Month: August 2016

Exchange Income Corp. is a Monthly Dividend Superstar

Maxed Out my Industrials Exposure with EIF.TO

Purchases

On August 9th, I added 42 shares of Exchange Income Corp. (TSX: EIF) to The Dividend Beginner’s portfolio. EIF.TO was reporting earnings on the market close of that day. I figured the results would have been good and took the risk. Net earnings were up 29% Y/Y with a payout ratio of 54% while free cash flow increased 13%; yet the stock price cratered. I’m not worried at all as I have a long time horizon and really enjoy partaking in the business.

I purchased the shares for $34.80, with a trading cost of $6.95 for a total cost basis of $1,468.55 with CIBC Investor’s Edge.

This is the second time I am purchasing shares in EIF, as it was a position I wanted to beef up. EIF is now the second largest position in my portfolio, second to Telus (TSX: T) by a couple hundred dollars. I first bought EIF for it’s generous dividend yield & monthly payouts as well as to increase my exposure to the Industrials sector and away from Financials and Energy.

EIF Now Makes up 8.74% of the Portfolio

Due to my increased stake in EIF, my exposure to the Industrials sector has grown by 3.8%. The financials exposure has come down to 27.4% of my portfolio, bolstered by the recent good earnings coming from the Canadian banks. Energy is now at 21.3%, while the rest are around or below 10%. Sector balancing will be an activity I focus on as I continue to build my portfolio.

Investment Diversification

Dividend Income increased 3.99%

Before Net Increase After
Annual Dividend Income $2,118.86 $84.48 $2,203.34
Monthly Dividend Income $176.57 $7.04 $183.61
Percentage Increase +3.99%

 

July 2016 Dividend Income

Dividends

July was the most pathetic month of investing for The Dividend Beginner. It’s the first time since I began this journey that I did not allocate capital to the markets. While I didn’t notice anything to be much of a buy, I also did not search as much as I usually do and took it easier for the month as I found I was spending too much time doing research and writing and less time living.

While there were no investment activities whatsoever for July, the portfolio continued to pump cash into my accounts which are piling up as I sit on the sideline. The real horror is that my dividend income did not increase at all this month and is a real slow-down in our process. However, considering I’ve still saved the cash – we can make up for this at a later date when equities are looking a little more rosy.

Summary of June Investment Activities

Throughout July, I’ve purchased:

  • nothing

None of my holdings increased their dividends. That’s unfortunate.

None of my holdings reduced their dividends. Great news!

Keep reading

June 2016 Dividend Income

Dividends

As some of you may have noticed, I didn’t post last month and missed reporting on my June investment activities. Considering I want all of this information spread across the blog to keep myself accountable and to keep track of progress, here it is. I will be posting for July this month as well as soon as I get a chance to write.

June was by far the weakest month for me in terms of annual dividend income growth through the entire year so far. It’s in part due to the stock I purchased having a yield much lower than my usual investments. On the bright side, I have been building up a very large cash reserve due to being generally uninterested in the vast amount of stocks on the market as of late.

Summary of June Investment Activities

Throughout June, I’ve purchased:

One of my holdings increased their dividends:

None of my holdings reduced their dividends. Great news!

Keep reading

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Disclaimer

My publishings on dividendbeginner.com references an opinion and is for information or entertainment purposes only. It is not intended to be investment advice. Seek a duly licensed professional for investment advice. I am not responsible for any decisions you make concerning finances, taxes, or investments. You must perform your own research and always take caution when extending capital.