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Friday, July 1, 2011

Happy Canada Day!

Some good dividend had arrived in the house today! I received 61.20$ from Davis + Henderson Corp (DH), 9.35$ from iShares S&P/TSX Capped REIT Index (XRE), 9.12$ from Atlantic Power Corp (ATP) and 16.57$ from Methanex Corporation (MX). I should be receiving Just Energy dividend very soon and I cannot wait! But when it comes to dividend earnings, nothing is going to beat this upcoming July 15. The month of July is going to be similar to April. On July 15, I will be receiving dividend distribution from KBL, PGF, NFI.UN, STB, DGI.UN, WTE.UN, GCL, WEQ.UN, EIF, JE and PPL. The amount received will probably be very good.

Atlantic Power Corp (ATP) to increase its dividend distribution by 5% following the acquisition of Capital Power Income L.P. (CPA.UN)

One thing know for sure is that Capital Power Income L.P. (CPA.UN) is no longer offering its DRIP program. This does not affect me personally in any way since I hold just a couple of shares of CPA.UN. Despite cutting its DRIP, CPA.UN will continue to pay its usual monthly distribution until the deal with ATP is closed. CPA.UN made this announcement on June 30. The reason behind is that Atlantic Power Corp (ATP) had acquired Capital Power Income L.P. (CPA.UN). This is quite an interesting situation because I am a shareholder of both Capital Power Income L.P. (CPA.UN) AND Atlantic Power Corp (ATP). The acquisition of CPA.UN by ATP had been planned a long time ago. The acquisition project had first been announced in October 2010, way before I become a shareholder of CPA.UN and ATP. As long I am concern, I don’t think a final acquisition date had been announced yet by ATP, but it will be interesting to see how things will go through.

I plan to hold my CPA.UN shares anyway. When time will come, my CPA.UN stocks will transform into ATP stocks. ATP so far had been a great investment, easy to hold. I am especially happy when I see ATP exceeding the 15$ per stock and most of the time it does. Following the acquisition of Capital Power Income L.P. (CPA.UN), Atlantic Power Corp (ATP) will increase its dividend by 5%, from a current 1.094$ to 1.15$. All of this is quite positive. At the end, ATP will only become a better investment for the long run and it will be quite a benefit for ATP and CPA.UN investors.

This is a demonstration of how well dividend investment is simple and easy. The dividend investment of Derek Foster has worked extremely well for me. While investing in good companies who pay dividend, I lay back and simply watch the arrival of dividend distribution accumulating in my broker account. I am registered to a DRIP for all holding, so whenever a dividend distribution can generate an extra share or 2, or more, it does so. And fact is, the portfolio is quickly gaining in value very easily. I think I really needed to through my day trading episode to come to the conclusion that dividend investment is made for me. Nothing fancy, nothing complicated. Easy as 1, 2... and 3.


Anonymous said...

Happy Canada Day to you also
was wondering if you ever considered CHR/B as a dividend option
all the numbers look good - allbeit in the volitile airline industry - and they have a deal with a/c where air canada is required to buy seats - until 2020 !
any comments would be appreciated
fellow nb'er but alas still living here - not a big city person take care

Sunny said...

Hi fellow New Brunswicker! NB is full of quiet little towns - I know, I come from one of them. At a point, no other choice than to expatriate to find work.

Anyhow, I have to say, I find CHR.B, I look at the CHR.A and quite interesting! CHR.A trade lower than CHR.B - at least at the closing of June 30. Dividend payment is of 15 cents per quarter or 60 cents annually. Very good, knowing the current stock value.

But - as you said, the airline industry being extra sensible to the market situation, I wouldn't invest very much in this one, but still, so far, very interesting. I would see myself invest 500$, top 1000$ but not more than that. And I would prefer the A to the B.


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