Once or twice a year I like to update my watchlist for stocks to keep an eye on in the coming months. My favorite way of doing this is by running a custom stock screener, using multiple metrics to slowly narrow the list down. Since there are so many stocks to go through – I like to start by first narrowing it down to some quality names, who have a history of paying dividends , and luckily there is a great tool for this- The Canadian Dividend All Star List. This list is updated each month and is a great starting point for anyone looking for quality dividend stocks in Canada.
This list includes just about every metric you can think of. Personally I use about 25-30 different metrics when I run my custom screen, and for each I consider a value that meets my risk profile and investment goal. I then highlight any stocks in green that meet/exceed this target and any in red which do not. For a very basic example, let’s say the metric I am evaluating is payout ratio. In this example, let’s assume I think a payout ratio of 40% or less is great, and anything over 70% concerns me. In this scenario I would highlight all stocks with a payout ratio under 40% in green(and score them +1), and all stocks over 70% in red(score of -1). Anything in between would be left as is(no score). If you want, you can also assign different weights to different metrics. For example, perhaps “value” is most important to you – so you may weight P/E higher than dividend growth rate. I do this for each metric, and when I am done I tally up the scores. What I like about this method is that although it’s not really scientific in it’s approach, it allows each individual investor choose stocks that fit THEIR own personal comfort level. I would also like to note that I use this ONLY as a starting point. Once I end up with my top scoring stocks – I never dive right in and purchase them. This is just a starting point. Once I’ve narrowed it down to my top 10, I then go to the company website to learn more about the company, read the investor presentations, financial statements and analyst comments to dig in further.
As regular readers may know, I am a pretty big fan of whisky (specifically bourbon), and sometimes I like to do blind taste tests. I prefer to do tastings blind, because I want to know which bourbons truly provide the best value, and I want to ensure I am not tricking myself into thinking I like it because it’s expensive, or because a bunch of people say how great it is. When I am looking for value in stocks, I take the same approach. Here is a pic from the last blind tasting we did (back when we could still see people in person):
Prior to starting the screen I always HIDE the company name & stock symbol. I do this because I don’t want any bias to come into play, and honestly, I like being surprised at the end to see if certain companies I assume fit my investing profile actually do or not. In the past, some of my top performing stocks have come from this method, including: Goeasy, Manulife & Transcontinental.
I would again like to reiterate that each investor will probably have different metrics they use, since a lot of us have different goals. Personally, I consider myself a value investor who is interested in long term dividend paying stocks who pay a growing dividend. Here are just a few of the metrics I used in my stock screener (in no particular order) :
So which companies scored best on my most recent screen? There are a few names I was not surprised to see, a few that I was surprised to see, and if I am being completely honest, a couple of names I had never even heard of. By doing this blind screen it can:
Here are the 10 stocks that ranked highest in my blind screen.
The top 10 includes a few companies I either already own, or have been looking to purchase(Equitable Group, Go Easy, Empire, CCL, etc), as well as one company I had never heard of (PFB Corp). $EQB scored the highest of all stocks by quite a bit, though I believe almost every company on this list would be a great long term hold. I’ve now officially added PFB to my watchlist and plan to dig a little deeper into it.
I would also like to include a couple that fell just outside the top 10 that I will also be adding to my watchlist. They are:
Having recently purchased Couche Tard I am happy to see it ranked highly in my screen. I’d also like to point out that although I don’t know much about Hardwoods Distribution Inc, every single time I have run a screen in the last couple of years it has shown up. I am not sure why I haven’t bought it yet (I wish I did, as it has gone up about 90% since my last screen).
I’m glad I’ve been able to add a bunch of names to my watchlist, now I just need this damn market to cool down so I can dive in and make some purchases! If you have any questions or metrics that you use when evaluating stocks, please let me know in the comments or reach out on twitter!
Personal Highlights – March 2021
Financial Highlights for March:
Diversified Royalty Income: $24.39 (dripped 10 shares)
Western Forest $20.49 (dripped 12 shares)
Artis Reit: $38.15 (dripped 3 shares)
Plaza Reit: $31.59 (dripped 8 shares)
European Residential Reit: $7.60 (dripped 1 share)
Interrent Reit: $4.50
Canadian Western Bank: $0.29
Manulife: $41.72 (dripped 1 share)
Nexus Reit: 14.61 (dripped 1 share)
Intertape Polymer Group: $54.27
TFSA’s Total: $237.61
Canadian Equity Income Distribution: $365.54 (dripped 11.297 shares)
Total Passive Income March 2021: $603.15
My portfolio (including cash position) increased another 3.89% in March to a new record high: $475,553.39. I am still sitting on about 30% cash – which I plan on being patient with and waiting to see what happens over the coming months. The market and housing markets seem completley unstable – we are seeing a potential third wave of Covid and nothing is making sense, so for now I am okay sitting on the sidelines with some cash to see how things shake out – even if it means I miss out on some potential gains on a portion of my portfolio.
Hope you had a great March.
Personal Highlights – February 2021
Artis Reit: $32.45 (dripped 3 shares)
European Residential Reit: $7.76(dripped 1 share)
Plaza Reit: $31.40 (Dripped 8 Shares)
Diversified Royalty: $24.22 (dripped 10 new shares)
Interrent Reit: $4.50
Power Corp: $104.27 (dripped 3 shares)
Nexus Reit: $14.58 (dripped 1 New Shares)
TFSA’s Total: $219.18
Canadian Equity Income Distribution: $364.29 (dripped 11.896 shares)
Total Passive Income February 2021: $583.47
My portfolio (including cash position) increased another 5.31% in February to a new record high: $457,763.30. I am currently sitting on about $140,000 in cash in my RRSP which as discussed earlier will be plunked back into XAW eventually.
Hope you had a great February.
Personal Highlights – January 2021
Telus: $56.64 (dripped 2 shares)
Canadian Western Bank: $0.24
Artis Reit: $37.87 (dripped 3 shares)
European Residential Reit: $7.81(dripped 1 share)
Plaza Reit: 31.22 (Dripped 8 Shares)
Algonquin Power: $182.65 (dripped 9 shares)
Diversified Royalty: $24.05 (dripped 10 new shares)
Interrent Reit: $4.50
Nexus Reit: $14.49 (dripped 7 New Shares)
TFSA’s Total: $359.47
XAW: $1181.42 (dripped 32 shares)
Go Easy Financial: $123.75
New Flyer: $59.29 (dripped 1 share)
Transcontinental: $202.05 (dripped 9 shares)
Canadian Equity Income Distribution: $363.03 (dripped 12 shares)
Total Passive Income January 2021: $2289.01
My portfolio (including cash position) increased another 1.23% in January to a new record high: $435,305.98. I am currently sitting on about $140,000 in cash in my RRSP which as discussed earlier will be plunked back into XAW eventually. Due to the temporary sale of XAW my forward dividend income dropped below $10,000, however I expect this to be back closer to $13,000 once I repurchase my shares of XAW. The only cash I’ve used from the sale of XAW so far was to purchase 600 shares of ATD.B. Ideally, the price will drop enough that I will be able to rebuy the same amount of shares of XAW I held previously, and the 600 new shares of Couche Tard will be icing on the cake. This was the first time cracking $2000 in passive income, my previous record was $1884.84.
My trailing 12 month return (excluding contributions) was 11.825%.
I don’t have anything too high on my watchlist right now, however I’d like to add to my positions in Telus and Manulife this year if they drop. I am still hoping to see dividends reinstated for Western Forest and a dividend raise from Artis Reit, Algonquin & Power Corp in 2021 as well.
Hope you had a great January.
Personal Highlights – December 2020
Artis Reit: $36.63 (dripped 3 shares)
European Residential Reit: $7.78(dripped 1 share)
Plaza Reit: 31.03 (Dripped 8 Shares)
Diversified Royalty: $24.05 (dripped 10 new shares)
Interrent Reit: $4.50
Manulife: $41.44 (dripped 1 share)
Intertape Polymer Group: $55.15
TFSA’s Total: $200.58
Canadian Equity Income Distribution: $361.76(dripped 12 shares)
RBC US Equity Index Fund: $292.38 (dripped 9.978 units)
Total Passive Income December 2020: $854.72
My portfolio increased nother 2.73% in December to a new record high: $430,000.53! Although I still think the market is insane right now considering the state of the global economies and unemployment rates I am feeling pretty optimistic about a few of my holdings for the future. Specifically Western Forest and New Flyer which both had a terrible year, but things have started to run around. I am hopeful Western Forest will reinstate the dividend before the end of 2021.
As I mentioned above 2020 was the first year I made over $10,000 in dividend income. Since January 1st, I earned $10,822.54 in passive income. Assuming no dividend cuts or increases, my current Forward 12 month dividend income is $12,294.49. My goal for the year was finish 2020 with a forward dividend income of $12,000 – which I accomplished even with a few dividend cuts due to Covid! I still haven’t made a goal for 2021 yet, but I’m leaning towards $15,000.
Here is a look at my total dividend income per year since I started tracking this 5 years ago:
Here are my year end Portfolio values on Dec 31 each year since I started as well:
One thing I’ve been working on this year was to try and get more income from my TFSA vs RRSP. Currently 26.4% of my dividend income is tax free. Hopefully when I write this recap next year that number is even higher.
This last year has been a wild ride. We said goodbye to our fur baby Penny, I started a new job after being laid off from my previous job of 16 years, we went to Mexico in January and basically when we got back the whole world shut down. All things considered the year could have been a lot worse. We both still have jobs, we have got to spend a lot of time with the kids and we have all remained healthy. We miss our friends and family, but we are hopeful things start to return to normal in the next few months and until then – like the rest of the world we will continue to stay positive and wait out the storm.
I hope you all had a great year, and have an ever better 2021!
Today I made what will most likely be my final stock purchase of the year. I wasn’t planning on buying anything today but had a bit of cash in the TFSA and decided to take a look at a REIT I had been following on and off for a while. The price had fallen into my target price range, and I thought what the hell, let’s end the year off with one last stock purchase.
Nexus REIT was formed when two former reit’s merged (Edgefront & Nobel). It currently trades on the TSX Venture exchange. The reason I started following Nexus was because I was actually a holder of Edgefront Reit for a couple of years before they merged. I sold off my shares before Nexus was created. If I recall correctly, I bought the Edgefront shares when they dipped to about $1.50 and sold them for $2.00 after a couple of years. Over those years I also collected the 8% dividend. Not too shabby.
Much like it’s predecessor Nexus has been trading in the $2.00-$2.20 range, and recently dipped to $1.90. It pays a hefty 8.37% dividend which is fully covered by AFFO even during the pandemic. The last time I checked the payout ratio was 82.4%. Recently Nexus Reit has made a couple of acquisitions paid for partly with cash, and partly with shares (with the shares being valued between $2-$2.20 on these deals). Morningstar also gives it a fair value of $2.12.
Nexus Reit has both office, industrial and retail spaces but plans to focus more on industrial going forward. This should help the stock price as well, as industrial Reits are all the rage right now. I believe the stock price has been beaten up because they are being labelled/priced mostly as a retail/office REIT instead of industrial. That said, over 60% of their retail spaces are occupied by solid tenants such as: Canadian Tire, Metro & Dollarama. They have also maintained occupancy rates close to 95% during the pandemic. I don’t expect huge capital appreciation of the stock price, but a slow and steady climb back to $2.00 and beyond is okay by me, especially as I can sit and collect the 8.37% dividend. Nexus Reit also has a conservative debt/total asset ratio of 47.7%. They have grown their total funds from operations year over year as well. I expect this to continue as we come out the pandemic hopefully by the end of 2021.
One last reason I purchased this stock is that they have recently been approved to be listed on the Toronto Stock Exchange. Once they get moved over they could get some support/noticed by a few of the bigger institutional investors who don’t typically (or aren’t allowed) to buy stocks on the venture exchange. They’ve been approved for a 4 to 1 stock consolidation for when they move over to the big boy exchange. That said, even if the move to the TSX doesn’t give the stock price a bump – I am completely happy to hold it and collect my dividend until the stock price gets back to fair value.
I picked up 1087 shares of Nexus Reit at a price of $1.90 per share. This purchase will add $173.49 to my annual dividend income (Tax Free) and at the current share price allow me to drip 7 new shares each month. At the end of the day, this wasn’t a huge purchase, but every little bit helps get closer to achieving the goal of having dividends cover all my expenses.
It’s Friday night, I just put the kids to bed and I am flipping through the Death & Co cocktail book to see if I can get inspired. My go to drinks lately have been Boulevardier’s and Negroni’s (likely because I recently got a bottle of Carpano Antica vermouth which is so god damned delicious).
I remembered we had some lemons I needed to use up, so my first thought was either a Sazerac or a Whisky Sour, but then I flipped the page and saw “Pisco Sour” and I remembered my brother had brought me back a little mini bottle (2 oz) of Soldeica Pisco from his trip to Peru a few years ago. The bottle has just been sitting on my bar shelf, so I figured what the hell, let’s do it!
The recipe itself I used is my go to whiskey sour recipe, I just swapped out the Whisk(e)y for Pisco.
-2 oz Pisco
– 0.5-0.75 oz simple syrup – depending on how sweet you like it
-Juice from half a lemon
– Egg white (1 oz)
Dry shake (no ice). Add ice and shake again. Strain into whatever glass you prefer – I like the coupe for most shaken drinks without ice cubes. Add a few dashes of Angostura bitters on top.
Drink & Enjoy.
Being a bourbon man, I still prefer the classic Whisky sour – but this was a nice change of pace, and I’d definitely make it again – all I need is my brother to take another trip to Peru and bring me some Pisco back…haha
Another year has come and gone – although this particular year feels like it’s dragged on for a decade. I think I speak for most of the world when I say I cannot wait for this dumpster fire of a year to be over. Although I don’t expect 2021 to be a complete return to the norm – I am hopeful we will start to see things slowly open back up, and there is definitely a lot of promising news on the vaccine front.
Two years ago I created a list of some of my favourite Canadian investment blogs, which a lot of people seemed to like. I didn’t do one last year, but decided I’d create a new list (with some familiar names, and a few new ones). This year has been so ridiculous that I haven’t put nearly as much time into updating this site, or reading other sites, but I still spend a lot of time on twitter which I believe is a great way to consume a lot of info a short period of time. On that note -I’ll include twitter accounts to follow that I highly recommend as well.
While this year will still be quite heavily focused on Canadian Investing websites(since the majority of my investing/research is focused on Canadian Equities) – I will be including a few friends from down south and overseas as well. Okay enough blabbering. Here is my list (in no particular order) of the top Investments sites & twitter personalities to follow in 2021!
My Own Advisor:
Great for both beginners and advanced investors. The site is largely focused on building wealth over time, does in depth reviews of ETFs & Stocks and shares his portfolio/journey. Mark has been around for quite some time and was one of the first Canadian Investing Sites I started reading. He is also very active on twitter, and like me enjoys beer, whisky and hockey!
All About The Dividends
Matt from All About The Dividends is another Canadian investor about the same age as me. What I like most about Matt is his openness in sharing his portfolio and thoughts behind his investment decisions. Matt may also be the most positive and encouraging person you will ever find on twitter.
Bert & Lanny are the two diplomats behind the site. They are the first non Canadian investors on my list, but they deserve to be mentioned. I enjoy reading their site for a few reason:
-to get some ideas on non Canadian dividend (USA) stocks
– to check up on their portfolios (which they share freely)
– to read my favorite posts each month- when they highlight other investors passive income journeys
They have also recently launched a youtube channel.
The boys in the garage are great fun. They discuss everything from personal finance, investing, tax efficiencies and more. They do this on their website, twitter as well as their podcast (they had me on as a guest earlier this year). You can check out that episode HERE. Another reason I love listening to these guys, is they are very down to earth, and along with discussing finance on each podcast, they also have a beer (or bourbon) and discuss those as well.
Another non Canadian site to add to the list. Cheesy Finance chronicles the journey of a young dutch as they pursue F.I.R.E. The site has sections in both English & Dutch, and they are very active on twitter as well. Cheesy also enjoys beer – and likes to taunt us on twitter with his superior beer collection.
If you are looking for info on some of the top Canadian Dividend stocks to invest in – look no further than StockTrades. Dan & Mat continually put out quality articles, Canadian stock picks and more. They are also both super active and helpful on twitter as well. Give the site a read – and give the boys a follow!
Twitter(s): https://twitter.com/matlitalien & https://twitter.com/StockTrades_CA
This is a site I was just recently introduced to, but I am glad I was. The in depth coverage on Canadian REITS is fantastic. They first got my attention when I read their pieces on Sandpiper/Artis Reit. They don’t post new updates as often as I’d like, but when they do they are very in depth. They are active on twitter as well.
The Stinky Stonk Market
Need a laugh? Look no further than the Stonk Market. Picture the onion if it only focused on investing and finance. Admittedly I don’t visit the website that often – but I laugh out loud to myself a few times a week just reading their tweets. So if you need a break from doing stock screeners, fundamental or technical analysis of stocks – then give them a read.
GEN Y MONEY
Gen Y makes the list again for good reason. Her site focuses a lot more on the personal finance side of things (credit card rewards, budgeting, etc and is also a great resource for new investors starting out). We also own a lot of the same stocks and I like to have friendly competitions with her about who is earning more in dividend income. *Spoiler Alert* She is kicking my ass!
Cut The Crap Investing
Dale from Cut The Crap Investing is quickly becoming very well known in the Canadian personal finance space. He contributes to Moneysense, Million Dollar Journey and Seeking Alpha. He is a champion of low cost ETF’s (he probably cringes to know I pay 1.4% MER on a Canadian Mutual Fund) and is always willing to share his thoughts on stocks and suggestions on twitter.
Passive Canadian Income
Rob from Passive Canadian Income seems like one of the guys in the online personal finance community that I’d most likely wanna go grab a beer with. He is super down to earth, very open about his financial journey and has multiple streams of income including dividends, solar power & a private investment which pays him a nice sum each month. His taste in beer is definitely lacking – but I am sure he will grow up one day.
Canadian Value Stocks
Tyler from Canadian Value stocks is one of the few sites who continually puts out quality, in depth article and deep dives on specific stocks. One thing I love about his site is how clean/to the point it is – it’s just straight down to business. Nothing fancy – just quality stock analysis. He focuses on Canadian stocks, and is very knowledgeable about the Canadian REIT sector.
Bob from TAWCAN (which is short for Taiwanese Canadian) is another Canadian finance site with topics ranging from dividend stocks, ETFS, F.I.R.E and more. His website is another great resource for people wanting to learn more about investing in Canada. He also shares his monthly dividend income – which is very impressive!
Although I am not superstitious….I dont think I’ll leave the list at 13 – instead I’ll add a few more dividend investing & personal finance twitter accounts you should definitely follow!
Dividend Investor: https://twitter.com/DividInvestor
Million Dollar Journey: https://twitter.com/FrugalTrader
Dividend Growth Investor: https://twitter.com/DividendGrowth
The Dividend Guy: https://twitter.com/TheDividendGuy
Dividend Growth Investing & Retirement: https://twitter.com/DGIandR
A Lawyer Her Money: https://twitter.com/alawyerhermoney
Roadmap 2 Retire: https://twitter.com/Roadmap2Retire
Nelson/Canadian Dividend Investing: https://twitter.com/thenelsonsmith
I am always looking for new content to consume – so if you have any recommendations of investing blogs or twitter accounts that focus on Canadian Dividend Stocks, or Canadian Equities – please let me know in the comments.
Personal Highlights – November 2020
Artis Reit: $36.50 (dripped 3 shares)
European Residential Reit: $7.78(dripped 1 share)
Plaza Reit: 30.84 (Dripped 8 Shares)
Diversified Royalty: $23.89 (dripped 10 new shares)
Interrent Reit: $4.29
TFSA’s Total: $103.30
Canadian Equity Income Distribution: $360.46(dripped 13 shares)
Total Passive Income November 2020: $463.76
My portfolio increased a whopping 12.05% in November to: $418,576.77! My previous portfolio high was back in January when it was $377,000. It’s nice to see almost everything in the green and some big gains, but I am still expecting some sort of pull back to numbers that make sense. That said, I’ve been expecting that for a while now, but they keep printing money and lowering rates..so who knows what will happen.
Since January 1st, I’ve earned $9967.82 in passive income. Assuming no dividend cuts or increases, my current Forward 12 month dividend income is $12,157.85. My goal for the year was finish 2020 with a forward dividend income of $12,000 – so assuming no more cuts, mission accomplished! I’m still working on a goal that is large but attainable for 2021, I am leaning towards $15,000 in dividend income.
Personal Highlights – October 2020
Telus: 52.43 (dripped 2 new shares)
Artis Reit: $36.32 (dripped 4 shares)
European Residential Reit: $7.74(dripped 1 share)
Plaza Reit: 30.66 (Dripped 8 Shares)
Diversified Royalty: $23.67 (dripped 13 new shares)
Algonquin Power: $197.26 (dripped 10 shares)
Interrent Reit: $4.29
Power Corp of Canada: 102.48 (dripped 4 shares)
TFSA’s Total: $454.85
Canadian Equity Income Distribution: $359.04(dripped 13.869 shares)
Transcontinental: $199.35 (dripped 12 new shares)
NewFlyer: $58.65 (dripped 3 new shares)
GoEasy Financial: 123.75
Total Passive Income October 2020: $1195.64
My portfolio increased slightly by 0.81% in October to: $373,570.96 I know I say this every month, but I expect continued volatility as well as a bit of a crash around the election. That said, my plan hasn’t changed and I plan on holding if/when this does happen. I was actually shocked to see the market up today on election day.
Passive income in October was $1195.64. This was a huge increase from last year 41% YoY growth!
Since January 1st, I’ve earned $9504.06 in passive income. Assuming no dividend cuts or increases, my current Forward 12 month dividend income is $12,080.83. My goal for the year was finish 2020 with a forward dividend income of $12,000 – so assuming no more cuts, mission accomplished! It’s almost time to start making goals for next year, but a lot will depend on the Covid situation, work situation, and market situation after the election so I will hold off for now.
This is a bottle I’ve had open for over a year, and with the new rare whiskey’s being release at the Manitoba Liquor Mart in a couple of weeks, I figured now is a great time to finish off some bottles and make room for some new ones.
You cannot get High West products here in Manitoba, but I was lucky enough to have a friend bring this bottle back for my from the good ol’ USA. The bottle itself is pretty nice, with a huge honkin’ cork and some nice speckled glass. This bourbon is made in Utah which is pretty unusual, and the High West Guys have gotten quite a reputation for making good whiskey which is why I wanted to try this one. Another cool thing about this bottle is that 10% of the profits go to the American Prairie Reserve.
Date Reviewed: October 27, 2020
Atmosphere: Sipping in one of my Baba’s pinwheel crystal glasses, on on a Tuesday night during the pandemic.
Distillery: High West Distillery
Mash: 75% Corn, 20% Rye, 5% Barley
Age: 2 years and some older blended in
Price I Paid: It’s been so long, I don’t remember, but I want to say around $50 Canadian
Appearance: Light amber, watered down honey
Nose: I’m not sure if its because i’m drinking this out of a rocks glass instead of a typical Glencairn but there isn’t much of an alcohol/ethanol scent to it at all. Smells sweet, yet faint, nothing too dominant. The high corn/sweetness definitely comes through on the nose though.
Palate: Still a lot of lingering sweet notes- but surprisingly woody considering it’s not aged very long. A fairly simple tasting bourbon, but goes down sweet. A few hints of chocolate and caramel not spicy at all. Easy sipper.
Finish: The finish is pretty short, but not in a terrible way. No burn whatsoever, with a bit of a waxy mouthfeel. The bourbon leaves an oaky/woody aftertaste.
Conclusions: If this was readily available here in Manitoba, I’d probably buy a bottle here and there, though I wouldn’t be lining up to get one. It’s a reasonably priced, easy sipping, straight forward bourbon. From what I’ve read, this would be considered one of High West’s lower level bourbons and I would definitely want to try the rest. This seems like it would be a good mid level sipper, and introductory bourbon for people just getting into the sweet stuff.
Overall Score: 77/100
Personal Highlights – September 2020
Artis Reit: $28.76 (dripped 3 shares)
European Residential Reit: $7.83(dripped 1 share)
Diversified Royalty: $23.45 (dripped 13 new shares)
Canadian Western Bank: $0.29
Interrent Reit: $4.29
Intertape Polymer Group: $53.41
Manulife: $40.88 (dripped 2 shares)
Plaza Reit: $30.47 (dripped 8 shares)
TFSA’s Total: $160.62
Canadian Equity Income Distribution: $357.66(dripped 13.477 shares)
Total Passive Income September 2020: $518.28
My portfolio decreased by 1.03% in September to: $370,575.67 I know I say this every month, but I expect continued volatility as well as a bit of a crash around the election. That said, my plan hasn’t changed and I plan on holding if/when this does happen.
The only new purchase this month was adding to my position in Artis Reit, as well as my bi-weekly contribution into my US Equity Index Fund in my spousal RRSP. My plan is to continue adding cash to my TFSA bi-weekly and eventually add to my position in European Residential Reit.
Passive income in September was $518.28. This was actually lower than last September due to some dividend cuts, as well as some companies changing which months they pay their dividends.
Since January 1st, I’ve earned $8308.28 in passive income. Assuming no dividend cuts or increases, my current Forward 12 month dividend income is $12,022.27. My goal for the year was finish 2020 with a forward dividend income of $12,000 – so assuming no more cuts, mission accomplished!
Blanton’s single barrel usually arrives in the Manitoba liquor mart twice a year. Typically you can grab a few bottles before it sells out after a week or two. The price is around $70 Canadian, and basically anytime we get a shipment in the province I pick up a few bottles. There is nothing worse than craving a sip of Blanton’s only to realise there is none left in your entire province.
For those unfamiliar with Blanton’s, you may know it by seeing it. The bottle is one of the most iconic bourbon bottles around, and has been used in many movies, tv shows, etc.
Each bottle includes the date the barrel was dumped as well as a bottle topper that has a horse/jockey in a slightly different position, as well as a letter. A lot of people try and collect them all to spell out B-L-A-N-T-O-N-S. This specific bottle was dumped March 05, 2020 and has the bottle topper is the letter “B”.
*Spoiler Alert* This has been one of my favourite bourbons since the day I first tried it. I haven’t yet done a review on it – so here I go….
Date Reviewed: September 17, 2020
Atmosphere: In a special rocks glass I was gifted by a good friend for being in his wedding party. Aside from my Glencairn glasses, this is my go to glass for sipping and cocktails.
Distillery: Blanton Distilling Company; Buffalo Trace/Sazerac Company
Mash: Buffalo Trace Mash Bill #2. This is thought to have a slightly higher rye content – about 15%
Age: No Age Statement – Thought to be around 9 years
Price I Paid: $70 Canadian
Appearance: Medium Amber/Brown.
Nose: From a mile away I can pick out the sweet, soft smell of Blanton’s. It’s one of the few bourbons I can take a big whiff of without any burn in my nostrils. Even with the glass resting on your lap, notes of vanilla, milk chocolate and caramel will make its way up to you. Give it a few swirls, and you may get some cinnamon too. If it didn’t taste so god damn good – I could spend the whole night just smelling the glass – but alas…I must drink it….
Palate: The first sip continues to showcase it’s sweet notes (think an aero chocolate bar – which by the way pares exceptionally well with this bourbon) it is followed by just the right amount of heat. Some spices shine through, maybe nutmeg or cinnamon, and although I’ve never smoked a cigarette in my life I can see how people would say they can taste a tobacco like flavour in this as well.
Finish: The finish is smooth, and has an almost burnt orange peel like finish. There is zero burn, and every sip is better than the last. I find a lot of whiskey will give you that heartburn like feeling the first few sips you have as it goes down – not this one. So smooth.
Conclusions: While not overly complex, that is what I like about it. Every single time I pour a Blanton’s I know what I am going to get. A smooth, tasty bourbon I can enjoy neat or showcase in a cocktail. It’s fancy enough for a special occasion sipper, it also makes a great gift, and luckily where I live it’s also readily available enough for an everyday sipper. It’s both sweet and smooth, but also spicy and has just enough heat for almost anyone to enjoy. While it may not have the punch and complexity of say a Bookers or Stagg Jr, I’d put it right up there next to those on my top shelf. I also highly recommend eating an Aero bar while you sip on this, and let a piece of the bar melt in your mouth between each sip. It is heavenly.
Overall Score: 90/100 (94/100 with an Aero)
Personal Highlights – August 2020
Artis Reit: $28.62 (dripped 3 shares)
Diversified Royalty: $23.25 (dripped 12 new shares)
Interrent Reit: $4.29
Plaza Reit: $30.28 (dripped 8 shares)
TFSA’s Total: $
Canadian Equity Income Distribution: $356.31(dripped 13 shares)
Total Passive Income August 2020: $442.75
My portfolio increased by 5.48% in August to: $374,440.55 I know I say this every month, but I expect continued volatility as well as a bit of a crash around the election. That said, my plan hasn’t changed and I plan on holding if/when this does happen.
After the last 3 purchases (Manulife, Telus & European Residential Reit) I don’t have much cash left in my accounts so I haven’t been updating my watchlist. My plan is to continue adding cash to my TFSA bi-weekly and eventually add to my position in ERE.UN.
Passive income in August was $442.75. This was only the second time this year my income was under $500. This is due to dividend cuts/suspensions due to Covid. Hopefully by middle of 2021, we start to see some of them being reinstated and some other dividend increases.
Since January 1st, I’ve earned $7790.14 in passive income. Assuming no dividend cuts or increases, my current Forward 12 month dividend income is $11,898.58. My goal for the year was $12,000 – and had Covid not hit I believe I would have been well ahead of that – but now I’m going to need to make an additional purchase or two to ensure I meet that goal.
If you are a regular reader of this site (my mom), you will know it’s been quite some time since I’ve added anything to my portfolio aside from the regular monthly contributions to my US Equity Index Fund & Canadian Equity Income fund. In fact the last stock purchases I had made were way back on March 10th when I purchased shares of:
Fast forward 5 months, and after taking a pretty big beating (due to Covid) most of them are back to my buy price or higher (Chorus being the one big exception). Although I haven’t purchased anything in 5 months, I have still been contributing bi-weekly amounts into my TFSA, and I have been updating my watchlist, and keeping tabs on a bunch of stock prices and news daily. A few that I have been following quite closely for the last few months include:
So what did I end up buying…
I was able to grab 146 shares of Manulife in my wife’s TFSA. I picked these up for $18.08, and I was happy because as long as the stock price didn’t jump above $20.44 I would be able to DRIP 2 new shares per quarter. Well, the good news is, within about a week of owning these shares I am already up 13%! The bad news is, as of today, I will only be able to DRIP 1 share per quarter. My plan is to continue to add to $MFC if it dips again.
This purchase added an additional $163.52 to my yearly dividend income.
Telus was a stock I’ve been watching for months. It was one that just wasn’t coming down too far in price compared to most, but I really wanted to grab some shares. I finally bit the bullet on a day it dipped, and grabbed 180 shares for $22.99. I’m already up over 6%, but I plan on holding this one for the long haul. At the current price I will be able to DRIP 2 shares per quarter. I don’t plan on adding more at this point since Telus is also held in my RBC Canadian Equity income fund as well. Eventually I plan on selling some of the RBC Fund and picking up more XAW. When I do – I may look at adding more Telus shares. This purchase adds an additional $210.60 in yearly dividend income.
ERE.UN is a stock I’ve followed a little over the last 6 months. If I am being honest, mostly because I see a lot of other people I know & respect buying it/talking about it. I kept it on my watchlist but hadn’t investigated it too seriously – until this week. They released earnings earlier this week, and things looked pretty good. I decided to start a small position with the intention of adding a bit more if it dips again. I added 573 shares at $4.10 each. This purchase allows me to drip an additional share each month, and adds $91.98 to my yearly dividend income.
If you recall, back in March I had passed my goal of $12,000 in forward dividend income, however after covid started decimating the markets, and global GDP began getting demolished, I very quickly had some painful dividend cuts and suspensions. These included:
These cuts dropped my dividend income by almost $2000 meaning I was quite a bit behind my goal of $12,000 in forward dividend income. Although I am not quite back yet, with these recent additions, I added $465.80 and I am happy to report my current forward dividend income is $11,894.72!
Hope everyone is staying safe out there. Cheers!
Personal Highlights – July 2020
Power Corp of Canada: $100.69 (dripped 4 shares)
Artis Reit: $28.49 (dripped 3 shares)
Diversified Royalty: $23.05 (dripped 12 new shares)
Interrent Reit: $4.29
Plaza Reit: $30.10 (dripped 8 shares)
Algonquin Power: $201.83 (dripped 12 shares)
TFSA’s Total: $388.45
Canadian Equity Income Distribution: $354.91(dripped 13 shares)
GoEasy Financial: $123.75
New Flyer Group: $58.01 (dripped 3 shares)
Transcontinental: $196.43 (dripped 13 shares)
Total Passive Income July 2020: $1121.55
My portfolio jumped a bit in July to: $354,977.52 This represents a increase of 3.33% from last month. I expect continued volatility in the market (and my portfolio) for the foreseeable future due to covid and the upcoming US presidential election.
My long term plan hasn’t changed. I haven’t sold a single stock, and I continue to look for good deals. I pulled the trigger on two stocks on my watchlist this month (Telus & Manulife). My plan is now to wait until the US election is over to make any other moves in the market. That said, I will continue to keep my eyes open for any stocks that meet my screening criteria and fall to an attractive price.
Passive income in July was $1121.55. This was only the second time in my investing history, that I’ve ever had back to back months over $1000 in dividend income. It was my fourth month in 2020 with over $1000! To put that in perspective, in all of 2019 I only cracked one thousand once!
Since January 1st, I’ve earned $7347.39 in passive income. The second half of the year unfortunately won’t be as strong, as there won’t be another big XAW distribution until January 2021.
Assuming no dividend cuts or increases, my current Forward 12 month dividend income is $11,763.01.
It took me months, but I finally got around to opening this bottle. First a little background. This was actually a gift, sent to me by a reader of the site, who happened to know I loved cocktails & bourbon. This bottle is unavailable here where I live, so it was extra special. It just so happens, I later got to know him a bit better, and I am now a reader of his site, and was even a guest on his podcast….what a weird world. If you are interested, you can check out his site HERE
Barchef is one of the top cocktail bars in Toronto, and for this bottling they partnered with Still Waters Distillery who make Stalk & Barrel whisky. I haven’t been to Barchef Toronto yet, but next time I am there I will check it out for sure. I have heard nothing but great things.
First of all, the bottle itself, is really a thing of beauty. It’s just got a real nice, simple, clean look to it. It was also shipped with a small orange aromatic spray (to mimic the orange zest/twist) which smelled absolutely delightful. A friend of mine joked he wanted to take it and use it as a cologne. One of the real nice things about this bottle, is the simplicity. Just pour over ice, give it a spritz or citrus twist, and you have a gourmet cocktail in your glass within seconds.
For the unacquainted, and old fashioned is a very straight forward, spirit heavy cocktail. Typically the ingredients and measurements are as follows:
2 oz Bourbon
1 bar spoon simple syrup
3-4 Dashes of bitters
Classic Old Fashioned’s just happen to be one of my favourite cocktails due to their simplicity, and also the fun in finding the right balance of sweetness and sharpness. If you aren’t a whisk(e)y drinker, or into booze heavy cocktails, a classic old fashioned may not be for you.The good news is, the Barchef Toasted Old Fashioned could be the perfect gateway drink for those wanting to get a bit more into cocktails.
The Barchef Toasted Old Fashioned is NOT your typical/classic Old Fashioned. In fact, after trying it, I was a bit surprised they marketed this as an old fashioned cocktail. First of all, it is very sweet, has a lot of added spices and flavours, and the bottle comes in at just 38.9% alcohol. According to the bottle, instead of simple syrup they use maple syrup (which is especially delicious), along with lots of other spices. As soon as you open the bottle, your nose will be hit with a heavy dose of anise/licorice. Unfortunately for me, much like Cilantro, this is one of the flavours I’ve never been able to get into.
The first sip is very sweet, and then you get hit with the spice. If I am being honest, the anise/licorice was too overpowering for me, and the drink was definitely too sweet for my liking. It almost tasted like a Jagermeister old fashioned with added sugar. I can definitely see the appeal of this drink for anyone who enjoys that Jager/Absinthe flavour, but I just couldn’t get into it as much as I tried. I offered some of the bottle to some friends who were visiting, and they were pretty split on it. Some enjoyed it, while some (like me) couldn’t get past the overpowered flavour and seemingly lack of bite that you’d expect from an “Old Fashioned”.
If there is one thing I’ve learned in my foray into cocktails over the last few years, it’s that everyone has different taste preferences. For example, I absolutely LOVE Campari, and Negoni’s but it is absolutely an acquired taste, typically you either love it or hate it – much like anise. So although I can’t say I’d pick up a bottle of this for myself if I saw it on the shelf, I would still recommend you give it a shot for yourself especially if you enjoy that jager, anise, licorice flavour profile. The simplicity and ease of making yourself a gourmet cocktail by just pouring it over ice, would make this a great drink for camping as well.
I’ve noticed recently there are a lot more options for pre made cocktails, but I’ve yet to find one I’ve really liked. If you have had this one, or some of the other pre made cocktails, let me know what you thought.
Passive Income Update For June 2020.
Diversified Royalty: $22.85(dripped 12 shares)
Canadian Western Bank: $0.29
Artis Reit: $28.35 (dripped 3 shares)
Interrent Reit: $4.29
Plaza Reit: $29.91 (dripped 8 shares)
Intertape Polymer: $55.12
TFSA’s Total: $140.81
Canadian Equity Income Distribution: $353.49(dripped 13.748 shares)
XAW Distribution: $1172.13 (dripped 44 shares)
Total Passive Income June 2020: $1666.43
My portfolio was up slightly to: $343,539.41 This represents a increase of 2.69% from last month. I expect continued volatility in the market (and my portfolio) for the foreseeable future.
My long term plan hasn’t changed. I haven’t sold a single stock, and I continue to look for good deals. I’m sitting on a bit of cash, and I’ve updated my watchlist, which currently contains: Manulife, First National Bank, Alimentation Couche-Tard, Telus, Metro and Canadian Western Bank (among a few others). I haven’t pulled the trigger on any of these yet, because I still think things are going to get worse before they get better.
Passive income in June was $1666.43. June was my second highest month in 2020. So far in the first six months of the year I’ve earned $6225.84 in passive income. The second half of the year unfortunately shouldn’t be as strong, as there won’t be another big XAW distribution until January 2021.
Assuming no dividend cuts or increases, my current Forward 12 month dividend income is $11,405.96.
*The following is a guest post by Dividend Power*
As a dividend growth investor, I love Dividend Champions. These are stocks that have paid a
growing dividend for 25-years or more. Thomson Reuters is a Dividend Champion. The stock is
also one of the Canadian Dividend Aristocrats. Thomson Reuters is a Canadian company that
trades on the Toronto Stock Exchange or ‘TSE’ and also trades on the New York Stock Exchange
or ‘NYSE’. At the right price, the stock is probably a good addition to many dividend growth
portfolios. The market downturn resulting from COVID-19 caused the stock price to drop, but it
has recovered somewhat since then. The current dividend yield is roughly 2.3%, which is higher
than the broader market average. Dividend growth investors may want to research this stock
Thomson Reuters is a media, content, and data company that traces its founding back to 1934 in
Canada and 1851 in London. The company in its current form is the result of a $17.6 billion
merger between Thomson of Canada and Reuters Group of the U.K. in 2008. More recently, in
2018, the company divested its Finance and Risk business forming Refinitv in exchange for $17
billion. Thomson owns a 45% stake of Refinitv and The Blackstone Group (BX) owns the other
55%. In 2019, Thomson Reuters agreed to exchange the 45% stake in Refinitiv that it owns for
a 15% stake in the London Stock Exchange Group subject to regulatory approvals.
Today, Thomson Reuters operates in five business segments: Corporates (22% of revenue),
Legal Professionals (41% of revenue), Tax & Accounting Professionals (14% of revenue), Reuters
News (11% of revenue), and Global Print (12% of revenue). The company will have about $5.9
billion in revenue in 2020 (before COVID-19 impacts). Thomson Reuters is the market leader in
the global legal market segment, and the market leader in corporate legal and tax solutions in
the U.S., and the tax market segment in the U.S.
Note that the company is controlled by the Thomson family of Canada through their investing
vehicle, Woodbridge Company Limited. They control approximately 65% of the company’s
common shares. The family holds the chairman position in Thomson Reuters.
Thomson Reuters is a Dividend Champion and a Canadian Dividend Aristocrat. The company
has paid a growing dividend for 27 consecutive years since 1993. The regular cash dividend has
increased from $0.08 per share in 1993 to $1.52 per share in 2020. This gives a current dividend
yield of approximately 2.3%, which is not bad compared to S&P 500s’ current average dividend
yield of about 2.0%.
Source: TRI Booklet Winter 2020
Thomson’s dividend safety metrics have historically been somewhat volatile due to special
items. They have also worsened recently due to the divestment and subsequent loss of revenue
and lower earnings, and COVID-19.
Looking forward, consensus 2020 earnings per share is $1.77. The forward dividend is $1.52 per
share. This gives a payout ratio of approximately 86%. This value is greater than my target value
of 65% or lower. However, revenue and earnings are likely to be depressed in 2020 due to
COVID-19. Further, Thomson Reuters is adding to revenue through bolt-on acquisitions. This
should improve the payout ratio with time as these acquisitions grow and add to the bottom-
On a free cash flow basis, the dividend is also safe. The company is guiding for roughly $1 billion
in free cash flow. This is down from guidance of $1.2 billion in FCF earlier in the year due to
COVID-19. The dividend costs about $760 million annually ($1.52 x 500 million shares). This
gives a dividend-to-FCF ratio of about 76%. This is an OK value but higher than my target value
of 70%. The long-range target for Thomson Reuters is to pay 50% – 60% of free cash flow as
The dividend is also seemingly safe from the perspective of debt. At end of the most recent
quarter, Thomson Reuters had outstanding debt of $3.8 billion off set by cash on hand and
short-term investments of $1.35 billion. No debt is due until 2023 adding to the good picture from the
perspective of debt.
Overall, the combination of the divestiture, restructuring, and COVID-19 has likely made the
dividend safety metrics somewhat worse the desired. However, Thomson Reuters has
positioned itself in higher growth areas and is forecasting organic growth supplemented by M&A. With that said, I do not expect the dividend to grow at very fast rate over the next couple
of years as the global economy recovers from COVID-19.
Is Thomson Reuters undervalued? The stock is currently trading at a forward earnings multiple
of about 38.5X. This is higher than the average of the S&P 500, which is trading at 21.9 as of this
writing. So, no Thomson Reuters is not undervalued at the moment. However, some of this
elevated valuation is due to lower consensus forward earnings per share due to COVID-19. The
high earnings multiple is also due to limited float that is also contributing to overvaluation.
Recall that the Thomson family controls about 65% of the common shares. So, there is limited
amount of stock that trades on a daily basis for a company of its size.
Thomson Reuters’ stock price dropped to near $52 per share at the depths of the downturn
caused by COVID-19, which was probably a good entry point. The stock is arguably an under the
radar dividend growth stock. I expect that the dividend will continue to grow in the future but
at a slower rate. The company has seemingly prioritized share repurchases and M&A at the
moment. With that said, dividend growth investors may want to research this stock further
and keep an eye on it for a better entry point.
Biography: Dividend Power is self-taught dividend growth investor. He is the founder and
author of the Dividend Power investment blog. He writes about dividend growth stocks for the
long-term small investor seeking to invest in dividend stocks for income and growth. His focus is
on undervalued stocks with sustainable dividend growth and capital appreciation potential. His
work has appeared on Seeking Alpha, Sure Dividend, ValueWalk, The MoneyShow, and other
It’s been a while since I’ve updated my watchlist. I haven’t made a stock purchase in a few months. In fact my last stock purchase was back in early March, right when Covid 19 was just starting to really hit North America. If you recall, I had added to my positions in XAW, GoEasy Financial, Chorus Aviation (ouch), Diversified Royalty and finally initiated a new position in New Flyer. I am still happy holding all of these companies long term and the only one that has taken a huge hit was Chorus Aviation.
I’ve increase my bi weekly contributions into my TFSA and although I haven’t purchased anything yet, I’ve had my eye on a few different companies. First a bit of background, so you can better understand my reasons for choosing the stocks below…
1) My RRSP holds mostly just 2 funds. One is XAW(which is about 40% of my total portfolio) and takes care of my USA/Global diversification and the other is an RBC Canadian Equity Income fund(About 25% of my total portfolio).
2) I use my TFSA specifically to hold Canadian Dividend Paying Stocks, so this watchlist will only include Canadian Stocks that pay a dividend.
3) Since about 25% of my portfolio is the RBC Canadian Dividend fund, I TRY to avoid holding the same stocks in my TFSA/RRSP. There are some exceptions (Algonquin Power, New Flyer, etc).
4) My updated watchlist will consist of Canadian Dividend paying stocks, and which meet my custom stock screening criteria. Some metrics I use in my custom stock screen are: Conservative Payout Ratio, Reasonable Price/Earnings, Earnings Growth & Expected Earnings Growth and Debt Levels.
Metro & Loblaw
Looking at these two stocks, I don’t believe you can go wrong with either. I would actually like to add them both, however right now I am leaning towards Metro. The only areas where Loblaw comes out on top is:
a) I am extremely familiar with it, I shop there multiple times a month.
b) Current dividend yield is slightly higher, slightly less volatility.
That said, the numbers speak for themselves, and I believe the first one I pick up will be Metro. See for yourself…
Metro looks like the clear winner here. They are trading at a better multiple, they have a much more conservative payout ratio (more room to grow the dividend), and the past 5 years show they are doing just that.
My target price for these stocks are:
The big banks are all well covered in my RBC Canadian Equity fund, so I will not talk about them here (although I will see, they pretty much all look like great pick ups right about now). I ALMOST grabbed some Bank of Nova Scotia last week when it was trading at 9x earnings. It is still trading under 10x earnings and yielding 6.13%!
I’ve been watching First National & Canadian Western Bank for years. In fact I owned CWB for a while, bought it at $19, sold it around $30. It is a stock that continually has good metrics, but also has crazy volatility usually tied to the Alberta market and oil prices. That said they have diversified away from being a “western” bank and continue to expand. If you don’t like volatility, it’s probably not for you, but it’s got a great history of increasing dividends, a low payout ratio and because of it’s volatility you can periodically scoop it up at a great price.
First National is actually the company I have my mortgage with, and they aren’t your typical financial institution. They work closely with mortgage brokers, and leverage technology better than most of the big banks. I’m a big fan of their online mortgage platform, however the current interest rates, coupled with the increasing amount of Canadian Household Debt may hurt them. First National pays a nice monthly dividend, and insiders own over 10%, which is usually a sign that management has confidence in the business.
Let’s see what the numbers say. I included Bank Of Nova Scotia here as well for reference:
As you can see, all 3 are trading at very reasonable levels, with the edge going to Canadian Western Bank. The dividend yields are all pretty strong as well. The conservative payout ratio as well as the 5 year dividend growth rate also put Canadian Western Bank on top.
Bank of Nova Scotia is the easy set it and forget it pick. It has solid, but not spectacular numbers all around, and you know it will keep doing its thing.
First National has a few risks attached with it, if interest rates stay this low, they will get hurt more than other big banks, and the payout ratio of 78.6% is way too high for my liking (especially in this sector). I own some reits with better payout ratios!
Canadian Western Bank looks like the winner for me here. That said, I still don’t like it enough at it’s current price to pull the trigger. I’ve seen it dip below $20 many times over the last few years, and I expect it (along with most other stocks) will see another huge drop as Covid continues to wreak havoc on us. I love the dividend growth history, low payout ratio and their commitment to diversifying outside of Alberta, and also more into wealth management.
Long term, I don’t think you can go wrong with any of these, and here are my target prices:
BNS: $60 or less. Honestly it’s a good price now. It could drop again, but if you are in it for the long haul, getting this for 9-10x Earnings is a go for me
CWB: $19.99 or lower. Although I would never recommend swing trading – if you had to choose a stock to do it – this may be the one. This one continually goes from $20-$35. I like it for its dividend growth and low payout ratio. I’d be comfortable buying and holding for 5-10 years if I can scoop some up at $20 or less.
First National: $22.50. If I am being honest it’s probably a good price at $25-27 as well, but due to some of the risk, I’d only grab this one if it really falls quite heavily again.
2 Other stocks I want, but am waiting for price to drop …Alimentation Couche Tard & DOLLARAMA
It’s getting late, so I won’t go into these ones too much right now (i’ll probably do a solo write up on each). I am currently waiting for these two to drop to initiate a position.
I actually owned ATD.B previously, but sold it a couple years back, and although I made a nice chunk on that trade, I wish I held on to it. Dollarama is one that I’ve never owned but have wanted to for a while. These two stocks have a lot of similar metrics, both have extremely low yields, but both are growing them at exponential rates. They both have super conservative payout ratios, and have both seen their earnings and profits rise at “growth stock rates” for the last few years. That said, Dollarama has seen a pretty big drop in the rate of it’s growth the last 2 years while ATD has continued to impress. These are another two great stocks for the long haul, which I hope to add both by the end of this year. My target prices are:
Do you own any of these stocks? Would you consider buying any? Let me know your thoughts.
Passive Income Update For May 2020.
Diversified Royalty: $22.62(dripped 13 shares)
Artis Reit: $28.22 (dripped 3 shares)
Power Corp: $98.90 (dripped 4 shares)
Interrent Reit: $4.29
Plaza Reit: $29.68 (dripped 10 shares)
TFSA’s Total: $183.73
Canadian Equity Income Distribution: $352(dripped 13.845 shares)
Total Passive Income May 2020: $535.73
My portfolio was up slightly to: $334,531.46 This represents a increase of 1.62% from last month. I expect continued volatility in the market (and my portfolio) for the foreseeable future.
My long term plan hasn’t changed. I haven’t sold a single stock, and I continue to look for good deals. I’ve updated my watchlist, I am currently keeping an eye on: Manulife, First National Bank, Alimentation Couche Tard, Metro and Canadian Western Bank (among a few others).
Passive income in May was $535.73. This is one of my slowest months, but luckily it should be followed by one of my largest. Next month XAW pays one of it’s semi annual distributions. With everything that has gone on in the market, I am not too sure how much to expect from XAW but it should be a much needed boost.
Assuming no dividend cuts or increases, my current Forward 12 month dividend income is $11,340.46.
*** The following is a guest post (Our first official guest post to be exact) from our good friends at Sure Dividend ***
At Sure Dividend, we don’t use the term blue-chip loosely. While the term blue-chip gets thrown around a lot in the financial media, we have a specific definition of what constitutes a blue-chip stock. Blue-chips, in our view, are stocks that have at least 10+ consecutive years of annual dividend increases. There are three specific groups of stocks that fall into the category of blue-chip stocks: the Dividend Achievers (10+ consecutive years); the Dividend Aristocrats (25+ consecutive years); and the Dividend Kings (50+ consecutive years).
We believe blue-chip stocks are those that have maintained long histories of raising their dividends each year. A long track record of consistent annual dividend growth indicates a company with strong brands, durable competitive advantages, and a proven history of generating growth over the long run.
Canadian Natural Resources (CNQ) qualifies as a blue-chip dividend stock for Sure Dividend, as the company has now increased its dividend for 20 consecutive years. We also consider the stock to be undervalued, given the recent and significant decline in the share price. With a high current yield above 8%, Canadian Natural Resources is a blue-chip dividend stock.
Canadian Natural Resources is an energy company that operates in the acquisition, exploration, development, production, marketing, and sale of crude oil, natural gas liquids (NGLs), and natural gas. Geographic areas of production focus include Western Canada, the North Sea, and offshore Africa. The company is headquartered in Calgary, Alberta, and the common stock is cross listed on the Toronto Stock Exchange and the New York Stock Exchange, where it trades with a market capitalization of approximately US$17 billion.
The company has high-quality assets that will fuel its growth for many years. It has a massive asset base of long-life, low-decline assets which hold 27.8 years of proved reserves, and 36.0 years of reserve life based on proved-plus-probable reserves. Canadian Natural’s Oil Sands Mining and Upgrading assets have a reserve life of more than 43 years.
As a large exploration and production company, Canadian Natural Resources’ revenue and cash flow are dependent in part on the underlying commodity price. Reduced prices of oil and gas due to the negative demand shock posed by the coronavirus has put a dent in the oil and gas majors. Fortunately, Canadian Natural Resources has continued to perform well in recent periods.
In early March, Canadian Natural Resources reported financial results for the fourth quarter of fiscal 2019. In the year, average production grew 2%. In addition, the company reduced its operating costs by -10%, to $11.50 per barrel, and thus grew its adjusted earnings-per-share by 17%, from $2.06 to $2.40. Moreover, the company grew its adjusted funds flow by 13%, to an all-time high of $10.3 billion, and delivered record free cash flows of $4.6 billion.
Such a strong level of free cash flow permitted the company to return lots of cash to shareholders last year. Shareholder returns totaled $2.7 billion for 2019, including a 12% increase in the company’s quarterly dividend and over $940 million in share repurchases.
Canadian Natural Resources grew its reserves by 11% in 2019, to 10.99 billion barrels, and thus enhanced its reserve life index to 27.8 years. As this figure is more than twice as much as the average life of reserves of its peers (~11 years), it is impressive and certainly bodes well for the future growth prospects of the company.
In early 2020, Canadian Natural Resources declared a new quarterly dividend at a rate of $0.425 per share, for an annualized rate of $1.70 per share (US$1.21). This represented a 13% raise from the previous quarterly payout, meaning 2020 is the 20th consecutive year of a dividend increase for Canadian Natural Resources. This is an impressive history of increasing dividends, as it includes the global financial crisis and recession of 2008-2009, as well as the coronavirus pandemic.
Canadian Natural Resources is a high dividend stock, and is an attractive stock for income investors. Based on its recent share price, the stock has a high dividend yield of 8.6%. Compare this with the S&P 500 Index, which has an average dividend yield just above 2% right now. The combination of rising stock markets over much of the past decade, as well as falling interest rates, means it is more difficult to find suitable levels of investment income considering the lack of available alternatives.
The company has decent balance sheet strength as well, with an investment-grade credit rating of BBB from Standard & Poor’s. Canadian Natural Resources recently notified investors of recent developments surrounding the coronavirus crisis, and measures taken to protect the company’s financial position in an effort to secure the dividend. In 2019, Canadian Natural retired approximately $2.35 billion of bonds and term facilities, proving to be a wise decision as the global economy faces a potential recession in 2020.
Canadian Natural Resources has taken a number of steps to shore up its finances more recently, including suspending buybacks and cutting operating costs. Management is also confident regarding the liquidity position of the company. Current liquidity is approximately $5 billion consisting of cash, including approximately $1 billion in estimated cash reserves as at March 31st . Lastly, it is lowering its 2020 capital expenditure budget from $4.05 billion to $2.96 billion, a 27% reduction. In the company’s
view, its financial resources are more than sufficient to retire any current debt obligations when due.
The coronavirus crisis has weighed on the stock market over the past several weeks, particularly in the hardest-hit sectors such as energy. But this could simply be a good buying opportunity for long-term investors. There are many high-quality stocks that have seen their dividend yields rise dramatically as a result of their plunging share prices. And, valuations appear compressed across the energy sector.
Still, investors need to choose stocks selectively, to focus on high-quality businesses with sustainable dividends. Canadian Natural Resources has a strong business model and a long history of increasing its dividend each year. With a high dividend yield above 8%, Canadian Natural Resources is a blue-chip dividend stock.
** Just a reminder, this was a guest post from our friends at Sure Dividend. **
Always do your own stock research.
Passive Income Update For April 2020.
Diversified Royalty: $26.00(dripped 18 shares)
Artis Reit: $28.08 (dripped 3 shares)
Algonquin Power: $185.31 (dripped 10 shares)
Interrent Reit: $4.29
Plaza Reit: $29.44 (dripped 10 shares)
Chorus Aviation: $36.76(dripped 12 shares)
TFSA’s Total: $309.88
Canadian Equity Income Distribution: $351(dripped 13 shares)
Transcontinental: $192.83 (dripped 16 shares)
New Flyer: $57.16(dripped 4 shares)
Go Easy: $123.75
Total Passive Income April 2020: $1034.62
My portfolio jumped back up to: $329,207.77. This represents a increase of 14.78% from last month. This market is crazy. Over the last 3 months, my portfolio has gone:
– 5.41%, -19.73%, +14.78%
My long term plan hasn’t changed. I haven’t sold a single stock, and I continue to look for good deals. I’ve updated my watchlist, I am currently keeping an eye on: Manulife, First National Bank, Alimentation Couche Tard, Metro and Canadian Western Bank (among a few others).
Passive income in April was $1034.62. This was the second time in the first 4 months of 2020 my income was over a thousand! I only achieved $1000+ twice in all of 2019!
The Black Manhattan is one of my new favourite drinks. If you are a cocktail person, you are most likely familiar with a classic Manhattan. If you are not a cocktail person a classic Manhattan is Rye, Sweet Vermouth & Bitters. It’s a very boozy drink, but absolutely delicious. I love a classic Manhattan, but I have to say, lately I’ve definitely been preferring a Black Manhattan.
So what’s the difference between a regular classic Manhattan & the Black Manhattan?
As you can see, the only difference is swapping the vermouth for Averna. As far as ingredients go, these drinks are VERY similar. That said, don’t let it fool you, the flavour profile is completely different. Aside from the dark complexion, the Averna gives the drink a more herbal/medicinal feel – but in a good way. I like to make mine with a hint of sweetness ( I add a spoonful of Maraschino syrup).
2 oz Rye Whiskey (You can substitute with Bourbon but traditionally a Rye).
1 oz Averna Amaro
2-3 Dashes Angostura Bitters
1 barspoon Luxardo Cherry Maraschino Syrup
*Garnish with 3 Luxardo Cherries.
Add all ingredients into a mixing glass with ice. Stir for 20 seconds. Strain into coupe glass. Garnish with 3 cherries. Enjoy.
This drink will go down fast and smooth. Don’t let that fool you. It is a boozy one. Take your time, enjoy it. That said, if it goes down too fast – no worries, make yourself another one…after all it’s only a few ingredients!
Okay, seriously. If you ACTUALLY clicked this headline – this is for you.
Stop chasing penny stocks.
Stop chasing unsustainable high yields.
If you think you will find your next great stock on a blog, facebook group, reddit thread or from a friends “hot tip” – you probably shouldn’t be buying individual stocks. I cannot count the number of people I’ve had message me over the last couple of weeks asking about penny stocks, oil stocks, etc. People who have never invested a penny in their lifetime, messaging me telling me they are going to easily double their money in the next few months….
Are there some penny stocks that will double this year? Of course. Do I (or anybody else) know which ones? Of course not. If we did, we’d be billionaires. The amount of people searching for “good penny stocks” or “best monthly paying stocks” or “dividend stocks yielding over 10%” is astounding…and it’s dangerous.
We’ve all been there, starting out trying to figure out what stocks to buy, how to make a quick buck. Almost every experienced investor will tell you they got got burned early on, either chasing yield, listening to a hot tip or speculating/gambling.
Almost everyone agrees getting a dividend payment from their stock is great. It feels good, you can reinvest that money or use the cash – so why wouldn’t you want to find stocks that pay out the biggest dividends? The answer is simple:
Sustainability & Future Dividend Growth
Owning shares in a company that pay a dividend feels great. You know what feels even better though? Having confidence that the dividend will not only be around for years to come, but that it will continue to increase. What good is a 10% dividend yield if it gets cut next month – or if the stock price declines 15%?
Here are some metrics that can help give you confidence in the sustainability of a dividend:
Payout Ratio: This one is pretty straightforward. What percent of earnings is the company paying out to its shareholders as dividends. For an extremely simplistic example, assume company ABC makes $100 this year, and pays an annual dividend of $50. The company would have a payout ratio of 50%. Look for companies that have a conservative payout ratio. Payout ratios will vary between industries, but typically you want to find a company that is paying out less than 40-50% of annual earnings. The big exception here would be REITS – but that is a discussion for another day.
Earnings History & Projections
Another important metric to focus on is earnings per share. Are earnings increasing? A super conservative payout ratio is great, but if earnings are falling each year, that payout ratio, by default will start to increase. If a company is not able to increase its earnings, eventually the dividend is going to get cut. Look for companies that have a history of growing their earnings per share, in good times and bad.
Strong Balance Sheet
Always look at the financial statements for a company before pressing the “buy” button. A lot of metrics could look great, but if a company is over leveraged, it means they could be at risk in the future. Always ensure a company has no problem meeting its debt obligations. If they can’t this means they may need to raise equity (issue more shares/dilute your stake in the company), cut back on costs (cut dividends), or worst case face a possible bankruptcy.
Dividend Growth History
Lastly, look for companies that have a history of increasing their dividend each year. This typically shows they have confidence in the business, and they like to reward shareholders. It is important to do your own research, and just because a company has increased their dividend for 10+ years in a row, doesn’t mean it can’t or won’t get cut in the future. That said, if a company has strong and growing earnings, increasing revenue, a strong balance sheet and a history of paying a growing dividend, you are probably on the right track.
Finally, since you may have been lured here with the click baity headline, and the hopes of finding 3 great stocks to buy, out of pure guilt I will post 3 Canadian stocks below I believe meet the following criteria:
3 Canadian stocks to consider:
As always, do your own due diligence. Happy Hunting.