Monday, August 1, 2016

My July Dividend Income Summary: $BCE $CUF.UN $KHC $MDLZ $CP $BNS $PWF

Hey Personal Financial Freaks! This is my seventh Dividend Income Summary for 2016. 

As you can see on my Passive Income page7 companies chipped in for this month of July. 

Some of them really show their love : Power Financial (PWF) and Bank of Nova Scotia (BNS) among others.  

This month I managed to collect the sum of 319.49$

The amounts are all in Canadian dollars. 

My Dividends came from:

               REIT Cominar (CUF.UN) : 24.99$ (I put the DRIP to rest for now.)

              BCE (BCE) : 27.30$ (I need to accentuate my exposition to the telecom sector. But I can't seem to find a decent entry point nowadays. I will have to wait for a correction. BCE and VZ will be my targets)

              Bank of Nova Scotia (BNS) : 108.72$  (What can I say?A keeper.)

              Power Financial (PWF) : 78.50$ (I recently added to this position. The stock is cheap. .Very cheap)

                Kraft Heinz Company (KHC) : 31.62$ (Warren Buffett's top holdings. A great acquisition since 2011)

                Mondelez International (MDLZ) : 23.36$ (I became a stockowner with the Kraft spinoff in 2012. The dividend yield is low, but MDLZ stock has soared since then. A keeper too).

               Canadian Pacific (CP) : 25.00$ (This stock has soared like mad since 2011. This 4K$ investment is now one of my top holdings. I love trains.)

My total Dividend paid for 2016 :  250.47$ + 256.52$+531.59$+313.70$+160.71$+400.55$+319.49$ = 2233.03$

Total Dividend paid since I started Investing : 18 555.48$+319.49$=18 874.97$

What do you think of my dividend income stream?

Friday, July 1, 2016

My June 2016 Dividend Income Summary : $JNJ $ENB $CNR $FTS $SU $CUF.UN $VCN $VSB $VIU

Hey Personal Financial Freaks! This is my sixth Dividend Income Summary for 2016. 

As you can see on my Passive Income page, 9 companies/ETF's chipped in for this month. 

June is a great month that kicks off the summer in such a fine way!  

This month I managed to collect the nice sum of 400.55$

The amounts are all in Canadian dollars. 

My Dividends came from:

               REIT Cominar (CUF.UN) : 24.87$ (I used to buy one more unit with my DRIP @17.20$);

              Vanguard Canadian Short-Term Bond Index ETF (VSB) : 13.56$ (A new comer that I like and that will provide me with a steady and safe dividend income stream. This number will grow as I intend to increase my position over time in VSB. Remember my 15-20% bond strategy?)

              Vanguard Canadian Index ETF (VCN) : 18.24$ (A new comer as well according to my hybrid strategy).

              Vanguard FTSE Developed All Cap ex North Amer Idx ETF(VIU) : 39.87$ (Same again. A new comer!).

                Enbridge (ENB) : 53.00$ (A fairly new addition to my portfolio and a keeper for the very long term).

                Fortis (FTS) : 47.63$ (which I use in part to buy one more share @ 40.20$ with my DRIP).

               Johnson and Johnson (JNJ) : 133.63$ (The king of Kings).

              Suncor (SU) : 43.50$ (SU isn't part of my big 6 anymore, it's still a force to be reckon with.)


             Canadian National Railway (CNR) : 26.25$. (I love trains, what can I say!)


My total Dividend paid for 2016 :  250.47$ + 256.52$+531.59$+313.70$+160.71$+400.55$ = 1913.54$

Total Dividend paid since I started Investing : 18 154.93$+400.55$ =18 555.48$

What do you think of my dividend income stream?

Tuesday, May 31, 2016

My May 2016 Dividend Income Summary : $RY $VSB $VZ $CUF.UN

Hey Personal Financial Freaks! This is my fifth Dividend Income Summary for 2016. 

As you can see on my Passive Income page, only 4 companies chipped in for this month. May is a slow month, what can I say.  Money coming in is... well it's money!

So although May is a quiet month I still managed to collect 160.71$

The amounts are all in Canadian dollars. 

My Dividends came from:

               REIT Cominar (CUF.UN) : 24.75$ (I used to buy one more unit with my DRIP @17.31$);

              Vanguard Canadian Short-Term Bond Index ETF (VSB) : 13.02$ (A new comer that I like and that will provide me with a steady and safe dividend income stream. This number will grow as I intend to increase my position over time in VSB. Remember my 15-20% bond strategy?)

              Verizon (VZ) : 17.64$ (One of those stocks I wish I had more.. I will if the stock price goes  down and the Canadian dollar goes up!...)

             Royal Bank of Canada (RY) : 105.30$. (My biggest financial position. A keeper.)

My total Dividend paid for 2016 :  250.47$ + 256.52$+531.59$+313.70$+160.71$  = 1512.99$

Total Dividend paid since I started Investing : 17 994.22$+160.71$ = 18 154.93$

What do you think of my dividend income stream?

Friday, April 29, 2016

*** Modified: April 2016 Dividend Income Summary : $CP $CUF.UN $MDLZ $KHC $ATD.B $BCE $BNS $PWF $VZ

Hey Personal Financial Freaks! This is my fourth Dividend Income Summary for 2016. 

As you can see on my Passive Income page, 9 companies chipped in for this month.  

In April, I managed to collect 313.70$. Not a great amount, but not too shabby either

The amounts are all in Canadian dollars. 

My Dividends came from:

                REIT Cominar (CUF.UN) : 24.62$ (which I use in part to buy one more unit @ 17.20 with my DRIP);

                Canadian Pacific (CP) : 17.50$ (CP has become a top holding for me due to the rise of the stock over the past 5 years. Thanks to Bill Ackman and Hunter Harrison. They recently just raised their dividend after a 2-3 years interruption. It's a keeper.) 

                Mondelez (MDLZ) : 23.05$ (MDLZ's price stock has grown quite a bit. But not the dividend. Will see how it goes. Could be a potential buy like Kraft).

                Kraft Heinz (KHC) : 31.98$ (Mature stock. Now in the hands of Warren Buffet. Buy and hold like the master and see how it does in 20 years)

                Alimentation Couche-Tard (ATD.B) : 8.10$ (Not a dividend player just yet. But wait and see. Remember, you read it here first!).

                BCE (BCE): 27.30$. (Year after year, BCE show strong results and hike its dividend. What's not to like? I wish I had some more.)

                Bank of Nova Scotia (BNS) : 108$ (Yes, that's mighty impressive! BNS is now a top holding. I used this money in part to buy one more share@ 65$ with my DRIP)

                Power Financial (PWF) : 39.25$ (PWF is such a diversified stock : insurance, financials, name it. One of the cheapest stocks, most conservatively and well-managed company out there. What are you waiting for?).

                TransCanada Corp (TRP) : 33.90$ (I don't own TRP anymore. I still think it's a great stock but between TRP and ENB I had the latter with a slight advantage. Hence TRP not making the cut no more. Remember, I don't want to hold more than 20 individual stocks!)

My total Dividend paid for 2016 :  250.47$ + 256.52$+531.59$+313.70$  = 1352.28$

Total Dividend paid since I started Investing : 17 680.52$+313.70$ = 17 994.22$

What do you think of my dividend income stream?

Friday, April 15, 2016

A glimpse of my new Hybrid Strategy

Hey Financial Freaks,

I hope all is we'll for you guys. I've been quite busy lately working, saving and doing a little bit of investing. And no... I haven't developed any kind of "strange obsession" with anyone as of late -- well since forever I might add.  (don't get me started!)  ;-)

I have been tweaking my investing strategy though.

Like I've hinted in the past, I have made a few moves to developed a mix strategy between a dividend growth and a Index one. I know some of you are already doing this. Congrats! I also know some of you will be sticking forever with the same strategy, namely a Dividend stocks approach. Both strategies are sound in my opinion. This is why I picked both!

Like I said numerous times in the past, I don't have time (nor the passion) to monitor closely more than 20 stocks. Heck, I barely find the time to do 20 push-ups... So I thought about allowing a certain percentage of my portfolio to Index Investing. This meant I would also cut on the number of stocks I would hold since I had 22 as of late. I say "had" because I now hold only 17 individual stocks.

Since the beginning of the year, I have made more than 26 transactions. This is a lot, I know. If you do you share of reading, you probably know that when it comes to investing the less you do is the better. But I had some tweaking to do and I thought that I would be better off doing this after a 7 years bull Market than before all Hell break loose. Call it Market Timing if you want. I call it necessary changes.

All the 13 buys I have made since January 2016 have been in stocks I still hold today and will be holding for a long time.

My new Big Five holding consists of : Johnson and Johnson (JNJ), Power Corp, (POW) Bank of Nova Scotia (BNS), Royal Bank (RY) and Canadian Pacific (CP). 

Unfortunately (or fortunately in some cases), I had to let go of some companies.

I said goodbye to : Transcanada Corp (sadly, but I prefer Enbridge), Barrick Gold (good frickin' riddance!), Suncor (only sold some shares in my RRSP), COP (dividend cut = adios muchacho and thanks for the good memories), PJC.A (short-term intense romance) and POT (second time around wasn't a charm after all).

That leaves me with 17 stocks. (I will try to never hold more than 20).

Finances (4) : Power Corp, Financial Corp, Bank of Nova Scotia, Royal Bank.
Industrials (2) : Canadian National Railway, Canadian Pacific Railway.
Consumer Staple (3) : Kraft Heinz, Mondelez, Alimentation Couche-Tard
Energy (4) : Suncor, Enbridge, ATCO, Fortis.
Telecom (2) : BCE, Verizon.
Healthcare (1) : Johnson and Johnson.
REIT (1) : Cominar.

I also purchased some new Index Funds:

  • Vanguard Canada All Cap Index ETF (VCN);
  • Vanguard FTSE Developed All Cap ex North America (VIU);
  • And Vanguard short-term Canadian Bonds (VSB).

Check out my leaner portfolio here.

I also still hold two Index Funds from RBC. These funds enable me to purchase on a regular basis shares of the funds without commission.  So, twice a month, I buy new shares without really care if the Market is up or down. Eventually I will sell parts of these funds to buy new shares of my Vanguard's funds.

I find that the most important aspect of my strategy will be the balancing between my bonds % and my stocks %. This is key. Right now I have set this balance to 80-20 in favour of stocks, of course.

This means that, once or twice a year, depending on how the Market performed, I will rebalance everything.

Say, for instance, the Market had a poor year and my balance is now 65-35. This means I would only have to sell shares of my bond funds and allocate new capital to my stock funds (or my individual stocks). I could also simply allocate new capital to my stock funds to find my initial balance.

Or for instance, say the Market has performed too well and my allocation is now 95-5. Well I would then sell some shares of my stock funds and allocate the new capital money towards bonds. Simple as that!

Right now, I hold more cash than normal. I might add a Vanguard US Fund in the coming months. Not sure which one. I'm hesitating between a US currency one and a Canadian one.

But you get the gist of my strategy. It's very simple. The bonds simply act as a security cushion that enables me to balance my portfolio.

Eventually, stocks wise, I would like to get a parity between my individual stocks % allocation and my Index Funds % allocation. This means, most of my coming buys will be in my new funds. However, I swill till keep money aside to grow my actual  individual stock holdings if opportunities arise. (Like Verizon)

I realized this is a bit of a long post. I will shares my other thoughts on this new approach in coming weeks. Stay tune.

Meanwhile, let me know what you think. How do you like this hybrid strategy ? It is too passive for you?















Friday, April 1, 2016

My March 2016 Dividend Income Summary : $JNJ $ACO.X $POW $ENB $CNR $FTS $COP $SU $CUF.UN $ABX

Hey Personal Financial Freaks! This is my third Dividend Income Summary for 2016. 

As you can see on my Passive Income page, a whopping 10 companies chipped in for this month.  

In March, I managed to collect 531.59$. This is the first time, if I'm correct, that I have reached the 500$/month milestone. Shots for everybody!

The amounts are all in Canadian dollars. 

My Dividends came from:

                REIT Cominar (CUF.UN) : 31.48$ (which I use in part to buy one more unit with my DRIP);

                ATCO (ACO.X) : 57.00$ (ATCO is now a top holding for me.)

                Power Corp. (POW) : 93.38$ (POW remains one of my big 6).

                Barrick Gold (ABX) : 3.96$ (My most hated stock. Only 100 shares remaining...).

                Enbridge (ENB) : 53.00$ (A new addition to my portfolio and a keeper for the long term).

                Conoco Philipps (COP) : 16.85$. (COP and I parted ways recently. It was a minor holding)

                Fortis (FTS) : 47.25$ (which I use in part to buy one more share with my DRIP).

               Johnson and Johnson (JNJ) : 129.92$ (The king of Kings).

              Suncor (SU) : 72.50$ (SU isn't part of my big 6 anymore, it's still a force to be reckon with.)

             Canadian National Railway (CNR) : 26.25$. (I love trains, what can I say!)

My total Dividend paid for 2016 :  250.47$ + 256.52$+531.59$ = 1038.58$

Total Dividend paid since I started Investing : 17 148.93$+531.59$ = 17 680.52$

What do you think of my dividend income stream?

Wednesday, March 9, 2016

The temptation of Index Investing

As you may have noticed on my Portfolio page, I hold an Index Fund. It's a RBC US Index Fund with fees of 0,70%. If you browse a little bit on the Web you can find US Index Fund much cheaper. For example, the Vanguard US Total Market Index ETF (VUN) has fee as low as 0,15%. 

As experienced investor, we all know that small percentage have huge effets over a long period of time. Right now, I stick with my RBC Index Fund simply because it enables me to purchase shares on a regular basis at no cost. That's where lies the advantage. For now.

You all know by now, I don't want to hold too many stocks. The reason : I don't have time nor the passion to closely follow more than 15-18 stocks. (even that number is outrageous. I have to work for a living, work out, eat, etc.) I now hold 22 stocks. I know, that's insane, Check it out here. I doubt that most of you can follow more than 20 stocks, unless you are still living in the basement of your parents. If it' the case, you might have other worries than following stocks...  (just joking).

So how did I end up with 22 stocks? Basically greed and the fact that I'm a man and therefore I think I'm the king of stocks. I most certainly aren't. I have many stock stories that went sour and could confirm this. ABX get out of my body!!!

I believe the less you do while managing your portfolio, the better it will fare over time. We are always tempted to diversify, buy this new attracting stock or add some of this and some of that to average down our cost. By the end of the month and the years these commissions pile up and eat up our performance. (yes it does)

Where am I getting at? I guess I'm getting at Index Investing.

I've been thinking about Index Investing for a while. But never got my head around it. I think I might consider this option starting this year. Will I sell my actual stocks? I might get rid of some of them (POT, COP, ABX...) but I will keep the others. I sure won't touch to my main holdings, namely JNJ, BNS, RY, POW, etc.

I 'm thinking more of developing an hybrid approach. I would  keep roughly 16-18 stocks and would add 3 or 4 index funds. It's in these funds that I would inject new money. Once a month or every quarter. Then I would rebalance the whole thing just once a year to match my initial strategy.

This initial Index strategy could resemble this :

  • 35% Vanguard Canada All Cap Index ETF (VCN) | MER = 0,11%
  • 35% Vanguard US Total Market Index ETF (VUN) | MER =0,16%
  • 20% Vanguard FTSE Developed All Cap ex North America (VIU) | MER = 0,20%
  • 10% Vanguard FTSE Emerging Market All Cap Index (VEE) | MER = 0,29%

Just that simple. Actually, back in the days I should probably have opted for this sort of strategy right away. Any Millenials listening out there?

All in all, the management fees would represent an average total of 0,19%. Not bad to hold pretty much the entire world of stocks!

This is indeed a Couch potato strategy. You won't beat the Market for sure. But you will do just as well. And that's much better than a whole lot of active managers.

So I'm thinking more and more about making this move. Will see how it goes. Stay tune.

What do you think about this move? Should I do this? And would you consider doing some Index Investing?




Saturday, March 5, 2016

Why I sold some $BNS and some $SU

Hey Financial Freaks,

Well, yeah, my first two moves of March consisted of selling small portions of two of my main holdings : Suncor (SU) and Bank of Nova Scotia (BNS).

This is a rare move on my part since I am (or pretend to be) a buy and hold investor. I still think the best way to make money is too hardly make any moves at all -- apart from b
uying obviously.

This is why I feel I have to justify these two moves.

First, Suncor (SU).

This is a stock I have been holding for more than 5 years, never minding all the ups and downs. Suncor is the best old integrated company in Canada. But I, like most oil investors, remain cautious about the present situation. This sector is clearly facing headwinds. It remains too see if the company can maintain its current dividend policy. The stock is now yielding at 3,44%. This is pretty high considering other peer companies have had to slash their dividends. Another question mark : will the acquisition of Canadian Oil Sands put the dividend in jeopardy? Maybe.

Last month, I bought 30 shares of SU at around 27$ I was then trying to average-down my cost-price. It worked. Recently, the share price went back up (around 34$). This stock then crossed the 5% weight in my portfolio next to other big names like Royal Bank (RY), Johnson and Johnson (JNJ) and Power Corporation (POW). Given the current state of oil prices, I thought it would be wiser, especially in my RRSP, to diminish a little bit my exposition to oil.

This is why I decided to sell 25 shares of SU at 33,85$. This adds 836$ for other buys. It also means I have to withdraw (25 X 1.16$) 29$ in dividends from my Passive Income.

I still hold 225 shares of Suncor. This stock accounts to more than 4,67% of my portfolio.

Second, Bank of Nova Scotia (BNS).

This is purely a move meant as rebalancing my portfolio as well as my exposition to the financial sector in general.

I sold 20 shares of BNS at 59$, so at approximatively my cost-average price. This provides me with 1 169$ for other buys. It also means I have to withdraw (20 X 2.88$) 57,60$ in dividends from my Passive Income.

Like I said, I still very much like this stock. It remains part of my big five. I just felt I held too many shares and the weight vs my portfolio was too great at 6%. How did I get to 6%? I kept buying and buying as the stock was dropping to average down my cost. I ended up owning 170 shares worth more than 10K$!

I now hold 150 shares of Bank of Nova Scotia and I intend to keep them for a long time. This stock accounts to more than 5,49% of my portfolio.

What do you think about my move? Was I too cautious ? Should I have been more patient even though the stocks represented big chunks of my portfolio? Hit me with your best shots if you think I was a fool. I can take it ! ;-)




Monday, February 29, 2016

My February 2016 Dividend Income Summary : $RY $POT $PWF $PJC.A $VZ $CUF.UN

Hey Personal Financial Freaks! This is my second Dividend Income Summary for 2016. 

As you can see on my Passive Income page, 6 companies chipped in for this month.  

In February, I managed to collect 256.52$The amounts are all in Canadian dollars. 

My Dividends came from:

                REIT Cominar (CUF.UN) : 31.24$ (which I use in part to buy two more units with my DRIP at 14.55$ each);

                Potash Corp (POT) : 54.62$ (this is my first dividend from POT and the last one at this price; they decided to cut their dividend.)

                Jean Coutu Group (PJC.A) : 11.00$ (I might keep this stock longer than expected.)

                Royal Bank of Canada (RY) : 102.70$ (It's RY, need I say more?).

                Power Financial (PWF) : 37.25$ (Slowly but steady).

                Verizon (VZ): 19.71$. (I want more Verizon!).


My total Dividend paid for 2016 :  250.47$ + 256.52$ = 506.99$

Total Dividend paid since I started Investing : 16 895.41$+256.52$ = 17 148.93$

What do you think of my dividend income stream?

Wednesday, February 24, 2016

I bought 10 shares of Canadian Pacific Railway $CP

Today I bought some more shares of Canadian Pacific Railway (CP). 

I bought 10 shares at 162.24$ for a total of 1 622.40$

I now own 50 shares of CP. With an annual dividend of 1.40$ it gives me 70$ in dividend per year.

Needless to say, this stock is lagging a little bit in terms of its dividend, which hasn't been increased since 2012 and is now yielding under 1%. That's very low and unusual for a Dividend Investor like me. It's also a reason why a lot of investors (especially in the bloggers community) have shy away from this particular stock.

But they shouldn't! There are many reasons why this stock weights more than 5% in my portfolio.

The low yield is mostly due to the share going up drastically since the arrival of activist investor Bill Hackman and new CEO Hunter Harrison. It went as high as 250$ (and more). Currently, since the beginning of the year, it took a 30% drop...

I originally bought the stock in 2011 around 56$... I bought 100 shares back then. It just gives you an idea how much the share price has rocketed over the last few years.

I was a fool for selling more than 60% along the way. My stake in CP would be well over 16K$ by now...(oh well, let's move on...)

At the time, the dividend yield was pretty much the same as its competitor Canadian National Railway (CNR). It's not the same anymore obviously. CNR has been increasing its dividend, while CP hasn't and its share has gone up the ceiling.

Right now, CP is still focusing on its merger with Norfolk. One has to presume it is keeping its cashflow for this purpose (although they have had a strong shares buyback policy as of late).

I'm confident in the capabilities of its CEO to create wealth for the CP shareholders in the future. He has done so with CNR and is currently putting CP in a good spot to replicate his past success.

Are you an investor-fan of trains? If so, do you hold CP or CNR?