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.

Dividends

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.

Contributions

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.

Transactions

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 19^th. 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

Dividend Portfolio Update - July 2015

Dividend Portfolio Value

As at July 31, 2015, my dividend portfolio balance is at $21,628.99, practically unchanged from the previous month. The Canadian market experienced a lot of volatility in July, but then recovered most of the losses right before the month end. This could be a beginning of a summer rally which usually lasts until the end of September. The banks might help to push the TSX higher, but the energy sector will cap the gains.

TSX gained over 450 points in four days

Last month I wrote that we might have further downside pressure on oil prices because oil companies are still pumping at records high. The demand cannot keep up with supply. At this point the oversupply of oil stands at 3 mb/d. The question now is will the price of oil test $43 level or will it bounce back from here? This will be evident by the end of next month. I haven’t been adding energy stocks since last summer, but I plan to do so probably this fall. I will be looking at pipelines and energy royalty stocks before adding the producers.

My Investment Account (Tax Free Savings Account)

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.

Dividends

In July, I received a total of $141.19 in dividends vs $93.29 for the same period a year ago. That's an increase of $47.90 or 51% on year-over-year basis. My total Year-to-Date dividend income for 2015 is $805.24. My dividend goal for 2015 is to receive $1,400. All dividends are reinvested back into dividend paying stocks.

Contributions

In July, I added $800 of fresh capital to my account. So far my total contribution for 2015 reached $5,600. My priority is to maximize my TFSA account each year. The current TFSA contribution limit is $10,000 per year.

Transactions

July was a busy month in terms of transactions and capital cycling. I sold 150 shares of Regal Lifestyle (RLC.TO) at $12 per share because it got acquired. I decided not to wait until the deal is closed and sold my shares to the market. I liked the stock, it paid good dividend and it brought me a decent capital gain. My average price was about $9 per share. I held the stock for over a year and collected over 6% in dividends.

Sold RLC.TO 150 shares at $12 per share.

Bought GRC.V 600 shares at $0.89 per share.

Bought DIV.TO 290 shares at $2.95 per share.

Bought PLZ.UN.TO 130 shares at $4.37 per share.

Bought PZA.TO 45 shares at $13.58 per share.

Bought ECI.TO 45 shares at 13.59 per share.

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.

Dividends

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.

Contributions

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.

Transactions

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.

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.

Dividend Portfolio Update - April 2015

Dividend Portfolio Value

As at April 30, 2015, my dividend portfolio balance is at $21,438.60, up by about $1,200 from the previous month. The main increase in portfolio value was caused by the new contribution of $800 to my Tax-Free Savings Account. The other portion of the increase came from oil stocks and dividends. Oil stocks like BTE, CPG, and FRU played a major role for my portfolio to increase in value. The crude oil also rebounded as of late, from $48 per barrel back in March to $59 per barrel today. There’s no more bad press about the oil so the fear factor is out of the way. We’ll see in May if the oil will continue its trend. The 200 day-moving-average is at $69 which is a long way to go, but given the fact that we are entering the soft market season, the oil might pullback to the 50 dollar mark.

My Investment Account (TFSA)

My TFSA consists of 22 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 April, I received a total of $112.94 in dividends vs $91.72 for the same period a year ago. That's an increase of $21.22 or 23% on year-over-year basis. My total Year-to-Date dividend income for 2015 is $435.76. All dividends are reinvested back into dividend paying stocks.

Dividend increases

Pizza Pizza Royalty Corp. (PZA.TO) announced a 1.9% in its monthly dividend. The dividend per share will increase to $0.068 per month from $0.0667. On annualized basis, the dividend will increase to $0.816 from $0.8004.

Contributions

During the month of April, I contributed $800 to my TFSA. My objective for 2015 is to contribute $6,000. So far, the total contribution for 2015 is $3,200. If I continue to put $800 per month, I will reach my contribution objective by August 2015.

TFSA News

The federal government increased the yearly contribution limit for the TFSA account. I can now contribute $10,000 per year instead of $5,500 per year. My objective for 2015 was to contribute a total amount of $6,000, but we’ll see how it goes with the money. I might continue to put $800 per month until the end of the year to reach almost $10,000! With the increase contribution room, I will achieve my long-term goal a lot sooner.

Transactions

Medical Facilities (DR.TO)

I bought 50 shares of DR at $17 per share. I decided to take advantage of a recent pullback in share price. Medical Facilities own private surgical clinics in the States and their business model is very solid. Medical Facilities has a 6.88% dividend yield and this purchase will bring additional $4.68 per month in dividend income.