Beautiful day for a stroll in the park.
Beautiful day for a stroll in the park.

 

Remembered to update this time

Last month I was pretty lazy about the whole updating the site thing. Didn’t get it out of the way early in the month, thought about it a couple times throughout and finally gave in a few days ago. Kept it pretty spartan though, mostly just numbers.

Summer is here, nice warm weather and no good reasons to be in front of a computer all the time (apart from the fact that it’s my job). I also splurged a bit and outfitted my garage with a full gym. Got the works, squat rack, few hundred pounds in bumper plates, some heavy kettlebells, and an assault air bike. Ran about $3000 total, but with 2 kids I felt like even ducking out to the gym was starting to get difficult. It’s 15 mins there, 1-2 hrs to workout, 15 mins back + shower. Generally means you have to find a large block of time to go. With a gym downstairs, I can actually run down to do a set, or whatever, and run back up.

Work is smoothing out and getting easier. Managed to find ground with each engineer and push them along in their respective projects. Getting there was a bit of a long road, which is what consumed a lot of my time in May/June. The next few quarters are now dedicated to taking their work, and pushing it into a production setting. It’s exciting to see their work finally go live. I only took over at the tail end of some of the projects, and some have been in development from early last year.

As the numbers on the blog and spreadsheets drift ever upwards though, I’m starting to grapple with questions like when do I throw in the towel here. I like my work, but if I won the lottery tomorrow, most people on my team would never hear from me again. It’s planning that I’ve largely put off because it wasn’t relevant yet, but I’m starting to think it may need some thought soon.

 

Finances

Dividends: $3,795.11

So yeah, this was a crazy month for dividend income. A lot of this spike in income is attributed to our TSE:XEF holding, which only pays out bi-annually (Jan/June). Some other etf’s happened to double pay this month as well, like TSE:VDY. Overall effect was our first $3k month.

We happened to have a large pile of cash this month through a confluence of financial events. I had a large number of vested shares that had accumulated over the last 6 months or so from work, those were sold off and used to buy in to some USD ETF’s. We also got a large portion of our tax refund, which went towards TSE:XEF in an RRSP account. As an additional bonus, I learned that we have an enormous amount of RRSP room left to use, which means I’ll be making a tonne of contributions. For any non-Canadians reading, an RRSP (or registered retirement savings plan) is a tax sheltered account in Canada. The (simplified) tldr; of it is that you contribute pre-tax, and are taxed on withdrawal.

In other news, there was a surge in volatility back in around mid-May, and I managed to buy in to NASDAQ:XIV for around $70 or so. It’s been trending up since then, high of around $87 last week and right now sitting around $83-84. On the plus side I managed to get in at a good price, but this is new territory for me and I don’t have a good exit strategy. I feel like I should probably just take my profit now, anybody have some thoughts on this?

Work and other projects still take up the majority of my time so I haven’t been exploring options as much as I could. Been playing around again with leveraged etf’s and selling calls there. I’m thinking of buying NASDAQ:TQQQ and selling covered calls there, risky but very high reward, up 700% or so over the last 5 years.

 

Name Symbol Income
H&R Real Estate Investment Trust TSE:HR.UN $32.20
RioCan Real Estate Investment Trust TSE:REI.UN $39.36
Allied Properties Real Estate Investment TSE:AP.UN $21.68
Smart REIT TSE:SRU.UN $24.08
Chartwell Retirement Residences TSE:CSH.UN $19.20
Canadian Apartment Properties REIT TSE:CAR.UN $20.27
Cominar Real Estate Investment Trust TSE:CUF.UN $24.38
Dream Office Real Estate Investment Trust TSE:D.UN $31.88
Vanguard Canadian Bond ETF TSE:VAB $162.43
iShares S&P/TSX Canadian Dividend Aristocrats ETF TSE:CDZ $78.37
Canadian National Railway Company TSE:CNR $54.75
iShares Core MSCI Emerging Markets IMI Index ETF TSE:XEC $36.01
iShares Core MSCI EAFE IMI Index ETF TSE:XEF $766.77
Brookfield Renewable Partners LP TSE:BEP.UN $159.55
Inter Pipeline Ltd TSE:IPL $55.90
Exchange Income Corporation TSE:EIF $88.38
Enbridge Income Fund Holdings Inc TSE:ENF $62.62
iShares Core High Dividend ETF NYSEARCA:HDV $459.75
Fortis Inc TSE:FTS $164.00
Hydro One TSE:H $99.12
Vanguard Canadian High Dividend ETF TSE:VDY $657.30
Vanguard Global All Cap ex Canada Index ETF TSE:VXC $599.78
Hydro One TSE:H $103.84
TransAlta Renewables Inc TSE:RNW $18.48
iShares S&P TSX Capped REIT Index Fund TSE:XRE $111.13
Total $3,795.11

 

Summary

Dividends Collected $3,795.11
Forward Dividends $27,598.78/ year (+$1,724.89)
Portfolio Value $825,983.72(+$38,221.40)

 

See the full graph of dividendsย month by month onย my Income page.

Financial Update – June 2017

30 thoughts on “Financial Update – June 2017

  • July 1, 2017 at 11:20 pm
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    Just dropped by to say Hi to congratulate you on the ‘ financial update’ as well as to see the impressive dividend income & the sizeable portfolio value.

    When did you start investing stock market & how long has it taken to get to the current portfolio value?

    How did you go about picking the 22 or so holdings that you have now & what criteria did you use for the selections?

    Do you ever change your holdings, if so – when or why do you do this?

    If it’s not so personal to ask related to the total dollar portfolio value of approx $826k, is this combined joint for the both of you? If so, what would be the percentage of the $826k broken down in each of any TFSA, RRSP & non-registered accounts, & do you hold the same positions (stocks) across all three?

    For any non-registered investments are you leveraging, borrowing or margin, as well as selling or buying option contracts on any of your positions, including maybe naked options?

    Appreciate you reading this & for any replies.

    Reply
    • July 7, 2017 at 8:06 pm
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      Thanks John! I can write up a post detailing my background if you’d like, but the short answer is that I’ve been investing casually for about 10 years, and this specific portfolio that I track on this blog has taken about 5-6 years to build.

      I’m a bit pressed for time at the moment, so I’ll make a note to myself to update the portfolio page with some info about how much is allocated to what account.

      No margin, leverage only via leveraged etf’s, selling (covered) calls occasionally.

      Reply
  • July 2, 2017 at 1:19 am
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    Nice dividends! I thin Canadian stocks will outperform in the next few years. A new bull market in commodities is coming, and this is going to be a big one. Since Canada’s economy heavily relies on commodity exports, Canadian stocks will do well

    Reply
    • July 7, 2017 at 8:06 pm
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      I certainly wouldn’t mind that ๐Ÿ™‚

      Reply
  • July 2, 2017 at 3:05 am
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    I’d say blog income is negligible, I think it’s okay to miss a few posts. ๐Ÿ™‚ family time is a lot more important. It’s summer time, I’ve been biking over 200 miles with Mr,W. no time for blogging either. Hihi

    $28k to reinvest into the portfolio plus dividend growth will snowball into your entire expenses for early retirement. That’s why I’m frantically rebuilding my portfolio after cashing out for the commercial building. I still don’t know if my portfolio will ever get as high as yours. *crossinf fingers ๐Ÿ™‚

    Regardless of the nice income from the commercial, I’d say dividend is my favorite passive income. Taxes are low on long term gain if you own more than a year, and dividend income is taxed rather a lot lower than earned income.
    If you have to leave the country for a period of time, you know every month, dividend will get deposited to your account. That’s another advantage.

    Reply
    • July 7, 2017 at 8:10 pm
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      Blog income is non-existent, I haven’t monetized this blog and have no plans to in the immediate future. Most bloggers see almost no money from their efforts, only a lucky few who were either early enough to have little competition or got a bit lucky will ever see enough to justify time spent.

      I don’t have the patience for landlording, I do it a bit for our property but I won’t expand our real-estate empire ๐Ÿ™‚ Stocks are truly passive, in that I could slip into a coma and still make money (possibly more since I wouldn’t be screwing around with allocations).

      Reply
  • July 2, 2017 at 11:12 am
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    SLM, a comment on the XIV. There is no such thing as a long hold on any position, especially ones that do not pay dividends that also ‘do not’ have options on them. It’s basically ‘it’s met my minimum expectations, now it’s time to sell’ & move on.

    In the case of XIV ‘how far is down’ (look at the past 12 months range) – can it continue to keep on going up? If you have purchased this as a speculative buy that has now reached your x% gain, then for me it would be a sell to move to something else. Of course a week even a month from now XIV could pop a few more more points when some folks may say ‘I should have held’, on the other hand should you still be holding the position & the stock drops, it’s then the ‘I should have sold’. One cannot predict or believe the analyst forecasts to ‘this is the pick of the week’ stock to be in. All it takes is one bad review to a not so good news release.

    On TQQQ. What is there to say. It’s implied volatility is high (as is it’s beta of 3.73) which means this could swing any which way. It doesn’t pay a dividend , so the investment is for ‘gain’ if it goes in your favour. It does have options, which may work.

    Looking at the option tables long to Jan 2018, there isn’t a heck of a lot of open interest & the premium on the Jan 2018 call ‘at the money’ is only approx 1.5% return. Should the stock pull back you lose. Even ‘in the money’ option at $90 and below that there is little to no intrinsic value premium.

    Question is ‘do you expect QQQ to continue to increase since it’s pulled back 13% in the past 30 days? If so then sell an out of the money call option at $100, $110 whatever to reach your target % return expectation.

    As a suggestion is look at stocks that have decent dividends that are also optionable, make sure there is always a decent amount of open interest & take into consideration the ‘beta’ as well as the option implied volatility. Use the combination of both to get a return that you can ‘hedge’ to minimize the downside. An investor doesn’t ever need to hold long or forever just for the ‘dividend growth (some do & don’t care where the stock price is), because with any dividend stock that you also option & get called on the option contract, one can always go back in & buy again to repeat the first trade

    Let me give you an example & this is just for reference purposes only.

    Take AGNC currently $21.29 range. Look at its beta range, the call option contracts Jan 2018. My trade would be for the dividends as well as sell in the money covered call option at say $19 or $18, with no intrinsic value, protection on the downside and pick up two quarterly dividends between now & option contract expiry

    Reply
    • July 7, 2017 at 8:20 pm
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      re: XIV good point, I’ll probably sell my position

      I’m a bit of a newbie with options, but I’m not sure I follow you. First, where are you getting your numbers? A Jan18 call is (as of July 3 when you posted) sold for $15.38 for TQQQ at $95, so roughly 16% return (not annualized)?

      Reply
  • July 3, 2017 at 3:14 pm
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    Solid month, holy crackers! That’s one good dividend income. How far would it get in covering your current expenses?

    As to the workout, think you just whipped out my 10 year budget in updating your garage. I’m sticking with a road bike, some inline skates, running shoes and some home workout programs (Insanity, P90X, etc.). Love working out, but building a $3K garage gym is a bit too much for me. Hope it works well for you though!

    Reply
    • July 7, 2017 at 8:21 pm
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      I’m currently compiling some numbers to figure that out.

      Those are all good options for a gym. I’m a bit of a gym rat though, and love having my weights so for me it’s a great option.

      Reply
  • July 4, 2017 at 2:31 am
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    Getting a home gym sounds like the perfect way to get extra time whilst remaining fit to me SLM. Fantastic job building up your dividends so much, you are getting closer to the $1m mark! ๐Ÿ™‚

    Mr DDU

    Reply
    • July 7, 2017 at 8:22 pm
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      Yeah already rebuilding a lot of lost strength from when the 2nd little guy was born and gym time became a scarce commodity.

      Reply
    • July 7, 2017 at 8:25 pm
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      Thanks! Looks like you had a great month yourself.

      Reply
  • July 5, 2017 at 9:08 pm
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    I like the home gym idea. I like your dividend income total more. All I can say is WOW! Very impressive.

    Reply
    • July 7, 2017 at 8:25 pm
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      Yeah, loving the home gym.

      Reply
  • July 6, 2017 at 2:33 am
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    Great idea with the home gym. Saving time and saving money in the long run. turning a monthly variable expense into a one time fixed expenses. oh yeah, and by the way, over $3,000 in dividend income…ARE YOU KIDDING ME??? Amazing stuff here SLM. Congrats on the great job and keep on pushing

    Bert

    Reply
    • July 7, 2017 at 8:26 pm
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      I’ll be honest and say I didn’t really plan on using it as a way of cost cutting in the long run, just a way of getting my butt in the gym regularly.

      Reply
  • July 6, 2017 at 11:09 pm
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    Another fantastic month congrats! Nice work on the gym. 3k is something you can easily afford especially when its less then this months dividend income. Haha i got a nice gym in my garage. Bench squat rack chin up bar treadmill and the bowflex dumbbells. They are nice. Only downfall is the garage gets colder in the winter and i tend to not work out as much. Keep it up your killing it! You guys are where I want to be!

    Reply
    • July 7, 2017 at 8:27 pm
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      Oh I need a treadmill, wonder if I’m out of space though. I got an assault air bike (aka the devil’s tricycle), but I think a treadmill for leisurely incline walks would be great.

      Reply
  • July 7, 2017 at 9:29 am
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    Holy Cow….more than 3k per month ! That is our ultimate goal for financial freedom..something we can only dream about while goverment steals 30% away from each dividend payout.

    You keep on enjoying what you do, which is most important in life ! Congrats !

    Cheers. Patrick

    Reply
    • July 7, 2017 at 8:28 pm
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      That sucks, how’s the government stealing 30% of your dividend payout? Where do you live?

      Reply
  • July 8, 2017 at 12:40 am
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    Solid June update. With those biannual payments you brought in an actual real world salary for most in one month w/o having to work for it. Keep building and buying those quality names. Enjoy the summer with family. Get your workouts in and keep plugging away. Every time I see your portfolio I think I’m underweight REITs. It’s a nice reminder that maybe I should look into the sector a bit more.

    Reply
    • July 8, 2017 at 5:29 pm
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      I doubt it, my REIT position is getting smaller and smaller as the portfolio grows. It also looks like a lot since I basically unrolled the TSE:XRE etf to avoid the MER.

      Reply
  • July 12, 2017 at 4:05 am
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    The home gym sounds amazing! I need to do more workouts, have been slacking off in that department. Solid dividend income as always. I really should take a look at options to supplement dividend income.

    Reply
    • July 13, 2017 at 2:54 am
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      Home gym is definitely a game-changer for me, my lift numbers are all climbing back steadily.

      I’m no expert in options, really just trying to slowing gather some expertise in the area. Figure I have years to learn ๐Ÿ™‚

      Reply
  • July 15, 2017 at 4:00 pm
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    Hi SLM

    Congratulations on a great month. Just wondering if you left out some dividends because the dividends listed are adding up to $2,984.61 which is a very solid number but wondering if here was some typo.

    Best wishes
    Spock

    Reply
    • July 16, 2017 at 2:55 pm
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      Nice catch Spock! You’re right, looks like I wasn’t very thorough when I posted the breakdown and missed a few, namely TSE:XEC, TSE:XEF, and TSE:H. Keep in mind that I convert USD to CAD as well so the number will fluctuate a bit depending on exchange rate.

      Reply
  • July 16, 2017 at 8:41 pm
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    Wow awesome numbers! Love home gym setups. We have a setup in our basement and love not having to leave the house to workout. Saves time and money. My favorite areas to save ๐Ÿ™‚

    Reply
    • August 3, 2017 at 2:56 pm
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      Yeah, I’m definitely working out more these days.

      Reply

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