Recent Purchase: Medical Facilities (DR.TO)

Today I doubled my position in Medicial Faciliaties. I started to buy this stock last month and was looking to add more this month. Now it’s trading a few bucks cheaper so I picked up another 80 shares of DR.TO for $12.83 per share. 

My plan is to hold them until they reach $20 again and then I will trim my position in half. While I wait I will collect 7.5% dividend. Usually this stock yields 5% when it trades at $20, but because the stock price is low, the dividend yield looks high. The current payout ratio is 70% so the dividend looks safe.

2018 TFSA Contributions

My monthly contributions towards my TFSA account will be reduced from $800 per month to $700 per month, starting next year.

Here’s why

My cumulative TFSA contribution is almost maxed out. At the end of 2017 I will have $3,800 of unused contribution room that will be carried over to the next year. If the annual TFSA contribution limit will remain the same, then next year I will put $700 per month in my TFSA account. This way I will reach my maximum at the end of 2018 and will have an equal amount of capital to invest every month.

What is TFSA?
TFSA or Tax Free Savings Account is a flexible savings account designed for Canadians. Investment income such as capital gains and dividends earned inside a TFSA is not taxed, even when withdrawn. TFSA contributions are not tax deductible, therefore cannot reduce your taxable income. Investment losses are not tax deductible either. The current annual contribution limit is $5,500. Any unused contributions are carried forward to the next year.

TFSA Contribution Limit
Annual Limit
Total Limit

TFSA Cumulative Contribution Room since 2009
$52,000 – meaning any Canadian who was at least 18 years old in 2009, can open a TFSA account and fund it with $52,000 and start earning income – tax free!

Portfolio Value Update - October 2017

Welcome to my monthly portfolio update. The month of October just passed by and it’s time for me to report my progress. To my surprise, October was a very good month because some of my stocks have appreciated very well. The biggest influencers were Magna (MG.TO) and Diversified Royalty (DIV.TO). These stocks have added significant value to my portfolio while rallying to their all-time highs. Let’s see for how long they can keep up with momentum.

Portfolio Value
As of October 31, 2017 my investment portfolio balance stood at $49,405.03. That’s an increase of $1,779.29 from last month. So far, it was the best performing month of the year. I’m getting very close of reaching my goal of $50K portfolio value.

Dividend income is a passive income for which I don’t have to work for. I simply invest in different corporations and collect dividends for owning the stock. In October, I received a total of $219.73 in dividends vs $190.03 for the same period a year ago. That's an increase of $29.70 or 15% on year-over-year basis. My cumulative dividend income for this year is $2,138.92. That’s more than total dividends received in 2016.

In October, I added $800 of fresh capital to my TFSA account. The maximum amount that I can contribute in 2017 is $5,500. Since I have contribution room from prior years, I will continue to add $800 per month until I reach my maximum contribution.

My Investment Account (TFSA)
My portfolio consists of 30 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.

On October 19, 2017 I purchased 80 shares of Medical Facilities (DR.TO) @ $14.15 per share. Medical Facilities is an interesting surgical company. They own controlling interest in five surgical facilities in the US.

I used to own this company in the past. Usually, I buy this company at around $14 and sell at around $18. So for me, this is a trading stock, rather than a long-term investment. The growth is limited, but it pays a nice monthly dividend.

A year ago, the stock was trading at $21 per share. Then it started to decline and when it reached $14 level, I got interested in it again. So I bought my first tranche of shares and plan to hold them until they reach $20 again. If the stock price goes down even more, I will buy a second tranche.

Medical Facilities is paying out a monthly dividend of $0.0938 per share. With my addition of 80 shares, I will be getting $7.50 per month in dividends.

Online Income
Here’s the break-down of other online income during the month.
  • PTC Sites: $16.07
  • Surveys: $7.00
  • Adsense: $5.49

Total income from online sources: $28.56

My earnings from PTC sites and surveys are slightly higher compared to last month. My adsense revenue is lower this month because I uploaded fewer videos for my YouTube channel.