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Friday, July 22, 2011

And how about a dividend boost for the summer?

The weather had been very great for the first couple days of my vacations. But for the last couple of days, it’s been raining and I had been working at this post while being stuck inside. But I am enjoying myself, especially knowing that the weather is extremely hot in Montreal. So it’s a real blessing to be here in New Brunswick, far away from the extreme heat. I go crazy when the weather is hot, I cannot stand the heat. So far, the summer has been good in Montreal, but right now, it’s awful and I am very please, extremely pleased to be away, to be here in my X hometown in New Brunswick.

These last couple days had been very good for my portfolio. My non-registered portfolio closed today session at more than 113k, so I am very please, I don’t have to stress over my margin affair. I know that I have more than 22k left on the margin account and that I am safe.

Since its raining and that I am stuck inside watching Radio-Canada (since it’s the only channel we get here – my Chatr Wireless cell phone barely cap the network...) with my laptop on my side, I decided it was time to make it happen. I decided to review the asset mix of my portfolio in order to maximize the dividend income.

So here it is, the BEFORE - my investment portfolio the way it is now. This meaning that I exposed my dividend income the way it is at this time. I had excluded the special dividend payment from the calculation:

Current non registered Investments:
Stocks and Units investment portfolio CAN$
Sprott Inc. (SII)
Dividend yield: 1.38%, 0.12$
Dividend distribution: 122.40$

Timminco (TIM)
Dividend yield: None

Blue Note Mining (BNT)
Dividend yield: None

Bank of Nova Scotia (BNS)
Dividend yield: 3.71%
Dividend distribution: 222.56$

Hanwei Energy Services (HE)
Dividend yield: None

Methanex Corporation (MX)
Dividend yield: 2.26%, 0.65$
Dividend distribution: 66.95$

Fortis (FTS)
Dividend yield: 3.62%, 1.16$
Dividend distribution: 124.12$

Pembina Pipeline Corporation (PPL)
Dividend yield: 6.03%, 1.56$
Dividend distribution: 694.20$

Just Energy Group Inc. (JE)
Dividend yield: 8.88%, 1.24$
Dividend distribution: 809.72$

Pengrowth Energy Corporation (PGF)
Dividend yield: 6.90%, 0.84$
Dividend distribution: 183.96$

Enbridge Income Fund Holdings Inc. (ENF)
Dividend yield: 6.14%, 1.15$
Dividend distribution: 373.75$

Corby Distilleries Limited (CDL.A)
Dividend yield: 3.40%, 0.56$
Dividend distribution: 57.68$

Davis + Henderson Corporation (DH)
Dividend yield: 6.42%, 1.20$
Dividend distribution: 248.40$

Premium Brands Holdings Corporation (PBH)
Dividend yield: 7.76%, 1.18$
Dividend distribution: 497.96$

EnCana Corporation (ECA)
Dividend yield: 2.67%, 0.76$
Dividend distribution: 154.28$

iShares S&P/TSX Capped REIT Index (XRE)
Dividend yield: 4.89%, 0.74$
Dividend distribution: 113.96$

Horizons Gold Yield Fund (HGY.UN)
Dividend yield: 6.57%, 0.65$
Dividend distribution: 130$

Canfor Pulp Products Inc. (CFX)
Dividend yield: 9.09%, 1.60$
Dividend distribution: 163.20$

New Flyer Industries Inc. (NFI.UN)
Dividend yield: 10.75%, 0.86$
Dividend distribution: 178.88$

Capital Power Income L.P. (CPA.UN)
Dividend yield: 9.04%, 1.76$
Dividend distribution: 176$

Exchange Income Corporation (EIF)
Dividend yield: 7.55%, 1.62$
Dividend distribution: 492.48$

Rogers Sugar Inc. (RSI)
Dividend yield: 6.30%, 0.34$
Dividend distribution: 103.36$

Student Transportation (STB)
Dividend yield: 8.85%, 0.56$
Dividend distribution: 114.24$

Colabor Group Inc. (GCL)
Dividend yield: 12.42%, 1.08$
Dividend distribution: 226.80$

TMX Group Inc. (X)
Dividend yield: 3.70%, 1.60$
Dividend distribution: 161.60$

Data Group Income Fund (DGI.UN)
Dividend yield: 14.05%, 0.65$
Dividend distribution: 406.90$

K-Bro Linen Inc. (KBL)
Dividend yield: 5.16%, 1.10$
Dividend distribution: 110$

Westshore Terminals Invest Corp (WTE.UN)
Dividend yield: 6.29%, 0.96$
Dividend distribution: 192$

WesternOne Equity Income Fund (WEQ.UN)
Dividend yield: 9.39%, 0.60$
Dividend distribution: 228$

Atlantic Power Corp (ATP)
Dividend yield: 7.13%, 1.09$
Dividend distribution: 109$

Horizons BetaPro COMEX Silver Bear Plus ETF (HZD)
Dividend yield: None

First Majestic Silver Corp (FR)
Dividend yield: None


Stocks and Units investment portfolio $US:
Sprott Physical Silver Trust ET (PSLV)
Dividend yield: None

Tax-free savings account (TFSA):
EnerCare Inc. (ECI)
Dividend yield: 8.13%, 0.65$
Dividend distribution: 1.95$

Dumont Nickel Inc. (DNI)
Dividend yield: None

Sprott Physical Silver Trust UTS (PHS.U)
Dividend yield: None

TOTAL of dividend income: 6 464.35$

And here’s the AFTER. This is a portfolio model that could eventually boost my dividend income. I took the same sum of money and reinvested it in order to increase the dividend income. The stock with the mention NEW are new addictions to my portfolio. I did not invest in the stocks who had mention NEW yet. It was only an exercise in order to increase my dividend income with what I currently have in money. This is what I had came with:

Current non registered Investments:
Stocks and Units investment portfolio CAN$
Sprott Inc. (SII)
Dividend yield: 1.38%, 0.12$
Dividend distribution: 48$

NEW: TransCanada Corp (TRP)
Dividend yield: 4.19%, 1.68$
Dividend distribution: 100.80$

NEW: Inter Pipeline Fund (IPL.UN)
Dividend yield: 6%, 0.96$
Dividend distribution: 144.96$

Timminco (TIM)
Dividend yield: None

Blue Note Mining (BNT)
Dividend yield: None

Bank of Nova Scotia (BNS)
Dividend yield: 3.71%, 2.08$
Dividend distribution: 208$

NEW: Bell Aliant Inc. (BA)
Dividend yield: 6.728%, 1.90$
Dividend distribution: 191.90$

Hanwei Energy Services (HE)
Dividend yield: None

Methanex Corporation (MX)
Dividend yield: 2.26%, 0.65$
Dividend distribution: 34.45$

EnerCare Inc. (ECI)
Dividend yield: 8.244%, 0.648$
Dividend distribution: 134.14$

Fortis (FTS)
Dividend yield: 3.62%, 1.16$
Dividend distribution: 66.12$

NEW: Chorus Aviation Inc. (CHR.B)
Dividend yield: 11.928%, 0.60$
Dividend distribution: 194.40$

Pembina Pipeline Corporation (PPL)
Dividend yield: 6.03%, 1.56$
Dividend distribution: 694.20$

Just Energy Group Inc. (JE)
Dividend yield: 8.88%, 1.24$
Dividend distribution: 809.72$

Pengrowth Energy Corporation (PGF)
Dividend yield: 6.90%, 0.84$
Dividend distribution: 183.96$

Enbridge Income Fund Holdings Inc. (ENF)
Dividend yield: 6.14%, 1.15$
Dividend distribution: 373.75$

Corby Distilleries Limited (CDL.A)
Dividend yield: 3.40%, 0.56$
Dividend distribution: 57.68$

Davis + Henderson Corporation (DH)
Dividend yield: 6.42%, 1.20$
Dividend distribution: 248.40$

Premium Brands Holdings Corporation (PBH)
Dividend yield: 7.76%, 1.18$
Dividend distribution: 497.96$

EnCana Corporation (ECA)
Dividend yield: 2.67%, 0.76$
Dividend distribution: 78.28$

NEW: Innergex Renewable Energy Inc (INE)
Dividend yield: 5.66%, 0.58$
Dividend distribution: 167.62$

iShares S&P/TSX Capped REIT Index (XRE)
Dividend yield: 4.89%, 0.74$
Dividend distribution: 74$

NEW: Sentry Select Primary Metals Corp. (PME)
Dividend yield: 9.307%, 1.02$
Dividend distribution: 74.46$

Horizons Gold Yield Fund (HGY.UN)
Dividend yield: 6.57%, 0.65$
Dividend distribution: 130$

Canfor Pulp Products Inc. (CFX)
Dividend yield: 9.09%, 1.60$
Dividend distribution: 163.20$

New Flyer Industries Inc. (NFI.UN)
Dividend yield: 10.75%, 0.86$
Dividend distribution: 178.88$

Capital Power Income L.P. (CPA.UN)
Dividend yield: 9.04%, 1.76$
Dividend distribution: 176$

Exchange Income Corporation (EIF)
Dividend yield: 7.55%, 1.62$
Dividend distribution: 492.48$

Rogers Sugar Inc. (RSI)
Dividend yield: 6.30%, 0.34$
Dividend distribution: 103.36$

Student Transportation (STB)
Dividend yield: 8.85%, 0.56$
Dividend distribution: 114.24$

Colabor Group Inc. (GCL)
Dividend yield: 12.42%, 1.08$
Dividend distribution: 226.80$

TMX Group Inc. (X)
Dividend yield: 3.70%, 1.60$
Dividend distribution: 40$

NEW: Computer Modelling Group Ltd. (CMG)
Dividend yield: 6.432%, 1.64$
Dividend distribution: 205$

NEW: IBI Group Inc. (IBG)
Dividend yield: 8.076%, 1.104$
Dividend distribution: 131.38$

Data Group Income Fund (DGI.UN)
Dividend yield: 14.05%, 0.65$
Dividend distribution: 406.90$

K-Bro Linen Inc. (KBL)
Dividend yield: 5.16%, 1.10$
Dividend distribution: 110$

Westshore Terminals Invest Corp (WTE.UN)
Dividend yield: 6.29%, 0.96$
Dividend distribution: 192$

WesternOne Equity Income Fund (WEQ.UN)
Dividend yield: 9.39%, 0.60$
Dividend distribution: 228$

Atlantic Power Corp (ATP)
Dividend yield: 7.13%, 1.09$
Dividend distribution: 109$

NEW: IBI Group Inc. (IBG): 2 608$
190 stocks
Stock price: 13.67$
Dividend yield: 8.076%, 1.104$
Dividend distribution: 209.76$

NEW: Veresen Inc (VSN): 1 895$
135 stocks
Stock price: 13.96$
Dividend yield: 7.15%, 1$
Dividend distribution: 135$


NEW: AGF Management Limited (AGF.B): 2 541.83$
140 stocks
Stock price: 18.06$
Dividend yield: 5.98%, 1.08$
Dividend distribution: 151.20$

EnerCare Inc. (ECI)
Dividend yield: 8.13%, 0.65$
Dividend distribution: 1.95$

NEW: Calian Technologies Ltd. (CTY): 2 053.83$
105 stocks
Stock price: 19.50$
Dividend yield: 5.128%, 1$
Dividend distribution: 105$

NEW: Northland Power Inc. (NPI): 2 053.83$
124 stocks
Stock price: 16.44$
Dividend yield: 6.622%, 1.08$
Dividend distribution: 133.92$

TOTAL of dividend income: 8 126.87$

The goal of the exercise was to reorganize the portfolio in order to maximize the dividend income. In the BEFORE part, I did not count the special dividend because special dividends are what they are. 2011 has been a great year for Sprott Inc. (SII) special dividend, but the same situation may not happen again in 2012. I wanted to keep it real and just go with the normality.

With this transformation, I was able to boost my dividend income of 1 662.52$. You’ll notice some of Susan P. Brunner stocks in the list. Once, again, I went through her stuff! At 8 126.87$, the annual dividend income is quite interesting. I do not plan to apply the “AFTER” portfolio at this time, it was just a fun exercise to do, while it was raining outside...But it’s quite interesting to see that with a few minor transformations, I am able to exceed the 8k in dividend distribution.

4 comments:

SPBrunner said...

You are doing very well. You are certainly much more focused on investing than I ever was. You will probably do better than I did.

I had only paid attention sometimes to my investments. Life just seemed to always get in the way. When I was young it was pubing and parties, and then when I was older my husband died so I was a single mom.

I, of course, had goals and worked at them occasionally. I was always interested in the market and tried out this and that. But I must admit it can as a shock to me when I realized in 1999 that I had enough in dividend income to stop working.

The only thing I would suggest is that you get a line of credit. This is in case you get a margin call that you cannot meet. You never want to be in a position of having to sell something at an inopportune time.

I have borrowed to invest. I must admit that I never used a margin account because I did not want to be in the position of having a margin call at the wrong time. And they usually come at bad times, like in recessions or bear markets.

Great job.

Sunny said...

Hi Susan,

Thank you kindly for coming in, the exercise was quite interesting and I had spent quite some time on you blog! You stop working even before Derek Foster. With your blog, Derek Foster books is what really help me to invest. Just to say that today, with the tools and all the information we have, it’s easier than ever to invest.

Until I got 25, I never really care about money. I had enough to support myself, but it was all. Once I started working full-time, I had more money of course and I wonder what I could do with it. So it’s slowly started like that gradually.
My margin account adventure was supposed to be money that I used to pay off debt at a higher interest rate. I pay off a 5 000$ credit line using margin account money, and... used 35 000$ to invest. I still have more than 22 000$ left on the margin account. What I had been focus on is to make sure that the margin account always have left at least a minimum value of 20k on.

So far so good, but as you said, a bear market is pretty tough to handle. I am aware I need to have more cash available in case of a catastrophic stock crash, but my problem being that all my cash is on the market, at the exception of 5 000$ put on the credit line, and I also have a 1 000$ available on a RRSP credit line from the portion that had been paid so far. So will 6 000$ be enough to save me in case of a crash? Maybe not. It could not be enough. And you are to kind to come to me with that problem. Something smart to do could be to ask TD to increase my credit line or seek for another one someplace else at a good rate. It’s something I need to consider for sure, as soon as I can.

Anonymous said...

Where did you find the list of these stocks, most are unknown to me...

Sunny said...

On Susan blog, right here:

http://www.spbrunner.blogspot.com/

 

Thank you

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