Welcome to Augusts’s edition of more free money from dividend investing. Before we get started with the portfolio this is what we have been up to while the dividends continue to roll in. 

 

Here are a few things we have been up to:

 

  • Got the stairs on the extended deck and outside trim.
  • Installed some trees.
  • Installed outside trim on the bigger deck and planted 9 feather read grass bushes.
  • Attended a friends wedding.
  • Little Z started swimming lessons.

Here’s are a few pictures

 

Stairs in place just need some wood chips below 

6 small Skyrocket Junipers installed

Bigger deck trim, wood chips and grass bushes

 

Matching………… Trust me it was her idea not mine!

 

Portfolio details:

Well this month was pretty good other than Highliner Foods (HLF) quarterly report. The revenues (On the fish side) have continued to drop, if it wasn’t for the shrimp business that they acquired last year it would have been even worse. They also have potential tariffs coming, due to some of their products that get shipped to China and then shipped back after processing. The good news is they continue to focus some of their fish products to more of a healthier option as they slowly reduce breaded products, were able to find 10 million in annual savings by streamlining the business and the payout ratio is still manageable as long as they can turn things around which means they are paying a very nice dividend.

Sienna living  announced that they are increasing the dividend for the first time since they put one in place from $.90 to $.918 (2%) which although is not a huge increase it’s still a positive sign and more money coming in starting next month.

 

Sold

I sold no dividend stocks this month

 

Purchased

I made one purchase this month

Added position in Power Corporation of Canada by purchasing 50 shares @$29.20

 

Who is Power Corporation of Canada:

Power Corporation of Canada operates as a diversified international management and holding company with interests primarily in the financial services, communications, and other business sectors in Canada, the United States, and Europe. It offers life, health, and reinsurance products and services, as well as retirement, and investment and asset management services; manages and distributes mutual funds and other managed asset products; annuities, executive benefits, and mortgage products; and wealth management services. The company also owns La Presse, the French-language news medium; owns and operates as roof solar power generation and hydropower facilities; and provides equity investment funds, as well as media and healthcare services. In addition, it holds interests in various sectors, such as specialty minerals, cement, aggregates, concrete, testing, inspection, certification sportswear, wines and spirits, materials technology, recycling, oil, gas, alternative energy services. The company was founded in 1925 and is based in Montréal, Canada

My why:

I was looking at adding another insurance company and POW has been on my list for quite sometime. Their PE ratio is 8.7, payout ratio is around 63% and they have an attractive dividend of around 5.5%. PB is around 0.85. They also have secured a new debenture of 250 million at 4.455% due in 2048. This will pay off  the current debenture as of Sept 9 of 250 million at 7.57%, which is a great move by them. Also as interest rates have started to increase I believe this will help increase revenue and profit over the coming quarters. To me they have lagged the competition but may be under looked from a value perspective.

A few resources i have read also were also a factor in my purchase of POW:

  • They made the list on Best Canadian Stocks for 2018 written by author of MoneySense Norm Rothery with a value grade of A and growth grade of B
  • They also made the list from the same group and author on the top 100 Dividend stocks receiving a A. Only 7 of the 100 companies got a A.
  • Article written on twitter by sound bite provided the following information. As of June 8 the graham price was about $48.00 vs current pricing.

This recent purchase will increase the dividends for the remaining of the year by $38.20. Adding the total amount that I already own  we will be able to drip 1 share each quarter starting in September based on current pricing not exceeding $31.32.

 

Dividend increases as well as any dividend cuts

 

January

No dividend increases in January

No dividend cuts this month

February

PLZ.UN increased the dividend from $0.26 to $0.27 which is an increase of 3.85%.

ENF increased the dividend from $2.053 to $2.26 which is an increase of 10.05%.

No dividend cuts this month

March

MFC increased the dividend from $0.82 to $0.88 which is an increase of 7.32%.

XTC increased the dividend from $0.32 to $0.34 which is an increase of 6.25%

No dividend cuts this month

April

FRU increased the dividend from $0.05 to $0.525 which is an increase of 5%

No dividend cuts this month

May

CSH.UN increased the dividend from $0.048 to $0.049 which is an increase of 2.1%, not a huge raise but I’ll take it!

No dividend cuts this month

June

POW.TO increased the dividend from $0.3585 to $0.382 which is an increase of 6.56%

No dividend cuts this month

July

No dividend increases in July

No dividend cuts this month

August

No dividend increases in August

No dividend cuts this month

 

 

2016 – 2017 – 2018 Dividends

This is my best non quarterly month with $120.98 received in dividends.  It is also about 58% higher year over year vs August 2017. The trend line is headed in the right direct and this is bringing me that much closer to my 2018 goal.

 

Dividends received per stock and if they’re set up within the DRIP program

August 2018 Dividend Reinvestment Plan
Chartwell Retirement Residents CSH.UN $6.91 Not enough
Cardinal Energy Ltd CJ.TO $8.82 Yes
Northview Apartment REIT NVU.UN $27.30 Yes
Plaza Retail Reit PLZ.UN $8.63 Yes
Arc Resources Ltd ARX.TO $8.45 Not enough
Alta Gas Ltd ALA.TO $12.23 Not enough
Crescent Point Energy Corp CPG.TO $1.59 Not enough
Enbridge Income Fund Holdings ENF.TO $4.71 Not enough
Extendicare Inc EXE.TO $6.88 Not enough
Freehold Royalties Ltd FRU.TO $5.99 Not enough
Gamehost Inc GH.TO $5.18 Not enough
Sienna SR Living Inc SIA.TO $8.63 Not enough
Superior Plus Corp SPB.TO $8.22 Not enough
Diversified Royalty Corp DIV.TO $0.44 Not enough
Chesswood Group LTD. CHW.TO $7.00 Not enough
Total $120.98

 

Currently sitting on a good chunk of cash and am looking at potentially buying into a bank as I still do not have one in the portfolio, the issue I have is the banks seem so inflated (with good reason) at the moment and would really like to add on a bit of a pullback. Here are the banks and a few others I’m looking at:

BNS, ENB, TD, T, BCE, CSH, MFC

What are you currently watching? 

Any advise or suggestions?

 

Please feel free to leave a comment and be sure to sign up for my blog via email to stay up to date with each post!

 

See you all next month as it should be a awesome month being a quarterly month.

 

Invest in yourself

 

Brian

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Money While You Sleep 2018 August Edition


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8 thoughts on “Money While You Sleep 2018 August Edition

  1. I have CRT.U. I figure Canadian Tire did a good job so might be a winner. I think the annual is .72 cents/yr. I have ENF. Like this one. Hope they don’t merge it. Artis. Good yield. Bought quite a bit of Hydro one. Want to put it to them like they are doing to us lol. Long term, I think it will be a winner. Have a bit of aurora. I keep thinking of Apple,amazon, Microsoft etc and no more watching for me. Got to risk what I’m comfortable with. My goal is 10 to 15K of div income in 4 years when I’m 55 and I’ll retire. I’ve been thinking of switching some of my reits to Northview. With the price of housing and interest rates increasing I think residential reits might be a good bet. Kids are going to have a hard time buying homes. I have a 26 year old still at home with an 80k plus income.

    1. Hey Darrel,

      Hydro One could be a sleeper pick now that old management is out. Your reasoning to buy Northview is exactly why I purchased it myself. All the best to you. Your 4 year goal to retirement is not far away and 55 would be a great time to no longer have to work.

    1. Thanks Jordan
      It always gives me confidence when i hear respected investors like yourself compliment my recent purchase.Maybe it was my idea on the matching outfits haha. Very much appreciated your kind words and support!

  2. Good job. thats exactly what you want good solid YOY increases. I think almost any canadian bank would be worth the investment, then if it pulls back add more. I am looking at adding one or 2 in a awhile but am going to bring up some of my other stocks.

    1. Thanks Doug

      Yes its time to add a bank as there is plenty of room for growth still.

      All the best to you, feel free to share your purchases and I will check out your blog!

    1. Thank you it feels good that the yard is coming together and even better when you know you didn’t hire a contractor to make it look good.

      POW metrics are good from my view as well.

      I appreciate the comments!

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