Resent Sale

Over the last two to three weeks, one of the major stories was the purchase of Tim Horton's by Burger King. Under the new ownership structure, the new company will be a Canadian Corporation owned as follows: 3G Capital 51 %, Burger King 27% and Tim Horton's 22%. So, all current Tim Horton shareholders could combine to own 22% of the new formed company. I recently wrote a post about the possible purchase of Tim Horton's by Burger King . This post also tells you what choices the Tim Horton's investor have.

I recently sold my 100 shares in Tim Horton's in the last week.  This buyout by Burger King is highly leveraged.  So as I hear more and more people talk about this, I feel it would be better to sell the shares. For some reason the sale does not go through, the Tim Horton's stock price will drop probably in to the low $60's or high $50's.  Currently, as Tim Horton's is near saturation in Canada, they are basically a "cash cow".  I believe the cash from Tim Horton's will be used to help pay down the massive debt incurred to finance this transaction.  With the cash going to pay down the debt, then the dividend, if any, with the new company will no grow quickly.

Purchase Price:   $59.70
Commission on Purchase: $4.95
Sale Price  :  $89.25
Commission on Sale:  $4.95
Total Dividends received:  $96.00

Profit= 100*($89.25-$59.70)-2*4.95+96
          =    $3041.10

Return = Profit/investment
            = $3041.10 / (  $5970+$4.95)
             =   50.90 %   

I will continue to follow the news on the possible buy out of Tim Horton's by Burger King.

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

Dividend Income - August 2014

 

 The month of August 2014 is another month of  dividend income landing in my accounts. This money is used to help pay my expenses if it is needed. If the money is not needed, it is ALL used to purchase new investments to further increase my cash flow.

Non-registered Account

• Killam Properties (KMP)  - $5.75
• Shaw Communications (SJR.B)    - $18.33
• Enerplus (ERF)  -$ 45.63
• Emera (EMA) - $36.25

TFSA

• Killam Properties (KMP) - $  14.15
• Dundee REIT   (D.UN)  - $ 16.61
• Cominar REIT (C.UN) - $5.28
• Boston Pizza  Royalties Fund (BPF.UN)   - $23.87

Total = $165.87

This total represents a 22.35% decrease from 3 months ago and 9.28% decrease  year over year.  The decrease from 3 months ago is that one of most monthly payers, Just Energy, changed their dividend payment schedule to quarterly with the first quarterly payment starting in September. Just Energy also reduced their dividend also to try to get the companies finances in order and to lower its dividend payout ratio. Some of my stocks I DRIP, so these companies paid slightly larger amount of dividends than before.

I also received another distribution payment of $56.00 for my swing trade in Dundee REIT in my non-registered account. This is not listed above since it is a trade, so I keep the money in the account and do not pay myself first with this payment. I have received $763.47 in distributions so far on this trade.

Since Jan 2014, I received  $1716.25 in dividends not including the distributions I receive in for 300 units of Dundee REIT in my margin account. The amount distributions that I received for 300 units of Dundee Real Estate Investment Trust since Jan 2014 equals $448.

I will update my dividend income tab with the new amount.

Disclosure : Long all securities above.

Photo Credit: www.mipaq,co.za

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

Portfolio Update - August 2014

The month of August 2014 is now behind us. The stock market keeps going higher and the S&P 500 went over 2000.  I try to sell a put option in Roger's again by placing a limit order with a September 20th , 2014 expiration date and a $42 strike price.  This was not executed.

I made a small purchase in my TFSA with the small amount of cash that was sitting in the account. I decide to put it too work and took advantage of free commission ETF offered by my broker. I purchased 11 shares of Claymore 1-5 Yr Laddered Corporation Bond ETF on the Toronto Stock Exchange, which you can read about here.  The ticker symbol is CBO.  I didn't purchased before the ex-dividend date so I did not receive a distribution for the month of August.

I also acquired 1 more share of Killam properties in my TFSA via DRIP at a cost of $10.60. 

The big news for the month of August is the announcement of Burger King purchasing Tim Horton's for 12.5 Billion.  I currently own 100 shares of Tim Horton's.  I recently wrote a post on the 3 options of current shareholder of Tim Horton's have on the table.

As of Sept 2, 2014, the value of my portfolio stands at $75175.32. This is an increase of 5.761% over last month. This increase in mostly due to Tim Horton's going up from $65.00 to over $87.00 a share due to the announcement of being bought by Burger King.

Click to Enlarge (Tim Horton's Toronto Stock exchange)

I have updated my investment account tab above.

Disclosure: Long KMP.TO, THI.TO, CBO.TO, RCI.B.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