Dividend Portfolio Update - August 2015

Dividend Portfolio Value
As at August 31, 2015, my dividend portfolio balance is at $21,208.22, down by about $400 from previous month. But this doesn’t bother me because I was able to buy stocks cheaper. The month of August was very volatile. The TSX plunged from high of 14,500 points, all the way down to 12,750 points. But then it recovered very quickly in a similar fashion as it did a month ago. It’s hard to forecast for the next month, but the chart looks very bearish short to mid term. For long term investors like me, this is definitely a shopping time while everything is on sale. I’m not ready to invest into energy stocks yet. But when I am, I will start with royalty names such as FRU.TO and PSK.TO.

Oil prices in focus again. TSX is a heavily resource Canadian market place so its performance depends on commodity prices. You can easily see the correlation between TSX performance and oil prices. Last month I was predicting that oil prices are heading to test the previous low of $43 level. The sell off was more brutal than expected, but then the price of oil recovered by $10 from its low. The 50 day moving average and 200 day moving average represent a serious resistance. I expect some profit taking because the recovery happened to quickly.

My Investment Account (Tax Free Savings Account)
My TFSA consists of 21 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.

In August, I received a total of $130.29 in dividends vs $88.65 for the same period a year ago. That's an increase of $41.64 or 47% on year-over-year basis. My total Year-to-Date dividend income for 2015 is $935.46. My dividend goal for 2015 is to receive $1,400. All dividends are reinvested back into dividend paying stocks.

In August, I added $800 of fresh capital to my account. So far my total contribution for 2015 reached $6,400. My priority is to maximize my TFSA account each year. The current TFSA contribution limit is $10,000 per year.

August was another busy month for me in terms of capital redeployment. Usually I don’t sell stocks unless they become really expensive or there’s a better opportunity elsewhere.

I decided to get rid of New Flyer Industries (NFI.TO) primarily to preserve capital gains. The stock did not participate in market correction, got very expensive and was heavily recommended on the market show at BNN. My purchase price was $11.35 and I sold it for $19.58 on August 19th. A few days later the stock price dropped to $16.50 and then recovered back to $19 level. I look forward getting back into the stock at a cheaper price.

Sienna Senior Living(SIA.TO), formally Leisureworld (LW.TO) Senior Care was another stock that I dumped for the similar reasons. My capital gain was about 25% plus dividends. If the stock pulls back to $12 level I will consider getting back in. If not, then I will buy Chartwell Senior Living (CSH.UN.TO).

Sold NFI.TO 50 shares at $19.58 per share
Sold SIA.TO 80 shares at $15.60 per share
Bought GRC.V 600 shares at $0.65 per share
Bought PLZ.UN.TO 100 shares at $4.31 per share
Bought AD.TO 30 shares at $27.65 per share
Bought DR.TO 20 shares at 15.91 per share
Bought FN.TO 50 shares at 17.70 per share

1 comment:

  1. Congratulations on your dividend income and nice increase over last year. I like your outlook in this somewhat volatile market. Looking forward to seeing how you end the year.