Recent Dividend Increase

The plant based burgers have started to become a goto burger place of choice for more people these days.  Also, the organic movement in general is gaining more momentum.  A documentary on Netflix called Knives and Forks have made people more aware of the benefits of eating a plant based diet.  

A&W Restaurants have for the past several years have changed they way make their food and where their food comes from at the beginning of the food chain.  Using meat from animals that were not giving antibiotics or growth via hormones for starters.

A&W released their earnings for their A&W Royalties Income Fund on July 24.  A&W announced a distribution increase from $0.154 to $0.159 starting with the July distribution to be paid on Aug 31.  This represents a distribution increase of 3.25%.  

I currently own 38 shares of AW.UN, so this increase adds $2.28 to my annual dividend income. This is equivalent of investing $65.14 of my own money at 3.5%.

A&W Royalties Income Fund has raised their distribution 5 times in last 13 months. The monthly distribution was increased from $0.138 to $0.159 over that time span, which is an increase 15.2%.

Immediately below, is a graph of the monthly distribution rate per unit over the past year.  

Monthly Distribution Rate Over Past Year

Immediately below, is the monthly distribution I have received over the past 12 months for owing 38 units of AW.UN. 

Distributions Received Over The Last Year. 

Summary:

A&W Restaurants have most of their restaurants in Western Canada, primarily in Alberta.  The restaurants have been effected by the fall of world oil prices over the past several years.  However, with more and more people looking for healthier food options these days, the restaurants have saw an increase in people over their competition like McDonald's.  

Disclosure:  Long AW.UN

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 Buy

 The expectation of a coming recession in the near future has been talked about in the financial media for the past several months. Some analysts are staying North America is actually in a recession right now.  This usually means investors start to fear they will lose money and start selling their holdings. This has happened in some sectors while others have been immune to the fears of investors.
 
 A example of a stock falling in price is TFI International (TFII.TO), that is headquartered in Canada. This is a trucking and logistics company that has operations in Canada, United States and Mexico. With the fears of the recession, investors have been selling this stock, as transportation companies have reduced earnings has there will be less freight.
 
During the month of June, my covered call in WestJet Airlines was assigned at $24.00 per share. During the first few weeks of May, Onex Corporation announced it is buying WestJet Airlines at $31.00 per share subject to approval of shareholders. The price of WestJet Airlines (WJA.TO) immediately increased from below $19.00 to around $30.00 a share.
 
 So, I was looking for an opportunity to put some of my money to work.
 
Purchase:
 
 I purchase 25 shares of Canadian Imperial Bank of Commerce "C.I.B.C" (CM.TO) on the Toronto Stock Exchange. C.I.B.C. is one of the big 5 banks and is part of the reputation of Canada having one of the best run financial institutions in the world.
 
 The other 4 banks are Bank of Montreal (BMO.TO), Royal Bank Of Canada (RY.TO), Bank of Nova Scotia (BNS.TO) and TD Bank (TD.TO). These banks are headquartered in Canada, but have operations in the United States and other countries. All 5 of the banks trade on both the Toronto Stock Exchange and New York Stock Exchange.
 
 On July 16, I added to my position in C.I.B.C by purchasing 25 shares at $102.40 per share for a total cost of $2565.04 including commissions.

 C.I.B.C pays an quarterly dividend of $1.40 per share, or $5.60 per share annually. This purchase adds $140.00 to my annual dividend income. The yield on cost for this purchase is 5.46%.
 
 C.I.B.C trades ex-dividend on June 27 2019, so this purchase is not eligible for the dividend payment on July 29 2019.
 
  I will update my investment tab spreadsheet in early August to reflect this purchase.
 
Conclusion:
 
I decided to add to my position in C.I.B.C as the stock has fallen from it's 52 week high of $125.21. The purchase price of $102.40 represents an 18.2% decrease in price from the 52 week high.
 
The P/E ratio at the time of this writing is 9.04, which is 158 bps below the stock 5 year average.
 
The stock is currently trading with a 5.45% dividend yield, which is 94bps above the 5 year average.
 
I would also like to note, that I purchased 12 shares of C.I.B.C on May 22 at $107.90 for a total cost of $1299.79.
 
With these 2 purchases, I now own 65 shares of C.I.B.C. I have owned the stock for several years.
 
What are you buying? Do you own any of the big 5 Canadian banks in your portfolio?
Disclosure: Long CM.TO, BMO.TO, RY.TO, BNS.TO, TD.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.

Dividend Income Update - June 2019

      

        The month of June 2019 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.

       

 Non-registered Accounts

• Cineplex  (CGX) - $15.00
• Enbridge (ENB) - $19.40 (Transfer Agent)
• Enbridge (ENB) - $221.40
• Enerplus (ERF)  -$ 5.58 
• High Liner Foods (HLF) - $15.30 
• Intertape Polymer Group (ITP) - $9.33
• Shaw Communications (SJR.B)  - $19.75

Subtotal :  $305.76

TFSA

• A&W Royalties Income Fund (AW.UN) - $5.85
• Boston Pizza Royalties Income Fund   (BPF.UN) - $26.91
• Brookfield Renewable Partners (BEP.UN) - $21.96
• Canadian National Railway (CNR.TO) - $20.43 
• Cominar REIT (CUF.UN) - $13.08
• Dream Office REIT   (D.UN)  - $14.00
• Enbridge (ENB) - $24.35
• Killam Properties REIT (KMP.UN) - $  16.61

Subtotal:  $143.19

Total = $448.95

    I received a total of $448.95 in dividend income for the month of June 2019.  This represents a 9.32% decrease from 3 months ago and 11.77% decrease year over year. 

    A major reason for the decline from 3 months and from last year was due to the 67% reduction of dividend by High Liner Foods.

    This was the first time I ever received a dividend from my new position in Intertape Polymer Group. 

    I received dividend / distribution income from 13 different companies.   

     I received $0.00 in option premiums within my investment accounts in June  2019.

  
    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 June 2019?

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.