Monday, April 27, 2015

Mr. Taxman, Mr Market and Mr. Index Fund

Hey Financial Freaks,

It's been a few days since I posted something new on Monsieur Dividende.

Things have been quite hectics on the contracts front, which is good news. I have been very busy working.

More work equals more money, more money means more taxes to pay, and the wheels keep turning...

Did you catch a slight bitterness towards our tax system? I guess so.

I just had some bad news from Mr Taxman. I had to reimbursed roughly 7 K$ to them. I knew I had to pay some taxes at some point, but I was wrong for about 2-3K$ of it. Hence the major disappointment. This is less money to invest.

I want to earn more money to buy more dividend growth stocks, not pay taxes! I guess you have to become an entrepreneur to really feel the sting of those insane tax policies.

Freelance people really have to work harder to retire with the same safety net as say a public servant, no doubt about it. I'm ready, whenever you want to take it up to the streets! Give me a shout.

At least I take comfort in the fact that I've got a strategy. No way I'm counting solely on the government for my old days. I much prefer lending the money to Johnson and Johnson (JNJ) or ATCO (ACO.X).

The problem : Mr. Market isn't co-operating at the moment. I have close to 50K$ sleeping in various accounts. This money is waiting to get to work. But I won't let it if it means eroding its power from the get-go.

And I'm not to keen on those Monetary Funds... The choice is pretty simple : either you invest it and pay the high price for an overvalued stock or you wait on the sideline and you pray for a market correction. I pick the latter. Other option : putting your money in a boring saving accounts at 1.35% with interests on which you will have tax to pay at the end of the fiscal year.

I guess dividend growth investors with my strategy are left waiting at this point. Don't get me wrong, I think all my companies would still do well at their current price level. But, like Benjamin Graham was preaching, I'm trying to minimize my error margin as much as possible by buying at the right price.

Hence the long wait.

I have to say though -- to be completely honest -- that with my periodic investment plan I am regularly buying shares of my RBC American Index Fund every two weeks at a pace of 100 $.  That's 2 600$ a year. By doing so I avoid buying too high (and too low, I guess). And there is no commissions. The MER is 0.72%, which is decent.

If you take a look at my portfolio, you will notice I have collected quite a sum in that fund. More than 5K$. And it did pretty well so far with a yield over 20%. Not bad at all. even for a fund with fees.

Check out some of its major holdings:



How about you guys? Are you sitting this bull market out? Or are you still buying? How about fixing yourself up with a periodic investment plan program like me? Would a similar plan suit your style?

Friday, April 10, 2015

Some sells and some thoughts $SU $ABX $GUD.TO

Hey Financial Freaks,

I haven't been much around lately. But it doesn't mean I don't think about you (I do).

I have been quite busy with contracts. If I want to keep investing and adding up to those dividends, one has to work, right?

You need to strike the iron while it's hot. Because the drought is long sometimes... And so goes life as a freelance.

Am I complaining ? Of course not. I love working from home. No boss, but clients. I can go for a run whenever I feel like it. And how about that coffee from home in the morning? Pure bliss.
I say : what are you waiting for?

Anyway, I haven't made any new buys meanwhile, well not since I bought some ATCO (ACO.X).

However, I did sell some shares.

I sold 20 shares of Suncor, one of my four main holdings, at 39.32$ for a total of 786.40$

This means that I also have to chop 22.40$ worth of dividends off my Passive Income.

My Passive Income total is now : 2917.64$

Am I going to cross that 3K$ mark one day? Fingers crossed...

As you are all aware, it's been kind of hectic in the oil industry lately. I decided I wanted to lower a little bit my stake in these companies.

Suncor was therefore the obvious choice with a weight of more than 6% of my portfolio. Besides, the share price was attractive for a sale.

Suncor is still in the big 4 of my portfolio. And it will remain like this for a while.

Those of you who hate Penny Stocks or Small-caps that dont't pay dividends will surely be happy to see that I sold 33% of my stake in Therapeutic Knights (GUD.to).

The share had a good 24% increased since my initial buy. I figure it would be wise to take a portion of my win and make it work elsewhere in dividend paying stocks. Not sure at the moment in which... With this long bull market I might prefer to keep more cash on hand.

So, I sold 50 shares of GUD.to at 8.21$ for a total of 410.50$

Oups...

I almost forgot to mention that I have sold 25 shares of Barrick Gold at 15.20$ for a total of 380.00$

This means that I also have to chop 5$ worth of dividends off my Passive Income.

Barrick Gold had the honour (or dishonour) to represent the stock I have put the more money in.

Ever.

I have kept putting money in every since it started going down and down and down... and still going down.

I have had enough of this stock, which has cut its dividend a couple of years ago. Where is the light at the end of the tunnel for this company?

It just introduced a new compensation program last year, but it still resulted in Executive Chairman John Thornton being paid $12.9 million. which is way more than in 2013! 

will be voting against Barrick Gold Corp's new executive compensation plan at the next annual meeting. 

Where is activist Bill Hackman when we need him?
Enough is enough.

At this point in time, only a few companies still interest me. ATCO, of course, Bank of Nova Scotia (BNS) and I'd be willing to increase my stake in Fortis (FTS) if the shares drops below 39$.

Time will tell. Time is honey, or is it?

How about you? Are you tired of this never-ending bull market? Can't you wait for these blue-chips companies to be cheap again?