MoneyMaaster’s Stock Review: A look back at my top pick last year!

Before I dive into my current top stock pick (coming soon) – I wanted to do a look back at last year’s top pick and see how it performed.

Last June I wrote about my top pick: Caledonia Mining.  You can read the full write up: HERE

When I chose Caledonia as my top pick last year, it was trading at $8.35

Here is a quick recap of what I said about this Caledonia last year:

  • The company pays a healthy dividend which it increased in July 2016
  • EPS: 0.26
  • P/E Ratio: 6.6
  • 18% increase in gold production year over year
  • -9% decrease in cost per ounce to produce
  • +98% increased Net Profit year over year

Caledonia has paid consistent dividends since 2014 and is covered 2.9 times by earnings & 7.7 times by operating cash flow.  They are on track to produce 80,000 ounces by 2021(to put that growth into perspective they produced 50,351 in 2016).”

Fast forward a year – and things are still looking great.  Today the stock is trading at: $11.70.  Not including dividends, this equals a one year return of 28.6%!  Caledonia’s current dividend yield is 2.9%, although had you bought a year ago when it was recommended your yield would be 4.3%!

dividends investing blog personal finance winnipeg

Although the price has gone up – I still think Caledonia is a great buy.  Here are how the numbers compare to last year:

  • EPS: was 0.26 is now: 1.12
  • P/E Ratio: was 6.6 is now: 11
  • Dividend was increased 10% in July!

Caledonia saw some huge gains in net profit (due to some tax reform), as well as an increase in the price of gold.  The company remains on track to increase its overall production to 80,000 ounces by 2021.  Overall I’d say it was a great year for Caledonia and I still think this is a good buying opportunity.  The only real risk I see with this company is if the political situation in Zimbabwe turns and impacts them in a negative way.  With virtually no debt, and some aggressive production goals, I think Caledonia will continue to provide solid results for years to come.

Stay tuned for My 2018 Top Pick!

 

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MoneyMaaster’s May Roundup: 3 stocks release earnings – all 3 reported dividend increases!

Although my mind has been 100% completely wrapped up in this EPIC Winnipeg Jet’s playoff run – I did notice that the following 3 companies all decided to give me nice dividend raise this month!

  1. Western Forest
  2. Algonquin Power
  3. Power Corp

Western Forest

Western Forest is a lumber company based in BC.  I purchased this company in January after taking some profit on a few marijuana companies.   You can read that post HERE which explains why.  In January I wrote this:

“The dividend hasn’t grown in 5 years which is a slight concern, although with a payout ratio under 40% there seems to be some room to grow it in the future as long as revenues keep increasing and they can control their costs.”

From the press release on May 2nd:

  • The Company increased first quarter revenue despite the current suspension of its export log sales program in support of supplying logs to its coastal sawmills.

    • Delivered adjusted EBITDA of $43.0 million, a 26% increase from the same period last year

    • Announced a 12.5% increase in our quarterly dividend to $0.0225 per common share

Nothing to complain about here.  Although I don’t own a huge position in this company, it is one I plan on adding to.  With the 12.5% dividend increase, WEF now pays me $47.25 per year- which I am happy to keep dripping into new shares.  I’d like to at least double my position in this company by the end of the year.

Algonquin Power

Algonquin Power is a Utility company that has a strong focus on renewable energy.  Algonquin has been growing and expanding across North America and more recently into Europe (mostly by acquisitions)  AQN is also my largest holding in my TFSA.  With the most recent drip I now own 876 shares.  I’ve been a big fan of this company for a while now, and have purchased it on 3 separate occasions.

Yesterday Algonquin released their first quarter results – and much like Western Forest the results looked…
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Q1 2018 Financial Highlights

  • Revenue of U.S.$494.8 million, a year-over-year increase of 17%
  • Adjusted EBITDA1 of U.S.$279.2 million, a year-over-year increase of 45%
  • Adjusted net earnings1 per share of U.S.$0.32, a year-over-year increase of 68%
  • Adjusted Funds from Operations1 of U.S.$179.9 million, a year-over-year increase of 15%

Almost as importantly Algonquin also announced a 10% dividend increase!  They bumped up their dividend from $0.1165 to $.1282(USD).  Based on my current shares this gives me a yearly raise of $41.00 and pushes my annual payment from Algonquin to $560.64!  The best part is – at the current share price, this means I can DRIP an extra share each quarter too!

POWER CORP

Power Corp was another company I purchased after offloading some marijuana stocks.  At the time my reasoning was I wanted a “set it and forget it” stock.  This is exactly what Power Corp is.  Although there may not be much room for capital growth on this stock, the dividends are more than safe – and have now (as of today) been increased for 4 consecutive years.  Just a few minutes ago Power Corp released their earnings, along with the announcement of a 6.6% dividend increase!

From the press release:

  • Net earnings increased 21% to 586 million in the first quarter
  • Beat expectations and earned 1.13 per share
  • Adjusted profit grew by 17%
  • Announced a 6.6% increase to dividend.

The dividend has been increased from .3585 per quarter to .3820.  This works out to an extra $18.99 per year and brings my total annual payments from Power Corp to $308.56.

 

I’d say a pretty good way to start the Month of May!  Even better considering the Jets just eliminated the # 1 team in the NHL and are now the odds on favorite to win the Stanley Cup!

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RESP INVESTING Dividends funds vanguard minimalism jordan maas personal finance blog

An RESP is amazing – and not for the reason you may think…

I finally went down to the bank and set up an RESP after our second child was born. It seemed like a no-brainer – it’s free to set up, the government gives you free money, you can split it between your kids and if they never go to school, you can roll it back into your RRSP.  All these things are great – but there is one other part of the RESP I didn’t even think of until last week and it may be the best benefit of all – but we will get to that later.
RESP INVESTING Dividends funds vanguard minimalism jordan maas personal finance blog

Lets start with the basics:

What is an RESP/How does it work:

RESP: Registered Education Savings Plan

Simply put, an RESP is an investment vehicle much like a TFSA/RRSP that allows the parents or friends/family of a child to invest in their future education.  All money put in and investment gains can be withdrawn and used by the child for their education.  The money is taxable to the recipient when it is withdrawn, however in most cases the student will be in a very low tax bracket.
Unlike an RRSP there are no tax benefits to the contributor, however the government will match 20% of all contributions up to $2500 per year.  This means by maxing out your RESP for your child’s education the government is essentially giving you $500 FREE per year!

How much can I contribute:

There is no annual contribution limit to an RESP however each RESP has a lifetime limit of $50,000.

What if my kid doesn’t go to university/college:

If your child decides not to go to post secondary school – it is not the end of the world.  There are a few options:

  1. Transfer to another child
  2. Wait until the “child” is older- the RESP can be used on education until they are 35 years old
  3. Transfer up to $50,000 into your RRSP.  You would have to return the $500 free grant money per year – however you can keep all investment gains.  Over 18-25 years this can be substantial.*

    *There may be some tax implications, make sure you have the RRSP room and speak to a tax professional before closing an RESP.


The hidden gem: The best part of an RESP nobody talks about is….

Less crap in the house!
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Don’t get me wrong – I get it – people like to buy kids toys, and games, and clothes (and it is 100% appreciated and we are extremely grateful to all our friends and family).  That said – as a new father of 2 kids (both under 3 years old) with a fairly large family on both sides our kids get a lot of gifts.  So much in fact that we still have Christmas presents that haven’t been opened, books that haven’t been read, etc.  We’ve started donating some already -but it seems between birthdays, Christmas, Easter and random grandma’s popping over with presents we just can’t keep up.  Our house is full of toys, puzzles, books – each kid’s room is full – we have a “toyroom”that is full of toys and our basement and garage have toys still in the packages.

The RESP is amazing for this.  Sure the kids still get a bunch of “normal” gifts, but Isaac just had his first birthday party and received $250 for his future education fund. (plus another $50 matched by the government).  The kid is one  years old- he has no idea what toys he got, who got them, and I am sure there are a bunch that he will play with maybe once or twice or perhaps never.  However – what he WILL know in 20 years is that his aunts, uncles, friends, parents & grandparents helped send him to school – and hopefully helped shape him into a better person & push him towards whatever career he chooses!

At first I thought it was a bit tacky to let people know they could contribute to our kids RESP in lieu of presents – but after speaking to a bunch of them – I think most were genuinely excited to do it.  I know if I was invited to a 1 year old’s party I’d much rather invest in their future than another random toy.  My opinion will probably change as the kids get older and they get genuinely excited about certain toys – but for now – the RESP is perfect!

Now I just need to decide what I should invest it in.  I am thinking the new Vanguard Balanced ETF.

Does everyone else have RESP’s set up for their kids?  Do you find it tacky/odd letting people know they can give cash vs presents?

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April 2018 Passive Income Update: Happy Birthday Edition!

Personal Highlights for April:

  • My little man turned 1 on April 28 – and we hosted about 25 people over at our place yesterday for his first Bithday party.  He got a ton of gifts, a great Dr. Suess themed custom cake made by my sister-in-law and his first cash gift(s) for his RESP.
    Finance Dividends Blog Instagram Jordan Maas blog investment personal finance winnipegFor anyone in Winnipeg looking for a delicious and awesome looking custom cake – Check her out: Not.Just.A.Pretty.Cake
  • Today was Amber’s first day back at work after a year off for Maternity leave – which is exciting in itself – but ALSO today marks the first day of daycare for Isaac & Holland.  I didn’t get much sleep last night – but we got them there on time this morning, lunches packed and even got to work on time!
  • I went to all 3 home Jets playoff games (they won all 3) and they knocked out the Minnesota Wild.  The Jets are now playing Nashville in the 2nd round and already won a game on the road!  Games 3 & 4 are Tuesday & Thursday this week!
  • Amber & I took Holland out for dinner for the first time.  We went to BP and she loved it.  Boston Pizza even gave her a shout out on their Official Twitter Page
  • A couple other pictures from the party:
    Dividends Jordan Maas Winnipeg Finance BlogPassive Income FIRE dividends Blog

Financial Highlights for April:

  • Got my tax return back – and it couldn’t have come at a better time.  With Amber currently between Mat Leave and her first pay cheque…and Winnipeg Jet’s playoff tickets & Jet’s season ticket renewals for next year – things were starting to get pretty tight.
  • Continued bi weekly payments into RRSPs & Spousal RSP.
  • Had my first double digit DRIP (Algonquin Power) 10 new shares!
  • Made first contribution to Kids RESP account.
  • Broke $500 in Passive income for first month that didn’t include any special dividends/distributions, etc.
  • Even with no new stock purchases, dripped 29 new shares/units.  I was paid from 9 companies and 1 fund in April.

Passive Income Update For April 2018.

TFSA’S:

Chorus Aviation: $10.92 (dripped 1 share)

Diversified Royalty: $9.18 (dripped 2 shares)

Artis Reit: $50.67 (dripped 3 shares)

Interrent Reit: $2.32

Plaza Reit: $26.06 (dripped 6 shares)

Canadian Western Bank: $0.25

Algonquin Power: $126.34 (dripped 10 shares)

Intertape Polymer: $50.40

Alimentation Couche Tard: $11.25

TFSA’s Total: $287.39

 

RRSP:

Canadian Equity Income Distribution: $218.13 (dripped 7.48 shares)

Total Passive Income April 2018:  $505.52

 

Portfolio Update:

After 2 consecutive months of being down, my portfolio is back up over $300,000 this month.  My portfolio increased by 1.80% month over month. The early retirement portfolio now sits at $304,126.90.

Dividends grew by $77.33 vs last April (Increase of 18%).

Current Watch List:

Andrew Peller: ADW

Cascades: CAS

InterRent Reit: IIP

Northview Apartment Reit: NVU

Caledonia Mining: CAL

My Watchlist hasn’t changed from last month, but I am interested in adding to my position in Western Forest.

That’s it!  Hope everyone else had a great April!

Follow Friday! A few sites I recommend.

I’ve seen a few people posting on twitter #FollowFriday which is a way to share some content of other bloggers who I enjoy.  I figured I’d join in on the fun.  Below are 5 other blogs I regularly read & recommend you check out – along with a quick write up of why:

 

  1. RoadMap2Retire This was the first Canadian Finance Blog that I ever stumbled across – which not only led me to start this site – but also got my curiosity flowing to see what other sites I could find.  R2R gives a more indepth analysis of his decisions than most bloggers I’ve come across, and does a good job at breaking down bigger economic trends as well.  He’s got a great looking diversified portfolio, and has recently been adding some “Crypto” assets as well.
  2. All About The DividendsMatt is similar in age to me, has roughly the same amount of passive income, and unfortunately (for him) is a Toronto Maple Leafs fan.  Matt is very active on twitter, and is growing his portfolio at a torrid pace.  Matt also owns a bunch of the same companies I do –  Check him out!
  3. Passive Canadian IncomeRob is another Canadian, who I believe is a similar age as well.  Aside from having a great dividend portfolio he also has some other ways of making passive income (private investments, solar panels & more).  Rob does a good job of keeping things fun, but also giving in depth reviews on stock purchases and financial decisions he makes.
  4. Dividends Diversify
    I am not sure if others will agree – but Tom from Dividends Diversify reminds me of everyone’s favourite uncle in the online finance world.  Tom is a teacher, and you can tell by the way he writes and informs.  Tom has a very detailed breakdown on his website on his investing philosophy as well as what he looks for in each company before he pulls the trigger to make a buy.  Although Tom is slightly older than the guys above he fits right in with all the millennial bloggers popping up each day.
  5. Financial Uproar & Canadian Dividend InvestingBoth of these sites are run by “Nelson”.  Financial Uproar was probably the wittiest, most creative financial website I’ve ever read.  It’s not often I laugh out loud while reading a finance blog but this site was able to do it multiple times.  Unfortunately Nelson recently announced he will no longer be updating that site – and is instead focusing on his new website “Canadian Dividend Investing“.  I’d be lying if I said I won’t miss FU, however the new site looks promising.  It doesn’t seem to have the same “I don’t give a shit attitude” but looks to be a great resource for researching Canadian stocks.  I recommend checking both out!

 

Anyways, check em out & let me know what you think!