Money While You Sleep 2018 August Edition

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.