Dividend Income Update - July 2017

      The month of July 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 price of barrel of crude oil continues to channel between $45 to $50 per barrel of WTI crude oil.

        Emera Inc. reported its earnings and there was no dividend increase announced.  This payment on Aug 15th will be the 5 quarter of a quarterly dividend of $0.5225 per share. Emera Inc. (EMA.TO) is a utilities company involved with the transportation and distribution of energy.  Emera Inc. is a partner in the controversial Muskat Falls project. The Muskrat Falls project is a Hydro Electric Project the will create electricity from the falls to supply Newfoundland and Nova Scotia. The electricity will come to Nova Scotia via a subsea cable and land on the Eastern shore of Nova Scotia. This project is currently over budget.
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      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 in the margin account will be counted as dividend income  for the first time.

 Non-registered Account

• Bell Canada Enterprises (BCE) - $71.75
• Bank Of Nova Scotia (BNS) - $15.20
• Canadian Imperial Bank of Commerce (CM) - $35.56
• Enerplus (ERF)  -$ 5.58
• Dream Office REIT   (D.UN)  - $78.50
• Roger's Communications Class B (RCI.B) - $96.00
• Shaw Communications (SJR.B)    - $19.75
• Bank Of Nova Scotia (BNS) - $25.21  (Transfer Agent) 

TFSA

• A&W Royalties Income Fund (AW.UN) - $5.05
• Boston Pizza Royalties Income Fund   (BPF.UN) - $26.91
• iShares 1-5 yr Laddered Canadian Corporate Bond ETF (CBO) - $0.62
• Cominar REIT (CUF.UN) - $21.44
• Dream Office REIT   (D.UN)  - $ 20.88
• Horizons Natural Gas Yield ETF (HNY)  - $5.83
• Killam Properties REIT (KMP.UN) - $  15.60
• TFI International (TFII) - $9.50

Total = $453.38

    
    As the amount of distribution from D.UN inside my margin account, will have a large impact on the comparison of dividend income from 12 months ago. This dividend income total of $453.38 represents an increase of 1.455% from 3 months ago.

     Dream REIT has reduced the amount of distribution they pay monthly which was announced in February 2016.  Dream Office REIT again reduced their annual distribution again and will take effect with the July 2017 distribution to be paid on August 15.  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 received $68.05 in option premiums for July  2017.

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

How was your dividend income for July?

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 - July 2017

        The month of July 2017 is now behind us.  We have seen the markets hits new all time highs a few times, usually the results of strong earnings from selective companies.

     We have seen strengthening of the Canadian dollar, equivalent of a decrease in the US dollar.  The price of a barrel of crude oil continues to channel for the most part between $45 and $50.  As a result of the low oil prices, the province of Alberta continues to struggle with its finances and it's overall economy.  Alberta is the only province in Canada that does not have a sales tax, as the GST of 5% is a federal tax. Alberta government receives royalties from the oil and gas activity, which greatly affects the government's revenue.

     As earnings are reported on a daily basis in the short term, is going to affect the markets positively or negative.


Shares Acquired Through DRIP

3 Unit of D.UN.TO @ $19.84574 for a total cost of $59.54 (Margin Account)

1 units  of CUF.UN @ $13.12431 for a total cost of $13.12 (TFSA)

1 unit of D.UN @ $19.84574 for a total cost of $19.85 (TFSA)

0.324878 shares of BNS.TO @ $77.5984 for a total cost of $25.21 (Transfer Agent)           

    I have turned off all DRIPs in my margin and TFSA accounts. They only drips turned on will be for BNS.TO and ENB.TO directly with the transfer agent.  These 2 positions are shown in the investment tab spread sheet with the color orange.

I recently wrote about Dream Office REIT after they made an announcement. They are once again, cutting their annual distribution by around 33% starting with July's distribution which will be paid on August 15.  There annual distribution will be cut from $1.50 per unit to $1.00.  So, my annual dividend income will be cut by approximately $400.00.


As of August 1,  the value of the portfolio is $104451.57. This is a 1.148%  increase over last month's total.  The spreadsheet in the investment tab above has been updated.

Note:  I do  have 2 short put option contracts currently in my portfolio as of Aug 1.

Disclosure:  Long D.UN, ENB.TO, CUF.UN, BNS.TO

Please Note:  All stocks are from the Toronto Stock Exchange except TTR which trades on the Venture Exchange.
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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.

Benefits Of The Rate Hike For Investors

        The FED and the Bank of Canada have recently raised their interest rate by 25 bps each.  What does that mean?  It meant the cost of borrow money will increase and payments on variable rate mortgages and lines of credit will be increased immediately. Consumers and businesses will have their expenses increases due to the cost of borrowing increasing.  Shortly after the Bank of Canada raising their rate by 25bps, the big 5 banks in Canada followed suit within 24 hours.

         A way for banks to make money is too have savings accounts.  The bank then takes the money savers deposit and lend it out at a higher interest than they pay the saver.  The bank "promises" the saver that for the use of the saver's money, they will be paid interest.

         A lot of banks have not raised their rates on the savings accounts along the rates on their lines of credit, loans and mortgages.  So that means the bank will make more money. Therefore the shareholders of the banks will likely be rewarded with increased profits and therefore possible larger dividend increases than the banks have recently done.

Conclusion

     I am a shareholder in 4 of the 5 big banks.  Currently, the only bank stock I do not own is Royal Bank.  So, if North America does no go into recession in the near future then the banks will do well.  I always hear people complain how profitable the banks are each quarter.  My response to them if they are talking directly to me is "With them being so profitable, do you own any shares in any of them?".  I will often get a snarl or " I am too poor to invest!!" response.

     There are ways to invest with very little money.  A person can buy stocks the old way directly through the transfer agent.  How this works, at least in Canada, is that you go to a website like www.dripprimer.ca and try to buy a share of a company.  I will talk about the way I have done through this site.  I posted a message on the share board looking for a share of Enbridge (ENB) and BNS.  Eventually, some will respond and agree to sell you a share.  You then send the person a check with that amount agreed upon. In return, you will get an actual share certificate with your name and I believe your new account number will show up.  The transfer agent sends you the share certificate and not the individual.  The seller as to follow steps outlined by the transfer agent to make their transaction to go smoothly. Once the share certificate is received the buyer can make purchases directly with the transfer agent for that particular stock operating within the guidelines outlined in the company's DRIP program.  Most of the times, investing this way you get to purchase shares at a discount with reinvested dividends.  The downside you do not know the price of shares when you make purchases of additional shares directly with a check or a debit from your bank account.  When buying stocks this way, you directly own the shares in your name.  When you purchase the shares in a brokerage account, you do not own the shares directly but are given all the rights of shareholder ownership  such has voting, dividends, distributions, buyouts, and interest.

    In United States, Capital One (formerly Sharebuilder) allows you purchase fractional shares and the entire dividend gets reinvested. I believe if you put in the order Monday night, to invest X amount of dollars into "ABC", then the shares are purchased the following day.  With Capital One, you can also buy shares like any other brokerage and pay a commission of around $7.00.  Also, with Capital One, you can turn the drip on or off with a click of the mouse.  Most brokerages you have to call or e-mail the brokerage to tell them to turn the drip on or off for each stock in the account.