Recent Dividend Increases

Over the last couple of weeks a few stocks I owned have reported earnings.  These stocks are Canadian companies but trade on both the Toronto Stock Exchange and the New York Stock Exchange.  These stocks are in 2 complete different industries.

First off, Canadian National Railway, aka CN Rail, reports earnings on January 28.  CN Rail trades on both Toronto Stock Exchange and New York Stock Exchange under ticker symbols CNR and CNI, respectively.

Q4 2019 vs Q4 2018

•  Revenues of 3.584 billion CAD, which is a decrease of 6%
•  Adjusted diluted EPS of $1.25 CAD, which is a decrease of 16%
• Operating ratio of 66.0%, which is an increase of 4.1 points
• Adjusted operating ration of 65.2%, which is an increase of 4.0 points
• Operating income of $1.218 billion CAD, which is a decrease of 16%.

During Q4 2019, CN had an 8 day labour strike.  The lead to masses loss of revenue as the trains were only operating at a 10% capacity.  

The economy is starting to slow, which affects the transportation industry.  

CN Rail network involves serving 3 coasts.  Due to winter in Canada, the trains must be shorter in length due to the effect the cold has on air brake lines.  This leads to a higher operating ratio compared to the average for the year.

CN announced a dividend increase of 6.97%.  The quarterly per share dividend was increased to $0.575 CAD from $0.5375 CAD, or $2.15 CAD per share annually  to $2.30 CAD per share annually.  I currently own 38 shares of CNR.TO.  Therefore, this increase adds $5.70 CAD.

This dividend increase represents the 24th consecutive year that the dividend was raised.  CN Rail became a public company in 1995. 

Second Raise

On Feb 6, Bell Canada Enterprises ( ticker symbol: BCE) released its Q4 earnings and full year earnings. 

Some of the highlights of the Q4 earnings release are as follows:

• Net earnings increased 12.6% to $723 million CAD
• Net earnings attributable to common shareholders grew 10.9% to $672 million CAD, or $0.74 per share.  This is an increase of 8%.
• Q4 cash flows from operating activities increased 16.9% to $2.091 billion CAD
• Q4 free cash flow of $894 million CAD contributed to 7% growth  for full year 2019. 

BCE announced a dividend increase with the earnings release.  The dividend was increased from $0.7925 per share quarterly to $0.8325 per share quarterly, or from $3.17 per share annually to $3.33 per share annually.  This represents an increase of 5.05%.  I currently own 100 shares of BCE.  Therefore, this increase adds $16.00 CAD to my annual dividend income.

Disclosure:  Long BCE, CNR

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 Income Update - January 2020

      

The month of January 2020 is another month of dividend income landing in my accounts. Recently, I switched my pay yourself first model to concentrate a little on debt repayment.  The interest on debt is 7.16% plus the insurance on the debt.  I currently pay myself 10% of income from job(s) and non-registered accounts to my TFSA.  The TFSA income is staying within the account.  I will deviate the 10% to savings account instead of to TFSA if a large expense comes up like a dental appointment. 

Note:  All the dividends and totals below are in Canadian Dollars. 

       

 Non-registered Accounts

• Bank of Nova Scotia (BNS) - $41.07
• Bank of Nova Scotia (BNS) - $18.00
• Bell Canada Enterprises (BCE) - $79.25
• Canadian Imperial Bank of Commerce "CIBC" (CM) - $158.40
• Cineplex (CGX) - $24.00
• Enerplus (ERF)  -$ 5.58
• Restaurant Brands Intl (QSR) - $64.06
• Roger's Communications Class B (RCI.B) - $100.00
• Shaw Communications (SJR.B)  - $19.75

Subtotal : $510.11

TFSA

• A&W Royalties Income Fund (AW.UN) - $6.04
• Boston Pizza Royalties Income Fund   (BPF.UN) - $26.91
• Killam Properties REIT (KMP.UN) - $16.61
• TD Bank (TD) - $33.30
• Telus (T) - $13.98
• TFI International (TFII) - $13.00
  

Subtotal: $109.84

Total = $619.95

 I received a total of $619.95 in dividend income for the month of January 2020.  This represents a 0.646% decrease from 3 months ago and 22.8% increase year over year.  

 The decrease of 0.646% from 3 months ago was due to Cominar REIT paying distributions twice in December 2019 and purchase of more shares of Cineplex.  Cominar pays in the middle and end of the December, therefore there was no payment mid January.  Cineplex is currently in the process of being taking over by UK company called Cineworld.  Cineworld is offering $34 per share and to assume the all the debt and is subjected to Cineplex shareholder approval and regulatory approval.  The decrease due to no distribution from Cominar REIT (CUF.UN) was offset by the $9.00 in dividends from the new shares of Cineplex.

 I received dividend / distribution income from 14 different companies.   

  I received $0.00 in option premiums within my investment accounts in January  2020.

Below is a visual of my dividend totals for the last 5 years.  

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 January 2020?

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 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: January 2020

The month of January 2020 now behind us.  Some major things have happened in the world, which affect the markets in some way.

On January 1, 2020, Alberta consumers will have to pay a carbon tax. The carbon tax will be a federal carbon tax this time, whereas before it was provincial. The new Alberta government cancelled the previous provincial carbon tax on May 30th, that was in place in Alberta.

Some of the provincial governments are still fighting the federal government over the carbon tax, stating it is harming the economy has it makes everything more expensive for businesses and consumers.  This is causing investors to flee Canada or remain on the sidelines.

The Conoravirus has killed 259 people in China.  The virus has affected the airline industry over fears of the virus spreading.  The virus is believed to have started in China. Face masks have been flying off the shelves across the world.  Top officials in the medical arena said a vaccine is believed to be at least a year away.

Portfolio Activity

Margin Account Activity

There was no buys or sells in the margin account for January.

Cineplex has sent out proxy information for shareholders to vote on the sale of Cineplex to Cineworld.  Cineworld is based out of the UK.  Cineworld is offering to purchase Cineplex at $34 CAD per share.  This share price is around a 40% premuim to what Cineplex shares were trading the day prior to the announcement.

TFSA Activity

There was no purchases and selling in the TFSA account.

I continue to build up cash in my TFSA to make another purchase and at a good price.

I previously turned on the DRIP for Boston Pizza Royalties Income Fund (BPF.UN.TO). I received a unit with the distribution paid out in January.
 
Shares Purchased Via DRIP

1 unit of BPF.UN  @ $14.2735 for a total cost of $14.27  (TFSA)

Currently, Boston Pizza Royalties Income Fund pays a monthly distribution of $0.115 per unit, or $1.38 per unit annually.  This DRIP adds $1.38 to my annual dividend income.  The yield on this DRIP unit is 9.67%.

Bank of Nova Scotia paid a dividend on January 29.  The shares have no settled in my account as of the time of this writing.  

I have some other positions with the DRIP turned on, but might not have enough of a dividend to purchase a whole share.

Please note that if some brokerages DRIP shares when there is no DRIP program by the actual company. This DRIP is when the brokerage buys the shares directly off the public market stock exchanges.

Dividend Increases

On January 13, Brookfield Renewable Partners LP (BEP.UN) increased their quarterly distribution from $0.515US to $0.5425US, or $2.06US per share annually to $2.17US per share annually. 

This is an increase of 5.33%. As of the time of this writing, I own 33 shares of Brookfield Renewable Partners LP. This increase adds $3.63US to my annual dividend income.  This position was purchased on the Toronto Stock exchange. At the time of this writing, this $3.63US is equivalent to $4.80CAD
 
On January 28, Canadian National Railway (CNR.TO) increased their quarterly dividend from $0.5375 to $0.575, or $2.15 per share annually to $2.30 per share annually. 

This is an increase of 6.98%. As of the time of this writing, I own 38 shares of CN Rail. This increase adds $5.70 to my annual dividend income.
 
Dividend Decreases

There was no dividend decreases announced in the month of December

Summary:
 
As of February 1, 2020 , the total value of the portfolio is $131039.49 CAD. This is a 1.062% increase over last month's total. 

The dividend increases have increased my annual dividend income by $10.50 CAD. This is equivalent of investing $300.00 of my own money at 3.5%.

The portfolio is estimated to produce $5666.50 in dividend income over the next 12 months. This is an increase of $18.65 , or 0.33% . Some of the dividends in the Canadian stocks section are paid in US dollars, which are converted to Canadian dollars.

Disclosure: Long all aforementioned stocks 

Edit (Feb 1 @ 12:00 MST) :  I updated the amount of people who died in China from the Coronavirus.  

Please Note: Positions in Restaurant Brands International (QSR.TO) and Intertape Polymer Group (ITP.TO) pay dividends in US dollars. Brookfield Renewables Partners (BEP.UN) pays distributions in US dollars. My investment tab spreadsheet displays the Canadian dollar equivalent within 15 to 20 minutes of real time.

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.