The month of July is now behind us. The major issue of the month
continues to be the low price per barrel of crude oil. A few days ago, as reported
on BNN, it appears that OPEC will not be cutting production for the
foreseeable future. This will mean the price of oil will remain low
until the supply dwindles.
I was not active in the accounts this month very much. I initiated an options trade on July 14 by purchasing call options in Toronto Dominion Bank (TD) on a Canadian Exchange. I closed this trade
rather quickly on July 16 as my limit order was filled. I own 100
shares of TD in my margin account which I purchased months ago.
The other activity in my account was the purchase of Bank Of Montreal
shares. I purchased 35 shares at $72.20, which you can read about here.
The Bank of Montreal is one of the five BIG banks in Canada. I did not
have enough cash on hand, so I used some margin to make the purchase
possible.
I still own shares in Sherritt
International as the stock price has fallen below my purchase price.
With the state of China and low price of Nickel, this placed fears in a
lot of investors.
I did acquire more shares through DRIPs.
Shares added due to drip
2 shares of ERF @ $10.33 for a total of $20.66
1 share of KMP @ $10.27 for a total of $10.27
On July 29, Scotia Bank paid a dividend. I hold my BNS shares directly
with the transfer agent. The entire dividend gets reinvested. I
received the dividend but I do not know how many shares are acquired or
the dividend re-investment price. This usually takes 3 to 7 days to
show up in the account.
As
of August 1, 2015, the value of my portfolio stands at $79266.82. This is
an increase of 0.40 %
over last month. I will
update my investing account tab above.
Disclosure: Long KMP, ERF, TD, BNS, BMO
DISCLAIMER
Saturday, August 1, 2015
Tuesday, July 28, 2015
Recent Buy
On July 27, China's Shanghai Composite index shed 8.5% overnight. This market pessimism followed over into the North American markets. Lots of stocks fell in value including the some popular stocks in Canada.
I decided to take action although I didn't have access to a lot of capital. I also wanted to purchase a dividend growth stock that had a good yield. I had to use margin to help with this transaction.
What Did I Purchase?
On July 27, I purchased 35 shares of Bank Of Montreal, ticker symbol BMO, on the Toronto Stock Exchange.
Total Cost with commissions = $2532.07
Cash available = $991.83
Margin Used = $1540.24
Money borrowed = 1540.24/2532.07
= 60.83%
The Canadian banks have been known to be some of the best banks in the world. Why would someone want to own shares in a Canadian bank? The reason is the amount of profit the banks make each quarter and for dividends. BMO has been paying a dividend non stop since 1829, which is 186 years. This company has been paying dividends longer than any other Canadian company.
Currently the annual dividend is $3.28per share. I purchased 35 shares on July 27 , representing a 4.53% yield, which adds $114.80 to my annual dividend income. I now own 4 of the Canadian banks in my portfolio. I own shares in Royal Bank (RY), TD Bank (TD) and Bank of Nova Scotia (BNS).
Some Second Quarter Highlights
The stock trades ex-dividend on July 29 so I qualify for next dividend payment which will be paid August 26.
Disclosure: Long BMO, RY, TD, BNS
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.
I decided to take action although I didn't have access to a lot of capital. I also wanted to purchase a dividend growth stock that had a good yield. I had to use margin to help with this transaction.
What Did I Purchase?
On July 27, I purchased 35 shares of Bank Of Montreal, ticker symbol BMO, on the Toronto Stock Exchange.
Total Cost with commissions = $2532.07
Cash available = $991.83
Margin Used = $1540.24
Money borrowed = 1540.24/2532.07
= 60.83%
The Canadian banks have been known to be some of the best banks in the world. Why would someone want to own shares in a Canadian bank? The reason is the amount of profit the banks make each quarter and for dividends. BMO has been paying a dividend non stop since 1829, which is 186 years. This company has been paying dividends longer than any other Canadian company.
Currently the annual dividend is $3.28per share. I purchased 35 shares on July 27 , representing a 4.53% yield, which adds $114.80 to my annual dividend income. I now own 4 of the Canadian banks in my portfolio. I own shares in Royal Bank (RY), TD Bank (TD) and Bank of Nova Scotia (BNS).
Some Second Quarter Highlights
- Net income of $1 billion, down 7% from same quarter of 2014
- EPS of $1.49 per share, down from 7% from the same quarter of 2014
- ROE of 11.4%, compared to 14.3% from same quarter of 2014
 | |
| Click to Enlarge |
The stock trades ex-dividend on July 29 so I qualify for next dividend payment which will be paid August 26.
Disclosure: Long BMO, RY, TD, BNS
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.
Friday, July 17, 2015
Recent Trade - Update
I recently wrote about a trade involving call options in TD, which you can read about here. Well the following day, the Bank of Canada decided they had to take action as it was a scheduled day for the announcement on what it will decide to do with the overnight interest rate. The rate can be lowered, stay the same or be increased. The Bank of Canada cut the overnight rate by 0.25% on July 15, which means the current rate is 0.50%. This is the second time in 2015, that the Bank of Canada has cut the interest rate.
I purchased the 3 call options in TD on July 14. As a result of the rate cut, TD bank reduced its rate by 0.10%. This help to lift the stock price higher, as the reduction in the rate means its cheaper to borrow money which means more people or businesses will likely borrow more money and therefore the banks make more money. On July 16, the upward movement in the stock price meant the price of the option went up. My limit order was filled on July 16 at $1.70 per contract.
Summary:
Initial cost: $1.20*3contracts*100shares/contract + $12.95
= $372.95
Proceeds of Sale: $1.70*3contracts*100shares/contract - $12.95
= $497.05
Profit = $497.05-$372.95
= $124.10
Total Return = $124.10/$372.95*100%
= 33.28%
So I made a 33.28% return in less than 48 hours.
Disclosure: own 100 shares of TD
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.
I purchased the 3 call options in TD on July 14. As a result of the rate cut, TD bank reduced its rate by 0.10%. This help to lift the stock price higher, as the reduction in the rate means its cheaper to borrow money which means more people or businesses will likely borrow more money and therefore the banks make more money. On July 16, the upward movement in the stock price meant the price of the option went up. My limit order was filled on July 16 at $1.70 per contract.
Summary:
Initial cost: $1.20*3contracts*100shares/contract + $12.95
= $372.95
Proceeds of Sale: $1.70*3contracts*100shares/contract - $12.95
= $497.05
Profit = $497.05-$372.95
= $124.10
Total Return = $124.10/$372.95*100%
= 33.28%
 | |
| Click to Enlarge |
So I made a 33.28% return in less than 48 hours.
Disclosure: own 100 shares of TD
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.
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