Month: April 2017

Enbridge Income Fund

Making Enbridge Income Fund My Second Largest Holding

Purchases

On April 19th, I added 49 shares of Enbridge Income Fund Holdings (TSE: ENF) to The Dividend Beginner’s portfolio. I purchased the shares at $33.55, with a trading cost of $6.95 for a total investment of $1,650.90.

This pushes my total cost basis for my collection of 142 ENF shares to $4,661.70 (this figure includes comissions).

I previously bought 43 shares in December 2016.

I had also bought 50 shares in my first purchase of ENF over a year ago, in March 2016.

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Corus Entertainment

Buying Corus Entertainment, Yield of 9%

Purchases

On April 7th, I added 55 shares of Corus Entertainment (TSE: CJR.B) to The Dividend Beginner’s portfolio. I purchased the shares at $12.67, with a trading cost of $6.95 for a total investment of $703.80.

As you may notice this is a very small investment compared to my usual purchases of $1,500-$2,000. This is because I consider CJR.B to be a bit of a risk due to it’s industry of media content and with the rise in cable cutting. Since I already own a position of 105 shares, I just added a small bit to increase the position to a total cost basis of $2,007.50.

Yield on cost lowered to 9.09%

With the latest 55 shares I’ve purchased at a cost basis of $703.80, my yield on cost was 8.9%

In my first purchase of 105 shares for a cost basis of $1,303.70, my yield on cost was 9.18%.

Now with 160 shares, my average cost basis is $2,007.50, or $12.55 per share. With an annual dividend of $1.14, my final yield on cost is still a grand 9.09%.

Consumer Discretionary increased to 6.75%

Portfolio exposure to the consumer discretionary sector has increased from 5.59% to 6.75%.

I have only two positions which contribute to my exposure in this sector, which are Corus Entertainment and Wal-Mart.

Portfolio diversification

Dividend Income increased 2.36%

My new shares in Corus Entertainment adds $62.70 to my annual dividend income, or $5.225 averaged per month.

Previously I earned $119.70 per year due to my 105 shares of CJR.B. This accounted for 4.50% of my overall dividend income.

Combining my new annual dividend income with my previous, I now earn $182.40 per year from CJR.B, accounting for 6.70% of overall dividend income. This averages out to $15.20 per month, up from $9.98.

Before Net Increase After
Annual Dividend Income $2,661.71 $62.70 $2,724.41
Monthly Dividend Income $221.81 $5.225
$227.03
Percentage Increase +2.36%
Dividend Income

March 2017 Dividend Income

Dividends

There remains a lot to be desired of current market valuations, but this month around I enjoyed opening a new position in Richard’s Packaging, to increase the diversity of my portfolio and get back to making larger increases to my dividend income through investments after two purchases in low-yielding Apple stock.

This month also marks breaking through $3,000 in life time dividend income.

March marks a full two years of receiving dividend income from the stock market.

If we look over this period on average, having earned $3,050 in the two years I’ve received dividends has added $127 of cash flow through each of those months.

Going forward, I am now averaging $221 per month. A solid foundation has been set to build off.

Summary of March Investment Activities

Throughout March, I’ve purchased:

One of my holdings increased their dividend.

None of my holdings were sold to recuperate capital.

None of my holdings reduced their dividends.

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Richards Packaging

Added $100 in dividends from Richard’s Packaging

Purchases

On March 15th, I added 80 shares of Richard’s Packaging Income Fund to The Dividend Beginner’s portfolio. I purchased the shares at $26.30, with a trading cost of $6.95 for a total investment of $2,110.95.

Reasons I bought Richard’s Packaging

  • Has a 1-year gain of 30%
  • Has a yield of ~5%
  • Pays a monthly dividend
  • Has increased the dividend for a consecutive 3 years
    • Just increased their dividend by 18% in March
  • Is continuing to make all-time highs
  • Provides exposure to the “Basic Materials” sector, of which I had none
  • 2016 payout ratio was 53% (richardspackaging.com)
    • Note that the distributions were return of capital (so I tax shelter this in my TFSA)
    • Management defines payout ratio as distributions and dividends declared over distributable cash flow

Dividend Income increased 4.13%

My new shares in Richard’s Packaging Income Fund add $105.60 to my annual dividend income, or $8.80 per month. RPI.UN has increased their dividend consecutively for 3 years.

Most recently, at the beginning of March, RPI.UN passed an 18% raise to the monthly distribution, from 9.35¢ to 11¢.

Before Net Increase After
Annual Dividend Income
$2,556.11
$105.60
$2,661.71
Monthly Dividend Income $213.01 $8.80
$221.81
Percentage Increase +4.13%
Canadian Natural Resources

CNQ Comes Through with Another 9% Dividend Raise

Dividend Raises

On March 2nd, “Canadian Natural Resources Limited announces its Board of Directors has declared a quarterly cash dividend on its common shares of C$0.275”. (cnrl.com)

This dividend payment compares to the previous quarter’s C$0.25 (paid in January), where it was also increased 8.7%. The quarterly distribution before that was C$0.23, paid in October 2016.

Canadian Natural Resources effectively increased their dividend by 16.4% in back-to-back dividend increases.

CNQ has increased their dividend for 16 consecutive years and I originally bought this name for it’s impressive dividend growth history – they have not let me down. It is my favourite Canadian stock for exposure to the oil exploration industry.

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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.