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Saturday, December 18, 2010

I am now at 122 468.76$

2010 had been an AWESOME YEAR. I won't post my year in review for now, but just to add quickly that my investment goals had been reached. The major one was to reach 100 000$ in assets before the end of 2010 and I did. In result, I accumulate debt, but I consider those debts as being healthy because those debts are being hold for investment purposes. It's not money that been throw away on a Louis Vuitton purse.

On date of December 18, I hold 122 468.76$ in assets and 47 221.68$ in debt, for a net value of 75 247.08$. Not too bad! Currently, I have use my margin money at 4.52% to pay off a 5 000$ credit line at 8.75%. I also use 2 000$ on my margin money to invest in Horizons Gold Yield Fund (HGY.UN). To evaluate the situation better, let's review my dividend income. Here's an update of my dividend earnings:

Non registered Investments:
Stocks and Units investment portfolio
Sprott Inc. (SII): 57.20$
Bank of Nova Scotia (BNS): 209.72$
Methanex Corporation (MX): 63.86$
Fortis (FTS): 120.91$
Pembina Pipeline Corporation (PPL): 669.24$
Just Energy Income Fund (JE.UN): 952.32$
Yellow Media Inc. (YLO): 376$
Bell Aliant Regional Communications Income Fund
(BA.UN): 381.90$ (I am counting the dividend for 1.90$ per unit).
Pengrowth Energy Trust (PGF.UN): 178.08$
Enbridge Income Fund (ENF.UN): 366.85$
Corby Distilleries Limited (CDL.A): 112.56$
Davis + Henderson Income Fund (DHF.UN): 241.20$
(I am counting the dividend for 1.20$ per unit)
Premium Brands Holdings Corporation (PBH):
EnCana Corporation (ECA): 160.80$
iShares S&P/TSX Capped REIT Index (XRE): 43.74$
Horizons Gold Yield Fund (HGY.UN): 130$

TOTAL: 4 305.10$

Tax-free savings account (TFSA):
The Consumers’ Waterheater Income Fund
(CWI.UN): 274.30$

TOTAL: 274.30$

RSP investment portfolio:
EnCana Corporation (ECA): 80$
Emera Incorporated (EMA): 238.96$

TOTAL: 318.96$

OVERALL TOTAL: 4 898.36$

Good, but this calculation do not include the special dividend that usually pay Just Energy Income Fund (JE.UN) on an annual basis (yeah yeah, on top of the regular dividend!). The special dividend of Just Energy Income Fund (JE.UN) is usually of 20 cents per unit. I am adding a 153.60$ to this current 4 898.36$ because I had been paid a special dividend of Just Energy Income Fund for 2 years in a row now. That's the usual stuff now, special dividend from Just Energy.

Sprott Inc. (SII) also pay a special dividend, but the amount is not steady. But let's remember that Sprott Inc. is still a young stock (of 2008).

OVERALL OF THE OVERALL dividend earning: 5 051.96$

Ok, so here we are:

122 468.76$ in assets (WOW!);
5 051.96$ in yearly dividend payments (yeah!);
47 221.68$ in debt (!!!);
2 516.16$ on annual interest for the debt (outchh).

I have way too much debt, but adding those debts were the only I had to reach the 100 000$ I wanted so much! I currently hold more than 100k. Should I sell the 22 468.76$ left to pay off debt? Well, my answer is NO. I won't use the extra 22 468.76$ that I have in assets to pay my debt because I am not very interesting at paying debt at this time. It's a risk, but it's a risk I am willing to take. But the risk is calculated.

The amount of dividend I earn on an annual basis can pay in 2 times my annual interest paid on my debt. so this is all pretty manageable. But I should not go deeper into debt even for investment purposes because passing the 47k in debt could be passively dangerous.

Also, another reason why I don't want to pay off debt is that I want to reach 150 000$ in assets for 2011. Possible or not? We'll see, so stay tune ok? STAY TUNE :0) Because the best (or the worst?) is to come.


My Own Advisor said...


"5 051.96$ in yearly dividend payments (yeah!)"

Yeah indeed.

BTW - thought you'd like this on my blog:

Happy Holidays and congrats on the dividend income!!!!

E said...

Hi Sunny,

How come you don't make use of your full TFSA to save on your income tax from dividends? Is there a master plan around your TFSA usage?



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