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Saturday, August 14, 2010

I need more credit

It’s been a great week. I made some extra hours at work. I went to a barely 30 hours per week to 44 hours… My goal was to do 50 hours this week, but I wasn’t able to reach that number of hours because today I just do my regular 5.5 hours… The weather was beautiful in Montreal today, very difficult to stay inside and take calls in those conditions. But good news, there’s still overtime next week. This is kind of very nice because I will definitively be able to make my next investment, 100 units of Davis + Henderson Income Fund (DHF.UN) by the end of this month! And by the end of the month, it will be my birthday! I have my eyes on a mini Acer laptop, those 10’’ ones. I would like to buy one of these. I could carry the mini laptop everywhere I go and log in to the Wireless basically everywhere I went. Sweet. I wasn’t able to find a pair of Gisele Bundchen sandals anywhere I went today and I went to several stores downtown. They appear to be all sold out.

Talking about dividend, I receive this week Just Energy Income Fund (JE.UN) dividend (76.77$) and Pembina Pipeline Income Fund (PIF.UN) dividend (54.73$). The dividend keeps adding up! I really hope that one day I won’t have to work as hard as I am working right now. At a point, just working part-time, cashing in the dividend could be just so the dream. But knowing myself, I might continue to work just to be able to invest more… and why not, pay off those heavy debts that I have lol. Anyhow, let’s update my dividend earnings and see how the DRIP strategy had worked so far:

My non registered Stocks and Units investment portfolio
Sprott Inc. (SII): 515 x 0.10 cents + 0.04$ special dividend =
Bank of Nova Scotia (BNS): 107 x 1.96$ = 209.72$
Methanex Corporation (MX): 103 x 0.62$ = 63.86$
Fortis (FTS): 106 x 1.12$ = 118.72$
Pembina Pipeline Income Fund (PIF.UN): 423 x 1.56$ = 659.88$
Just Energy Income Fund (JE.UN): 748 x 1.24$ + special dividend of 0.20$ = 1 077.12$
Yellow Pages Income Fund (YLO.UN): 450 x 0.80$ = 360$
Bell Aliant Regional Communications Income Fund (BA.UN): 100 x 2.90$ = 290$
Pengrowth Energy Trust (PGF.UN): 208 x 0.93$ = 193.44$
Enbridge Income Fund (ENF.UN): 314 x 1.15$ = 361.10$
Corby Distilleries Limited (CDL.A): 200 x 0.56$ = 112$
Davis + Henderson Income Fund (DHF.UN): 100 x 1.84 = 184$
Premium Brands Holdings Corporation (PBH): 200 x 1.18$ =

TOTAL: 3 937.94$
+ my next investment in David + Henderson Income Fund (DHF.UN) (184$)
= 4 121.94$

My TFSA investment portfolio
The Consumers’ Waterheater Income Fund (CWI.UN):
408 x 0.76$ = 310.08$

I am leaving my RSP portfolio behind, as it’s not possible to cash in the dividend coming from a RSP broker account.

OVERALL TOTAL: 4 432.02$ (or 369.34$ per month…)
I can say that overall the DRIP had worked well. It’s definitively worth it to reinvest the dividend in order to earn new stocks and units each month. Seem like TD Waterhouse IS offering the DRIP discount so, that might also help I guess. Once I will earn 400$ per month in dividend (or an annual 4 800$), that will be quite something. I am not too far away from that amount.

Regarding the debt, I have that 1 000$ and something currently at CIBC Visa at 3.5% or so. The special interest rate is going to expire in September. At this point, of my investment game, I am not in position to pay off any debt because if I do, I may not be able to reach the 100k portfolio by the end of 2010. So this situation is kind of a dilemma for me. I am already full pack of debt, but I wonder if I could get approved for a credit line at RBC or CIBC at a low interest rate. So I am going to do my request this weekend and see if something can be done for me. I could have used margin on my portfolio but I am feeling very insecure about it. A pro would have use margin, a Derek Foster imitator….. credit card balance transfer lol. At this time, I don’t have any room left for credit card balance transfer. I didn’t receive new credit card balance offer from RBC Visa or CIBC Visa, just from TD Visa and my TD Visa is currently “fully” full… So I am in need of a miracle. But you know, sometimes, miracle happens.


Anonymous said...

Dividend Girl, I really like your blog and read it quite regularly. One thing I don't ever find you talking about is the taxes involved with your investments. For example, you want to increase your holding in Davis and Henderson fund, but this income is all generated as "other income", ie. fully taxable, and yet you are holding it outside your RRSP. Why would you do this? You should take a good look at your portfolio and decide which investments should be in your TFSA, RRSP and Investment accounts to minimize taxes to be paid. You might even consider changing holding to produce better after tax returns. What do you think?

Sunny said...


Thanks for reading my blog. I don't talk about taxes because I don't care about taxes. I mean, I won't stop myself from investing in .UN investment or selling for profit an investment or doing anything else because of taxes. My rule: not to give a damn about taxes. Too much thinking is not good for the soul and the portfolio. But its true I did this year a RSP line of credit loan for 10 000$. That allow me not to pay federal taxes. But I pay around 500$ or something like it to Quebec province. My best advice will be to maximize the RSP contribution and do whatever you need to profit from the stocks and dividend. Even while trying to reach a "Stop working life". Its better to put money away for RSP rather paying taxes. I find TFSA account kind of tricky for many aspects. But I may talk later on about all this in a post. Will make a topic. Even if it won't be good for my soul. Also at this time, my salary is extra low, so my taxes of 2010 are going to be quite easy. 30 000$ or so in salary + 4 000$ and a bit more in dividedn with a 7 000$ RSP contribution plan, I don't think I will have to pay much taxes for the fiscal year of 2010.

Regarding your point for DHF.UN, this is just for me. If you begin to think too much in the deep like an expert, your going to stay paralize and not moving with your project. I want 100 more of DHF.UN to benefit from the DRIP. That's really all. The benefit is for my portfolio. DHF.UN has strong revenue and its value is always around 16.50$ and up these last couple of months - this is strong! Maybe next year I will transfer DHF.UN into TFSA.

Anyhow, as you can see, I don't think that much, I work-sleep-eat and invest. That's really all.

But your observation is really intelligent. I would like to be like you :)


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