Recent Sale: Medical Facilities DR.TO

Hey guys! Just a quick follow up on my recent sale. A lot of companies are reporting their earnings and I adjust my portfolio according to earnings results. So, If one of my companies reporting a bad quarter and I have a gain on the stock, then I sell, because most likely, the stock price will go sideways until the next quarter.

Portfolio Value Update - April 2016

Portfolio Value
By the end of April 30, 2016, my dividend portfolio balance was at $31,112.11. That’s an increase of $1,445 from the previous month. Finally I passed the 30K mark. That's a big milestone for me. I hope my portfolio value stays above 30K during the upcoming soft season. I remember last summer the markets corrected quite a bit. I couldn't keep up my portfolio value even with monthly contributions.

New Buys: NWH.UN.TO & DRG.UN.TO

On April 21, 2016, I added two new companies to my dividend income portfolio. Both companies are REITs, paying good monthly dividends, have good properties and trading at discount to NAV. 

Dividend Portfolio Update - March 2016

Portfolio Value
By the end of March 31, 2016, my dividend portfolio balance was at $29,667.06. That’s an increase of $2,896 from the previous month. Most of the increase came from organic growth. At some point, in mid-March my portfolio value almost crossed the $30K mark. Maybe I get that boost in April!

New Purchase: Magna International (MG.TO)

Today I picked up 32 shares of auto parts giant Magna International (MG.TO) at $54 per share. This purchase will increase my yearly dividend income by $32.

About the Company

Magna is a leading global automotive supplier with 305 manufacturing operations and 93 product development, engineering and sales centres in 29 countries. Its product capabilities include chassis, interior, exterior, seating, powertrain, electronic, vision, closure and roof systems and modules and complete vehicle engineering and contract manufacturing.

Automotive Exposure
I believe Magna is the best company for the automotive exposure. This is a new position for me and I plan to hold those shares for a very long time. I bet my bottom dollar that this company will double in 10 years. Prior to this purchase I had zero exposure in auto parts industry. Now I have a whopping 6% exposure through Magna.

Magna is cheap
The shares are currently trading at 8.8 P/E ratio compared to its 5 years average of 10.34. Magna is cheap and it has a pristine balance sheet with $2 billion in cash compared to $1.6 billion in total debt.

Dividend grown potential
The company has a massive dividend growth potential. Magna has been a terrific dividend grower since the financial crisis of 2008-09. It started paying 4.5 cents quarterly dividend in 2010 and has increased its payouts annually each year since. They just announced a 14% dividend increase from 22 to 25 cents per share. This works out to a current dividend yield of 2.5%. Magna’s payout ratio is just under 20% meaning it has lots of room for dividend growth.