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Tuesday, November 5, 2013

Dividend investing: for the better and worst

While Toronto mayor John Ford is getting high on crack and alcohol in Toronto, us, on our side, here in Montreal, our dividend income is going down!

Sometime, shit happen. Its sad, but life is like that. Its just a matter of what you are going to do next as sexy move. Get high or work up your ass, its your own choice to make. I made a great start, I did some laundry tonight ;)

Ok, more seriously now.

It may not seem like it at first, but when you begin your financial life, start putting some money aside, start investing and stuff, well, very quickly, that financial part slowly but certainly take more and more place into your life. Well it did actually to me. Just have a quick look at my portfolio and check on all my holdings... I am saying I doing exactly and always the best of the best choices, but I am not that all bad. Again today, my non-registered portfolio closed at 125k+. I will say that things are doing well, but it's difficult. 

Its not that all easy to be an investor and to be a dividend investor. On a day like today, nothing is easy. A while back, I was earning more than 7k in dividend income (that was excluding my RRSP). And today, I am making less income. Why? Because some holders I have made the decision to cut on their dividend distribution. And trust me, when that happen it hurt. It hurt real bad. Because the only source of steady income is steaming away.

Today, EnCana declared a dividend distribution of 0.07 cents per share payable on December 31. Nothing wrong, you'll say? Well usually, EnCana Corporation (ECA) distribution is of 0.2075 per share. It doesn't mean EnCana dividend will remain  this low forever, but let say it sincerely: this suck!

If I consider that EnCana distribution would be of $0.28 annually, after adding my newest CRT.UN in the count, my annual dividend income is of $6 574 excluding RRSP. Its not too bad, but I use to earn more than that. I currently have $7 241.96 invested in stuff like FR, JFS.UN, PHS.UN and PSLV. Those investments don't provide any dividend return. It could be easy to reinvest the money in dividend players and mixing for a 5% yield. Such solution is available. I could do so, but I don't. Because I hope silver will go up again. 

I am really not concern over FR. I am pretty sure First Majestic Silver Corp (FR) will go up again one of these days. Its just a matter of when. It could take sometime, but I am not in a rush to sale. As for the other silver stuff I hold, I had been holding it for quite sometime. There's been that period where I was buying-selling, buying-selling silver on short period of time, and I was making small profits for those trades. It was fun, but came a time where I could no longer make those moves, silver had declined in value - and that being really suddenly, like BOOM. And I got F. lol 

Trading is dangerous because at one corner, when you don't suspect anything, you get stuck. Impossible to sell at profit. That what kill me somewhere. But I am not dead.

You survive from those things but it just take some time to recover. I guess one day in the future I will making 10k in dividend and one day, I won't even remember that I had wrote this post. It is your job to always remember, not mine. 


Anonymous said...

It's Rob Ford not John

Anonymous said...

Rob Ford, not John.

$25000 dividends said...

I sold EnCana last week because I was following the company and there was serious talk of a dividend cut. I sold and made a small capital gains and collected some dividends this past year.

Anonymous said...

Maybe look into writting covered calls on stocks like Encana.

For example the Dec 20 calls will yield 4% in one month if called and 1.6% if not. This is over 1 month, not 1 year. has the best commissions for writting options. May be worth looking into it.

Writing covered calls could be the boost that you need in your portfolio.

Look up the book "The Money Tree" by Ronald Groenke for a good basic introduction into it.

Sunny said...

Did I smoke crack myself or what? LOL Of course, the fellow first name is ROB not JOHN. :)

Derek Foster wrote a book about options and I didn't get anything of it. Its too complicated for me. I prefer to stick to stuff I can understand. One think I never experiment is bond. I would like to invest in bond one day, a short term one.

Hi to the $25k dividend,

I bought my shared of ECA at a higher price so it wouldn't be benefit for me to sell at this time. I think ECA can possibly rebound, but it will be a long process. I don't mind holding for now.


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