Portfolio Update - December 2021

The month of December 2021 is now behind us.

Once again COVID19 continues to wreak havoc across the globe.  The rise of the omicron variant has affected day to day life of people.  The amount of cases in recent weeks are causing anxiety across the globe.  The amount of hospitalizations remains low as experts are saying the symptoms are less severe than other variants but it is highly transmissible.  I believe the main reason that hospitalizations are down is due to the increasing number of vaccinations.

In past 7 days,  both Quebec and Ontario have put partial lockdowns in place to help reduce the spread. 

The World Juniors Hockey tournament was cancelled after a couple of day by the IIHF medical committee after a couple of games were played.  The reason for the cancellation was due to the amount of cases reported of COVID19.  The actual amount of cases is higher than what is reported as these only include PCR test results.  

Are we going to have a crash like March 2020?  I don't think so.

Portfolio Activity

Margin Account Activity

There was no activity in this account since the last portfolio update.  All the dividends remained in the account. 

TFSA Activity

Cominar REIT (CUF.UN.TO) has been sold for $11.75 CAD per unit.  The unitholders of Cominar REIT have voted in favor of the transaction.  The deal is subject to be finalized in the first half of 2022.   

Shares Purchased Via DRIP

1 unit  of BPF.UN.TO @ $15.39225 for a total cost of $15.39 (TFSA)

2 shares of ERF.TO @ $12.01 for a total cost of $24.02 (Margin Account)

Boston Pizza Royalties Income Fund pays a distribution of $0.085 per unit monthly, or $1.02 per unit annually.  This drip adds $1.02 CAD  to my annual dividend income.  The yield on cost for this DRIP is 6.63%.

Enerplus pays a dividend of $0.041 per share quarterly, or $0.164 per share annually.  This drip adds $0.33 CAD to my annual dividend income.  The yield on cost for this DRIP is 1.37%.

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

My Enbridge position directly with the transfer agent is set up to DRIP.  Around November 2018, Enbridge stopped their DRIP program.  If Enbridge decides to start a DRIP, then my shares will start to DRIP again automatically.  

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 December 1,  Royal Bank of Canada (RY.TO)  increased their dividend from $1.08 to $1.20 CAD per share quarterly, or from $4.32 to $4.80 CAD per share annually.  This is an increase of 11.1%.   

I own 56 shares of Royal Bank at the time of the increase.  This increase adds $26.88 CAD to my annual dividend income. 

On December 2, TD Bank (TD.TO) increased their dividend from $0.79 to $0.89 CAD per share quarterly, or from $3.16 to $3.56 CAD per share annually.  This is an increase of 12.7%.

I own 48 shares of TD Bank at the time of this increase.  This increase adds $19.20 CAD to my annual dividend income.

On December 2, Canadian Imperial Bank of Commerce, or C.I.B.C, increased their dividend from $1.46 to $1.61 CAD per share quarterly, or from $5.84 to $6.44 CAD per share annually.  This is an increase of 10.3%.  The ticker symbol of C.I.B.C is CM.TO. 

I own 110 shares of C.I.B.C at the time of this increase.  This increase adds $66.00 CAD to my annual dividend income.  

On December 3, Bank of Montreal (BMO.TO) increased their dividend from $1.06 to $1.33 CAD per share quarterly, or from $4.24 to $5.32 CAD per share annually.  This is an increase of 25.5%. 

I own 85 shares of Bank of Montreal at the time of this increase.  This increase adds $91.80 CAD to my annual dividend income. 

On December 7, Enbridge  (ENB.TO) increased their from $0.835 to $0.86 CAD per share quarterly, or from $3.34 to $3.44 CAD per share annually.  This is an increase of 2.99%.

I own 359.278 shares of Enbridge at the time of this increase.  The increase adds $35.93 CAD to my annual dividend income.

On December 8,  Mullen Group Ltd.  (MTL.TO) increased their dividend from $0.04 to $0.05 CAD per share monthly, or from $0.48 to $0.60 CAD per share annually.  This is an increase of 25%.

I own 100 shares of Mullen Group at the time of this increase.  This increase adds $12.00 CAD to my annual dividend income. 

Dividend Decreases

There was no dividend decreases in December 2021. 

Summary: 

As of January 4 2022 , the total value of the portfolio is $174224.50 . This is a 4.79% increase over last month's total. 

The portfolio is estimated to produce an estimated $6505.69 in dividend income over the next 12 months. This is an increase of $250.59  CAD , or 4.01%. Some of the dividends in the Canadian stocks section are paid in US dollars, which are converted to Canadian dollars. 

My annual dividend income increased $251.81 CAD via dividend increases.  This is equivalent to investing $7194.57 of my own money at a 3.5% yield.  

Please Note: Positions in Restaurant Brands International (QSR.TO) , Intertape Polymer Group (ITP.TO), Brookfield Renewables Corporation (BEPC.TO), and Algonquin Power and Utilities (AQN.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. 

Note: Dividend increases or decreases announced in December 2021 will be mentioned in next portfolio update.  The spreadsheet will be updated to reflect any corresponding increases or decreases at that time. 

Disclosure: Long aforementioned stocks

               
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.

Net Worth Update - December 25 2021

Today is December 25, 2021. Although passive income through dividends and option premiums is my focus when it comes to investing, I decide to do a post about my current net worth.

What is net worth? Simply put, net worth is calculated by adding up all assets and subtracting the total of all liabilities. Net worth is sometimes referred to as shareholder's equity. Assets and liabilities are part of the balance sheet.

Assets

Savings

The savings section is currently into 3 segments. The 3 parts are a "high" interest savings account, savings account, and an "investment" savings account.

The TFSA savings account was with Tangerine. I was frustrated with getting such a low interest rate with Tangerine. I took the money out and placed it in non-registered high interest rate savings account with EQ Bank. Unfortunately, the account did not disappear as interest was earned in the TFSA with Tangerine for the month I transferred the balance. The balance is $0.18. With a value this low, I do not even earn interest as the balance so low.  

On December 25, 2021, the value of the savings account with EQ Bank is $1177.32. As of the time of this writing, the interest rate for EQ Bank is currently sitting at 1.25%. 

The stock and ETF investment involves a stock and an ETF that I hold within my margin account. I keep the dividends and distributions received separate from the dividends I post in my dividend income updates.

I purchased an additional 3 units of BMO High Yield Covered Call ETF (ticker symbol ZWC.TO) at a total cost of $55.30 on November 30.  I purchased 1 unit of this ETF on December 22 at a total cost of $18.48.  My brokerage has zero commissions on purchase of ETFs. There is a small ECN fee which is a few pennies. The purchase of these units resulted in $0.01 in ECN fees. This ETF pays monthly. I received a total of $102.54 in total distributions as of December 25, 2021.

On August 31, 2021, I purchased 41 units of Transalta Renewables (ticker symbol  RNW.TO) at $19.52 per share for a total cost of $805.41.  There we no more purchases.  Transalta Renewables pays a monthly dividend of $0.07833 per share.  I  received a total of $9.63 in total dividends as of December 25, 2021.

On December 25, 2021 , the current value of this "stock / ETF account" is $2170.84   I have earned a total of $201.58 in total dividends/distributions in this account. 

Overall, the savings total is $3348.34. 

Non-registered Accounts

The non-registered accounts consist of a margin account and 2 stocks held directly with the transfer agents. The margin account is with Questrade. The total value is $111236.65 as of December 25, 2021. This is an increase of 5.10% since the last published net worth post.


TFSA Investing Account

The TFSA investing account balance is $61521.41 as of December 25, 2021. This account is with Questrade. This is an increase of 7.69% since the last published net worth post.

Trading Account

The trading account is with Questrade. There is an no active trade on in this account as of the time of this writing. As of December 25, 2021, the value of this account is $4347.77.

RRSP

I have transferred my RRSP from Tangerine to Questrade in April 2020. While at Tangerine, the RRSP was in the form of a "high" interest savings account. Now at Questrade, I decided to put the money to work.

As of December 25, 2021, I own 121 shares of CP Rail (Ticker Symbol  CP.TO) ,76 units of XAW, and 49 shares of Alimentation Couche-Tard  (ATD.B.TO).   I sell covered calls on the CP Rail position.  As of December 25, 2021, there is no active option trade on CP Rail.  My most recent covered call expired on December 17, 2021.      

The value of this account as of December 25, 2021 is $16666.80 . This is an increase of 10.09% from September 25, 2021.

Summary of Assets

Total Savings : $3348.34
Non-Registered accounts : $111236.65
TFSA Investing : $61521.41
Trading Account: $4347.77
RRSP Savings Account: $16666.80

Total Assets = $197120.97  (increase of 5.71% from 3 months ago)

Liabilities

The balance on my line of credit is $0.00. 

I have a margin loan of $1081.81 CAD.  The interest rate on the margin loan is 5.95%.  

Summary of Liabilities

Credit Line = $0.00

Margin Loan = $1081.81 

Total Liabilities = $1081.81 

Conclusion

On December 25, 2021, my net worth is $196039.16 . This is a increase of $9556.99, or 5.12%, from 3 months ago.


The market continues to go up. We are currently in the fifth wave of COVID19.  The fears of COVID19 once and awhile causes a major dip.  To prevent hospitals from being overwhelmed, more and more restrictions are being implemented to help lower the case count.  With a high percentage of people vaccinated, the hospitalizations are down, although active cases are at record highs. 

Click to Enlarge

To read the fifth net worth update, click here.

To read the sixth net worth update. click here.

To read the seventh net worth update, click here. 

To read the eighth net worth update, click here.  

Disclosure: - Long all aforementioned stocks
  

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.

Savings Hack

  My savings has taken a hit over the past 3 to 4 months.  I had to dig into my savings to pay for dental expenses.  The first dental expense was expected as it was a cleaning.  I then had to go for a second dental appointment expense was for 2 fillings.

About a week later, one of the fillings fell off.  I went to the dentist to get it fixed and the dentist tried to fix it.  It was a complete failure.  The dentist did not freeze my mouth and would do a little bit of bonding and then get me to feel it.  It was torture.  There was no charge.

Next week, I will be going to get it fixed.  I am going to make the  dentist freeze my month before any work is getting done.  There will likely be a charge for this.

When ever I got paid, I paid myself first 6% to my savings account.  All this went into a normal savings account.

How did I boost my savings?

My trading account did not have any active trades.  So, I decided to use this money and borrow some money on margin and did some trades.  Any dividends, capital gains and option premiums would be taking out immediately and place in my EQ Bank High Interest Savings Account (referral link).  The interest on this account is 1.25%.  

Trade #1  

Oct 20  - Bought 175 shares of T.TO at $27.74 for a total cost of $4859.71 including commissions.

Oct 22  - Sold 175 shares of T.TO at $27.92 for a total if $4880.79 including commissions.

Profit =  $4880.79-$4859.71

         = $21.08

Trade #2

Oct 26 - Bought 100 shares of ATD.B.TO at $48.25 for a total cost of $4829.95 including commissions.

This trade is still open.  I sold covered calls on the position.

Trade #3  (Covered Call #1)

Nov 1   Sold 1 Nov 26 2021 ATD.B.TO $49 Call at $1.40 for a net premium of $129.05

Nov 26  Covered call expired.

Trade #4  (Covered call # 2)

Dec 2  Sold 1 Jan 21 2022 ATD.B.TO $49 Call at $1.50 for a net premium of $139.05

As of December 24, this option has not been assigned.  The stock now trades under the ticker symbol ATD.TO.  The stock closed at $52.45 on December 24.

I received a dividend from ATD.TO for $11.00 CAD on December 16.

Summary:

Capital gains = $21.08

Option premiums = $268.10

Dividends  = $11.00

I made $300.18 that went directly to my savings.

For disclosure, I also own the stocks mentioned above in my other accounts.  

Note:  - T.TO is the ticker symbol for Telus Corporation

          - ATD.B.TO is the ticker symbol for Alimentation Couche Tard

Note:  ATD.B.TO was merged into ATD.A.TO at 1:1 ratio and ticker symbol changed to ATD.TO

Disclosure:  Long T.TO in TFSA

                  Long ATD.TO in RRSP

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.