Sunday, 4 January 2015

2014 dividend increases, cuts and flat dividends

I am taking this opportunity to update my portfolio to evaluate and analyze my dividend increases throughout 2014. I don’t have the time or interest to update my dividend increases as they occur. Instead I have decided to review my entire portfolio at year end and assess which companies increased their dividend, which companies didn’t and which companies cut their dividends throughout 2014.

This is a helpful exercise because it force me to consider only investing in companies that grow their dividends. It also allows me to see which companies are growing and which aren't, useful in evaluating future purchases. 

The result: 49 of my stocks increased their dividends in 2014, 1 company decreased its dividend by +50% (1 company drastically decreased their dividend) and 31 companies maintained their dividends with their previous year’s dividend rate.  

60% of my stocks are dividend growth stocks. Probably higher since I bought a few traditional growth stocks near the end of 2014 and didn’t personally experience any growth (e.g. Procter & Gamble, CNR, National Bank, Loblaws, etc.). I want to increase it from 60% to 70 or 80%. 

The majority of my portfolio benefited from dividend increases. Bank of America was a powerhouse with a 400% increase. Other notable increases were Suncor, Enbridge, Target and Deere. It’s great to see various companies increasing their dividends at various rates.

38% of my portfolio maintained their dividends. No growth. Many of these are Reits. Reits have high payout ratios and majority of these are in my TFSA so that’s ok.

2% of my portfolio saw dividend cuts. Baytex is the notable mention here. Low oil prices slaughtered the dividend. ARCP didn’t cut their dividend in 2014 but may be doing so very shortly.

Overall, and despite having a large position in Baytex, the portfolio increased over $150 in forward dividend income solely from dividend growth. It would have been much higher had it not been for Baytex. 

Going forward, I want to invest more in dividend growth stocks and less on companies that simply maintain their dividend. Future additions may include JNJ, Colgate, Aflac, Wal-Mart, 3M, Pepsi.

Additionally, reduce the size of my entire portfolio. Sell companies with flat dividends and transfer the proceeds into dividend growth stocks.



Dividend increases in 2014 – dividend growth stocks

Bank of America                                     ($0.04 to $0.20)             400% increase
Suncor                                                     ($0.80 to $1.12)             40% increase
Enbridge                                                  ($1.40 to $1.86)             32.9% increase
Target                                                       ($1.72 to $2.08)             20.9% increase
Deere                                                       ($1.99 to $2.40)             20.6% increase
Canadian Natural Resources                   ($0.80 to $0.90)             12.5% increase
Lorillard                                                  ($2.20 to $2.46)             11.8% increase
Brookfield Infrastructure (BIP.un)          ($1.72 to $1.92)             11.6% increase
Enbridge Income Fund                            ($1.38 to $1.54)             11.6% increase
Telus                                                        ($1.44 to $1.60)             11.1 % increase
Canadian Utilities                                    ($0.97 to $1.07)             10.3 % increase
Exxon Mobil                                            ($2.52 to $2.76)             9.5% increase
TD Bank                                                  ($1.72 to $1.88)             9.3% increase
Intact                                                        ($1.76 to $1.92)             9.1% increase
Coca-Cola                                                ($1.12 to $1.22)             8.9% increase
Altria                                                        ($1.92 to $2.08)             8.3% increase
Capital Power                                           ($1.26 to $1.36)             7.9% increase
Shaw Communications                            ($1.02 to $1.10)             7.8% increase
Kinder Morgan                                         ($1.64 to $1.76)             7.3% increase
Walgreen                                                  ($1.26 to $1.35)             7.1 % increase
Brookfield Renewable Energy                 ($1.45 to $1.55)             6.9 % increase
Emera                                                        ($1.45 to $1.55)             6.9% increase
Bank of Nova Scotia                                 ($2.48 to $2.64)             6.5% increase
Philip Morris                                             ($3.76 to $4.00)             6.4% increase
Digital Realty Trust                                   ($3.12 to $3.32)             6.4% increase
Fortis                                                         ($1.28 to $1.36)             6.3% increase
BCE                                                           ($2.33 to $2.47)             6% increase
Royal Bank                                                ($2.84 to $3.00)             5.6% increase
Bank of Montreal                                      ($3.04 to $3.20)             5.3% increase
Rogers                                                       ($1.74 to $1.83)             5.2% increase
BTB Reit                                                   ($0.40 to $0.42)             5% increase
Andrew Peller                                           ($0.40 to $0.42)             5% increase
McDonalds                                                ($3.24 to $3.40)             4.9% increase
General Electric                                        ($0.88 to $0.92)             4.5% increase
Direct Cash Payments                               ($1.38 to $1.44)             4.3% increase
SNC Lavalin                                              ($0.92 to $0.96)             4.3% increase
Pembina Pipelines                                     ($1.68 to $1.74)             3.6% increase
Exchange Income                                      ($1.68 to $1.74)             3.6% increase
Innergex                                                     ($0.58 to $0.60)             3.4 % increase
Southern Co                                               ($2.03 to $2.10)             3.4% increase
Northern Proprety Reit                              ($1.58 to $1.63)             3.2 % increase
Calloway Reit                                            ($1.55 to $1.60)             3.2% increase
Algonquin Power                                       ($0.34 to $0.35)             2.9% increase
Waste Management                                    ($1.46 to $1.50)             2.7% increase
Merck                                                         ($1.76 to $1.80)             2.3% increase
AT&T                                                         ($1.84 to $1.88)             2.2% increase
Cominar Reit                                              ($1.44 to $1.47)             2.1% increase
Thomson Reuters                                       ($1.30 to $1.32)             1.5% increase
Realty Income                                            ($2.18 to $2.20)             1% increase



Dividend cuts in 2014


Baytex energy             ($2.64 down to $1.20) 55% dividend decrease. Ouch!
ARCP                          (???) Encountering accounting troubles and not sure whether the dividend will soon be cut.

Flat dividends in 2014

Extendicare
Pengrowth
Pure Industrial Reit
Skylon
Crescent Point Energy
Just Energy
Student Transport
NorthWest Healthcare
H&R Reit
Dream Global Reit
Power Corp
Power Financial
Canadian National Railway (bought very recently)
Procter & Gamble (bought very recently)
Loblaws (bought very recently)
National Bank (bought very recently)
WSP Global
Potash
WesternOne
Caribbean Utilities
Leon’s
SunLife
Dream Office
Northland Power
RioCan
Liquor Stores
Cap Reit
Chartwell Reit
Dream Industrial Reit
Rogers Sugar
Artis Reit


Friday, 2 January 2015

December 2014 Dividends

I received $1086.04 in dividends in December.

$729 of that was in my taxable account and the rest in my registered accounts.  $729 is taxable income and subject to favorable taxation. Better to be taxed on dividend income then regular income.

The long-term plan is to use the income generated in the taxable account to pay for my living expenses. One day it will pay for my bills and allow me to work less. For now, I’m simply reinvesting that money and allowing the compounding effect to take place.
           
In 2014 I have received a total of $11,674.05 in dividends in my registered and non-registered accounts.

What a phenomenal year and it will only get stronger.


Going-Forward yearly dividend income:

If I were to stop buying stocks today, the income I would receive on a yearly basis is: $13,487.75 (or $1123.98 per month).

This means that I should expect to receive at least $13K in dividends in 2015 without lifting a finger.

Financial Independence Fund:

The total value of my Financial Independence Fund at the end of December was: $287,728

This is a month-to-month increase from $287,728 compared to last month to $278,814


Purchases made in December:


December was busy. The total amount of new purchases made this past month: $6665

Regular taxable account:

Bank of Nova Scotia (23 shares @ $68.69 = $1585)
Philip Morris (17 shares @ $81.77 = $1395)
Royal Bank of Canada (16 shares @ $77.02 = $1237)
Dream office Reit (50 shares @ $24.39 = $1224)
SNC Lavalin (30 shares @ $40.65 per share = $1224)

TFSA:

Note: my shares in Healthlease were sold for a profit and I reinvested the proceeds in Cominar and CAP reit.

Cominar Reit (55 shares @ $18.72 = $1034)
CAP Reit (45 shares @ $25.56 = $1155)





DECEMBER 2014


NAME OF COMPANY
DIVIDEND


1. TAXABLE ACCOUNT



Fortis
$88.00
Baytex
$57.60
Suncor
$50.40
Crescent Point Energy
$39.56
Coca-Cola
$38.89
WesternOne
$37.50
Power Corp
$34.80
Northland Power
$34.20
Sun Life Financial
$28.80
DirectCash Payments
$28.80
Canadian Utilities
$28.09
Dream Office Reit
$28.00
Just Energy (3 DRIP)
$23.63
BTB Reit
$22.05
Pengrowth Energy (6 DRIP)
$19.60
Enbridge
$19.25
Brookfield Renewable Energy
$17.77
Liquor Stores
$17.55
Riocan Reit
$16.45
Exchange Income
$14.50
Enbridge Income Fund
$14.14
Thomson Reuters
$13.58
SNC Lavalin
$12.00
Intact Financial
$9.60
Pembina Pipeline
$8.41
Student Transportation
$7.88
Shaw Communications
$7.88
Chartwell Reit
$4.95
Canadian National Railway
$3.50
Loblaw
$1.72



$729.10


2. TAX FREE SAVINGS ACCOUNT (TFSA)



Brookfield Infrastructure
$20.96
Bank of America
$19.43
Cominar Reit
$18.99
Dream Office Reit
$17.73
Caribbean Utilities
$16.50
High Yield Mortgage Trust
$15.63
Artis Reit
$12.60
H&R Reit
$10.70
NorthWest Healthcare Reit
$9.27
Extendicare Reit
$7.96
Dream Global Reit
$6.67
RioCan Reit
$6.23
Skylon Trust
$5.83
Pure Industrial Reit
$5.75
Innvest Reit
$5.66
Calloway Reit
$4.00



$183.91


3. REGISTERED RETIREMENT SAVINGS ACCOUNT (RRSP)



Lorillard
$33.21
Target
$26.00
Realty Income
$21.06
McDonald’s
$17.85
Southern Company
$15.75
Waste Management
$12.00
Walgreen
$11.48
American Realty
$9.67
Exxon Mobil
$9.66
Dream Ind Reit
$8.75
Northern Properties Reit
$7.60



$173.03




TOTAL
$1086.04