Welcome to June’s edition of money while you sleep. In Alberta we are basically fully open which is really nice to see. We had a really good month in regards to monthly return and dividends, I’ll get into that in a bit. Here are a few things we have been up to.

  • We unfortunately had to say goodbye to our puppy MJ, she had heart failure that started about 16 months ago and gave us more time than they had told us. We will miss her deeply!
  • Z wrapped up her year end dance events and we couldn’t be more proud.
  • C celebrated his 5th birthday, what a blast to have him as a son.
  • Z wrapped up Grade 3 and C finished pre-school.
  • C had his first dentist visit and had a good experience.
Last family picture with our beautiful MJ
Z’s last day of grade 3
C so far loving the dentist
Celebrating Z’s dance season online, in the field and in the studio
Little man woke up to his birthday gift
Batter up

Portfolio details:

This month our portfolio performed well. We added to one company and will get into that below. The TSX rose from 19731 on June 1 to 20165 on June 30 which was a return of 2.2%. We beat the mark as we came in at 3.4% as growth stocks saw a pretty strong rebound month over month.

Quick trades:

No quick trades in the month.

Please note: I only do this with companies I’m comfortable holding for a long period of time.

Sold:

No Sells

Bought:

Added to our AQN.TO position by purchasing 40 more shares at $18.75 in our RESP account

Who is AQN:

Algonquin Power & Utilities Corp., through its subsidiaries, owns and operates a portfolio of regulated and non-regulated generation, distribution, and transmission utility assets in Canada, the United States, Chile, and Bermuda. It generates and sells electrical energy through non-regulated renewable and clean energy power generation facilities. The company also owns and operates hydroelectric, wind, solar, and thermal facilities with generating capacity of approximately 2.1 gigawatt; and regulated electric, natural gas, water distribution, and wastewater collection utility systems. It serves approximately 306,000 electric connections; 371,000 natural gas connections; and 409,000 regulated water distribution and wastewater collection utility systems in the states of California, New Hampshire, Missouri, Kansas, Oklahoma, Arkansas, Georgia, Illinois, Iowa, Massachusetts, New York, Arizona, Texas, and the Province of New Brunswick. The company was incorporated in 1988 and is headquartered in Oakville, Canada.

Our why:

AQN gives you a nice mix of utilities and renewable energy. Over the last several months it has been flat mainly due to the issues that occurred in Texas however long term we really like what they offer. They recently increased the yield by 10%, carry a PE ratio around 10 well below their 5 year average of 23 and as the world continues to shift to more renewables AQN gives you stability moving forward.

Dividend increases and decreases

  • No increases or decreases this month!

2016 – 2021 Dividends received

June dividends came in at $350.75 which is an increase over June of last year of 19.49%. We set a 2021 goal of receiving $3,100. We are not only on pace to hit that target but beat it by more than 16% thanks to some dividend increases and new contributions. If the banks and insurance companies can get the green light to increase in November we could see and even larger number.

Dividends received

Stock ListDividendDripAccount
FRU.TO$4.68NoTFSA 1
EXE.TO$7.44Not this month due to stock priceTFSA 1
CSH.UN$16.22YesTFSA 1
ALA.TO$5.58NoTFSA 1
PLZ.UN$10.31YesTFSA 1
NPI.TO$14.10NoTFSA 1
SIS.TO$5.40NoTFSA 1
EIF.TO$6.84NoTFSA 1
FTS.TO$32.83NoTFSA 1
ABX.TO$37.29NoTFSA 2
RUS.TO$42.18YesTFSA 1
ENB.TO67.64YesTFSA 1
XTC.TO32.90YesTFSA 1
SU.TO13.86NoTFSA 1
Total:$350.75

Current economy conditions

Canada unemployment rates % have now started to fall which seems obvious due to Canada starting to open for business. As you can see from the chart below we hit unemployment of 7.8% .Government funding from Covid should stop mostly by the 4th quarter..

Gold Prices

Gold is hanging out around $1,800 USD. I know that Governments have come out and said that inflation is not an issue however anyone who is making their daily purchases may disagree with this, including me. I see Gold outperforming in the second half of the year. I’d expect we will see similar patterns in other precious metals.

Market

My opinion hasn’t changed since last month as we see the economy start to open in many places around the globe. Some sectors that have been struggling through Covid, should now see increased revenues for the foreseeable future. As the economy opens fully and prices get back to normal with less shortages we may see revenues lag in 2022 but that remains to be seen. It will be very important to continue to watch the financials of the companies you own or that are on your watch list as sometimes an increase in revenue does not mean net income will be improve as many companies took on a pile of debt just to get through the pandemic. I see shortages getting back to normal late in the year.

Sectors I like

  • Financials
  • Communications
  • Healthcare
  • Technology
  • Utilities
  • Basic metals
  • Renewables

Current watch list

  • Telus
  • Enbridge
  • Verizon
  • Algonquin Power and Utilities Corp
  • Brookfield Renewable Partners L.P.
  • Fortis

Thanks for reading and feel free to leave a comment!

Invest in yourself

Brian

Disclosure:  I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. Please ensure you do your own research.

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Money While You Sleep 2021 June Edition


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