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Sunday, January 24, 2010

My life goes on, laid off or not

Good news I didn’t got laid off from my job at the bank. But it could eventually happen, they make it clear, with no kind matters. I have a 6 months probation like everyone else (investor or not: they don’t give a damn) you know. Anyway, I don’t want to get too much into the deep because I really have enough of this work problem. But I didn’t’ get laid off this week, but it could be next week... Got the picture? Anyhow, I have much better things to write about for now! I have anyway a second job I can rely on, so I am not that stress. And I don’t like to spend too much time on the negative stuff. I am off today and tomorrow, my life is not just about work, it’s also about investing…

And talking about investing, I have some massive project among the way! To begin, I had received some dividend income in the last couple of days. I had received 42.47$ from Just Energy Income Fund (JE.UN), 28.01$ from Yellow Pages Income Fund (YLO.UN), 52.91$ from Pembina Pipeline Income Fund (PIF.UN), 42 cents from Pengrowth Energy Trust (PGF.UN) and 28.80$ from Enbridge Income Fund (ENF.UN). I earn some extra units among the way because of the DRIP. Which I am pretty please with. So far for the month of January, I earn 157.61$ in dividend passive income! Kind of nice. And keep reading, because we are looking to increase our dividend passive income in the next couple of months.

Thinking about my next stock investments

I have an extra 1 400$ lying on my banking account doing nothing at all. I had been thinking about investing in an extra 100 stocks of Corby Distilleries Limited (CDL.A) so I can benefit of an eventual DRIP, but I have to say, I had been closely watching an old familiar investment of mine: Pengrowth Energy Trust (PGF.UN). Pengrowth Energy Trust (PGF.UN) had been doing quite well recently. Currently, I still own 6 units of PGF.UN. I once hold more than 500 units of this marvelous. The 6 units left were coming from a DRIP that came after my units had been sold… I call those left-overs. Back in the time, I had sold Pengrowth Energy Trust (PGF.UN) when the company declared its second dividend cut in less than a year. Yes, recession hurt, but it doesn’t have to hurt my dividend income. So what I did? I decide to sell all the units I own of Pengrowth Energy Trust (PGF.UN). I reinvest the money in some not stock investments, but in units of Just Energy Income Fund (JE.UN) and Pembina Pipeline Income Fund (PIF.UN).

Welcome back Pengrowth Energy Trust (PGF.UN): looking forward to invest in 100 units of Pengrowth Energy Trust (PGF.UN)

I am investing in Pengrowth Energy Trust (PGF.UN) because I believe that really shortly, Pengrowth Energy Trust (PGF.UN) will be worthing 12$ per unit. And see, I want to be in when its going to happen, no matter if I am going get laid off or not.

I really have to calm down on what I call .UN investment for the only and good reason that they are .UN investment and legislation will soon change everything. I had been told and re-told about the income trusts situation. Derek Foster had been kind enough to warn his readers about the income trusts in his newsletter of December 2009: Income Trusts (Booms or Busts)?

But there’s no real warning, no one can really predict on how the stock market will react to the change – even Derek Foster – and even me lol. But that will only be in 2011.

As a small investor, the difficulty for me comes from the fact that regular stocks are expensive. At this point of my journey, all I want to do is to extend my portfolio and earn more from juicy dividend payers. Will I be able to make it? I don’t know, but I had a lot of fun among the way…

Passive income: yearly dividend income in review

A new investment = new dividend… Let’s refresh the calculation of our yearly dividend income:

Sprott Inc. (SII): 505 stocks x 0.10$ + (let’s suppose Sprott Inc. will provide a special dividend like last year) = 126.25$
Bank of Nova Scotia (BNS): 104 stocks x 1.96$ = 203.84$
Methanex Corporation (MX): 103 stocks x 0.62$ = 63.86$
Fortis (FTS): 104 stocks x 1.12$ = 116.48$
Pembina Pipeline Income Fund (PIF.UN): 410 units x 1.56$ = 639.60$
Just Energy Income Fund (JE.UN): 414 stocks x 1.24$ + the 2010 special dividend =
Yellow Pages Income Fund (YLO.UN): 425 units x 0.804$ = 341.70$
Bell Aliant Regional Communications Income Fund (BA.UN): 100 units x 2.904$ = 290.40$
Pengrowth Energy Trust (PGF.UN): 106 units x 0.84$ = 89.04$
Enbridge Income Fund (ENF.UN): 302 units x 1.152$ = 347.90$
Corby Distilleries (CDL.A): 100 stocks x 0.56$ = 56$
Davis + Henderson Income Fund (DHF.UN): 100 units x 1.836$ = 183.60$
+ let’s add 100$, supposing the DRIP system will provide an extra income of 100$
= 3 154.83$

I would very much to see the amount double and be able to – if not retire early – being able to pay my rent on dividend income will be awesome. I am a genius :)


Unknown said...

Interesting. I also sold all my Pengrowth when they cut the dividend the seconds time. I had thought the price would drop further but it appears I was wrong. Now I am looking at getting back in also.

Sunny said...

Thnks for visiting my blog. We kind of have the same reaction when PGF.UN announced its second dividend cut. I sold because I was making a bit of money with the sell, but also, I taught at that time that PGF.UN price was going drop and didn't want to experience the same thing that I had experiment with Timminco (TIM): some major money lost. Better to take action than no action at all and loose some money.. Difficult to follow the market but I have a good feeling when it come to PGF.UN. We'll see what happen.


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