Saturday, December 31, 2016

My December 2017 Dividend Income Summary: $JNJ $VSB $CUF.UN $KHC $ATD.B $ENB $FTS $ACO.X $SU

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

As you can see on my Passive Income pagecompanies (out of 20) chipped in for this month of December. 

This month I managed to collect the pretty decent sum of 435.51$

The amounts are all in Canadian dollars. 

My Dividends came from:

·      1-REIT Cominar (CUF.UN) : 36.75$

·      2-Johnson and Johnson (JNJ) : 138.51$

·      3-Kraft-Heinz (KHC) : 33.88$

·      4-Vanguard VSB : 25.12$

·      5-Fortis (FTS) : 51.20$

·      6-Alimentation Couche-Tard (ATD.B) : 10.80$ 

7-Enbridge (ENB) : 53.00$

·     8-ATCO (ACO.X) : 42.75$

9-Suncor (SU.TO) : 43.50$

My total Dividend paid for 2016 : 


Total Dividend paid since I started Investing :  20 116.07$ + 435.51$ = 20 551.58$

What do you think of my dividend income stream in 2016? 

Happy Holidays and a great start for 2017 to all of you. 

Mr. D!

Monday, December 19, 2016

Failures and Successes : My 2016 Financial Goals

"Everything you want is on the other side of fear." - Jack Canfield

Oh that quote... so true and yet so hard to put into action sometimes.

In 2016, I have set myself Financial Goals...

·     To respect, 75 % of the time, a monthly budget of less than 5 000 $. Last year we tried 5 000$ and almost succeeded. Let's try 5 000$ and hope for the best.

Failed. This goal is pretty hard. I did manage to succeed a few times and meet by monthly goal. But not nearly enough. Oh well, I guess life just came in the way. Will try harder next year.

·     To max out my TSFA and hit the 52 K$ mark. Right now, I have 43 243$ in it. I have room for 5 500$ this year. Let’s assume a yield of around 5-6 % in addition to 1 300$ in dividends. One of my stock is (STILL) slumping (ABX). Hopefully, my other stocks will compensate and pull my portfolio upwards. It should get me to 52 K$ by the end of the year.

Succeeded. I maxed out my TFSA and right now my balance indicates 54 K$. I also had to withdraw 2K$ during the year. I did a few transactions in this account. I got rid of ABX (Barrick Gold) and POT (Potash Corp.) and replace them with Power Financial (PWF) Vanguard VCN and VIU and some Couche-Tard (ATD.B). All in all it did some good to my TFSA.

·     To grow my net worth to 235 K$. I expect a more constant revenue this year. Right now, I have a Net Worth of 205K$ With a yield of 5-6%, that should take me to 217 K$ solely on compounding. With my dividends of about 4K$ and the few new capital money I should add to the mix I expect to close out the year with 235K$.

Failed. This a tricky goal. Technically I have succeeded but the real estate in my city has sort of been on the slow side a little bit. Instead of 315 000$, I decided to change the value of my home to 285 000$ which, in my opinion, is a better reflection of reality according to the recent sells close to my home. If it had not been for this, I would have reached my goal easily. But I prefer to be more conservative. I don’t intend to ever sell my home (maybe rent it) so I don’t really mind. My Net Worth is now 224K$.

·     To hit the 190 K $ mark in my portfolio. Right now I have roughly 162 K$ (you can check it out here). I still have some cash flow to invest. But I wish to invest only in quality stocks I already own (or new ETF’s). I don’t want to add more stocks to my portfolio. I feel I already have enough with 22. The yield of my portfolio will come from compounding (5-6%). I will also keep investing on a bi-monthly basis in a US Index Fund. I will sell some of this fund throughout the year to deploy the money directly in stocks. Money coming from dividends will contribute to my portfolio as I both expect raises and buying more dividend growing shares of companies I own. I should be able to end 2016 with 190 K$.

Succeeded. My portfolio is now closing in on the 200K$ mark. As of today, it totals 196 200$. I know my portfolio page indicates 173 K$ or so but it’s because I don’t mention the money sleeping in my saving accounts (making some interests). So I’m 5K$ over my goal and I’d say it bodes well for 2017 and the 200K$ mark, don’t you?

·     To stay out of debt. I don’t have any bad debt as we speak (apart from the mort-gage, which is a good debt). That's the way we like it. Let’s keep it that way.

Failed. I owe 2,5K$ to my bank. But it’s no big deal as I could easily pay it. I will, it just bugs me to do it.

·     To find another form of investment. A land, a cottage, a new condo, a house, a wood forrest. Anything that diversify our assets.

Failed. Not there yet again.

So, what do you think of my failures and successes this year? What should I do differently? 

Thursday, December 15, 2016

New Buy! Empire Company Limited $EMP.A

Hey Financial Freaks!

It doesn't happen often these days, so I thought I would write something about it: I bought 150 shares of Empire Company Limited. (EMP.A).

EMP.A is a Canadian company headquartered in Stellarton, Nova Scotia. Its key businesses are food retailing and related real estate, through wholly-owned subsidiary Sobeys Inc., and a 41.5% equity accounted interest in Crombie REIT. With $24.4 billion in annualized sales and $8.8 billion in assets, Empire and its subsidiaries, franchisees and affiliates employ approximately 125,000 people. (source : Empire Company Limited).

I have been following this stock on and off for the past years. As you may know, the country’s second-largest grocer has struggled since its 2013 takeover of Safeway Canada. Today, the owner of grocer Sobeys posted another quarter of poor results. Hence the steep drop in its stock price. Hence an opportunity for investors like us.

According to the Globe and Mail, EMP.A said its second-quarter profit slumped by more than half to $33.1-million or 12 cents a share from $68.5-million or 25 cents a share a year earlier. Sales slipped to $5.9-billion from $6.1-billion.

However, I still believe that the company can pull through in the long term and eventually reap the benefit of this acquisition. I like the fact that Empire owns strong businesses in both Food retailing and Real estate, and other operations.

Empire's Investments and other operations segment includes (1) a 41.5 percent equity accounted interest in Crombie REIT, a national Canadian REIT. 

Crombie REIT's strategy is to own and operate a portfolio of primarily high quality grocery and drug store anchored shopping centres and free standing stores in Canada's top 36 markets and (2) various equity accounted interests in real estate partnerships (collectively referred to as “Genstar”). Genstar is a residential property developer with operations in select markets in Ontario, Western Canada and the United States. (source : Investments and Other Operations).

I mentioned in this blog that I wanted to accentuate my exposure to REIT's (other than Cominar). With Empire I do just that while giving me an exposure I didn't have in the grocery sector.

I bought 150 shares of EMP.A at 15.99$ for a total of 2 408.49$ (including commission).

The stock is yielding around 2,55%. It's not high but it's higher than inflation and I believe it can grow over time faster than the latter.

This add 61,50$ to my forward total annual dividend. You can check it out here.

All and I all, I think it remains a bold move, given the strong competition in this sector with the likes of Walmart, Loblaws, Metro and friends.

Although its currently facing strong headwinds, I feel this stock has potential and I prefer buying the stock while it's cheap -- than the other way around. The stock is currently trading at 40% from it's high of the year (27$).

So what do you think of this recent buy? Good, bad, ugly? Do you find it risky or do you think it will nicely pan out over time? I want to hear from you!

Thursday, December 1, 2016

My November Dividend Income Summary: $PWF $VZ $VSB $CUF.UN $RY

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

As you can see on my Passive Income page5 companies chipped in for this month of November. 

It's been a pretty quiet month dividend wise. But I have been more active on the transactions front. Yes, 4 transactions is a lot for me. Remember : we are suppose to buy and hold. (I know it's not easy.)

BuyCUF.UN100$13,95$1 395,00
BuyBCE20$57,50$1 150,00
SellVCN50$30,39$1 519,50
Sell VIU100$23,81$2 381,00

So I made a couple of purchases, namely Cominar (CUF.UN) which is the only REIT I currently hold. I simply bought it to average down my cost per share since the stock has been recently beat down. I am considering buying another REIT with perhaps a greater exposure to the apartments sector. I'm thinking along the line of Boardwalk (BEI.UN) and Canadian Appartment Properties (CAR.UN). Appartements aside, I also like RIO Can REIT (REI.UN). If they drop again by more than 10% I might make a move on either of these fellas.

And, on a rare occasion since I first initiated a position, my telecom stock BCE dropped a little and I decided to scoop 20 shares at 57,50$. The stock is now trading at roughly the same price, but I will wait for another dip before making a move. I am considerably low on telecom exposure. And I know you folks out there are hooked on those so-called smart-phones -- among other things. (Don't deny it, I see you in the subway holding on to dear life to your devices)

I did sell some shares of my Vanguard Index Funds simply because I wanted to keep my portfolio allocation to a perfect 80-20 (between bonds and stocks). In the meantime it provides additional cash in case of a drop in my individual stocks. Asset allocation is key. I can easily do this by selling (or buying -- depending on how the market fluctuates) either some bonds or stocks in my funds. This way I can keep my original settings. If the Market goes up I sell some shares or buy some more bonds. If the Market goes down I buy some more shares or sell some more bonds. Easy peasy.

This month I managed to collect the pretty decent sum of 257.20$

The amounts are all in Canadian dollars. 

My Dividends came from:

·      1-REIT Cominar (CUF.UN) : 30.63$

·      2-Royal Bank of Canada (RY) : 107.90$

·      3-Power Financial (PWF) : 78.50$

·      4-Verizon (VZ) : 19.29$

·      5- Vanguard Canadian Bonds (VSB) : 21,18$

My total Dividend paid for 2016 :  
+177.71$+556.96$+249.23$+257.50 = 3474.43$

Total Dividend paid since I started Investing :  19 858,87$+257.20$ = 20116.07$

What do you think of my dividend income stream?