Saturday, 10 February 2018

New Purchase - HLF

On Feb 6, I used fresh capital to add to my position in HLF. 

- HLF: 100 shares @ $13.10, +$58 dividend, 4.4%

My yearly dividends now stand at $10,896.


Tuesday, 6 February 2018

Sold a naked Put on WFC

WFC was down about 10% yesterday and continued its decline today. So I thought it was a good time to sell a put.


If I do get put the shares, I'll be buying @ $47.30. Seems like a pretty good deal in a rising rate environment.


I bought shares back in September 2016 after the bank account scandal and added to my position in May 2017. I've done ok so far...even with the recent share price drop. I hold it in my TFSA so i get dinged with a 15% dividend withholding tax. On the bright side, there is no capital gains tax.



Sunday, 4 February 2018

Sold a Call on CSCO

In May 2017, I purchased 100 shares of CSCO @ $31.15. Since then, I have received 3 dividend payments and the share price has risen to about $42.



On Feb 1, I sold a Call in CSCO:




The most likely outcome is that I will BTC the call at some point. Other outcomes are:

1. CSCO is trading above $42.00 at expiration. I will have to sell my shares.

2. CSCO is trading below $42.00. I will get to keep my shares as well as the premium.



Friday, 2 February 2018

Closed My Put on KR

As discussed in a previous post, I sold a Put option in KR on Dec 26th. Since then, the share price has appreciated a couple dollars and I decided to close the option.


I netted $111.59 over 36 days.

Thursday, 18 January 2018

New Purchase - Capital Power Corp (CPX)

Today, I used fresh cash ($5,748) along with the proceeds from the sale of EMP.A and XTC to buy 604 shares of Capital Power Corp (CPX) @ $23.60. It pays a dividend of $1.67 per year, and the company plans on increasing the dividend by 7% per year through to 2020 (that’s 3 increases @ 7%). My total investment is $14,264.35, adding $1,008.68 to my yearly dividends – they now stand at $10,716.

So, why am I convinced this is a good investment? Read on…

On Jan. 9, 2018, President and Chief Executive Officer Brian Vaasjo purchased 2,300 shares at an average price per share of $24. The previous day, he bought 8,050 shares also at an average cost per share of $24. These trades lifted his portfolio's position to 94,680 shares.

On Jan. 12, 2018, Jill Gardiner, who sits on the board of directors, acquired 1,280 shares at an average price per share around the $23.44 level, increasing her account's position to 6,705 shares.

John Heinzl published an article on October 31, 2017, “A 6.8 per cent dividend yield that’sactually safe”. You can read the full article if you have a Globe and Mail subsription. If not, here is an excerpt:

Even as the company has been increasing its dividend, its payout ratio is a comfortable 48 per cent of adjusted funds from operations (AFFO) for 2017, falling to 44 per cent in 2018, according to analyst Patrick Kenny of National Bank Financial. Despite Capital Power posting a net loss of $5-million, or 13 cents a share, in the third quarter – reflecting non-cash charges – Mr. Kenny maintained his "outperform" rating and $33 target price, noting that Capital Power still expects AFFO to come in near the midpoint of its guidance range of $340-million to $385-million in 2017. (AFFO is based on net cash flow from operating activities, adjusted for a number of items, and is "a measure of the company's ability to … fund growth capital expenditures, debt repayments and common share dividends to the company's shareholders," Capital Power says.)

Raymond James is positive: "The company's pipeline of [North American] wind projects represents a key element of our constructive stance on CPX," Raymond James analyst David Quezada said in a recent note, in which he reiterated his "outperform" rating and $30 target price on the shares.

Veritas Investment Research is also positive: "Given its commitment to return significant amounts of capital to shareholders through fiscal 2020, combined with the long-term advantage of a young asset fleet, we believe CPX is an appealing income investment," said Darryl McCoubrey, who has a "buy" rating and $29.50 intrinsic value estimate on the shares.

In addition to the above, there is an excellent article on seekingalpha that goes into the financial details.

Note:

I bought shares of EMP.A (Sobeys) 2 years ago and its been dead money. The dividend yield is quite low (1.7%) and the dividend growth has been pathetic @ 0.5% per year. They really screwed up the purchase of Safeway Canada.

As for XTC, I bought the shares in January 2017, and I'm underwater about $600. I'm pissed with myself that the market has boomed and this has been shit.

Wednesday, 17 January 2018

Dividend Increases - Telus, ENB, ACO.X, CU

On November 9, Telus increased its quarterly dividend from $0.4925 to $0.505, or 2.5%. Since I own 398 shares, my yearly dividends increase by $19.90.

On November 29, Enbridge increased its quarterly dividend from $0.61 to $0.671, or 10%. Since I own 400 shares, my yearly dividends increase by $97.60.

On January 11, Atco increased its quarterly dividend from $0.3275 to $0.3766, or 15%. Since I own 100 shares, my yearly dividends increase by $19.64.

On January 11, Canadian Utilities increased its quarterly dividend from $0.3575 to $0.3933, or 10%. Since I own 100 shares, my yearly dividends increase by $14.32.

2018 Dividend Increases

Telus: +2.5%, $19.90
ENB: +10%, $97.60
ACO.X: +15%, $19.64
CU: +10%, $14.32
CVS: 0%

Saturday, 13 January 2018

My Total Return on TGT

All my TGT shares have done is pay me a dividend, that is until last week, where the share went from about $66 to $76. Finally!

Those who bought in June or July 2017 at close to $50 have done extremely well for themselves (provided they didn't sell). Unfortunately, I sold 50 shares at $50.65 to raise cash for the purchase of my Tahoe. Fortunately, I sill have 250 shares.

I've been in TGT since 2012 and at one point, my total return was close to -20%. Today, my total return is 26%. With dividends, it's 40%. Those numbers are nice and big. They make me feel good! But how about the CAGR?

Because there were cash deposits (i.e. share purchases) and cash withdrawls (i.e. shares sold, dividends received) spread out over time and at irregular intervals, I used the XIRR formula in Google Sheets to calculate the CAGR. The table below shows my CAGR is just over 9% with dividends and just below 6% excluding dividends.


Friday, 12 January 2018

Closed my Call on GIS

As discussed in my previous post, I sold a Call option in GIS on Dec 26th. Since then, the share price has fallen a couple dollars and I decided to close the option.

On January 11th, I bought to close (BTC) the Call option. The transactions are:

Sold 1 GIS Call Apr 20 '18 $60 @ $2.43 ($11.20 commission + $0.01 SEC Fee)
BTC 1 GIS Call Apr 20 '18 $60 @ $1.38 ($11.20 commission)

I netted $82.59 over 16 days. 

I will consider selling another call option on GIS should the share price surpass $60.

Thursday, 28 December 2017

Options Trade - Sold a Call in GIS

On Dec 26, I sold a call in GIS. 

Sold 1 GIS Call Apr 20 '18 $60 @ $2.43 ($11.20 commission + $0.01 SEC Fee)


Days Held (sell date to expiry): 115

Net Premium: $231.79

Annualized Return = ($231.79 / ($5,655.94 - $231.79)) * 365/115 = 13.6%
Note: $5,655.94 is the price I paid for 100 shares.

The most likely outcomes of this trade are:

1. GIS is trading above $60.00 at expiration. I will have to sell my shares.

2. GIS is trading below $60.00. I will get to keep my shares as well as the premium.

Tuesday, 26 December 2017

Options Trade - Short Straddle on Kroger

A short straddle is an options strategy carried out by holding a short position in both a call and a put that have the same strike price and expiration date. The maximum profit is the amount of premium collected by writing the options. Short straddles are limited profit, unlimited risk options trading strategies that are used when the options trader thinks that the underlying securities will experience little volatility in the near term.

Because KR rocketed from about $20 to $28 in just a few months, I'm betting that the share price isn't going to do much over the next 4 months. So I:

Sold 1 KR Put Apr 20 '18 $28 @ $2.10 ($11.20 commission + $0.01 SEC Fee)
Sold 1 KR Call Apr 20 '18 $28 @ $1.95 ($11.20 commission + $0.01 SEC Fee)

My net premium on the Put is $183.79 and my net premium on the Call is $198.79, for a total of $382.58.

On April 20th, 2018, if shares of KR trade between $25.90 ($28 - $2.10) and $29.95 ($28 + $1.95), the options will likely expire worthless and I will get to keep the $382.58.

If I am put 100 shares @ $28.00, I will actually end up paying $28.00 - $3.83 (options premiums) = $24.17. My cost basis for my 522 shares of KR is $21.33, and adding another 100 at $24.17 wouldn't be so bad.

If I am called 100 shares @ $28.00, I will actually end up selling my shares at $28.00 + $3.83 (options premiums) = $31.83. I will have held the shares for 7 months and made 49% plus a small dividend, ((($31.83 - $21.33)/21.33)*100).

Thursday, 21 December 2017

New Purchase - PCG

Today, I used the proceeds from the sale of QCOM and bought 165 shares of PCG @ $42.54.

The stock closed at $51.12 yesterday and dropped to $41.61 today after PCG announced the suspension of the dividend. It is going to be a wild ride, and I hope my calculated risk pays off.


It feels weird to buy a company that doesn't pay a dividend, but the potential longterm return looks very good. It really depends on if PCG is liable for the fires, and if so, how much will they be on the hook for.

Below are links to articles on the topic:

Understanding PE&G's Dividend Cut

PG&E suspends dividends, citing potential fire-related liabilities

PG&E -14% after dividend cut but some analysts say worst may be over

We may never know if PG&E caused fires, top California regulator says






Sunday, 17 December 2017

Gas Prices and Irrational Behaviour

During my visit to Costco this morning, there was a significant lineup at their gas station. I pulled over on the side of the road and thought to myself that the rebate must be quite good because people are waiting 15+ minutes. So I snapped a couple pictures and guessed that gas price must be about 5 cents cheaper that the competition. If my Tahoe was on empty, that would represent a $5.00 savings - it has a 100 liter gas tank. Not bad, but not enough for me to wait 15 or 20 minutes to fill her up.

No more than 2kms from Costco, the gas price at Ultramar was $1.119 per liter. That's right, a whooping $0.02 difference. I'm going to guestimate that an average car has a 60 liter gas tank. If it were completely empty, you'd save $1.20 by filling up at Costco. In the case of my Tahoe, I'd save $2.00.

So is a 15+ minute wait worth saving $1.20 or even $2.00 on a purchase of $66 or $110, respectively? If you really want to save money, bag your lunch and cut back on Tim Hortons, Dunkin Donuts and Starbucks instead. Just saying...



Saturday, 16 December 2017

Sold QCOM

I recently sold my shares of QCOM because of the pissing match between it and Apple, and more recently Broadcom. I just feel that the share price is somewhat unstable, so why not take a profit.

With Broadcom trying to take over QCOM's board, I'm stuck wondering if they will ever increase their offer of $70 per share. Insert Microsoft's and Google's concern about the Broadcom-QCOM deal and who knows where this is going.



Over the 7 months I owned QCOM, the share price has appreciated about 22%. Counting the three dividend payments I received, my investment has returned 26% ($1,378.94 / $5,332.95).






Saturday, 2 December 2017

Sold BP, OXY and FAST and bought KR

During the summer, I decided I had enough of oil stocks. Sure, they were paying big dividends but EPS were terrible. And there had not been any capital appreciation in recent years. Right or wrong, I saw this as dead money and I wanted out. And I was looking for a company with very good or excellent management (this is a lesson I learned through owning Ensco and Teva, and more recently, OHI).

Then an opportunity in KR came along. And I decided to go in big...


Only time will tell if this was the right thing to do.

Friday, 1 December 2017

I'm back

The free time I had to blog has all but disappeared since my wife started working earlier this year. On the bright side, because we have been living on my income for the past three years, we intend to save most of what she makes.

Since my last post, I have made several transactions, all of which are reflected in my Portfolio.

In July, I sold about $70,000 of shares to buy a 2017 Tahoe Premier. My wife and I have wanted this vehicle for close to 16 years and for several reasons, the timing was right. My 2008 GMC Acadia had several issues - the most annoying one being no A/C for 3 years (even GM couldn't find the leak). And with 2 very long road trips every year, we were fed up. We had shopped for a Tahoe a few times over the past year and finally spotted one that we liked. A lot. It had the wheels I wanted and my wife loved the color. And it didn't have an entertainment system - on the road, my kids read and play games. Sorry, no TV.


After a test drive, we were informed that GM was offering 15% off the MSRP on certain Tahoes, and this one qualified. The interest rate was 5%, but we weren't going to finance it. Moreover, they offered us $8,000 for our trade-in (another GM dealer was only giving us $5,600). I then called my insurance and was told that my premium would increase $150 per year. It was too good to be true so I called back the next day to confirm with another representative. And, yes, it was only $150 per year! After some back and forth with the sales manager over several days, we got an additional $3,000 in value (an additional price reduction, accessories and maintenance).

In the end, it cost us $72,500, including taxes (13% - ain't it great to be Canadian) and the value of my trade-in. The full price would have been $92,800, including taxes and my trade-in. These prices include a 7 year 140,000km warranty that cost $4,290 (they wanted $4,920).

Yes, we are crazy. And 4 months later, we would do it again.



Saturday, 1 July 2017

June Dividend Income and 4 Dividend Increases

American Express announced its intention to increase its quarterly dividend to $0.35 from $0.32, or 9.38%. Since I own 55 shares, this raise will add $6.60 to my yearly dividends.

Empire increased its quarterly dividend to $0.105 from $0.1025, or 2.44%. Since I own 145 shares, this raise will add $1.45 to my yearly dividends.

General Mills increased its quarterly dividend to $0.49 from $0.48, or 2.08%. Since I own 100 shares, this raise will add $4.00 to my yearly dividends.

Wells Fargo increased its quarterly dividend to $0.39 from $0.38, or 2.63%. Since I own 100 shares, this raise will add $4.00 to my yearly dividends.

My yearly dividends now stand at $12,062.

June 2017 Dividend Income

June 2017 Dividend Income
1-Jun-2017
CMI
41.00 $
ENB
244.00 $
WFC
19.00 $
SNC
68.25 $
CU
107.25 $
12-Jun-2017
TGT
180.00 $
WBA
112.50 $
15-Jun-2017
TSN
19.13 $
HLF
42.00 $
16-Jun-2017
KHC
60.00 $
21-Jun-2017
QCOM
57.00 $
23-Jun-2017
BP
215.99 $
FLO
68.00 $
27-Jun-2017
SAP
76.50 $
30-Jun-2017
XTC
38.00 $
POW
233.03 $
ATO.X
32.75 $
1,614.40 $

2017 Dividend Increases

  • ACO.T: +14.9%, $17.00
  • AQN: +10%, $37.66
  • CAH: +3%, $5.40
  • CU: +10%, $39.00
  • ENB: +10%, $55.76
  • ENB: +4.6%, $37.80 (2nd increase)
  • T: +4.3%, $30.88
  • TD: +9%, $30.00
  • CVS: +17.8%, $85.80
  • SNC: +5%, $13.00
  • T: +2.6%, $19.49 (2nd increase)
  • POW: +7.0%, $42.30
  • FLO: 6.25%, $16.00
  • TGT: 3.33%, $24.00
  • AXP: 9.38%, $6.60
  • EMP.A: 2.44%, $1.45
  • GIS: 2.08%, $4.00
  • WFC: 2.63%, $4.00
Total increase: $470.14



Wednesday, 21 June 2017

New Purchase PPL - and TGT Increases Dividend

Yesterday, I bought Pembina Pipeline Corp:

- PPL: 100 shares @ $42.60, +$204.00 dividend, 4.79% yield

Pembina is buying Veresen for $9.7 billion and should be increasing the dividend by 5.9% upon close of the transaction. 

My yearly dividends now stand at $12,046. 

Target increased its quarterly dividend to $0.62 from $0.60, or 3.33%. Since I own 300 shares, this raise will add $24.00 to my yearly dividends.

2017 Dividend Increases
  • ACO.T: +14.9%, $17.00
  • AQN: +10%, $37.66
  • CAH: +3%, $5.40
  • CU: +10%, $39.00
  • ENB: +10%, $55.76
  • ENB: +4.6%, $37.80
  • T: +4.3%, $30.88
  • TD: +9%, $30.00
  • CVS: +17.8%, $85.80
  • SNC: +5%, $13.00
  • T: +2.6%, $19.49 (2nd increase)
  • POW: +7.0%, $42.30
  • FLO: 6.25%, $16.00
  • TGT: 3.33%, $24.00

Total increase: $454.09


Thursday, 25 May 2017

New Purchase - OHI - and FLO Increases Dividend

Today, I bought back into OHI:

- OHI: 50 shares @ $32.01, +$126.00 dividend, 7.87% yield

I had purchased 50 shares @ $27.75 in Feb 2016 and sold out @ $34.60 in April 2017.

Flowers Foods increased its quarterly dividend to $0.17 from $0.16, or 6.25%. Since I own 400 shares, this raise will add $16.00 to my yearly dividends.

My yearly dividends now stand at $11,818.

2017 Dividend Increases
  • ACO.T: +14.9%, $17.00
  • AQN: +10%, $37.66
  • CAH: +3%, $5.40
  • CU: +10%, $39.00
  • ENB: +10%, $55.76
  • ENB: +4.6%, $37.80
  • T: +4.3%, $30.88
  • TD: +9%, $30.00
  • CVS: +17.8%, $85.80
  • SNC: +5%, $13.00
  • T: +2.6%, $19.49 (2nd increase)
  • POW: +7.0%, $42.30
  • FLO: 6.25%, $16.00

Total increase: $430.09

Friday, 19 May 2017

New Purchases - AT&T, CSCO, FLO, POW, WFC

Yesterday, I sold my 300 shares in Teva. I've been a shareholder since 2012 and all this company has done for me is loose money. I lost over $3,000 USD. However, back then, the exchange rate was favourable to Canadians. So if I were to convert the $8,000 USD from the sale back into CAD, my loss is about $1,000 CAD. After my experience with Ensco, I get nervous when share prices just keep declining. This company has a lot of debt and very poor leadership.

I also sold my 275 shares in Rogers for a hefty capital gain of 40% in 5 years, or $4,700 CAD. I like the company but I think it is overvalued. It's a telecom with a current dividend yield of 3%. I decided to take the proceeds and reinvest in fairly valued stocks with higher dividend yields. Also, Rogers hasn't increased its dividend in a while.

These sales decrease my yearly dividends by $936.

I used some of the money to buy the following 5 stocks:

- AT&T: 150 shares @ $37.95, +$294 dividend, 5.16% yield
- CSCO: 100 shares @ $31.15, +$116 dividend, 3.72% yield
- FLO: 100 shares @ $18.40, + $64 dividend, 3.48% yield
- POW: 200 shares @ $28.95, +286.80 dividend, 4.95% yield
- WFC: 50 shares @ $$52.10, +$76 dividend, 2.92% yield

These purchases add $772.80 to my yearly dividends.

Tuesday, 16 May 2017

New Purchase - Verizon

Today I initiated a position in Verizon:

- VZ: 75 shares @ $45.50, + $173.25 USD dividend, 5.10% yield

My yearly dividends now stand at $11,776.

Saturday, 13 May 2017

Telus and Power Corp Increase Dividend

Telus increased its quarterly dividend to $0.4925 from $0.48, or 2.6%. This is the second increase this year. Since I own 389.78 shares, this raise will add $19.49 to my yearly dividends.

Power Corp increased its dividend to $0.3585 from $0.335, or 7.0%. Since I own 450 shares, this raise will add $42.30 to my yearly dividends.

2017 Dividend Increases
  • ACO.T: +14.9%, $17.00
  • AQN: +10%, $37.66
  • CAH: +3%, $5.40
  • CU: +10%, $39.00
  • ENB: +10%, $55.76
  • ENB: +4.6%, $37.80
  • T: +4.3%, $30.88
  • TD: +9%, $30.00
  • CVS: +17.8%, $85.80
  • SNC: +5%, $13.00
  • T: +2.6%, $19.49 (2nd increase)
  • POW: +7.0%, $42.30

Total increase: $414.09

Friday, 12 May 2017

New Purchase - TSN

Today I initiated a position in Tyson Foods:

- TSN: 85 shares @ $58.24, + $76.50 USD dividend, 1.55% yield

I couldn't resist a consumer staple stock with a forward PE below 12. The share price has been driven down by a couple of earning misses and price-fixing allegations. Seems like short term pain.

My yearly dividends now stand at $11,602.

Wednesday, 10 May 2017

New Purchases - AQN, ENB and GIS

Today I bought:

- AQN: 163 shares @ $13.19, + $99.95 CAD dividend, 4.65% yield

- ENB: 50 shares @ $56.80, + $122.00 CAD dividend, 4.30% yield
- GIS: 100 shares @ $56.46, + $192 USD dividend, 3.40% yield

If GIS falls below $50, I will probably add another 100 shares.


My yearly dividends now stand at $11,464.