Portfolio Value Update - June 2018

Portfolio Value
As of June 30, 2018 my investment portfolio balance stood at $58,721.06. That’s an increase of $1,065.86 from last month. The main increase came from fresh capital contribution and dividends, not so much from stocks appreciation. My portfolio value is getting closer and closer to 60K milestone. Hope to get there next month, but a lot will depend on market performance.



Dividends
New Record! In June, I received $280.41 in dividends vs $233.57 for the same period a year ago. That's an increase of $46.84 or 20% on year-over-year basis. My total year-to-date dividend income is $1,519.04



Contributions
Every month I transfer $700 of fresh capital to my TFSA account. I plan to keep that pace until the end of the year. Next year I will adjust my contributions, depending on 2019 TFSA limit. 



Transactions
In June, I purchased 75 shares of Pizza Pizza Royalty at $12.36 per share. This is my first tranche. If the stock continues to trade below $13 in the coming months, then I will buy a second tranche. Ideally, I would like to have around 250 shares of PZA in my portfolio. This purchase should add around $5 to my monthly income which will cover two slices of pizza and a coke.

Recent Stock Purchase - Pizza Pizza Royalty

Here’s the update on my recent stock purchase. Today I started a new position in Pizza Pizza Royalty Corp (PZA.TO). PPRC is a royalty pool that collects 6% royalties from Pizza Pizza restaurants and 9% royalty from Pizza 73 restaurants. The stock currently pays 7% dividend and trades a little more than its book value.

I used to own PZA shares in the past but sold all my shares at around $17. I made a good profit back then and kept the stock in my watchlist in case it drops to its lows. Right now the stock trades under $13 so it’s the perfect timing to get back in the game.

I purchased 75 PZA shares at $12.36 per shares. This is my first tranche. If the stock continues to trade below $13 in the coming months, then I will buy a second tranche. Ideally, I would like to have around 250 shares of PZA in my portfolio.

This purchase should add around $5 to my monthly income which will cover two slices of pizza and a coke. Not bad!! Let me know if you are familiar with this stock and if it was a good entry point under $13.


Portfolio Value Update - May 2018

Portfolio Value
As of May 31, 2018 my investment portfolio balance stood at $57,655.20. That’s an increase of $1,882.70 from last month. This is getting exciting as I’m getting close to 60K milestone. So far, May was the best performing month of the year. For the second month in a row, Magna (MG.TO) was the best performing stock, increasing in value by another 9%. 




Dividends
In May, I received $244.06 in dividends vs $200.91 for the same period a year ago. That's an increase of $43.15 or 21% on year-over-year basis. My total year-to-date dividend income is $1,238.63. May dividends are slightly lower than it should be because I did not receive the dividend from Student Transportation. The company was in the process of sale so there was no ex-dividend date in April.



Contributions
Every month I transfer $700 of fresh capital to my TFSA account. I plan to keep that pace until the end of the year. Next year I will adjust my contributions, depending on 2019 TFSA limit. 



Transactions
Sold 340 shares of Student Transportation (STB.TO) for $9.48 per share
Bought 110 shares of CT REIT (CRT.UN.TO) for $13.26 per share
Bought 75 shares of Riocan REIT (REI.UN.TO) for $23.42 per share
Bought 55 shares of Alaris Royalty (AD.TO) for $16.53 per share

Recent Purchase: Alaris Royalty

New funds are now deposited to my investment account so it’s time to put that money to work. Today I purchased 55 shares of Alaris Royalty (AD.TO) for $16.53 per share. I’m a few days late on this purchase because last week they were just under $16, but I did not have the funds available. My total position in Alaris now consists of 195 shares with the market value of $3,159. With the recent purchase, my monthly dividend income will increase by $7.40.

About the company
Alaris provides capital to private businesses in return of royalty payments. The company currently has 15 income streams with $98 million in annual revenue. Alaris has approximately 80% of its fair value of investments in US based companies; 49% of invested dollars are exposed to business services, 40% to industrials, and 11% to consumer products and services.

Dividend History and Sustainability
  • Current dividend per share of $0.135 per month ($1.62 annual)
  • 10 consecutive dividend increases totalling 93% gross increase
  • Current annualized payout ratio at ~90%
  • Included in the Canadian Dividend Aristocrats Index

Recent Purchase: CT & RioCan REITs

My Student Transportation (STB.TO) shares got sold last week and I received about $3,200 for my 340 shares. I will certainly miss this holding in my portfolio. It was one of those recession proof stock with good monthly dividend. 

I decided to use the cash and add to my existing positions instead of buying new companies. So I bought two reliable REITs to strengthen my portfolio. 

CT REIT


My first buy was CT Reit (CRT.UN.TO). I doubled my holding by adding 110 shares at $13.26 per share. They mainly lease properties to Canadian Tire stores and I feel very comfortable about Canadian Tire business model and growth. The dividend yield is 5.5% and they pay every month. This purchase will add $6.67 to my monthly dividend income. 

RIOCAN REIT


My second buy was RioCan Reit (REI.UN.TO). I almost doubled my holding by adding 75 shares at $23.42 per share. RioCan is the largest reit in Canada which owes 289 properties. Riocan also pays out every month and their dividend yield is 6.15%. The yield is slightly higher to its historical average, but that’s because the share price is low. This purchase will add $9.00 to my monthly dividend income.


Well, here goes my capital rotation! Happy investing, guys!