BCE BEP BNS CM CP Games Get Rich Brothers KO RCI TD TU

October 2018 Portfolio Update | Seeking Alpha

October 2018 Portfolio Update | Seeking Alpha

As a dividend progress investor (DGI), I’m pushed to maintain monitor of each my inflows and outflows. Will increase in funding revenue characterize 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 means of 2018, I’ve additionally been offering month-to-month revenue updates.

October is the ultimate leg of the Jan.-Apr.-July-Oct. quarterly cycle and so presents a chance to see the place I used to be capable of get to after a yr of portfolio consolidation; including to present holdings whereas trimming that which really fell outdoors my funding wheelhouse. Financial institution of Nova Scotia (BNS) is the standout grower on this schedule as I did add to this place in 4 tranches by means of 2018.

CAD Dividends

FirmCAD Funds ($)Div Improve (%)
Toronto-Dominion Financial institution (TD)53.60
RioCan Actual Property Funding Belief (OTCPK:RIOCF)31.32
The Coca-Cola Firm (KO)66.88
BCE Inc. (BCE)166.10
Canadian Imperial Financial institution of Commerce (CM)16.322.26
Financial institution of Nova Scotia (BNS)85.00three.66
TELUS Company (TU)36.75
Rogers Communications Inc. (RCI)26.40
Canadian Pacific Railway Restricted (CP)three.90
Chartwell Retirement Residence ()(TSE:CSH.UN)four.90

Dividend Abstract

I as soon as extra earned a report complete for dividend revenue by way of the month of October. I raked in $491.17 CAD from a complete of ten corporations.

It’s value noting that the dividend will increase for each CM and BNS are their second of the yr. These two Canadian banks are likely to bump their payout a minimum of twice per yr. For CM, the quarterly dividend has moved from $1.30 to $1.36 and so represents a complete achieve of four.62% year-over-year (YOY). BNS has proven more healthy progress with its quarterly dividend shifting from $zero.79 to $zero.85 from final October, posting a 7.59% YOY achieve.

When viewing my dividend revenue from a holistic perspective, I really feel I ought to be wanting so as to add extra dividend revenue on the USD aspect of the equation as this month offers no overseas dividends. One firm I’ve on the radar to fill this hole is Nike Inc. (NKE) which has develop into much more fascinating to me after studying Phil Knight’s biography “Shoe Dog” which outlined the corporate’s rise from an concept to a multinational phenom. That stated, NKE’s preliminary dividend yield is a bit mild and so I’ll definitely be wanting so as to add selectively on weak spot, ought to the chance current itself.

Market Exercise

After taking a breather in September when it comes to inventory shopping for, I dipped my toes again into the water with one buy in October.

After initiating a place in Brookfield Renewable Companions L.P. (BEP) again in July, the share worth has steadily pulled again. As that has occurred, I’ve continued shopping for to common down on worth as dividend yield has risen. I added 40 shares for a complete value of $1,536.35 CAD. On the present quarterly dividend of $zero.49 USD, these shares ought to produce roughly $25 CAD quarterly or $100 CAD yearly, topic to overseas change fluctuations.

I felt snug including to BEP as the corporate has an extremely clear shareholder-friendly coverage of meaning to earn 12-15% general returns to buyers whereas boosting the dividend by 5-9% yearly. On a beginning yield hovering across the 7% vary, there’s actual money stream potential if they’re able to execute on their plans. By the way, CEO Sachin Shah expressed loads of confidence that they’ll be capable of do exactly that on the Q3 2018 Earnings Convention Name this previous Wednesday:

General our technique stays the identical. We search for funding alternatives in our core markets globally, the place we will floor 12% to 15% returns on a per unit foundation utilizing our operational experience. We maintained robust entry to private and non-private sources of debt and fairness and funding grade stability sheet and floor worth by means of the monetization of mature belongings.

This technique has served us properly for nearly 20 years and our enterprise has been resilient by means of a number of funding cycles and the quite a few funding tendencies which have permeated the renewable energy sector over that point. Consequently, we’ve delivered 15% complete return on a per unit foundation to our unit holders since our inception in 1999.

Except for BEP, many different corporations have been on the decline over the previous whereas and so I consider there’ll nonetheless be ample alternatives as 2018 winds down. I highlighted three (together with BEP) in my current This fall Watchlist article.

In occasions like these, it is very important have money on the sidelines able to deploy. Whereas investing effectively means typically ready, there are occasions when it is very important capitalize on alternatives to reap the benefits of what Mr. Market presents up.

Money

Though the rising rate of interest setting appears to have positioned strain on utility shares, it bodes properly for people trying to get extra out of what they’ve sitting on the sidelines. Whereas I’m at present incomes 2.5% by means of the top of the yr from my financial institution, I’ve already been seeing three% promotional charges being floated round and so I’ll must be able to renegotiate my fee come the top of December.

A part of a wholesome monetary technique includes having money sitting again incomes lower than it in any other case may. This money can ultimately be used to benefit from well timed alternatives and, most of all, it supplies monetary safety to buffer towards the vicissitudes of life.

Conclusion

My month-to-month dividend revenue is as soon as once more knocking on the door of $500 which might be a strong milestone to realize. The BEP buy I made this month ought to place me to satisfy that degree as I look ahead to December, and so I am already feeling anxious to get these totals counted.

It felt good to get investing once more after taking a break in September to construct up my money reserves. Rising rates of interest make it barely extra engaging to carry money within the present setting for these capable of finagle a strong fee. Nevertheless, declining shares get my trigger-finger able to double down on positions because the dividend yields are elevated in the meanwhile and so I’ll nicely discover myself deploying extra capital over the rest of the yr.

Thanks for studying.

– Ryan

Disclosure: I’m/we’re lengthy TD, RIOCF, KO, BCE, CM, BNS, TU, RCI, CP, TSE:CSH.UN, 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.

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

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