August 2018 Portfolio Update | Seeking Alpha

Canadian Dividend All-Stars Expected To Announce Dividend Increases - Week Of July 23

As a dividend progress investor (DGI), I’m pushed to maintain monitor of each my inflows and outflows. Will increase in funding revenue symbolize one measure to evaluate whether or not I’m profitable or dropping the sport of cash. Whereas I’ve been diligent to trace my progress on a quarterly and annual foundation over the previous few years, by way of 2018, I’ve additionally been offering month-to-month revenue updates.

CAD Dividends

FirmCAD Funds ($)
RioCan Actual Property Funding Belief (OTCPK:RIOCF)31.32
Chartwell Retirement Residence (TSE:CSH.UN)four.90

Dividend Abstract

August has introduced in a complete of $36.22 from dividends. This represents a pointy decline in dividends acquired for the month and can possible proceed to be the case shifting ahead on the Feb.-Might-Aug.-Nov. cost schedule as a result of I’ve solely two corporations offering revenue. This is available in sharp distinction to the 2 earlier months the place I introduced in almost $400 for June and virtually $500 for July.

This unevenness in funds is one thing that retirees want to remember when planning bills. Whereas $1,000 over three months may common out to $333 month-to-month, it might truly look extra like $400+$500+$100 in follow and require cautious consideration to the small print when it comes to making certain there’s sufficient left over from the robust months to hold the lean ones.

The decline in dividends on this interval is also in relation to my sale of The Jean Coutu Group Inc. (OTCPK:JCOUF) which was amalgamated into Metro, Inc. (OTCPK:MTRAF). JCOUF was my solely quarterly dividend payer on this schedule and so it helped to bulk the numbers up considerably. Having stated this, I’ve no intention of going and on the lookout for corporations which pay on this quarterly timetable; my main concern is all the time whether or not an funding meets my wants from a top quality perspective.

Market Alternatives

This was a comparatively sluggish interval when it comes to general exercise in my portfolio. Whereas in different months this yr, I made a number of purchases, in August, I used to be restricted to only one purchase and one sale.

Final month, I initiated a place in Brookfield Renewable Companions L.P. (BEP). I opened the place for 55 shares at a price of ~$39.60. This month, the inventory superior barely, and I made a decision to roughly double down by including $2,029.95 CAD in recent capital which introduced me 50 extra shares at a price of $40.40 CAD every.

As famous final month, my place in BEP is held in CAD on a Canadian change. Nevertheless, BEP’s $zero.49 quarterly distribution is denominated in USD and so forth a conservative estimate, I anticipate these 50 shares to usher in round ~$32.00 CAD on a quarterly foundation or ~$128 yearly.

Whereas my portfolio is already heavy on power/utilities, I felt BEP was a chance to diversify considerably inside the area on two ranges. Firstly, the corporate has a worldwide presence and so it permits me so as to add belongings from around the globe somewhat than focusing totally on Canada. Secondly, BEP has hydro, wind, and photo voltaic operations; all of that are more likely to proceed being areas which capitalize on the motion towards producing sustainable power. BEP is well-positioned in that it’s a part of the general Brookfield ecosystem of companies which has entry to capital ought to it want to boost cash to proceed buying prime belongings. It will turn into more and more essential within the renewables business as governments probably reduce alternatives for subsidies.

Conversely, this month, I took the chance to capitalize on the power within the hashish sector to thoroughly promote out my place in Cover Progress Company (CGC) which I owned in CAD on a Canadian trade. I bought my 30 shares at $62.31 CAD for complete proceeds of $1,859.35 CAD. I initially opened my place with CGC again in early December for 55 shares at $18.64 CAD. Shortly thereafter, I bought 25 shares for roughly the identical complete worth as my buy worth as the corporate had greater than doubled in worth ($41.10 per share) in round a month. General, it was a extremely profitable buy regardless of being a minor piece of my portfolio. One appreciable upside to this sale is that it offered the recent powder I wanted to tug the set off on BEP, as described above.

I nonetheless retain two different positions within the hashish market, although my hypothesis within the sector is at this stage winding down. The general catalyst for progress was, and is, the approaching legalization of leisure use in Canada. It’s fairly potential there can be one other bump out there within the lead-up to mid-October, however this finally falls far outdoors of my common funding thesis as a DGI and so I dabble figuring out full-well that it runs opposite to my beliefs. Nonetheless, a bit hypothesis right here and there might be fascinating. Sometimes, as on this case, it can be fairly rewarding.

Money Cushion

Past the $36.22 from dividends this month, I additionally pulled in $42.56 in curiosity earned on deposits in my high-interest financial savings account the place I’ve a 2.5% price. This brings my passive revenue for the month in combination to $78.78.


August was a sluggish month when it comes to dividend revenue. Nevertheless, I’m content material to have the chance to shut out my place with CGC. It was a enjoyable experience to observe the share worth rise from $18.84 CAD to my final sale worth of $62.31 CAD over the course of round 9 months. Whereas it’s tempting to want I had positioned extra capital on the road, that’s the slippery slope of speculative investing and one I am not desirous about turning into overly concerned in.

I look ahead to September and to proceed seeing the dividends develop from corporations I’ve been growing my stake in via the sooner a part of 2018.

Thanks for studying.

Disclosure: I’m/we’re lengthy RIOCF, TSE:CSH.UN, MTRAF, BEP.

I wrote this text myself, and it expresses my very own opinions. I’m not receiving compensation for it. I’ve no enterprise relationship with any firm whose inventory is talked about on this article.

Editor’s Word: This text discusses a number of securities that don’t commerce on a serious U.S. trade. Please concentrate on the dangers related to these shares.


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