Dividend Update - October 2016

      The month of October 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.

       The markets continue to go higher in the month of October.  The price of a barrel of crude oil continues to play a major role in market sentiment. The world has the eyes on the upcoming election for president of the United States. As Barrack Obama is not allowed to run for a third term, the US will have a new president elect on Nov 8.

      One thing for sure, is that I was paid dividends and distributions for being a shareholder or unit holder in  various companies or funds. In  Sept 2016, the Dream Office REIT will be counted as dividend income  for the first time.

 Non-registered Account

• Bell Canada Enterprises  (BCE) - $68.25
• Bank Of Nova Scotia (BNS) - $23.83     --- This is directly with transfer agent.
• Bank of Nova Scotia (BNS) - $14.80
• Enerplus (ERF)  -$ 5.58
• Dream Office REIT   (D.UN)  - $ 75.00
• Shaw Communications (SJR.B)    - $19.75
• Rogers Communications Class B (RCI.B) - $96.00

TFSA

• Boston Pizza  Royalties Fund (BPF.UN)   - $26.91
• Claymore 1-5 yr Laddered Corporate Bond ETF (CBO)  - $0.63
• Cominar REIT (CUF.UN ) - $20.46
• Dream Office REIT   (D.UN)  - $ 17.50
• Killam Properties REIT (KMP.UN) - $  15.10
• Transforce  (TFI) - $8.50

Total = $392.31

        As the amount of distribution from D.UN inside my margin account, will have a large impact on the comparison of dividend income from 3 months or from 12 months ago.  Therefore, I wil not compare October 2016 dividend income with that of 3 months and 12 months ago.

 Dream REIT has reduced the amount of distribution they pay monthly which was announced in February.  Recently, I wrote about purchasing more units of D.UN inside a margin account.  Starting in September, the distribution from this D.UN inside the margin account will be included in my dividend income.

     I will update my dividend income tab with the new amount. It is great to see money from passive income sources deposited into my brokerage account every single month.

How was your dividend income for October?

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 - Oct 2016

      The month of October 2016 is now behind us.  One of the major issues still facing the world is the low price of a barrel of crude oil and the upcoming US election for President of the United States.

      On Oct 3, I sold  1 RY.TO $79.00 Oct 28 2016 put option to collect a premium of $59.05 after commissions. This option was not assigned, but as the seller of the option I get to keep the premium. I currently do not have any option position in RY.

       On October 13,  I sold my position in Manulife Financial (MFC), which you can read about here.  This reduce my annual dividend income by $74.00. I still have my eye on this stock hoping the price will fall below by previous purchase price of $18.61 a share. 

       October 21 was option expiration day.  I had 3 options expire that day which involved POT.TO and IMG.TO.  I had 2 covered call contracts with a strike price of $23 expire worthless for POT.TO.  I got to keep the premium as I was the option seller. As there was pending meetings involving a merger of Potash Corporation of Saskatchewan and Agrium, I did not look to put on any more covered call positions involved POT.TO.  IMG.TO had been trading between $5 an $6 a share, so I previously sold a put option for $21 and a covered call option for $23 for 3 contracts each.  The price of IMG dipped well below $5 dollars but rose about $5 and was not assigned.

      As the price of IMG.TO was trading below $6 on October 21st, I decided to sell 3 covered call contracts with a strike price of $6 dollars and a Nov 18, 2016 expiration date. You can read about this transaction and the transactions of the previous paragraph, by clicking on this link.

      On October 24, I sold 3 put contracts in IMG.TO with a $5 strike price and Nov 18, 2016 expiration date.  I collected a premium of $47.05 after commissions. I did not write a blog post about this transaction.

      On October 28,  I purchased 140 shares of Westjet Airlines (WJA.TO) at $22.39 per share for a total cost of $3140.04 including commissions.  WJA.TO released its earnings a couple of days later and beat expectations. Regardless of this impressive earnings report, the federal government changes the ownership regulations for foreign ownership of Canadian airlines from (25% to 49%) to increase competion with our carriers.The latter, caused the stock price to become lower. WJA.TO currently pays an annual dividend of $0.56 per share.  This adds $78.40 to my annual dividend income. I did not write a blog post about this transaction.

   On Nov 2, I noticed the price of Canadian Imperial Bank of Commerce (CM) has fallen in price somewhat.  So, I decided to take an advantage of this opportunity to pick up some shares.  I purchased 28 shares of CM.TO for a total of $2747.65 including commissions. This Canadian bank does not get as much attention as the other 4 big Canadian banks.  CM currently pays an annual dividend of $4.84 per share.  The purchase of 28 shares of CM.TO adds $135.52 to my annual dividend income. I recently wrote a post, showing the annual dividend amounts going back to year 2000, which you can read about here.

       On Nov 3,  Potash Corporation of Saskatchewan and Agrium voted to merge the 2 companies with over each company voting over 97% in favor of the merger.  There is still a lot of hurdles that have to be dealt with prior to this actually happening.

 Shares Acquired Through DRIP

0.333221 Shares of BNS.TO @ $71.51 for a total cost of $23.83


As of Nov 6 2016, the value of the portfolio is $98346.53.  This is a 9.03% increase over last month's total.  The spreadsheet in the investment tab above has been updated.

Disclosure: Long  all mentioned securities.

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 be NOT 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

Turning The Tap Open

   With the uncertainty in the whether interest rates will rise or stay the same as affected the values of REITs.  In Canada, the REITs also have to deal with the effects of low oil prices.  This is caused the price of REITs to fall and remain low over the past several months.  

   So I decided to TURN drip on for Dream Office (Ticker Symbol D.UN.TO) in both the margin account and TFSA.  I also decided to turn the DRIP on the Cominar REIT (Ticker Symbol CUF.UN.TO) inside the TFSA.  As there was issue with getting a confirmation from my brokerage, these DRIPs might not happen until November 15, 2016  payment.  These DRIPs will allow for the purchase of whole shares only.

Disclosure: Long D.UN.TO and CUF.UN.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.