Tuesday, May 30, 2017

My May Dividend Income Summary + Latest buys : $BNS $RY $PWF $VZ...

Hey Personal Financial Freaks! This is my fifth Dividend Income Summary for 2017. 

As you can see on my Passive Income page, only 6 companies chipped in for this month. May is a slow month but, what can I say.  money coming in is... well it's money and it's fine by me!

So although May is a quiet month I still managed to collect 283.42$

The amounts are all in Canadian dollars. 

My Dividends came from:

               REIT Cominar (CUF.UN) : 42.88$ (I am now overweight on CUF.UN. I had to buy some lately to average down my price/share ratio. See below my explanation);

              Vanguard Canadian Short-Term Bond Index ETF (VSB) : 17.68$ (VSB provide a steady and safe dividend income stream. This number will grow. I intend to increase my position over time)

              Verizon (VZ) : 19.62$ (One of those stocks I wish I had more.. I will if the stock price goes  down and the Canadian dollar goes up... Waiting for the latter!)

             Royal Bank of Canada (RY) : 113.10$ (My 2nd biggest financial position. A keeper.)

             Power Financial (PWF) : 82.50$. (My fourth biggest financial/insurance position. A keeper.)

             Rio Can REIT (REI.UN) : 7.64$  (A new comer and my second REIT overall. Can't say I abuse of those juicy divvy payers)

My total Dividend paid for 2017 :  260,30$ + 264.24$ + 556.30+278.54$+283.42 = 1642.80$ 


Latest buys and thoughts
  • I mentioned on Twitter how I hardly really purchased anything (nor sell) this year. Well, against the saying "Sell in May and go away"  I have decided to make my moves on some stocks. So it's more like "Buy in May, don't shy away". (Trying to be poetic here. Geez!).
  • If you follow me from time to time (do not stalk me!), you must know by now that my strategy consist of holding not more than 20 stocks (maybe 25... Geez, you are so stock up!)  or so and invest in those companies when there is a fallout of at least 10% from their year high. 
  • So basically I own companies I know well and that do pretty well too... And A) I buy them again on the dips and I hold on to them as long as possible and I collect their dividends. And I start all over again (see point A).
  • But I realized over the past couples of years (bull market) that such a fallout (of more than 10%) doesn't happen every month. You have to learn to be patient and pull the trigger when time comes. 
  • Time came and I pulled the trigger (a little bit). 
  • On Power Financial, notably. This Insurance conglomerate has been slumping for the past 6-7 years. However, I like the way they handle their business : very conservatively. They have a long time plan and stick to it no matter what Mr. Market says or does. They have increased their dividend for the past 3 years after a hiatus of 4-5 years following the Financial crisis. The stock is currently trading with a 5% yield! Yes they are selling expensive mutual funds (like all banks!) through Investors Group and MacKenzie Investments but they are also selling Index funds nowadays (heard of those products?) and, even better, they have entered the Robot-adviser big potential market with WealthSimple. Besides all of this, I really like their insurance companies. Does Great West Life, London Life, Canada Life or Irish Life rings a bell? It's owned by PWF! Oh, and did I mention they hold stakes in Pernod Ricard and Adidas among other companies? Check out their empire here
  • I have added some Enbridge too. I first initiated a position two years ago. And I was hoping I could increase it eventually. After a 12% drop this year, I thought it was the right time to make a small move. I will increase it further if it drops some more. My exposure to the energy sector is kind of low. 
  • I have added some Cominar like I said previously. The board of the company said it was maintaining its current distribution (1.47$/unit). But the yield remains dangerously high (above 10%). I will keep an eye on it. But since the stocks has dropped more than 40%, I thought I could either wait or make a move and try to average down my share/price. I did the latter. I now hold 400 units. I will leave it like that for now.
  • I have been known here not to chase yield at all cost. Hence my reluctance to jump with both feets in the REIT train. But I always felt a little bit of exposure to it was wise. Rio Can and Canadian Apartments are two REIT's I like. Unfortunately, only the former was selling cheap lately. I bought some REI.UN at the beginning of the year. Then the price dropped some more and I bought some again this month. I have now exposure to the industrial and commercial real estates. CAR.UN will eventually fill the residential spot I am missing. Patience is always key.
  • Finally, I have decided to add some stocks of Bank of Nova Scotia. This is now my #1 financial investment. (close tie with Royal Bank). Why more BNS? Because it's a Canadian bank with a large international exposure and it's doing very well (check their latest quarter). It's pretty safe and reliable. Why 19 stocks? To make it even at 170! (anymore questions? no you don't!)
  • All in all I have added this month almost 300$ in my forward dividend tally. Katching. Like I said, "Buy in May, don't shy away!". 


NameTicker#PriceTotal DividendDivvy added/ year
Power FinancialPWF50$32.74$1,637.00$1.65$82.50
EnbridgeENB20$52.79$1,055.80$2.44$48.80
Rio CanREI.UN25$25.24$631.00$1.41$35.25
Cominar CUF.UN50$13.24$662.00$1.47$73.50
Bank of Nova ScotiaBNS19$75.43$1,433.17$3.04$57.76
$297.81


What do you think of my dividend income stream? And my new buys?

9 comments:

  1. Some strong buys in May...definitely not shying away :)

    Looks like June is shaping up to be another big month for you dividend wise. A nice way to kick off the summer!

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  2. Hey Buddy! Thanks for the kind words. Yeah I'm happy with my buys. Will see how it goes. They will probably drop some more. It happens all the time when I buy something! ;-) Can't wait for June not as much for the dividends but for some nice weather... ;)

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  3. Hey great monthly income. Good strategy as well. Hmmm I've been told to invest in power financial before didn't realise it was down so much. 5% yield sounds good!
    Cheers

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  4. Hey great monthly income. Good strategy as well. Hmmm I've been told to invest in power financial before didn't realise it was down so much. 5% yield sounds good!
    Cheers

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    1. Thanks man! Yeah I kind of like POW and PWF as you can tell. Thanks for the good word. ;-)

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  5. Very nicely done, you should be pretty happy with that, very well done to you!

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  6. Thanks BHL. It's an ok performance for this month. But money is money, right! ;-)

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  7. Lots of activity going on and good buy. That will add a lot of passive income. Nice work.

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    1. Thanks Dividend Daze. Yeah, it's been a pretty busy month. A lot of fresh new capital invested. ;-)

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Thanks a lot for your comment.