Category: Purchases

exchange income corp logo

Exchange Income Corp. Flies to Top Portfolio Position

Purchases

On May 3rd, I added 33 shares of Exchange Income Corp. (TSE: EIF) to The Dividend Beginner’s portfolio.

I purchased the shares at $33.75, with a trading cost of $6.95 for a total investment of $1120.70.

This pushes my total cost basis for my collection of 150 EIF shares to $5,014.95 (includes commissions).

My last purchase was in August 2016, where I purchased 42 shares of EIF.

Originally I had opened this position in May 11 of 2016, with a starting 75 shares of EIF.

Keep reading

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.

Keep reading

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%
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%
Apple Technology

I Doubled My Apple Position Post-Earnings

Purchases

On February 8th, I added 11 shares of Apple (NADSAQ: AAPL) to The Dividend Beginner’s portfolio. I purchased the shares at $131.75, with a trading cost of $6.95 for a total investment of $1,456.20. Unfortunately this was all the $USD that I had left in my account.

To add more U.S. stocks to my portfolio I’ll have to convert my $CAD at an awful rate… still, I see much more growth coming out of the U.S. than Canada, at least in the near term. I also don’t see very much upside to our currency other than if there was a sudden large increase in the price of oil, while the U.S. will have lower taxes and higher rates propel it’s dollar.

Apple posts record results

Apple, in it’s 2017 Q1 press release announced they had, “posted all-time record quarterly revenue of $78.4 billion and all-time record quarterly earnings per diluted share of $3.36. These results compare to revenue of $75.9 billion and earnings per diluted share of $3.28 in the year-ago quarter.” (apple.com)

While I had high conviction at the complete end of 2016, when I first bought Apple stock – my first tech investment – the great results made me even more optimistic on this name. There are many catalysts that can propel Apple’s share price and total returns, and you can check out those reasons in my previous article.

Pushing all-time highs

While many were touting that the stock price had already increased so much and it was dangerous, it continued to climb and is now at $135.72; and I don’t see it stopping. Even though it just recently pushed all time-highs, that’s the way things are supposed to go. From one high to the next. It appears Warren Buffett quadrupled his investment in Apple in the last quarter, it was discovered from his filings.

Apple is a growth play for me as the dividend is below 2% (1.68% right now), while the majority of my portfolio yields 4% – 6%+. Not to mention, being a Canadian, I am automatically deducted 15% in U.S. tax withholding on those dividends.

Yield on cost lowered to 1.83%

By purchasing the last 11 shares for a cost basis of $1,456.20, my yield on cost was 1.72%.

In my first purchase of Apple last month for 12 shares at a cost basis of $1,409.39 , my yield on cost was originally 1.94%

Now with 23 shares and an average cost basis of $2,865.71 – $124.60 per share. With an annual dividend of $2.28, my final yield on cost is a paltry 1.83%.

This $US position is worth $3,752.79 CAD, the 4th largest position in my portfolio.

Dividend Income increased 1%

My new shares in Apple Inc. add $25.08 USD to my annual dividend income, or $2.09 averaged per month. AAPL has increased their dividend consecutively for 4 years since it was reinstated in 2012 after being cut in 1995. The corporation maintains a very conservative payout ratio of 26.68%, and shouldn’t have any problem increasing it for years to come.

Before Net Increase After
Annual Dividend Income $2,516.99 $25.08 $2,542.07
Monthly Dividend Income $209.75 $2.09 $211.84
Percentage Increase +1.00%
YTD Increase +1.70%

Keep in mind. When calculating my annual / monthly dividend income, I use a 1 : 1 ratio for converting USD to CAD to keep it simple (it also keeps things even more conservative).

Apple Technology

My First Tech. Investment: Apple (AAPL)

Purchases

On December 28, I initiated a position in Apple Inc. (NASDAQ:AAPL). I purchased 12 shares of AAPL for $116.87 each, with a trading cost of $6.95 for a total investment of $1,409.39 USD.

Interestingly enough, this was my one and only U.S. stock purchase for the year of 2016. I converted a bit more of my CAD to USD at the same time because I need some more geographic diversification to my portfolio, as well as the fact that the U.S. market has much larger corporations which address a niche simply not available for purchase through the Toronto Exchange.

Keep reading

TransAlta Renewables

Attaining over $200 a month thanks to TransAlta Renewables (RNW)

Purchases

On December 23rd, I added 110 shares of TransAlta Renewables Inc. (TSE: RNW) to The Dividend Beginner’s portfolio. This time around I paid $14.15 per share, whereas I first invested in RNW in May for $12.32 a share.

Renewable energy in Canada has a good deal of tax subsidies and with energy becoming more expensive again, it will be worth it to continue investing in these technologies. I like TransAlta Renewables as it does this, and stands under a more mature parent company, TransAlta Corporation where it receives many drop-downs. In essence, it could be classified as a yieldco at this point, just like my previous investment in Enbridge Income Fund Holdings.

Keep reading

Enbridge Income Fund

Scooped up More Enbridge Income Fund Holdings (ENF)

Purchases

On December 19th, I added 43 shares of Enbridge Income Fund Holdings. (TSX: ENF) to The Dividend Beginner’s portfolio.

With Trump taking the reins soon and interest rates going up again, I’ve modified my approach a little bit, as I look into sectors which may benefit as a result. According to CIBC,

If history is any indicator, should U.S. rates continue to rise steadily, as anticipated by CIBC Economics, then the cyclical sectors – technology, energy, consumer discretionary, industrials & materials – should fare far better than defensive sectors – consumer staples, telecom, health care & utilities.

While I have not yet decided whether I want to increase my exposure to oil development, I thought that ENF would provide a much less risky attempt at gaining some income from this environment.

This is the second time I invest in ENF, as it’s a nice way to extract very decent income on a monthly basis from a great parent company, Enbridge. I’m not so much a fan of the metrics that ENB boasts, but do like where the company is going. So, for the time being, I parked some money into ENF.

Yield on cost lowered to 5.76%

Considering I paid $34.80 per share of Enbridge Income Fund Holdings, I scored a yield of 5.36%, paid out monthly.

I first bought 50 shares of ENF in March for $30.01, which was a yield on cost of 6.22%. Factoring in my transaction costs, I now have a total cost basis of $3,010.80 for 93 shares. With the annual dividend of $1.866, my shares bring in $173.54 of income. All in all, this equals a total yield on cost of 5.76%.

Dividend Income increased 3.50%

Before Net Increase After
Annual Dividend Income $2,295.24 $80.24 $2,375.48
Monthly Dividend Income $191.27 $6.69 $197.96
Percentage Increase +3.50%
Alaris Royalty Corp.

Stocking up on Alaris Royalty (AD) for the 4th Time

Purchases

After selling my position in SNC to claim my first ever stock profit, I reinvested the proceeds into one of my favourite income generating assets, Alaris Royalty Corp., which already makes up a big chunk of The Dividend Beginner portfolio.

On October 3rd, I bought 55 more shares of Alaris Royalty for $22.59, with a trading cost of $6.95 for a total investment of $1,249.40. My position is now 225 shares of Alaris, which holds a market value of $4,968.00.

This is the fourth time I’m purchasing shares in AD, below is a summary of my purchase history of Alaris shares.

Date Shares Price Value
Oct 3 2016 55 $22.59 $1,249.40
April 7 2016 50 $29.20 $1,467.95
Jan 15 2016 60 $22.00 $1,326.95
Nov 9 2015 60 $24.80 $1,494.95

Keep reading

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%

 

  • 1
  • 2
  • 4

Archives




Finance Blogs

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.