My pace of investment slowed a bit as we turned the page on a new year. I picked up stock in one dividend paying company and one that doesn’t provide any direct cash flow to investors—usually not my style, but it’s still a high quality operator and good to have in the portfolio.
Table of Contents
CAD Dividends
| Company | CAD Payments ($) | Div Increase (%) |
|---|---|---|
| Toronto-Dominion Bank (TD) | 53.60 | |
| RioCan Real Estate Investment Trust (REI.UN) | 93.96 | |
| Johnson & Johnson (JNJ) | 76.56 | |
| BCE Inc. (BCE) | 166.10 | |
| Canadian Imperial Bank of Commerce (CM) | 16.32 | |
| Corby Spirit and Wine Ltd. (CSW.B) | 151.80 | |
| Bank of Nova Scotia (BNS) | 85.00 | |
| TELUS Corporation (T) | 38.15 | 3.81 |
| Rogers Communications Inc. (RCI.B) | 26.40 | |
| Fortis Inc. (FTS) | 72.00 | |
| Canadian Utilities Ltd. (CU) | 84.54 | 7.48 |
| Canadian National Railway Company (CNR) | 8.06 | 18.13 |
| Canadian Pacific Railway Limited (CP) | 3.90 | |
| Hydro One Ltd. (H) | 59.80 | |
| Chartwell Retirement Residences (CSH.UN) | 14.70 | |
| Metro, Inc. (MRU) | 4.00 | 11.11 |
| Brookfield Renewable Partners L.P. (BEP) | 128.86 | 5.10 |
USD Dividends
| Company | USD Payments ($) | Div Increase (%) |
|---|---|---|
| Waste Management Inc. (WM) | 21.79 | 10.22 |
| McDonald's Corporation (MCD) | 20.71 | |
| Yum! Brands (YUM) | 13.93 | 16.67 |
| Yum China (YUMC) | 3.98 | |
| PepsiCo, Inc. (PEP) | 7.89 | |
| Visa Inc. (V) | 2.13 | |
| AbbVie Inc. (ABBV) | 18.19 | 11.46 |
Dividend Summary
I raked in grand totals of C$1,083.75 and U$88.62 in the first quarter of the year. In currency-neutral terms, this brings me to a sum of $1,172.37.
The only caveat to the total, if there must be one, is that the CSW.B dividend amount was bulked up by the C$101.20 special dividend which I received in January. While CSW.B has only provided modest dividend growth since I initiated my position back in 2014, it does pay a special dividend every few years when it has surplus profits which it doesn’t require to invest back into the business. While steady dividend growth is my overall goal, an extra cash infusion now and then never hurts.
Standouts
Five of my companies provided double digit increases in their dividend payments. From greatest to least, I received these increases from CNR, YUM, ABBV, MRU, and WM. Collectively, these run the gamut as far as sectors and lines of business are concerned. While it may be a bit of an arbitrary sample size, I find that this represents the strength of the dividend growth strategy. Being able to rely on burgeoning cash flows from across the spectrum affords a level of comfort that wouldn’t be possible from a single source (i.e., a job) or a single industry (i.e., technology or any other).
Quarterly Buys/Sells
I sold no stocks this quarter. This fits in with my chief aim of being a net accumulator of assets over the long term.
ABBV: I added to my position this quarter with an additional 24 shares for a total of U$1,929.95. On the quarterly dividend of U$1.07 quarterly, I expect this to kick off U$25.68 quarterly or U$102.72 annually.
Berkshire Hathaway Inc. (BRK.B): I bought three shares of BRK.B for a cost of just over U$600.00. These shares do not a pay a dividend and so contribute nothing to my quarterly or annual dividend totals.
As I mentioned in my January 2019 Portfolio Update, I initiated a position in BRK.B both so I would have the shares and also so I would be able to attend the shareholder meeting in early May.
Q2 2019 Stock Considerations
The market remains exceptionally elevated. I am having a difficult time sitting on the sidelines at the moment as I do have money to deploy should an opportunity arise. I am reminded in times like these of Warren Buffett’s words:
The stock market is designed to transfer money from the active to the patient.
Warren Buffett
As I write this, I have been tempted all day to pull the trigger on some additional shares of T as I believe the company has been executing exceptionally well both in telecommunications and in healthcare. However, the run-up of the stock recently has held me at bay. That said, I may well make a purchase in the near future.
Most of my portfolio has been on the rise and so it makes me hesitant to double down in any particular area. I am hoping very much for a pullback to capitalize on.
Cash Position
The 3% interest I am earning now extends to the end of June. So, on the bright side of things as far as limited opportunities go, my cash position is at least kicking off some decent cash flow at the moment.
Conclusion
Only making one purchase of cash flowing equities this quarter is a recent low. With that said, it has been exceptionally challenging to find anywhere to invest at the moment. High quality companies feel fully valued and this has kept me parked on the sidelines.
Looking to Q2, it is likely that I will at least make a few nibbles even if prices remain as high as they have been. Passivity is an important trait with investing, but complacency is dangerous.
How have things been going for you as we head toward the middle of the year?
Full Disclosure: Long TD, REI.UN, JNJ, BCE, CM, CSW.B, BNS, T, RCI.B, FTS, CU, CNR, CP, WM, MCD, YUM, YUMC, PEP, WMT, V, CSH.UN, MRU, BEP, ABBV, BRK.B
Nice Ryan.
Breaking it down quarterly is pretty nice. Got to love those totals.
Id love to add to my telus position as well.
(well or bell but telus more)
The market seems high but if a china us deal does come to fruition the market should continue to run.
I find it hard to park cash. Id rather just throw that money into the market each month.
Anyways keep it up Ryan!
cheers man
Passivecanadianincome recently posted…April 2019 Passive Income Update
Hey Rob,
Yeah, I agree that the market feels elevated at this point. I did pick up some T, but have a feeling the shares will hang around where they’re at or maybe even decline at some point. Either way, I’m in it for the long haul and rising dividend.
You’re not wrong to keep making move rather than parking cash. I tend to be very comfortable with sitting on cash and there’s definitely a downside to it in some cases. Important to keep investing.
Take care,
Ryan