Dividend Income Update - April 2018

      

        The month of April 2018 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 Accounts 

• Bank of Nova Scotia (BNS) - $16.40
• Bank of Nova Scotia (BNS) - $29.49    (Transfer Agent) 
• Bell Canada Enterprises (BCE) = $75.50
• CIBC (CM) - $37.24
• Cineplex  (CGX) - $14.00
• Enerplus (ERF)  -$ 5.58
• Dream Office REIT   (D.UN)  - $52.58
• Restaurant Brands International (QSR) - $57.26
• Rogers Communications Class B (RCI.B) - $96.00
• Shaw Communications (SJR.B)    - $19.75

TFSA

• A&W Royalties Income Fund (AW.UN) - $5.17
• Boston Pizza Royalties Income Fund   (BPF.UN) - $26.91
• Cominar REIT (CUF.UN) - $10.80
• iShares 1-5 yr Laddered Canadian Corporate Bond ETF (CBO) - $0.57
• Dream Office REIT   (D.UN)  - $14.00
• Horizons Natural Gas Yield ETF (HNY)  - $6.94
• Killam Properties REIT (KMP.UN) - $  16.11
• TFI International (TFII) - $10.50

Total = $494.80

   

   Restaurant Brands International (QSR.TO) pays its dividend in US dollars.  The amount above represents the Canadian dollar equivalent amount deposited to my brokerage account.

    I received a total of $494.80 in dividend income for the month of April 2018.  This represents a 17.4%  increase from 3 months ago and 10.72%  increase year over year.  

    I received $0.00 from option premiums within my investment accounts in April 2018.

    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 April 2018?

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 - April 2018

The month of April is now behind us.

The price of oil for WTI barrel of crude oil is trading over $65 dollars. The price seems to have found some support due to the OPEC cuts made during the past several months. Currently, the ongoing dispute involving the expansion of Kinder Morgan'sTrans Mountain pipeline. The expansion of the this pipeline would triple the capacity of oil from the oil sands that will allow the product to reach foreign markets.

The expansion of the Trans Mountain pipeline have lead to dispute between Alberta and British Columbia. The federal government is said to have federal jurisdiction and says the pipeline will be built despite the objections of the BC NDP government and BC Green Party. They are also protestors trying to block this pipeline expansion as they are worried about a possible spill on land or on the BC coast. Also, the expansion of the pipeline will mean more tanker traffic on the southern coast of British Columbia. The Canadian segment of Kinder Morgan, has publicly stated they do not think the pipeline can be built due to all the "fighting" and protestors that are currently at play. Kinder Morgan gave a deadline of May 31, to be able to go ahead with the project.

The price of gasoline in southern BC have reached record highs. Recently, Alberta passed legislation that will enable it to restrict the movement of its resources out of the province of Alberta. Basically, we are currently seeing a trade war between provinces. They have no exercised restricting their resources as of this date.

Portfolio Activity

During the month of March, I wrote about an option trade in WestJet Airlines. On April 20 2018, the short put option in WestJet was assigned. When a put option is assigned, the net premium received is substracted from the cost of the purchase. I sold 2 put contracts with strike price of $23 the adjusted cost basis of my purchase is $4496.90.

     ACB = # of contracts *100 *strike price - net premium received + option assignment fee

My brokerage currently has a $24.95 option assignment fee. Some brokerages have an option assignment fee while others do not.

WestJet Airlines (WJA.TO) trades on the Toronto Stock Exchange. WJA.TO currently pays an annual dividend of $0.56 per share. This option assignment increases my annual dividend by $112.00.
I will sell cover calls on this position, but have not been able to find a reasonable premium to write a call.

On April 25, I purchased 33 shares of Brookfield Renewables Partners LP at a cost of $33.48 per share for a total cost of $1274.91. I purchased my shares inside my TFSA. Brookfield Renewables Partners LP (BEP.UN.TO) trades on the Toronto Stock Excange. The company is also listed on the New York Stock Exchange under the ticker symbol BEP.
 
BEP.UN pays a distribution in US dollars and is converted to Canadian dollars. BEP.UN pays a distribution of $1.96 per year in US dollars. At the time of purchase, this purchased added $83.07 to my annual dividend/distribution.

Shares Purchased Via DRIP

0.373068 unit of BNS.TO @ $79.0473 for a total cost of $29.49 (transfer agent)
 
BNS.TO currently pays an annual dividend of $3.28. This DRIP adds $1.22 to my annual dividend income.

 
Dividend Increases
 
On May 2, Cineplex reported earnings. All the financial numbers were down YOY. The 2 metrics that were up are box office revenues per patron and concession revenues per patron. Cineplex is in the process of transforming itself into an entertainment company which will include movies instead of just a movie company. These projects like The Rec Room has high upfront cost. Cineplex (CGX.TO) has announced small dividend increase of $0.06 per share per year. The dividend was increased from $1.68 to $1.74, which represents an increase of 3.57%. This increase adds $6.00 to my annual dividend income.
 
This increase of $6.00 is equivalent to investing $171.43 of my own money at a 3.5% yield.


Summary:

As of May 3, the value of the portfolio is $107516.98. This is a 1.159% increase over last month's total. The spreadsheet he investment tab above has been updated.
 
Disclosure: Long BEP.UN.TO,BNS.TO, CGX.TO
 
Please Note: All stocks are from the Toronto Stock Exchange except TTR which trades on the Venture Exchange.

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 Purchase

   

   

     As investors we can benefit by paying attention to trends.   A lot of politicians all over the world believe that climate change is the biggest problem facing the current generation and future generations. On April 22 2016, a lot of the countries signed on to the Paris Agreement.  The Paris Agreement is basically countries agreeing to take serious action on addressing climate change.

       In Canada, the federal liberal government decided to put a price on carbon.  The federal government will put a price on carbon in a province that does not implement their own carbon tax or cap and trade that meets the conditions set out by the federal government.

       In Alberta, the NDP provincial government started a carbon tax on January 1, 2017 at $20 a tonne and increase it $30 a tonne on January 1, 2018. The federal government wants $50 a tonne by 2022 for all provinces.  The carbon tax basically increases the cost of everything such has heating your home, the price of groceries and the price of gasoline.  The Alberta government said the money collected with the carbon tax will go to rebates and for green initiatives.   The Alberta government has recently said the further increases in the carbon tax will go towards general revenues.  

    Is there a way to benefit from the issue of climate change on a world scale as an investor and be paid for it?  In Canada, investors can purchase units in Brookfield Renewables Partners LP.

       Brookfield Renewable Partners L.P. owns a portfolio of renewable power generating facilities in the North America, Colombia, Brazil, Europe, and internationally. The company operates through Hydroelectric; Wind; and Solar, Storage, and others segments. It operates 840 generation facilities using hydro, solar, wind, biomass, and other renewable technologies. Brookfield Renewable Partners Limited operates as the general partner of Brookfield Renewable Partners L.P. The company was formerly known as Brookfield Renewable Energy Partners L.P. and changed its name to Brookfield Renewable Partners L.P. in May 2016. The company was founded in 1999 and is based in Hamilton, Bermuda. Brookfield Renewable Partners L.P. is a subsidiary of Brookfield Renewable Partners Limited. (source: Yahoo Finance

   Brookfield Renewable  Partners LP trades on the Toronto Stock Exchange and the New York Stock Exchange under the ticker symbols BEP.UN and BEP respectively.  

Conclusion:

   On April 25. I purchased 33 shares of BEP.UN at a cost of $38.48 per share for a total cost of 1274.91 including commissions.  Due to the tax treatment of BEP.UN distributions, I made this purchase in my tax free savings account. The purchase price was near the 52 week low for BEP.UN units.

    BEP.UN pays a quarterly distribution of $0.49 US per share. The dividends will show up in my account as the distribution expressed in Canadian dollars.  Based on the conversion of USD to CAD. at the  time of this writing, my annual dividend/distribution income will be increased by $83.07 to my annual dividend income.

   I do not have time right now to do a write a better report  With utilities it is often better to look at adjusted funds from operations instead of earnings.


  I will update my spreadsheet in early May with this purchase.

Disclosure: Long BEP.UN

Photo credit:  www.fool.ca
                       www.brookfield.com

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.