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Tuesday, March 16, 2010

To sell or not to sell the Creststreet Alternative Energy Fund

Things had been going great lately! Last week, I completed the forms in order to get what I had at BMO InvestorLine transfer over my current online broker account. The transfer had been done quickly and I was quite happy about it. It’s very fun now because I have everything at the same place, no more calculation needed. And it’s actually how I can say that my stocks and units investment portfolio is now at 43 578.44$... which is an increase of 19.84$ compare to March 5… Nothing to get very exciting about but still, a gain is a gain. And it’s a gain from my very own portfolio! Yeahhh!

About the Creststreet Alternative Energy Fund

And talking about my fantastic investment portfolio, since Steve Martin is no longer the manager of the Creststreet Alternative Energy Fund, I had taught about selling it. And it’s exactly what’s going to happen. If Steve Martin would still have been the manager of Creststreet Alternative Energy Fund, I wouldn’t had sold. But since he’s not… it’s a sell for me! I currently have a value of 1 159$ in the Creststreet Alternative Energy Fund. I didn’t pay any commission to TD Waterhourse to invest in the Creststreet Alternative Energy Fund. That was several months ago. But TD Waterhouse has commission when it comes to selling mutual funds you hold in your portfolio. My commission fee for selling what I have in the Creststreet Alternative Energy Fund is a bit more than 33$. If it wouldn’t be for my investment dividend goal and the fact that Steve Martin is no longer a manager at Creststreet, I wouldn’t sell.

See, we are currently at 284.40$ per month in dividend earnings. I am really looking into reaching the 300$ per month in dividend earnings. Currently, because I had been laid off of the job I had at BMO Bank of Montreal, I do not hold as much cash as I used to have before. But no worries; lay off or not, it doesn’t change anything. And guess what’s going to happen? We are going to hit the 100 000.00$ in assets in 2010 and by the end of March 2010, we are going to reach the equivalent of 300$ per month in dividend earnings. That’s being smart, isn’t?

Ok, so you might wonder what’s the plan, how the poor Dividend Girl who got fired from BMO Bank of Montreal is going to make it happen? The equivalent of 300$ per month in dividend earnings – she won’t be able to make it. But no way, it’s going to happen.

Here’s the how.

Current dividend earnings:

Sprott Inc. (SII): 507 stocks x 0.16$ = 81.12$
Bank of Nova Scotia (BNS): 105 stocks x 1.96$ = 205.80$
Methanex Corporation (MX): 103 stocks x 0.62$ = 63.86$
Fortis (FTS): 105 stocks x 1.12$ = 117.60$
Pembina Pipeline Income Fund (PIF.UN): 413 units x 1.56$ = 644.28$
Just Energy Income Fund (JE.UN): 423 stocks x 1.24$ + the 2010 special dividend =
Yellow Pages Income Fund (YLO.UN): 433 units x 0.804$ = 348.13$
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): 304 units x 1.152$ = 350.21$
Corby Distilleries (CDL.A): 100 stocks x 0.56$ = 56$
Davis + Henderson Income Fund (DHF.UN): 100 units x 1.836$ = 183.60$
Premium Brands Holdings Corporation (PBH):
200 stocks x 1.176$ = 235.20$
= 3 271.96$
+ let’s add 110$, supposing the DRIP system will provide an extra income of 110$
= 3 371.96$

We currently have the equivalent of 3 371.96 $ in annual dividend earning, which equal 281$ per month. We’re only missing 19$ per month to reach the 300$ in dividend passive income!

The sell of Creststreet Alternative Energy Fund should provided me around 1 100$. Nice. But which investment can we buy at 1 100$ that can provide us the equivalent of 15.60$ per month in dividend money? The answer, Derek Foster has it in his latest article that appear in the latest edition of the Canadian MoneySaver magazine.

The answer is this little marvelous that appears in the Canadian MoneySaver magazine: 200 units of the Consumers’ Waterheater Income Fund (CWI.UN). So very soon it’s going to be a “Wecome Consumers’, welcome in our investment portfolio: 200 units of the Consumers’ Waterheater Income Fund”…

The Consumers’ Waterheater Income Fund (CWI.UN) monthly dividend is at 0.054$ per month. At 200 units, we will only earn 10.80$ per month. But don’t forget the DRIP. The reinvestment of my CWI.UN dividend earn will provide us an extra at least 1 unit per month. Not that I want to be pessimistic, but CWI.UN value won’t double overnight. 200 + 12 = 212 units! And 212 units x 0.054$ = 11.34$

Nice, but 11.34$ is not the 19$ we desperately need to reach our goal. So what are we going to do? Well, for now, just pray for the Bank of Nova Scotia (BNS) to increase its dividend! And the 300$ in monthly dividend money will arrive sooner or later... or never lol.

Bank of Nova Scotia (BNS) may have refused my RSP loan request, but no matter what, the bank is doing well, with or without me as a loaner.

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