November 2018 Portfolio Update | Seeking Alpha

November 2018 Portfolio Update | Seeking Alpha

The dividend progress investing philosophy is constructed round consistency and compounding. Those that put it greatest to make use of are the buyers who’re diligent concerning the influx of dividends, contributing new capital to their portfolios, and permitting time to do its magic with the correct choice of high-quality corporations.

Coming into November this time round, I used to be hopeful from the outset that markets would proceed their development of volatility, which accelerated via October. I’ve been diligent in loading up my money reserves over time and love placing capital to work at discount costs.

On that observe, let’s check out precise dividends acquired within the month.


CAD Dividends

FirmCAD Funds ($)
RioCan Actual Property Funding Belief (OTCPK:RIOCF)31.32
Chartwell Retirement Residences (OTC:CWSRF, TSE:CSH.UN)four.90
Metro Inc. (OTCPK:MTRAF)three.60

Dividend Abstract

I earned $39.82 CAD in dividends from three companies by means of November. That is the bottom November dividend complete I’ve had since 2013, and comes because of the amalgamation of Jean Coutu (OTCPK:JCOUF) into MTRAF. I had beforehand been build up a place within the former, which paid dividends on the Feb-Might-Aug-Nov cost schedule, and have now to account for the drop-off.

Right here’s a glimpse at my November dividend monitor report:

November 2018 Dividends

I’ve, nevertheless, taken steps to shore up this dividend drought in my portfolio.

Market Exercise

Whereas I’ve beforehand said that I might by no means purchase an organization merely to fill a niche in my month-to-month revenue funds, I’ve however began paying nearer consideration to when corporations make dividend funds in the course of the regular course of my analysis. One present standout in my thoughts is AbbVie Inc. (ABBV).

ABBV is a research-based biopharmaceutical which was spun out of Abbott Laboratories (ABT) again at first of 2013. The aim of the cut up was to offer buyers a selection between two corporations with distinctly totally different danger and progress profiles.

ABBV is greatest recognized for its blockbuster Humira medicine, which treats rheumatoid arthritis together with a number of different illnesses. The drug is pushing $20 billion per yr in international gross sales and represents a sizeable portion of the corporate’s enterprise presently. Though ABBV is constructing many different medicine to offset the eventual patent cliff for Humira, it’s however leveraging its mental property with the drug by creating patent license agreements. Simply this previous week, the corporate introduced a non-exclusive license with Pfizer Inc. (PFE), underneath which PFE can pay royalties to ABBV for its proposed biosimilar adalimumab product starting late 2023. Whereas the phrases of the deal are personal, that is the seventh such settlement and demonstrates ABBV’s potential to work harmoniously with international rivals to guard future money flows.

Right now I’m glad to have initiated a place in ABBV, however I might even be eager about averaging down topic to market alternatives. The corporate appears to have a wholesome runway of progress within the pipeline because it prepares for the decline in revenue from Humira. That’s one thing I might love to stay part of within the years to return. On the time of writing, it appears I’ll not get a chance to extend my stake at beneficial costs anytime quickly given the PFE deal helped push the shares up almost 5% towards the top of the week.

A aspect profit of creating this buy is that it’ll add revenue to my “off months”, which stick out like a sore thumb when offering my month-to-month portfolio updates. It undoubtedly motivates me to earn extra once I understand I’m placing out for the world to see that I introduced in lower than $50 in a given month.

Whereas ABBV didn’t make it onto my This fall Inventory Watchlist, this buy is a superb instance of remaining versatile and benefiting from what the market gives up. As an investor, it’s crucial to maintain an open thoughts and acknowledge that circumstances are all the time altering. A inflexible technique is one that’s more likely to get damaged alongside the best way.

Having famous the above, let’s take a fast take a look at the 2 purchases I made in November and see what they imply to the general dividend progress portfolio.

ABBV: I initiated my place with 20 shares at a complete value of $1,766.75 USD. Based mostly on the present quarterly dividend of $1.07 USD, I’m anticipating this buy to yield $21.40 quarterly, or $85.60 yearly.

Brookfield Renewable Companions L.P. (BEP): I made what I regard within the close to time period as my remaining buy of BEP by choosing up 45 shares at a complete value of $1,634.45 CAD. With the present quarterly dividend set at $zero.49 USD, I’m approximating quarterly revenue of $28.67 CAD, or $114.68 CAD yearly, with a 30% FX conversion estimated (although that is, in fact, risky and can fluctuate over time). For readability’s sake, it’s value stating that whereas I personal BEP in CAD and obtain dividends on this foreign money, the corporate declares its dividend in USD, and so, there’s all the time FX to think about on my aspect.

In combination, these purchases symbolize $three,401.20 in currency-neutral invested capital. Provided that they occurred towards the top of 2018, it gained’t be till 2019 that their full results are felt over a whole yr.

Money Cushion

I proceed to earn 2.5% on liquid financial savings this present day from my on-line financial institution. This supply ends on the finish of December, and so, I’m at present looking out for an additional alternative to place my money to work.

As rates of interest development larger, it ought to grow to be simpler to seek out affordable charges of return on my “float” whereas I comb the globe for inventory market offers.


November was a sluggish month for dividend revenue. It introduced in additional than ten occasions much less the previous two months, based mostly strictly on the timing of dividend funds from corporations in my portfolio. With that stated, I’m however grateful for the money movement I did obtain and am definitely wanting ahead to December for these year-end payouts; I anticipate will probably be a banner month for the portfolio dividends.

The spotlight of the month was my buy of ABBV, primarily as a result of I’m excited concerning the alternative to deepen my pharmaceutical publicity past Johnson & Johnson (JNJ) and since it should bulk up my dividend revenue in what are in any other case tender cost durations. Making this buy together with the BEP addition fuels my enthusiasm to shut out the yr strongly in December. I hope late tax-related gross sales by merchants supply up alternatives for somebody reminiscent of myself with a real long-term mindset.

Thanks for studying.

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

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.

Further disclosure: All Canadian corporations owned in CAD on Canadian exchanges.

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