Dividend Portfolio Update - June 2015

Dividend Portfolio Value
As at June 30, 2015, my dividend portfolio balance is at $21,694.09, up by about $60 from the previous month. My monthly contribution of $800 offset some losses following the stock market decline. Things got worse on June 29 when Greece’s debt crisis span out of control. The banks in Greece are closed until July 6th and the government imposed a capital control. In Canada, the TSX lost 318 points that day but regained some value the next day.

TSX lost 600 points in June 2015

The price of oil was trading sideways for the month of June. We saw some crude inventories dropping and strong consumer demand as summer driving season kicked in. But this was not enough to keep the price of oil to the upside. I think there will be more weakness in oil prices for a few months. I plan to buy oil stocks this fall or once the double dip occurs again.

My Investment Account (TFSA)
My TFSA consists of 24 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.

In June, I received a total of $117.96 in dividends vs $87.54 for the same period a year ago. That's an increase of $30.42 or 35% on year-over-year basis. My total Year-to-Date dividend income for 2015 is $663.75. My dividend goal for 2015 is to receive $1,400. All dividends are reinvested back into dividend paying stocks.

In June, I contributed $800 to my TFSA. My objective for 2015 is to contribute $6,000. So far I contributed $4,800 since January 2015. Since the TFSA contribution limit was raised to $10,000 per year, I might continue to contribute the same amount until the end of the year.

Student Transportation (STB.TO)
I bought 60 shares of STB at $6.02 per share. I decided to take advantage of a recent pullback in share price. Whenever the price reaches $6, I’m a buyer of this stock. But this happens very rarely, once every 2-3 years. Insiders are buying too. 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.

Diversified Royalty Corp (DIV.TO)

I bought 160 shares of DIV at $3.09 per share. The company has a royalty stream in the restaurant chain primarily located in Western Canada. Recently they announced a new royalty acquisition from Sutton Group. They purchased their intellectual rights and leasing the rights back to them. The management has a long track record in royalty streams. I hope that this company will grow into a bigger story. The dividend yield is about 6.39% and this purchase will bring additional $2.51 per month in dividend income.

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