Recent Trade Update

A few weeks ago, I initiated a trade involving Toronto Dominion Bank.  I purchased 3 call option contracts with a September 18 expiration date. You can read about this purchase here.

When the big drop that happened in the markets,  I decided to exit my position. So on Aug 24, I placed a limit order $0.03 higher than the bid price to sell my 3 contracts. This trade took place inside my TFSA.

Summary:

Initial Investment including commissions = 3*100*1.15+$12.95
                                                                   = $357.95

Proceeds of Sale = 3*100*$.38-$12.95
                            = $101.05

Return on Investment = ($101.05-$357.95)/$357.95
                                    = -71.77%
                                 

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In full disclosure, I still own 100 shares of TD in my margin account which I owned for months now.

Disclosure: Long 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.

Recent Trade

    Last month, I wrote about an option trade in Toronto Dominion Bank. I purchased 3 contracts on July 14 and quickly sold these in less than 48 hours on July 16. I got a good return on this investment.

    On Aug 13, I decided to try a trade again in Toronto Dominion Bank.  I bought 3 Sept 18, 2015 call option contracts for a $52.00 strike for a premium of $345.00 excluding commissions inside my TFSA.

Summary:

Initial Investment including commissions = 3*100*$1.15+ $12.95
                                                                    = $357.95

Currently, Toronto Dominion Bank is trading at $52.05 on the Toronto Stock Exchange.

Disclosure: own 100 shares of TD in margin account
 
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 Increase

     On August 10, Emera Inc. announced there earnings for the second quarter. Some of the highlights of the most recent quarter are as follows.

•     Adjusted earnings per share increase 6.5% to $0.33 per share in the quarter and 12.7% to $1.51 YTD.
• Adjusted net income  increased 8.6% to $48.0 million this quarter and 15% to $219.6 million YTD.

Emera Inc is a  utility involved in the generation and transmission of electricity along with gas transmission and utility energy services. Also this company is involved in a major project that will involve a underwater transmission of electrical energy from Newfoundland to Nova Scotia. This project will involve harnessing the tidal Energy at Muskrat Falls in Labrador and provide power to Newfoundland and Nova Scotia, New Brunswick and parts of New England. This major project is known as the Maritime Link project. Emera also is the parent company of Nova Scotia Power and is a major shareholder in Algonquin Power & Utilities Corp. The have interests in Bangor power and assets in the Caribbean also.

With the release of the earnings, the company also announced a dividend increase of 18.75% starting with the first payment in Nov 2015. Emera also announced their goal is to grow the dividend at a rate of 8% annually through to 2019, which was the goal originally was 6% annually. Emera is also scheduled to pay a dividend on August 17, 2015.

The dividend increase from $1.60 a share to $1.90 a share adds $30.00 to my annual dividend income. What did I have to do to receive this raise? I had to do nothing except be a shareholder in this wonderful business. Everyone needs electricity to help live their lives these days.  If I assumed a 3.5% yield, this $30.00 a year in dividends, would be equivalent of investing $857.14 of my own money.

I will happily take an 18.75% dividend raise. It would be difficult to get that type of raise at a job in any given year. 

Disclosure: Long EMA

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