Dividend Portfolio Update - May 2015

Dividend Portfolio Value

As at May 31, 2015, my dividend portfolio balance is at $21,627.19, up by about $200 from the previous month. I knew that a small correction is coming in May. The Canadian stock market lost about 400 points as many Canadian stocks corrected 5 to 10 percent across the board. The price of oil is trading at the same level as it did a month ago. It’s hard to predict what will happen with oil price as many companies increasing their production to keep up with revenue stream. The price chart of crude oil is below:

My Investment Account (TFSA) 

My TFSA consists of 23 Canadian dividend paying stocks. Most of my stocks pay dividends on monthly basis. This allows me to collect dividends and reinvest them into dividend paying stocks more rapidly. I will pursue my strategy for this year and the next, until I double monthly dividends to $200 per month. Then I will be adding Utilities and Banks to my portfolio.

Dividends

For the month of May, I received a total of $110.03 in dividends vs $87.52 for the same period a year ago. That's an increase of $22.51 or 25% on year-over-year basis. My total Year-to-Date dividend income for 2015 is $545.79. All dividends are reinvested back into dividend paying stocks.

Contributions

During the month of May, I contributed $800 to my TFSA. My objective for 2015 is to contribute $6,000. So far, the total contribution for 2015 is $4,000. If I continue to put $800 per month, I will reach my contribution objective by August 2015.

Transactions

Student Transportation (STB.TO)

I bought 60 shares of STB at $6.35 per share. I decided to take advantage of a recent pullback in share price. The Company is a provider of school bus transportation services in North America, operating more than 12,000 vehicles in over 300 school districts. At the current price, STB offers a 9% dividend yield and this purchase will bring additional $2.78 per month in dividend income.

Greenville Strategic Royalty Corp (GRC.V)

I bought 600 shares of GRC at $0.89 per share. This is not a typical name that I buy for my portfolio, but I was looking at it for a long time and since the company started to pay a dividend in March, I decided to jump in because now the stock qualifies for my portfolio. They provide financing to companies that can’t get bank financing, and they take a royalty on the sales. Their payback on these investments is 4 years, and the return on the investments is about 25%. The guys running this are very experienced and are deploying the money effectively. I will accumulate more shares throughout the year. The dividend yield is about 5.5% and this purchase will bring additional $2.50 per month in dividend income.