Tuesday, March 31, 2015

My March Dividend Income Summary

This is the last day of March and I couldn't wait to write my favorite post : My  Dividend Income Summary of the Month.

Like all Dividend Investors, I love seeing those dividends roll into my accounts. (katching!)

It does indeed seem like money is working for you instead of you working for money.

As you can see on my Passive Income page, March is one of my best dividend paying months of the year with 8 companies chipping in.

I managed to collect 398.29$. I think it's a pretty decent number.

My Dividends came from:
  • REIT Cominar (CUF.UN) : 14.70$
  • Power Corporation (POW) : 94.25$
  • Johnson and Johnson (JNJ) : 114.10$ (CA$)
  • Suncor (SU) : 67.20$
  • Barrick Gold (ABX) : 15.91$
  • ConocoPhilipps (COP): 45.41$ (CA$)
  • Fortis (FTS) : 34.34$
  • ATCO (ACO.X) : 12.38$
My total Dividend paid for 2015 : 634.82$

My Total Dividend paid since I started Dividend Investing : 9 931.19 + 398.29$ = (10 329.48$)

I have now reached the 10 K$ mark for dividends received since I started investing. Wow! It's amazing to think I have received THAT amount of money simply by investing. But boy am I glad I took that path years ago!

What do you think of my dividend income stream? 


Thursday, March 26, 2015

Recent Stock Purchase $ACO.X II

Today, March 26th 2015, I consolidated my position in ATCO group (ACO.X)

I bought 15 shares at 46$ for a total purchase of 690$. It's a small move, but I might buy some more if the share drops again.

ATCO is a fairly new position that I've initiated not long ago. You can check my first post on this company here.

ATCO pays a 0,99$ per share annually. Therefore, this will add 14.85$ to my yearly dividend income, which now stands at 2 949.63$ (you can check it out here).

Who is ATCO and does it do?

ATCO Ltd is a Canada-based company. It is engaged in structures and logistics, utilities, and energy, and delivers business solutions. The Company’s segments are Structures & Logistics, Utilities, Energy, ATCO Australia. 

The Structures & Logistics segment manufactures, sells and leases housing and space rental products; delivers operations and maintenance services, and provides lodging, catering, waste management and maintenance services. 

Utilities segment operates through ATCO Electric, ATCO Gas, and ATCO Pipelines, which transmit and distribute electricity and natural gas. 

Energy segment’s activities are conducted through ATCO Power and ATCO Energy Solutions, which supplies electricity from natural gas, coal-fired and hydroelectric generating plants. It also gathers, processes, stores and transmits natural gas liquids extraction, electricity transmission and industrial water services. ATCO Australia supplies electricity from three natural gas-fired generation plants in Australia.
(source : Google Finance)

ATCO is now a part of my TFSA account. It's still relatively a small position in my overall portfolio with a weight of less than 2%. But I might accentuate this position in the future. 

I really do like the company's profile, its various segments of services, the quiet political environnement where they operate mainly (Canada and Australia!) and, of course, the fact that they've been constantly increasing their dividends. 
What do you think about ATCO? Is this a stock you would buy?

Tuesday, March 24, 2015

Recent sell ($POW)

Today, March 24th 2015, I decided to sell 25 shares of Power Corporation (POW) at 34,57$ for a total of 864.25$.

This means I also have to chop off 29$ worth of dividend annually. 

My forward 12 month dividends now stands at 2 934.78$. This is even still farther away from my 4800 $ 2015 goal...

Why did I sell might you ask since I just wrote a post singing the praises of Power Corp

I reassure you right away dear followers, all is well with this gem of a company. Actually, all is very well and POW will likely raise its dividend next quarter, just like Power Financial (PWF) just did. 

The fact and the matter is I had too much of Power Corp ever since I started buying its Power Financial company, which is 66% own by POW.

POW is the conglomerate. And PWF is one of its many companies. For an overview of their organisation chart click here.

Like I mentioned previously, I have recently started adding Power Financial (PWF) to my portfolio. 

Therefore, the two companies combined weighted heavily on my portfolio. And with the recent raise of their share prices, they both accounted to more than 10% of my portfolio. 

With this small sell of POW they both now stand at 8,75%, which is still high. But I will leave it at that for now -- and for a long time.

For the record, I now own 300 shares of POW and 75 shares of PWF. The dividend total of both companies is over 450$ annually. It represents 16% of all my paid dividends.

Why sell POW instead of PWF?

I like PWF just as much as I like POW. But, to me, PWF is a more of a pure player when it comes down to the insurance and financial sectors. Whereas POW is a little bit more diversified with, for instance, investments in a Communication group and in China via the Sagard investments. 

Is it bad to be diversified? Of course not, although I'm not entirely sure the Communication group will be financially very lucrative over the long course. (They actually just sold many regional newspapers here in Québec). 

The main factor is that I wanted to have a little bit more direct exposure to the Insurance and Financial sectors of the many companies hold by PWF directly.  

All in all regarding the Desmarais Family conglomerate, I'm still 80% invested in POW and 20% invested in PWF.

What do you think of this sell? Does it matter to you when a single company accounts for more than 10% of your portfolio?

Wednesday, March 18, 2015

Power Corp (POW) : one of my 4 main holdings

It wasn't meant like that -- although I like to think it was -- but like Warren Buffet a good chunk of my portfolio consists of only four major holdings. 

Roughly 50% of all my dividends come from these four stocks :
  1. Power Corporation (POW).
  2. Johnson and Johnson (JNJ).
  3. Royal Bank of Canada (RY).
  4. Suncor (SU).
Now I know most of you guys, especially our American friends, know about blue chip companies such as Johnson and Johnson (JNJ). Heck, I don't think I ever came across a fellow blogger/investor who hadn't this giant in its portfolio. I can't blame them. JNJ accounts form more than 10% of mine. JNJ and I are in it for the long haul.

Royal Bank of Canada (RY) and Suncor (SU), which trade in both Canada and US stock exchange, are also popular holdings among our little community (and beyond). 

Even Warren Buffet is a fellow shareholder of Suncor. That's right, you read it here folks. He holds more than 20 millions shares of this energy stock. Actually he just added 20% more to its actual holdings. It represents 0.65% of its portfolio, so just a tiny more than Verizon. Not bad. Check it out here.

But when it comes down to popularity, I guess it's a whole different story with Power Corporation of Canada (POW), the "Ringo Starr" of my 4 main holdings. 

A very few fellow bloggers/investors actually own POW or its twin brother Power Financial (PWF). Granted, the fact that POW is not trading in the US might be a reason why it's less popular among fellow bloggers. But why is it among fellow Canadian bloggers? I ask you.

It's not a popular pick and it's hard to understand because it's a company that's been highly praised for decades now. Actually, it's been a long time favorite of Money Sense and remains one to this date.

POW is the all-around conglomerate. It's been said in the past that Power Corp is the Berkshire Hathaway of the North. There's some truth to that. This is a very cautious and very low-key company. 

It's a well diversified one too. 12% of its business is done in the United States. Have you heard of Putnam Investments? 30% in Europe. Through Pargesa, POW holds significant positions in large companies based in Europe, such as Pernod Ricard and Total. 

In Canada, with franchises such as Great-West, Investors Group, Mackenzie Investments, Power Corp serves 1 out of 3 people. Canada accounts to more than 58% of its business. 

It really beats me that I don't see more Canadian investors actually holding this stock. . I know Power Corp hasn't raised its dividend since 2008 (*Power Financial just raised it today and POW will probably follow) but at roughly 4%, they actual dividend yield is very much acceptable. Dividend investors, think about it, Power Corp has the same investing philosophy as you do :

I'm not going to crunch numbers about the company, I will let this snapshot give you an idea of those. But I'm pretty sure that you now understand better why POW (and PWF) will remain among my top holdings for years to come.

Are you interested in investing in POW or PWF? Yes or no, I'd like to know!

Full disclosure : I am long POW and PWF.

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Tuesday, March 17, 2015

Recent Stock Purchase ($BNS) (Groundhog Day!)

No this is not Groundhog Day. Or perhaps it is...

(Yes, you can start humming I've got you babe from Sonny and Cher)

Today (March 17th) I have made another purchase. I consolidated (again) a position I have in the Financial Sector Allocation of my Portfolio.

I have bought 10 shares of Bank of Nova Scotia (BNS.TO), at 62.60$ a share, for a total cost of 626.00$. 

I now own 50 shares of Bank of Nova Scotia (BNS.TO). My share average cost basis is now 62.72$. (down 0.02$)

The new 10 shares add 27.80$ to my Dividends Passive Income (which has been updated)

My forward 12 month dividends now stands at 2 998.14$. This is still far away from my 4800$ 2015 goal...

The share of Bank of Nova Scotia is down more than 15% from its year high.

If it goes down below 60$, I will have to buy some more again. You can't have too much of a good thing, right?

Like I was saying in another post, part of my strategy -- aside from taking into accounts the ratios (PE, EPS, etc.), dividend history and all that -- consist of buying stocks I already own. (I now own 17 companies). I will therefore have to wait  for a price fallout of at least 10% compare to the stock highest price of the year. (Check out my strategy here). Hence the buy yesterday. 

(Also, I have to mention that I now own MUCH more shares than my girlfriend, which is very important!)

What do you think of my recent purchase (AGAIN)? Are you interested in buying Bank of Nova Scotia (BNS) yourself? (What are you waiting for!)

Full disclosure : I am long BNS.

Thursday, March 12, 2015

Recent Stock Purchase ($BNS)

Yesterday (March 11th) I have made one purchase. It doesn't happen too much nowadays. I consolidated a position I have in the Financial Sector Allocation of my Portfolio.

I know I recently said this particular sector of my Portfolio was pretty much full, but I couldn't help adding more shares to a recent position initiated. 

I have bought 15 shares of Bank of Nova Scotia (BNS.TO), at 62.60$ a share, for a total cost of 939.00$. 

I now own 40 shares of Bank of Nova Scotia. My share average cost basis is 62.74$. 

The new 15 shares add 40.80$ to my Dividends Passive Income

My total dividends for Bank of Nova Scotia is up by 40% at 108.80$. 

My forward 12 month dividends now stands at 2 970.64$.

The share of Bank of Nova Scotia is down more than 15% from its year high.

Like I was saying in another post, part of my strategy -- aside from taking into accounts the ratios (PE, EPS, etc.), dividend history and all that -- consist of buying stocks I already own. (I now own 17 companies)

I will therefore have to wait  for a price fallout of at least 10% compare to the stock highest price of the year. (Check out my strategy here). Hence the buy yesterday. 

(Also, I have to mention that I now own more shares than my girlfriend, which is very important!)

What do you think of my recent purchase? Are you interested in buying Bank of Nova Scotia (BNS) yourself?

Full disclosure : I am long BNS.

Wednesday, March 11, 2015

My Money Epiphany

Before going on my trek to become financially independent, I was doing a lot of things wrong with my money. 

Fact is, when it comes down to money, I'm a hundred years from the man I once was. Thankfully for my portfolio.

Sometime in 2009, I sent a letter to a newspaper. This letter was intended to a columnist that was writing articles about personal finances.

My letter included an overview of my net worth (TFSA, RRSP, saving accounts) and of course a question. Essentially, I was asking him if I should eventually invest in the market or if I should consider buying a property. An old dilemma, right?

The columnists'answer was very well put and balanced. He said I had to look into "this and that". Be aware that "the market goes up and down"... That I needed to invest "for the long run"...

That sort of stuff.

But before closing its article he came up with a blunt comment about my finances. It went something like this : "You have to understand that whatever path you choose to go  saving remains essential. Right now, with the kind of salary you make, you are definitely a poor saver".

Spot on. Indeed, I was a poor saver.

Granted I had no debts. But I was making more than 85 000$ per year and I really didn't have nothing to show for it aside from my 15-20K$, which was stuck in my RRSP.

I was pretty much living pay check to pay check, spending everything I was earning as I going along in life.

So his comment stayed with me and fuelled my desire to change some of the things I did with "my money".

Here's some of the changes I have made since then:

1. I started to save. I didn't set a number nor a percentage (like the often talked about 10%). I just saved money as much as I could. Bottom line : I realized how important was an after-tax dollar earned. Shall I say more?

2. I started to invest. I opened a brokerage account and started investing. It's funny how investing sometimes feel like you are spending money. But you're not. If you invest well (in reliable dividend paying companies) you are actually putting your money to work.

3. I started to read more. The more you read about something, the more you get interested about it, don't you feel? Reading opened up my eyes. It goes for personal finances as well as so many other things. Information and knowledge is key.

4. I started to cut down on spending. Do I need a membership to a local gym at 40$/month? No, I can go out and run daily (my 5K or 10K) and lift some weights from home at not cost. Of course it would be nice to drive a brand new BMW. But my old Corolla is doing just fine and I much prefer seeing regular dividends coming in my account than going out in fumes. Do I need to eat out as often as I did? Of course not. What a waste of money! Avoiding going to the restaurants will remain a hard task for me. It's one of the things I like doing. But cutting down on eating out has made me realized that I love cooking. Besides, it's much more healthier.

5. I started to find ways to save. Saving money could (I said could) be simple if you, for instance, set up a periodic money transfer system in your account. By doing so you pretty much par yourself first. This is key. The hardest part, I reckon, is to find ways on a daily basis to save even more money : coupons for the groceries, shopping deals, free stuff, etc. These little tricks need a little bit more organisation and follow-up on your part, but can help you achieve your saving goals even sooner.

I guess these 5 changes can be summed up with this general change within myself: I became aware. It was some kind of epiphany. I was now fully conscious of how I spent my money. And I wanted badly to turn things around.

This is where it all starts : becoming aware and wanting to change.

How about you? When and how did you become aware that a change was needed?

Sunday, March 8, 2015

Welcome Monsieur Dividende!

In my last post, I was asking advices on how to run AdSense in a more effective way. A fellow blogger that goes by the name of Roadmap2retire was kind enough to provide me some key pointers (thanks again R2R).

One of his advice was to unify my names, create a single branding. I definitely agreed. I've been thinking about this for a while. Heck, you now there's a problem when your girlfriend can't find your blog!

Indeed, I was all over the place : The Great Escape, My-own-rat-race, QuitratRace, Johnny Ca$h. You name the names and chances are it was me! I use the past tense, because a new me is now born : Monsieur Dividende.

Why Monsieur Dividende? It's simple. The word "Dividende" refers to Dividend Investing. It has a French twist (French is my mother tongue. And no I'm not French! -- not that there's anything wrong with that). Hence also the word Monsieur.

After much problems setting up all this (geez whiz, didn't think I would have to implement HTML code a some point), I can say my new single branding Monsieur Dividende is now in full effect.

  • My new email address is : monsieurdividende@gmail.com

Who's Monsieur Dividende? That's me, a future millionaire, and yes you can spread the word!

How do you like my new name? How do you like the move?

Thursday, March 5, 2015

Random thoughts (Purchase, AdSense, Investment Orthodoxy)

Stock purchase for my girlfriend : some of you already know I have initiated a position in Bank of Nova Scotia (BNS) recently. It's a small one, mind you, but nevertheless adds some money to my dividend income stream. My GF too has her own portfolio, although smaller than mine. She holds some of the same stocks as I, but not all of them. However, BNS is now of the stocks we both share. Since yesterday she now holds more shares than me. (damn)

Part of my strategy -- aside from taking into accounts the ratios (PE, EPS, etc.), dividend history and all that -- will mostly consist of buying stocks I already own. I will therefore have to wait  for a price fallout of at least 10% compare to their highest price of the stock during the year. (Check out my strategy here). This was the case yesterday with BNS dropping more than 12% from its year high. Boom! I had to make a move. Why didn't I buy more from myself? Like I mentioned in a recent post related to my Portfolio Sector Allocation, I'm pretty much set right now on the Financial front. But it doesn't mean I won't budge at all. Let's wait and see.

AdSense : some of you might have noticed I have some publicity on my blog now. Yeah, I'm trying out this Adsense thing. I guess this is all new stuff for me. Not sure I understand completely how to interpret the datas. It looks as though I might have made 2.00$ in February! Not sure how I did it. Anyway, let's not pop up the champagne yet. I decided not to put too much ads on my blog. It bugs me when I visit one and they are everywhere. Ads shouldn't bother a visitor. Will see how this thing turns out to be. If you have any clue or advice for me. I'm all ears.

Dividend Investors Orthodoxy: a received a somewhat condescending private message basically saying I shouldn't waste time investing in so-called penny stocks. That this wasn't real investing and it was a stain, a black spot on my portfolio consisting of mostly serious dividend paying companies. Yeah, you read well. Apparently this person doesn't like speculative investment at all. I totally understand the point. In all seriousness, it's true investing and speculating are at complete opposite. I get that. This is why a tiny % of my portfolio is dedicated to those long-shot investments. I don't think investing this way is in any way disrespectful of my strategy nor does it represent a stain on my portfolio. We are allowed a little flexibility, aren't we ? It's my money after all! Besides, I only hold two speculative investments. Here's what I was writing about this in Portfolio Sector Allocation post.

Sector% portfolio% Goal
Penny Stocks2.59%3%

Surely, it's a little pejorative to call Junex (JNX) and Therapeutics Knight (GUD.to) penny stocks. But they don't belong in the Dividend stocks category either. Let's call them speculative companies. Junex operates in the energy sector and Knight in the pharma one. I think 3 % of one's portfolio is not too much for having a little fun, don't you think? I have big and very colourful aspirations for these two. Let's dream big.

Do you think that person is out of this head? (I do). Do you hold any speculative investments? What are your takes on this issue?

Tuesday, March 3, 2015

My Net Worth Updated (February 2015)

February has been a great month on many levels. My Net Worth is no exception. It's up by 3,18% and it looks like I will soon reach the 200 K$ milestone... (continue to Net Worth)

Monday, March 2, 2015

My February Dividend Income Summary

Like all Dividend Investors, I love seeing those dividends rolling in my account. It does indeed seem like money is working for you instead of you working for money.

I love dividends, but I wouldn't be confortable cashing them if I knew the company was doing badly.

Basically, I don't need dividends at all cost. But I need the company that pays them to be solid, even if their stock price is a little expensive. (Hence why I bought Atco -- ACO.X)

So, as you can see on my Dividends and Royalties page, February is below my average Dividend paying month of roughly 243 $.

Last month (February) I managed to collect 110.63$.

My Dividends came from:

  • RBC - Royal Bank of Canada (RY) : 78.54$ (They had a dividend increase!)
  • REIT Cominar (CUF.UN) : 14.70$
  • Verizon : 17.39$ (in Canadian Dollars)

My total Dividend paid for 2015 : 236.53$

My Total Dividend paid since I started Dividend Investing : 9820,66$ + 110.63$ = 9 931.19$
I also received 203.60$ from the Canada Council for the Arts and their Public Lending Right Program for a book I wrote. (I should write another one)

What do you think of my dividend income stream?