UA-300188601-1 The Dividend Girl: Upcoming changes in my investment portfolio

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Saturday, October 3, 2009

Upcoming changes in my investment portfolio

I had been so busy with my overtime lately; it’s been a crazy week! And it’s not over yet!

Pengrowth Energy Trust (PGF.UN) had announced a distribution cut. Starting from November, the distribution of Pengrowth Energy Trust (PGF.UN) will vary from 3 to 7 cents. But its look for me that it will mostly 3 cents.

I am selling Pengrowth Energy Trust (PGF.UN)

My initial investment was of 6 284.57$. I had 650 units of Pengrowth Energy Trust (PGF.UN) that currently at the price of 10.25$ per unit. My investment currently is at 6 663$. I am not interesting in having Pengrowth Energy Trust (PGF.UN) in my portfolio anymore since they had to cut their dividend. I understand the company decision. I truly adore Pengrowth Energy Trust (PGF.UN), but unfortunately, I have a dividend goal and I want to make money from my investment. And I also need that money. I want that dividend money very badly. So now, here’s what going to happen on Monday morning, 9:30AM Eastern time. Directly from the Plateau-Mont-Royal, using my laptop, I will sell my 650 units of Pengrowth Energy Trust (PGF.UN) at the price of, I hope, 10.25$. Same thing for Livingston International Income Fund (LIV.UN).

I am also selling Livingston International Income Fund (LIV.UN)

I currently own 102 units of Livingston International Income Fund (LIV.UN). My initial investment value was of 635.97$. Currently, the investment worth 668$. And Livingston International Income Fund (LIV.UN) does not pay dividend anymore. So guess what will happen on Monday? I will sell my 102 units of Livingston International Income Fund (LIV.UN) at 6.55$

After the selling commission of 29$ per trade, I will have made a profit of 7 302.30$

And what I plan to do with the money? Invest in stuff I already know and in companies that I trust:

-300 new units of Pembina Pipeline Income Fund (PIF.UN) (15.20$ per unit)
Cost of the investment: 4 560$ + 29$ TD Waterhouse commission = 4 589$
What I will earn in dividend: 1.56$ x 300 units = 468$
Why I want to invest more in Pembina Pipeline Income Fund (PIF.UN)?

I am investing in Pembina Pipeline Income Fund (PIF.UN) because it’s a strong company. Ever since I had purchased my first 100 units of Pembina Pipeline Income Fund (PIF.UN) at 12, ever since that time, the value had increased. Pembina Pipeline Income Fund (PIF.UN) currently worth 15.20$ per unit. I can easily imagine the price reaching 18$ in the upcoming weeks (or months lol). Anyhow, I like Pembina Pipeline Income Fund (PIF.UN). Nice dividend and we truly need it. Since I already own 101 units of Pembina Pipeline Income Fund (PIF.UN). Those 300 new units will help be to increase the units I earn through the DRIP. I probably be able to earn 3 new units per month is the price of Pembina Pipeline Income Fund (PIF.UN) remains under 16$ for a little while.

-200 new units of Just Energy Income Fund (JE.UN) (13.60$)
Cost of the investment: 2720$ + 29$ TD Waterhouse commission = 2 749$
What I will earn in dividend: 1.2396$ x 200 units = 247.92$
Why I want to invest more in Just Energy Income Fund (JE.UN)?

So far, I had been pleased with Just Energy Income Fund (JE.UN). They recently acquire a new company (several weeks ago), which bring new grow to the company. With the DRIP, I will be able to gain 2 new units per month, approximately. Plus: Just Energy Income Fund (JE.UN) had paid special dividend in the past, and they might pay special dividend again in the future.

After what, here’s what my annual dividend earnings will look like:

Bank of Nova Scotia (BNS): 201.88$
Fortis (FTS): 107.12$
Just Energy Income Fund (JE.UN): 500.80$
Methanex Corporation (MX): 70.56$
Pembina Pipeline Income Fund (PIF.UN): 625.56$
Sprott Inc. (SII): 50.30$
Yellow Pages Income Fund (YLO.UN): 323.20$
TOTAL: 1 879.41$

Pengrowth Energy Trust (PGF.UN) was my main dividend earning provider, with 780$ in dividend annual income… Very sad to see Pengrowth Energy Trust (PGF.UN) reducing dramatically its dividend. I might be tempted by PGF.UN in the future.

If I leave Pengrowth Energy Trust (PGF.UN) in my portfolio, look what will happen:

Pengrowth Energy Trust (PGF.UN): 234$
Bank of Nova Scotia (BNS): 201.88$
Fortis: (FTS): 107.12$
Just Energy Income Fund (JE.UN): 286.62$
Methanex Corporation (MX): 70.56$
Pembina Pipeline Income Fund (PIF.UN): 157.56$
Sprott (SII): 50.30$
Yellow Pages Income Fund (YLO.UN): 323.20$
Total: 1 431.24$ (-448.17$)

On an annual basis, it’s a difference of 448.17$. And also, on Monday, because Pengrowth Energy Trust (PGF.UN) had announced on today Friday a cut in its dividend, the value of Pengrowth Energy Trust (PGF.UN) will certainly decrease. Which is not good at all for My First 50 000$...

Investment is not an easy road and individuals shouldn’t be scare about taking actions in order to get things better. Distribution cut is the worst thing that can ever happen and I face it several times this year. As soon as I will be done with my overtime tomorrow, I will take it off on Sunday; try to take a rest to after hit the road of job hunting for a daytime job. I really want to earn more money. I just want 100 units of Brookfield Renewable Power Fund (BRC.UN).

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