I don’t need to tell you this, but the markets have been pretty insane. I wasn’t expecting to make so many purchases so early in the year, but sometimes when a stock you’ve been watching for a year (or more) finally gets into a range you feel comfortable buying – you have to jump on it.
It’s only March 10, and already this year I’ve made five purchases. What did I buy?
Chorus Aviation: The industry have been hit hard, but just prior to the corona virus outbreak, this stock had reached a new 52 week high, posted pretty solid results and it’s leasing business was chugging along nicely. Short term pain for long term gain.
I added 618 shares which adds an additional $296.64 to my yearly dividend income. This allows me to drip an additional 6 shares a month at these prices.
Diversified Royalty Income: Another position I added to. I’ve held Diversified Royalty for a while now, and it’s performed pretty good for me – the only concern I ever had with this stock was the payout ratio – I’ve written about Diversified Royalty a few times, and every time I mention the payout ratio and the fact they need to add another royalty stream or two to get the payout ratio to a more manageable level. Well, after a long standstill with no acquisitions, the management team pulled off two quick acquisitions over the last year or so. It started with Mr. Mikes, which let’s be honest, was just meh…but it did allow them another stream and a bit of diversification. What came next was great though, within a couple of months, they added Nurse Next Door AND Oxford Learning. With the addition of these last two, they were able to bring down the payout ratio AND increase the dividend! I added 400 shares which adds $92.00 to my yearly dividend income, and allows me to drip 2 additional shares a month.
Ishares XAW ETF: With this purchase, XAW is now my single largest holding. I use it as a broad diversification tool, not just for the wide range of companies it holds, but for the global diversification as well. The rest of my holdings are mostly Canadian stocks or funds, which is the sole reason I chose XAW (it holds over 8000 stocks from companies all around the world EXCEPT Canada). I added 1500 shares of XAW, which adds $875.00 to my yearly dividend income, and allows me to drip an extra 30 shares a year.
New Flyer: I finally pulled the trigger, and initiated a position in New Flyer. This is a company I like holding for a few reasons. It’s local, it’s been a great success story, the dividend keeps growing, and I believe more and more cities will (and should) move towards electric/diesel buses. I added 269 shares which adds $457.30 to my yearly dividend income. At current prices, I should be able to drip 4 shares per quarter.
Go Easy Financial: Another company I added to. They’ve been a crazy success story in Canada, they generate a TON of free cash flow, they are increasing their dividend, buying back shares, and growing revenue at unheard of rates. Regulation could hurt them – but they could also expand into the USA for more crazy growth. I added 175 shares which adds $315 to my yearly income. Unfortunately RBC Direct Investing doesn’t allow Go Easy to drip shares at this time.
These five purchases add $1985.94 to my annual dividend income. This pushes my forward dividend income to $12,059.69!
Assuming there are no dividend cuts (knock on wood), this means I’ve hit my 2020 Forward dividend target of $12,000 and it’s only March! I’m not sure how much (if any) more I’ll buy this year, or what my forward dividend income will be at the end of the year, but it feels good to actually hit a goal. I’m usually terrible with goals. Hell, the last 2 years I made a January Goals post, and never followed up with them once…so I’m going to enjoy this one just for a minute or two (before I start feeling bad about the other 10 goals I made that I didn’t follow through on….)
Sunday March 8th is International Women’s Day here in Canada. I figured the best thing I could do to celebrate this is to share 3 of my favourite female blogs/twitter accounts.
So let’s get to it!
Gen Y Money and I have a bit of a friendly competition going each month to see who will out earn the other in dividend income. Aside from that, she also runs one of the more popular finance blogs in Canada, with posts that range everywhere from monthly dividend reports to comparing credit card reward programs to travel hacks. We are also both still stubborn stock holders of the seemingly always disappointing Power Corporation. I thoroughly enjoy reading her site, because of the wide range of topics it covers, and she sometimes does deep dives into Canadian stocks as well. She is also super friendly, helpful and active on social media so give her a follow on TWITTER
Sarah is from Alberta, is a huge Oilers fan, and runs the website Smile & Conquer. Although she is mostly anonymous, we know she works in finance, loves to travel, and is a great resource for anyone looking for budgeting, money saving or investing tips. She recently went on a couple trips that looked amazing, which I know about because I also follow her on INSTAGRAM. Sarah become an instant favourite of mine after she participated in my “Better Know A Blogger” series, where I interviewed a bunch of personal finance people to get to know a little more about their personal lives.
You probably already know about Bridget, as she runs, what is probably the most successful financial site in Canada (Money after Graduation). I’m not here to talk about that though, because I actually prefer following her personal account on twitter, where she is a lot more open, blunt, and political. Alt right need not apply…. 🙂
Give her personal account a follow here
To all the men – remember to be extra kind to all the ladies out there, not just tomorrow but every day.
Personal Highlights for February:
The amount of panic and people freaking about about a drop in the market is INSANE. My portfolio is 100% equities. It dropped -5.41% since last month. In the 5 years I’ve been tracking my portfolio – this isn’t even the largest 1 month drop I’ve experienced. In fact, my portfolio although down from it’s all time high, is only back down to where it was a few months ago. Here is a little visual for some perspective.
S&P 1 YEAR CHART: The Sky Is Falling (Perception)
S&P 5 Year Chart: This is a BLIP (Reality)
Don’t get me wrong – the market could continue to plummet (wouldn’t surprise me), but this (so far) is nowhere near 2008-09 levels. Even if the market does keep plummeting, I plan on sticking to my plan, holding good companies for the long haul and reinvesting my dividends at a reduced rate while the stocks are on sale.
Passive Income Update For February 2020.
Diversified Royalty: $17.60(dripped 5 shares)
Artis Reit: $27.90 (dripped 2 shares)
Interrent Reit: $4.29
Plaza Reit: $14(dripped 6 shares)
Chorus Aviation: $11.84 (dripped 1 share)
TFSA’s Total: $90.77
Canadian Equity Income Distribution: $347.30 (dripped 11 new units)
Total Passive Income February 2020: $438.07
My portfolio currently sits at: $357,310.98. This represents a drop of 5.41% from last month. Although I never like seeing red…I know its all part of the game, and I plan on sticking to my plan and adding a bit each month.
Passive income in February was $438.07. This is usually the smallest month of the year, and with my new purchases, I hopefully won’t see another month below $500 again…EVER!
My forward annual dividend income is $11,800.15. I updated my portfolio, and expected dividends HERE
Just a reminder: Each review will follow the same template, and include a score. Please enjoy responsibly 🙂
For those unaware, Weller 12 bourbon has become extremely hard to find, sells at a huge premium to MSRP on the secondary market, and gives all the bourbon bro’s boners if they ever find a bottle. I had never tried it, and a year ago, I was lucky enough to score some at MSRP (so I picked up 3 bottles for 59.00 each). I bought into the hype, I had to see if it really was “Poor a poor man’s Pappy” as they say….
Date Reviewed: February 26, 2020
Atmosphere: In a Glencairn glass, neat at home.
Distillery: Buffalo Trace
Mash: Unspecified – but same Mash & Ageing as Van Winkle Lot B
Age: 12 years
Price I Paid: $59.00 Canadian
Appearance: Amber, Burnt Honey
Nose: No dominant, or overpowering scents. Slight brown sugar and oak. A hint of dried orange peel – all very muted. This particular bottle has been open about a year.
Palate: Oak and a general dry woodiness is what stands out. Thick and oily mouthfeel – it coats the roof of the mouth and makes you feel like you need to chug a glass of water. Second sip is softer and sweeter. Vanilla and brown sugar poke through.
Finish: Long and thick. Quickly goes from woody and dry to soft and sweet.
Conclusions: Each sip is better then the last. The problem with this bourbon is the hype. Overall it’s a good – even a great bourbon, but you typically can’t just go buy it – and if you can -usually you are paying 2-4 x MSRP. If you can find it for $60 buy it, and you will enjoy it – but don’t buy into the hype and spend $200 on it. There are much better bottles in the $60-100 range.
I would buy this again at MSRP, hell I’d even buy a couple just to trade. I originally bought 3 (before I had even tried it), and ended up trading 2 of them for much more than MSRP. The hype is real…
Overall Score: 83/100*
*If it was readily available for 59.00, I’d probably rate it around 85-86. The scarcity, and the fact it is so overrated brings it down a few points for me.