Friday, 11 November 2016

Welcome Back UL and High Liner Foods

On November 11th, I bought back into UL. I had purchased 100 shares in Nov 2014 @ $40.07 and sold in July 2016 @ $47.98.

Number of shares purchased
100
Price per share
$39.85
Commission
$9.95
Total cost per share
$39.95
Total cost
$3,994.95
Annual dividend per share
$1.4152
Initial dividend yield
3.54%
Increase in forward 12-month dividends
$141.52


I also bought back into HLF. I has purchased 150 shares in July 2016 @  $12.97 and sold in Sept 2016 @ $26.11.

Number of shares purchased
200
Price per share
$19.90
Commission
$9.95
Total cost per share
$19.95
Total cost
$3,989.95
Annual dividend per share
$0.56
Initial dividend yield
2.81%
Increase in forward 12-month dividends
$112


It would seem like we are seeing sector rotation from consumer staples, REITs and Utilities into financials, industrials and maybe pharma. After the run up in CSX and NSC, I wonder if I should sell them and buy some undervalued/fairly valued stocks.

Friday, 21 October 2016

New Purchase - Algonquin Power and Utilities

On October 20th, I bought more shares of AQN.

Number of shares purchased
175
Price per share
$11.66
Commission
$9.95
Total cost per share
$11.72
Total cost
$2,050.45
Annual dividend per share
$0.556 CAD
Initial dividend yield
4.75%
Increase in forward 12-month dividends
$97.30


The $2,000 used for this purchase was grant money received in my kids' RESP.

My 12-month forward dividends now stand at $11,256.

Wednesday, 19 October 2016

New Purchases - GILD and TEVA

Yesterday, I sold my 100 shares of DE which I held for 3 years and broke even. I used some of the money to buy:

70 shares of GILD @ $73.66

45 shares of TEVA @ $42.74

As you probably noticed, the pharma sector has taken a hit and some stocks are providing a great entry point.

Wednesday, 12 October 2016

Future Dividend Increases

Four companies I own stock in have provided guidance on future dividend growth; AQN, ENB, FTS and T.

Using their guidance, I calculated what your future YOC would be if you were to purchase shares at today's closing price.


FTS      
   
Annual Div Increase 6% $41.34  Today's Price
   
Q4 2016 $1.60 3.87%  Initial Yield
Q4 2017 $1.70  
Q4 2018 $1.80  
Q4 2019 $1.91  
Q4 2020 $2.02  
Q4 2021 $2.14 5.18%     YOC
AQN      
   
Annual Div Increase 10% $11.40  Today's Price
   
Q3 2016 USD 0.4236 4.90%  Initial Yield - Converted USD to CAD @ 1.3200
Q3 2017 USD 0.4660  
Q3 2018 USD 0.5126  
Q3 2019 USD 0.5638 6.53%  YOC - Converted USD to CAN @ 1.3200
T (Telus)      
   
Annual Div Increase 8% $42.82  Today's Price
   
2016 $1.80 4.20%     Initial Yield
2017 $1.94  
2018 $2.10  
2019 $2.27 5.30%  YOC
ENB      
   
Annual Div Increase 11% $57.94  Today's Price
   
2016 $2.12 3.66%     Initial Yield
2017 $2.35  
2018 $2.61  
2019 $2.90  
2020 $3.22  
2021 $3.57  
2022 $3.97  
2023 $4.40  
2024 $4.89 8.43%  YOC

Friday, 7 October 2016

New Purchase - Fortis

On October 7th, I bought 300 shares of FTS.

Number of shares purchased
300
Price per share
$40.70
Commission
$9.95
Total cost per share
$40.74
Total cost
$12,219.95
Annual dividend per share
$1.60
Initial dividend yield
3.93%
Increase in forward 12-month dividends
$480.00


Like Telus, Enbridge and Algonquin Power & Utilities, Fortis has provided guidance on its dividend growth. The forecast is an average increase of 6% per year through 2021. This translates to $2.14 per share in Q4 of 2021, for a YOC of 5.25%.

From the Sep 27, 2016 press release:

"The continuation of our 6% dividend growth guidance takes into account many factors, including the successful close and integration of the ITC transaction, the expectation of reasonable outcomes for regulatory proceedings at our utilities, and the successful execution of the Corporation's five-year capital plan of over $9.0 billion, excluding ITC Holdings Corp.," says Barry Perry, President and Chief Executive Officer, Fortis Inc. "We also remain optimistic about securing additional growth opportunities in our franchise areas."

I used $7,000 on margin to make this purchase, which I will most likely reimburse through future savings.

Because of the unfavorable CAD to USD exchange rate, I'm looking for Canadian companies with significant international exposure. And Fortis' purchase of ITC for $11.3 billion will provide just that.

My 12-month forward dividends now stand at $11,227.

Saturday, 1 October 2016

Some Transactions

Here are yesterday's transactions:

Sold 100 of my 230 shares of HCP for $38.44/share

I paid $37.20 in June 2014. I'm not sure about the quality of this company anymore so I trimmed my holdings.

Sold 100 of my 200 shares of ATCO for $46.90/share

I paid $40.60 in June 2015. I never planned on keeping it forever because of the low dividend yield.

Sold my 150 shares of Highliner Foods for $26.17/share

I paid $12.97 in February 2016. A double in 7 months...so I decided to take the money and run.

I bought 125 shares of Power Corp for $27.88/share

This is my way of betting that interest rates will increase soon. This brings me to 350 shares of POW.

I bought 100 shares of Canadian Utilities for $37.19/share

I took some of the money from the sale of ATCO and put it back into CU. I now have 300 shares of CU that I plan on keeping a very long time.

I bought 450 shares of Algonquin Power & Utilities for $11.86/share

AQN is new to my portfolio. Althought these shares trade on the TSX, the dividend is paid in USD. Next week I'll probably opt for the dividend reinvestment plan because it offers a 5% discount on the share price. And like Telus and Enbridge, AQN has provided guidance on it's dividend growth over the next several years: +10% per year.

I bought 50 shares of Vodafone  for $29.25/share

Why not? It's cheap. I'll have to cash in on this one when the share price increases because the dividend is stagnant.

I bought 50 shares of Wells Fargo for $44.60/share

I hope Warren is doing the same. Surprisingly, WFC's share price was quite resiliant this week.


With these transactions, my 12-month forward dividends increase to $10,836 from $10,641.





Wednesday, 21 September 2016

New Purchase - TD and NWC

On September 20, I bought 50 shares of TD and 50 shares of NWC.

TD:
Number of shares purchased
50
Price per share
$57.56
Commission
$9.95
Total cost per share
$57.76
Total cost
$2,887.95
Annual dividend per share
$2.20
Initial dividend yield
3.81%
Increase in forward 12-month dividends
$110.00

NWC:
Number of shares purchased
50
Price per share
$27.26
Commission
$9.95
Total cost per share
$27.46
Total cost
$1,372.95
Annual dividend per share
$1.24
Initial dividend yield
4.52%
Increase in forward 12-month dividends
$62


My 12-month forward dividends now stand at $10,641. 

Over the past 2.5 weeks, I've worked about 70 hours of overtime, which should give me about $3,500 net. I'm not sure what i'm going to buy with it - maybe more Telus or Rogers.

Friday, 2 September 2016

Options Trade - Sold a Put in VOD

On September 1, 2016, I sold a put in VOD. 

Sold 1 VOD Put Apr 21 '17 $30 Put @ $2.00 ($11.20 commission + $0.01 SEC Fee)

Days Held (sell date to expiry): 232


Net Premium: $188.79


Annualized Return = ($188.79 / ($3,000 - $188.79)) * 365/232 = 10.6%

The most likely outcomes of this trade are:

1. Shares are trading above $30.00 at expiration. I will get to keep $188.79 in net premiums.

2. VOD is trading below $30.00 at or before expiration and shares are assigned. I will receive 100 shares of VOD at a net cost of $28.11/share.


I would feel very comfortable buying shares of VOD at $28.11.

New Purchase - CVS Health

On September 01, 2016, I added 45 shares of CVS to the 150 I already own.

Number of shares purchased
45
Price per share
$93.199
Commission
$9.95
Total cost per share
$93.42
Total cost
$4,203.91
Annual dividend per share
$1.70
Initial dividend yield
1.82%
Increase in forward 12-month dividends
$76.50

I also sold a put on VOD which I will write about at a later date.

My 12-month forward dividends now stand at $10,468.

Friday, 26 August 2016

New Purchase - Power Corp

On August 25, 2016, I added 100 shares of POW.TO to the 125 I purchased on August 15, 2016.

Number of shares purchased
100
Price per share
$27.40
Commission
$9.95
Total cost per share
$27.50
Total cost
$2,749.95
Annual dividend per share
$1.34
Initial dividend yield
4.87%
Increase in forward 12-month dividends
$134.00

My 12-month forward dividends now stand at $10,392. WBA and CVS have come down a little because of the Mylan epipen debacle. IMO, this is a tempest in a teapot so I'm thinking of buying more CVS and maybe WBA.

Tuesday, 16 August 2016

A series of sells and two buys

I recently sold 220 shares of BNS @ $66.29 for a capital gain of $2,179.75 + $456.80 in dividends. That's $2,636.55 / $12,393.90 = 21.3% in 7 months. I like BNS and plan on getting back in if the price drops. I'll be using some of the proceeds to fund my kids' RESP.

I also decided to limit my exposure to oil and gas. I got burned with dividend cuts from ESV and BBL and now there is chat about the safety of CVX’s and RDS.B’s dividend. And their recent results were not reassuring.

I sold 100 shares of BBL @ $25.72 for a capital loss of -$790.40 + $156 in dividends = -$634.40. That’s -$634.40 / $3,352.40 = -18.9% over roughly 2 years.

I sold 48 shares of CVX @ $103.15 for a capital gain of $31.14 + $309.59 in dividends = $340.73. That’s $340.73 / $4,910.00 = 6.9% over roughly 2 years.

I sold 70 shares of RDS.B @ $54.45 for a capital loss of -$231.74 + $291.40 in dividends. That’s $59.66 / $4,033.20 = 1.5% over about 1.5 years.

For over a month now, I've been looking for solid deals and I think I found two. On Monday, August 15, I initiated positions in Flowers Foods and Power Corp. 

FLO:

Number of shares purchased
300
Price per share
$14.9693
Commission
$9.95
Total cost per share
$15.00
Total cost
$4,500.74
Annual dividend per share
$0.64
Initial dividend yield
4.27%
Increase in forward 12-month dividends
$192.00

POW.TO:

Number of shares purchased
125
Price per share
$27.16
Commission
$9.95
Total cost per share
$27.24
Total cost
$3,404.95
Annual dividend per share
$1.34
Initial dividend yield
4.92%
Increase in forward 12-month dividends
$167.50

My 12-month forward dividends have been reduced from $11,139 to $10,258 and my cash position stands at $44,000.

Tuesday, 5 July 2016

New Milestone and a Sell

Although it may be short lived, my dividend growth portfolio finally popped over $400,000 CAN, $30,400 of which is in cash (my non-registered account cannot be seen on the screen shot below because I have to scroll down to view it).



Last week, I unloaded my 100 shares of UL @ $48.07 because
1. the PE is in the mid 20's.
2. the dividends received have decreased over the last two/three years (due to forex).

Q1Q2Q3Q4
2014$0.3654$0.3938$0.3842$0.3637
2015$0.3253$0.3140$0.3232$0.3385
2016$0.3246$0.3598??

3. given Brexit, i don't believe the Euro (in which dividends are declared) is going to appreciate relative to the USD. So dividend payments in USD will continue to be low for some time to come.
4. my average dividend yield analysis shows that $40 is a fair and $35 is undervalued. So $48 is a little high.
5. i don't understand why the stock suddenly rallied to $48. It might be due to Mondelez making a bid for Hershey.

Friday, 1 July 2016

Bolt-on Purchase - Empire Company

On June 29, I took the opportunity to increase my holdings in EMP.A. Quarterly results were not great and the stock price was down 11%. The integration of their Safeway Canada aquisition is proving very difficult which is the reason for their poor financial results.  A day prior to my purchase, the company announced a 2.5% dividend increase.

EMPIRE COMPANY LIMITED (TSX: EMP.A)  is a Canadian company headquartered in Stellarton, Nova Scotia. Our key businesses are food retailing and related real estate, through wholly-owned subsidiary Sobeys Inc., and a 41.5% equity accounted interest in Crombie REIT. With $24.6 billion in annualized sales and $9.1 billion in assets, Empire and its subsidiaries, franchisees and affiliates employ approximately 125,000 people.

EMP.A (I averaged down):

Number of shares purchased
100
Price per share
$19.20
Commission
$9.95
Total cost per share
$19.30
Total cost
$1,929.95
Annual dividend per share
$0.41
Initial dividend yield
2.12%
Increase in forward 12-month dividends
$41.00

My initial purchase of EMP.A was on March 14, 2016: 145 shares @ $22.27.

With this purchase, my 12-month forward dividend income is $11,139.

Tidbit

On August 9, 2009, I bought 495 shares of EMP.A @ $13.73.  The dividend yield was 1.8%.
I sold these shares on July 9, 2014 @ $23.73 because of low dividend yield + low dividend growth.