Thursday, 6 November 2014

Dividend Increases, A Put and New Purchase


I’ve got several items to report on.

First, I transferred my 150 shares of Telus to Computershare and gave 7 of them to my brand new nephew. I have started contributing $100/month to purchase more shares and will be DRIPing the dividends. So I now have 145.47 shares.

On October 28, BP increased its quarterly dividend from $0.585 to $0.60 per quarter, or 2.6%. My YOC is now 5.5%, and my yearly dividends have increased by $13.98. The total dividend increase for 2014 is 5.3%, from $0.57 to $0.60.

On November 6, Telus increased its quarterly dividend from $0.38 to $0.40. This is the first company I own that has increased its 2015 dividend. My YOC is now 4.75% and my yearly dividends have increased by $11.64. Telus has been increasing its dividend twice per year since 2010, so it’s likely that another increase is coming in 6 months time.

After long and arduous discussions with my brokerage firm, and lots of paperwork, my margin account is now approved for naked options trading! It was complicated because my broker does not offer cash secured puts. It’s either naked options or nothing. And to qualify for naked options trading was no easy feat. In the end, I threatened to leave them and voilà! So today I sold my very first naked put option - it’s not really naked because I have plenty of cash on hand.

Shares of SNC-Lavalin were down 8.4% today. I currently hold 250 shares after selling 100 @ $47.58 in December 2013. The CEO is cleaning house after corruption scandals erupted in 2012. I like what he’s doing and wouldn’t mind owning more shares, so I sold the following put:

Nov/06/2015 Sold 1 SNC Jun 19 ’15 $42 Put @ 2.95 ($11.20 commission)

And finally, I initiated a position in Unilever.

Number of shares purchased
100
Price per share
$39.97
Commission
$9.95
Total cost per share
$40.07
Total cost
$4,006.95
Annual dividend per share
$1.50 est.
Initial dividend yield
3.7%
Increase in forward 12-month dividends
$150 est.

My dividend income is now $7,873.15 per year.

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