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Wednesday, September 9, 2020

Amazing Cargojet Inc. (CJT) is pushing me right to the edge

October is coming by in a hurry and it's quite sad but I don't think I will be able to visit New Brunswick for the hunting season.

Nice gain for the TSX today as we are getting higher in the beautiful skys of the 16 000 points, thanks to a nice gain close to the 300 points. Today, a stock that I hold inside my TFSA portfolio, Cargojet Inc. (CJT), registered a gain of 4.21%. Right now, when it comes to Cargojet Inc. (CJT), I am on a gain of +105.22% on that stock alone. This is really welcome because other stocks that I hold are not doing so well. For example, I am quite disappointed with the Bank of Nova Scotia (BNS) stocks that I hold inside my non-registered portfolio. Sadly, Bank of Nova Scotia (BNS) were among the first stocks to make it in my non-registered portfolio. That was several years ago. But between than and now, I am currently on a capital loss of $620.35. In this pandemic, Bank of Nova Scotia (BNS) had become both a pain and an obsession.

It wasn't that of a long time ago that I was on a good wave when it comes to Bank of Nova Scotia (BNS), I was registering good gain on that stock, but not anymore. This pandemic was hard on some stocks and Bank of Nova Scotia (BNS) is just one of those stocks that reveal itself as being weak as hell. Back in the days, if I would had invested in Royal Bank of Canada (RY) instead of Bank of Nova Scotia (BNS), I would be quite richer. Bank of Nova Scotia (BNS) proved to be just a garbage shit stock, driving me no where. Just disgusting. If could physically hit on a stock and make it eat some dust, that would be BNS. I hate my BNS stocks to the point where I am thinking about selling the BNS stocks I hold inside my non-registered portfolio to pay down my margin. Such move would reduced my margin debt to only $36,000. The other side is that BNS pay a nice dividend and I wouldn't like to say goodbye to BNS really nice dividend distribution.

On a higher note, my non-registered portfolio closed today session at $105,420.23, my TFSA portfolio at $89,148.48 and my RRSP portfolio - stocks only - at $48,480.40. I now have closed to $500 in cash balance inside my RRSP portfolio. I will be able to make a new investment soon.


Anonymous said...

Hi Sunny, I'm not sure you understand how dividends work. A dividend means the company subtracts x% of their share value and pays it to you in cash (which you are taxed on). The share price falls by the exact amount of the dividend payment (all else being equal). It doesn't create any wealth; it is only moving money out of the company's share price and back to the investor.

If a company has growth prospects, paying a dividend hurts both the investor and the company. You lose the opportunity of reinvestment, and money is lost to the government via taxes. When the money isn't paid as a dividend, nothing is lost (all the value stays in the share price). In general, if you want to pay yourself a dividend from any company, just sell x% of your shares and it accomplishes exactly the same thing.

frederic said...

Mixed feeling here about the comment above that says "I'm not sure you understand how dividends work."

It's true that this is how dividend works, but it's not how dividend investing works. We invest in companies that both grow in value and pay dividends. The dividend is "value taken out of the company", but the problem is most people never sell and never get take value out of the stock, so dividends are a good thing for most people. Better get some money out now than die with paper gains you never took.

It also sounds like the kind of lecture a person gives when they are just learning about dividends, and it's a weird thing to post on a blog called "dividend girl". Absolutely nobody sells 2% of a winning stock to get some dividend-equivalent, that's not how investment psychology works.

Now about BNS.. it's been really painful, and I got out of it a while back to use the capital elsewhere with better chances of coming back. That said, we need to add the dividend to the capital gain to see how well we did (or not) (and the margin cost in your case) and it's difficult to figure out with DRIP.

If I had the recommendation to make, it would be to close your BNS position with its 600$ loss (it's very small) if it eats at you, to get that red number off of your screen. I think that red number is probably not going to turn green in the medium term, and emotions can make you take bad decisions (like adding to a loser).


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