January 2019 – Dividend Update

Monthly Dividend Update

January was a pretty good month all around.  The blog smashed the all time visitor record, the markets recovered a bit, and I scored some tickets to a limited release bourbon tasting (which takes place next week!)

Personal Highlights for January:

• Highest all time visits to the web page
• I officially sent the letter to my Winnipeg Jets ticket rep telling them I won’t be renewing my season tickets.  I’ll be writing a future post explaining why in more detail.
• Started using the treadmill a few times – haven’t set any goals, and don’t have any plans to run any marathons – but feels good to get on their and burn some calories.
• On the booze side of things – tried a few new bottles (Stagg Jr, Knob Creek) and wrote up my first couple reviews.  I am very excited to attend my first ever bourbon tasting next week.  I also entered a lottery for a chance to win a few bottles from the Buffalo Trace Antique collection
• The kids are both doing great.  Isaac is starting to say a few more words, and Holland is becoming a bit more difficult – but in a good/fun way.  She enjoys a healthy debate, and is always trying to compromise.
• Started getting some tax receipts…Should have everything in the next month or so, and then can file my taxes 🙂
• It’s been -50 with the windchill the last few days, so we haven’t got outside much – but here is a pic from one of the “warmer” days
  

Financial Highlights for January:

• Continued bi weekly payments into spousal RRSP  (30 units of US Equity Index Fund)
• I was paid by 7 companies and 1 funds.  I Dripped 30 new shares/units.
• Portfolio jumped back up over 6% – though still below all time high
• Dripped another ELEVEN shares of Algonquin – Love that company! Hoping for another dividend increase this year:)
• Cashed in my RBC reward points from my credit card for a $500 voucher to be deposited into my TFSA.

Passive Income Update For January 2019.

TFSA’S:

Diversified Royalty: $9.62 (dripped 3 shares)

Canadian Western Bank: $0.26

Artis Reit: $26.73 (dripped 2 shares)

Interrent Reit: $2.49

Plaza Reit: $27.32 (dripped 6 shares)

Algonquin Power: $152.47 (dripped 11 shares)

Chorus Aviation: $11.32 (dripped 1 shares)

TFSA’s Total: $230.21

RRSP:

Canadian Equity Income Distribution: $227.36 (dripped 7.9 new units)

Total Passive Income Jan 2019:  $457.57

Portfolio Update:

My portfolio jumped back up 6.58%. My portfolio currently sits at $308,441.55

Dividends grew by $38.51 compared to last January. This represents an 9% increase.

I currently have just under $3000 sitting in cash in my RRSP account. I’ve been researching a few companies to deploy that cash – but may also just add to my position(s) in XAW or the CAD Equity Income Fund.

Thanks for reading, Cheers!

Advertisement

Review # 2 – Makers Mark Bourbon

Whiskey Review # 2

I am extremely new to this, so take it easy on me.  I intend to come back to most of these, multiple times and re-review them, to see if my tastes have changed, or if certain batches are better than others.  Each review will follow the same template, and include a score.  Please enjoy responsibly 🙂

Date Reviewed: Jan.26

Method/Location: in a Glencairn glass, neat @ home, while watching the NHL All Star game.

Distillery: Makers Mark

Mash: 70% Corn, 14% Malted Barley,  16%Red Winter Wheat 

Age: 5 years & 9 Months (According to Google)

Type: Bourbon

ABV%: 45%

Price I Paid: $42.99

Appearance:  Golden brown.  The color reminds me of the inside of a Caramilk chocolate bar.

Nose:  Very sweet – with hints of vanilla & brown sugar.  Almost zero ethanol.  Very faint hints of wood – but mostly just very sweet – scents – like a candy shop.

Palate: First thing I taste is oak – but followed very quickly by thick, syrupy taste.  There is very little – to zero burn.  The corn is standing out – like if you drank a bit of the liquid atn the bottom of a can of corn.

Finish: Very smooth – no burn.  Something is lingering for quite some time (not in a bad way)- not sure if it’s the oakiness or the wheat.  Even after a couple of minutes, it still feels/tastes like there is a thick corn syrup in my mouth that I need to chew on.

Conclusions:  Very sweet and sugary.  Essentially zero burn.  This would be a great introductory bourbon.  Although my experience is limited – It doesn’t seem too complex – though that may be what makes it such a popular easy drinking bourbon.  Goes well in most cocktails, and an easy, enjoyable sipper.  Always available, reasonably priced, will keep this one stocked in home bar.

Overall Score:  84/100       

This Small Cap Speciality Food Company Could Be A Great Fit For Your RRSP.

Armanino Foods(AMNF) – Never heard of it? That’s okay, most people haven’t.  This is a company that popped up on a stock screen of US stocks I did a while back, while looking for some companies to add to my RRSP.

They are a small speciality food company that provides freeze-dryed foods and sauces to stores & customers across the world.  Their products consist of Pesto, Pasta & Meatballs.  Their Pesto recipe is a family recipe that dates back over 100 years!

Stock Price & Key Metrics:

The stock is currently trading at a price of $2.95.  This represents a P/E of about 15.  While not an extremely low valuation, considering the stocks past performance, future potential and dividend history, combined with the projected future growth I think it is currently trading at a nice discount.  (More on this later).

AMNF currently pays a quarterly dividend of .0225 which represents a yield of 3.03%.  The dividend has grown consistently over the last 5 years from $.016 to $.0225.  The dividend also looks to be safe, with a fairly conservative payout ratio of about 60%.

A few other things to like about AMNF

Aside from a safe and growing dividend, the company also has a strong balance sheet, and has been consistently growing their revenue.

Here are some stats from 2015 to 2017:

• Net Sales increased from 34.6 million to 38.9 million
• Gross profit increased from 12.1 million to 13.4 million
• Increased Net income from 4.03 million to 5.1 million
• Earnings per share have increased from .126 to .159
• The company has declared 74 consecutive dividends

Each of the Directors have been with the company for over a decade, and more importantly they own over 5% of the company’s shares, which usually means their interests are in line with the common shareholder.  I am a big fan of companies that have a solid group of insiders that own shares as well (like one of my other holdings – Plaza Reit).

Aside from the dividend increases, the stock has performed very well over the last 10 years, and with a 7% projected growth in sales, I expect this trend to continue:

More results from most recent financial statement (3^rd quarter 2018)

• Net sales increased by 7% to 10.692 million
• Invested 750,000 in new manufacturing equipment, which should improve efficiency and allow further growth
• Pursuing growth in new products and markets
• Sales & Net income grew, while cost of goods sold decreased

There is lot’s to like- what about the downside?

The main downside I see to owning this stock, is how thinly it trades.  Average volume traded is under 25,000 per day, which means any good or bad news, and there can be HUGE fluctuations in price.  This could also make it hard to scoop up shares at the price you want – or worse – getting rid of your shares if need be.

Further Reading:

As always, I recommend doing your own due diligence before making a purchase.  That said, while doing some research for this post, I came across two articles which may help make your decision easier.

I noticed that Lanny From Dividend Diplomats had recently purchased this stock as well.  Check out his post HERE

THIS recent article on Seeking Alpha makes a lot of the same arguments for buying the stock that I hopefully just made as well.

Final Thoughts:

Although I haven’t purchased this yet – I will continue to watch it.  I think it is a good buy at the current price, however I want to research a few more companies before I make a final decision.  That said – don’t be surprised if you see an upcoming post from me in the next few weeks that I did in fact purchase this.

Review # 1 – Knob Creek Small Batch Bourbon.

Whiskey Review # 1

Welcome to my first ever official “Booze Review”.  I am extremely new to this, so take it easy on me.  I intend to come back to most of these, multiple times and re-review them, to see if my tastes have changed, or if certain batches are better than others.  Each review will follow the same template, and include a score.  Please enjoy responsibly 🙂

Date Reviewed: Jan.21

Method/Location: in a Glencairn glass, neat @ home.  After a few sips, added 2 drops of water and finished.

Distillery: Knob Creek

Mash: 75% Corn, 13% Rye 12% Barley

Age: N/A

Type: Bourbon

ABV%: 50%

Price I Paid: $45.50

Appearance:  Amber and burnt orange.  Teak: While the glass was sitting on my teak coffee table, I found it to blend in through the glass.

Nose:  Brown sugar right away, followed by a strong dose of ethanol.  After a few swirls, hints of cherry coke, vanilla and almost a rhum like sweetness.

Palate: First thing I picked up on was the heat/burn which was felt all the way down to the belly.  A bit of spiciness.

I added 2 drops of water, and tasted again.

This time the burn (though still there, was more pleasant).  Tasted more woody/oaky.

Finish: The finish felt long for me, and was fairly harsh – the entire body felt warmed up.  After two drop of water the finish although still long was a lot more enjoyable with less burn.

Conclusions:  Very spicy & strong.  In hindsight, I probably shouldn’t have started with a 50% ABV.  If I am being honest, I wasn’t a huge fan of this bourbon – although it was much better with 2 drops of water.  Next time I will try it with a large ice cube.  Although this wasn’t a personal favorite on it’s own, I think there is potential for this to work really well in some cocktails (which I will be trying soon).

Overall Score:  60/100       

With 2 drops of water: 65/100