1.40 per share, or $5.60 per share annually. This purchase adds $140.00 to my annual dividend income. The yield on cost for this purchase is 5.46%.
 
 C.I.B.C trades ex-dividend on June 27 2019, so this purchase is not eligible for the dividend payment on July 29 2019.
 
  I will update my investment tab spreadsheet in early August to reflect this purchase.
 
Conclusion:
 
I decided to add to my position in C.I.B.C as the stock has fallen from it's 52 week high of $125.21. The purchase price of $102.40 represents an 18.2% decrease in price from the 52 week high.
 
The P/E ratio at the time of this writing is 9.04, which is 158 bps below the stock 5 year average.
 
The stock is currently trading with a 5.45% dividend yield, which is 94bps above the 5 year average.
 
I would also like to note, that I purchased 12 shares of C.I.B.C on May 22 at $107.90 for a total cost of $1299.79.
 
With these 2 purchases, I now own 65 shares of C.I.B.C. I have owned the stock for several years.
 
What are you buying? Do you own any of the big 5 Canadian banks in your portfolio?
Disclosure: Long CM.TO, BMO.TO, RY.TO, BNS.TO, TD.TO
 
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.

Recent Buy

As investors in the stock market, we aim to buy stocks that will be around tomorrow and years to come. As an added bonus, it is great to get paid a share of the profits in the form of dividends. Dividends are payments to shareholders as determined by the company's board of directors.

For Canadians, buying a stock on the Canadian stock markets means that dividends paid are eligible dividends. Eligible dividends are taxed at a lower rate than interest from bonds and savings accounts or a job.

THE PURCHASE

With the world population increasing year by year and expected to grow from over 7 billion to 9 billion by 2050, more and more products will be needed. These products are often shipped in boxes that are made of carboard and are sealed with tape.

Intertape Polymer Group Inc. is a recognized leader in the development, manufacture and sale of a variety of paper and film based pressure-sensitive and water-activated tapes, polyethylene and specialized polyolefin films, protective packaging, engineered coated products and complementary packaging systems for industrial and retail use. Headquartered in Montreal, Quebec and Sarasota, Florida, The Company employs approximately 3,500 employees with operations in 30 locations, including 22 manufacturing facilities in North America, three in Asia and one in Europe. (Source: Intertape Polymer Group Investor Relations)

Intertape Polymer Group (ITP.TO) makes products such as double coated tape, duct tape, lumber wrap, masking tape, electrical tape, water-activated tape, and stretch film. These products are used everyday by businesses and consumers.

Intertape Polymer Group's products are used in over 15 different markets including e-commerce, food processing, aerospace, transportation, and construction.

On May 6, I purchased 50 shares of ITP.TO at $18.00 per share for a total cost of $904.95 including commissions. This purchased occurred in my margin account.

ITP.TO currently pays a $0.56 USD per share annually, or $0.14 USD per share quarterly. The dividends received from this company will first be converted to Canadian dollars prior to landing in my brokerage account. At the time of this writing, the equivalent dividend in Canadian dollars is $0.75446894 per share per year. Based on this conversion, the yield on cost is 4.17%.

The purchase adds approximately $37.72 to my annual dividend income.

The ex-dividend date is June 13, which means I will receive the upcoming dividend. 

I will update my investing tab spreadsheet in early June with this purchase.

Disclosure:  Long ITP.TO

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.

Recent Purchase

       As we go about our daily lives, most of us have to go to jobs to pay the bills.  Robert Kiyosaki often says a "J O B" stands for just over broke.  Our wages at work often do not increase after an initial raise such as passing a 3 month, 6 month or 1 year being continuous employment.  

Every year after that a person gets a "raise".  This "raise" is not the glorified type in which you are called into the manager's office and told what a great job you have been doing over the past year.  Instead this "raise" is giving to everybody employed over a year at the same percentage at the same time.  This raise is basically of cost of living increase as costs of everything goes up due to inflation.  This raise is usually between 1% and 3%.

Is there a way to have income that increases greater than the rate of inflation. A couple of ways I can think of are incoming generating real estate and dividend growth stocks.  For average Joe's like myself, it is often easier to invest in the dividend growth stocks as you do not need a lot of money to buy a stock.

What are dividend growth stocks?  Well dividend growth stocks represent companies that grow and increase their profits and pass a part of those growing profits onto their shareholders via increasing dividend payments.  Examples of dividend growth stocks are the big 5 banks in Canada, Canadian National Railway, and Bell Canada Enterprises. 

Recent Buy

On March 27, I decided to put my money to work inside my TFSA.  I purchased 20 shares of TD Bank (ticker symbol TD.TO) at $72.90 for a total cost $1463.02 including commissions. Therefore, my adjusted cost base per share is $73.15.

Last June, I did an analysis on TD Bank, which you can read about here.  Since that post was written, TD Bank has increased their dividend.  TD Bank announces dividend increases, if any, annually.  The other 4 big banks BMO, RY, BNS, CIBC have been raising their dividends semi-annually over the past several years.

Currently, TD pays a dividend of $0.74 per share quarterly, or $2.96 per share annually. So my yield on this purchase is 4.05%.  This purchase adds $59.20 to my annual dividend income.

On February 28,  TD announced a dividend payment date of April 30th to shareholders on record on April 10.  So, I will receive this dividend payment. 

Summary:

In the past, I have made some crappy investments. Investments like Cominar REIT (CUF.UN.TO), Dream Office REIT (D.UN.TO) , Enerplus (ERF), Cineplex (CGX.TO),  and High Liner Foods (HLF.TO).  All of these positions have fallen in price by large amounts and the first 3 have cut their distributions or dividends multiple times since I have owned them.  Dream Office REIT has rebounded over the last year or so, and the largest position of D.UN.TO for a profit.  I still maintain a position in D.UN.TO inside my TFSA in which the price is slightly down from my adjusted cost base of $26.72 per unit. 

I still hold these investments.

Along with the great investments I currently have in my portfolio, I am going to try to concentrate on the dividend growth stocks that have less noise and uncertainty going forward.

With the purchase of TD.TO, I now have positions in all the Big 5 Banks.

I will update my investment tab in early April with this position. 

Disclosure:  Long all mentioned 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.