This month a few of my stocks have reported earnings:
- Caledonia Mining
- Artis Reit
- Intertape Polymer
While, most of them did well. I was extremely pleased with Intertape Polymer’s results. You may recall I purchased ITP just over a month ago when it was near its 52 week low.
Here is what I said in October:
“The business itself is boring, but it has paid and increased the dividend for over 5 years (yields 3.5%)in US dollars, has increased earnings year over year and was trading at a 30% discount to the 52 week high. I purchased 275 shares @ 19.08.”
The stock had been beat up for no apparent reason, and last week they reported EPS of 0.32 vs the analyst expected 0.29.
Here are some other notes from their earnings report:
- Revenue increased by almost 18% (mostly due to acquisitions)
- Net earnings increased from $13 to $19.2 million
- Adjusted EBITDA increased 15.9% to $32.4 million
- ITP repurchased/cancelled almost 500k shares
- Revenue in the fourth quarter is expected to be greater than last year
- Gross margin & adjusted EBITDA are expected to be greater in the 4th quarter than last year.
All in all, it was a great report, and it looks like the next quarter should be just as good if not better!
Here are a few notes from some other stocks I own that reported earnings over the last week or two.
This has been one of my favorite stocks for the last few years. It never seems to get the attention it deserves, but it continues to be well positioned financially, trades extremely cheaply and has a lot of cash on hand. I hope with their increased cash position & low stock price the company decides to buy back some shares.
- Increased gold production & gross & net profit
- Increased EPS
- Broke a record for most gold produced in a single quarter
- Increased their overall cash position – net cash now close to 12 million
- Plans to extend depth of the mine which should result in 4 extra years of production.
Artis is a REIT headquartered in my home town of Winnipeg. They own buildings all across Canada & the USA. The stock had been beat up the last couple of years due to a high % of their properties being in Alberta (when oil prices dropped, the Alberta economy tanked & a lot of the buildings lost value/became vacant). Over the last couple of years they have been selling off some Alberta properties and expanding in the US market. It looks like this move is starting to pay off.
- Net operating income from Alberta has been reduced from almost 40% to 25%
- Because a third of their income comes from USA when the Canadian dollar is weak, the returns are even stronger
- Reduced total debt to EBITDA
- Continuing to reduce retail exposure
- Reported FFO per unit of $0.36
- Dividend currently yielding a whopping 7.6%. The payout ratio is pretty high, but they should be able to continue to pay as they have been able to consistently reduce their debt.
Just a quick update on one of my favorite REIT’S:
Plaza Reit PLZ.UN just increased their dividend for the 15th consecutive year! Plaza is one of 2 REIT’S I currently own, and was the first REIT I ever purchased. Although the retail REIT’s are getting beat up pretty good with the Amazon/online threat, I still like Plaza for the medium to long term as they have a proven history of responsibly increasing their dividends/growing their business.
Some Highlights from the press release today:
- Increasing the monthly distribution from $0.0225 to $0.0233 a 3.7% increase
- Since 2003 the dividend has grown from 8 cents to 28 cents
- AFFO payout ratio dropped from 82.1% to 80.9%
- FFO and AFFO per unit increased by 3.4% and 6.5%, respectively
The dividend raise today gives me an extra $10.89 per year in dividends (which will be dripped into more shares).
Plaza is currently trading at $4.36 (very close to it’s 52 Week low) and has traded as high as 5.18 this year. I think Plaza is still undervalued and anytime the price is below 4.50 is a great buy. At the current price Plaza Yields 6.3%.
Happy Halloween. Here is my quick update for October.
Personal Highlights for October:
- With the delivery of our kitchen table & chairs, we now have all of our furniture in the new house. I still need to buy an area rug, coffee table and some curtains, but we are almost 100% settled in.
- Closed up the cabin for the winter.
- Kids Update:
Holland had her annual heart appointment. She was born with a small hole in her heart which caused a heart murmur. The doctors told us we would need to take her once a year to get it checked out for the next 8-10 years, however at this appointment they said it seems to be getting better (closing on its own) so we don’t need to go back for 3 years now:)
Isaac turned 6 months this week. He is a little tank, I swear he is almost as heavy as his big sister already(See below)
- Closed my line of credit. Officially debt free (not including mortgage)
- Put $15,000 into Amber’s TFSA and bought her first 3 stocks (CHR, ATD, ITP)
- Continued bi weekly payments into RRSPs & Spousal RSP.
- Closed my position in OneReit as my remaining shares were bought back by the company.
- Cashed in some of my credit card reward points for a $600 voucher to my RRSP. Once I get the voucher I will deposit this into Ambers Spousal RRSP.
- Amber’s TFSA/RRSP are now over $18,000. (They didn’t exist 5 months ago)
Now on to the fun stuff.
Passive Income Update For July 2017.
Diversified Royalty: $8.94 (Dripped 3 new shares)
Artis Reit: $49.05 (Dripped 3 new shares)
OneReit: $17.10 (Got paid out)
Plaza Reit: $24.39 (Dripped 5 new shares)
Algonquin Power: $102.05 (Dripped 8 new shares)
Caledonia Mining: $19.35 (Unfortunately RBC doesn’t allow this company to drip)
TFSA Total: $227.55
Canadian Equity Income Distribution: $206.50
Total Passive Income July 2017: $434.05
With the contributions to Amber’s TFSA, my continued bi weekly contributions and this seemingly never-ending bull market our portfolio hit an all time high: $286,105.62
It’s going to be tough, but I am still hoping to hit 300k by December 31st. I am hopeful my Global Equity fund will pay out a nice distribution in December which should help. This was also the 4th month of 2017 with over $400 of passive income.
One of my first blog posts was about setting goals for 2017. I also noted that I typically do not set goals, so this would be something a little out of my element. I am happy to report so far I think I’m doing okay (with most of them).
Below are the goals I set – and a quick note of where I am at.
- Start setting goals! *NAILED IT*
The big test will be to see if I can achieve any/all of them and more importantly come January 1st If I continue to set goals for next year.
- Sell our house & buy a new house: *NAILED IT*
House sale has closed and we’ve been in our new place for about a month now! Most of our new furniture has been delivered, and so far we love everything about the new place. That said – we haven’t had to pay all the new bills yet.
- Start a website & keep it updated *GETTING THERE*
Website is up and running. Due to the house sale and moving – I wasn’t able to post as much as I would have liked for the last couple of months, but things are back on track now. October has been my highest traffic month so far, and the month is only half done.
- Spend more time at home/with family *GETTING THERE*
I’ve definitely been spending a lot more time at home – although I wish I could take more credit for this being a conscious decision. In reality it is likely due to the fact the Jets season has just started, my soccer season hasn’t started yet, we just moved, and I am still getting things organised around the house. The next couple of months will be the big challenge.
- Try 5 new restaurants (with Amber) *SLACKING*
This is the one area I am going to need to step up my game. Although we’ve gone out a few times, I believe we’ve only been to 1 restaurant that Amber hadn’t been to. I still have a couple of months – so I’ll have to get moving on this one if I want to achieve this goal.
- Get Amber “set up” Financially *NAILED IT*
So far we have done the following:
– Create a joint bank account
– Set Amber up with Direct Investing & a TFSA
– Start a Spousal RSP for Amber – and started bi-weekly contributions.
– Bought 3 new stocks in Ambers TFSA (ATD.B, CHR, & ITP).
The only area I still need to work on is getting her actually interested in some of this stuff….that will probably be the hardest part.
- Eliminate all debt (not including mortgage) *NAILED IT*
I just got back from the bank – and they confirmed my line of credit has officially been paid off/closed. My credit card is also completely paid off. My car is paid off, and my cabin is paid off. The only debt I currently have is my mortgage on my house (which I don’t really consider debt).
- Get total portfolio Value to $320,000 by December 31*WAY BEHIND*
With only 2 months to go – my portfolio is sitting at $278,000. I have pretty much come to terms with the fact I wont hit this target – however I think $300,000 might be doable. There are 3 main reasons I wont hit this goal:1) I paid off my debt very aggressively(Took some profits from my TFSA)
2) We spent a little bit more on the house than we thought
3) We underestimated the cost of furnishing a much larger house
All in all, I’m pretty satisfied with where I am at…just need to step it up and take the wife out a few more times and try and sock away a bit more $$$ before the end of the year!
I’ve been on a roll this week. After no purchases in a couple of months – today I made my 3rd purchase in the last 2 days.
I picked up 268 shares of Chorus Aviation for 8.76. Chorus is one of those reasonably priced, profitable companies with a monthly dividend that yields over 5%. Even better RBC direct investing allows this one to drip – so even though I was only able to sccop up 268 shares I should be Dripping an extra share each month as well.
Chorus recently renewed a deal with Air Canada and although it will result in slightly less revenue per year – it guarantees them solid revenue until 2025. They have also expanded their aircraft leasing side of the business which should start generating more revenue. The dividend looks to be well covered by earnings as well.
I don’t foresee any other purchases for the next couple months (aside from the bi-weekly purchases into my funds). My portfolio now consists of 11 individual stocks -all Canadian and all owned in my TFSA & 5 funds (held in RRSP).
|Alimentation Couche Tard
|Chorus Aviation INC
|Intertape Polymer Group
|Canadian Western Bank
|US INDEX FUND (RRSP)
|RBC CANADIAN EQUITY INCOME FUND (RRSP)
|RBC Global Dividend Growth FUND (RRSP)
|GWL Advanced ContinuumFUND (RRSP)
|GWL Aggressive Continuum FUND (RRSP)
I did a customized stock screen last week where I looked at companies with a history of paying/increasing dividends, strong EPS growth and trading at reasonable P/E. My last post highlighted some of the companies I was torn between and finally today I pulled the trigger on two of them.
Alimentation Couche-Tard (ATD.B)
I’ve had my eye on Couche-Tard for over a year now, and with the recent price pull back – coupled with the fact I had some cash on hand I figured I had to jump in. I scooped up 125 shares @ $59.00 each. Although the dividend only yields 0.61% I think the long term capital growth potential and dividend growth potential will keep me happy for years to come. I am hopeful they will get into the soon to be legal Marijuana business as well.
The addition of these shares will boost my dividend income by $45.00
Intertape Polymer Group (ITP)
This was a stock I didn’t know much about a couple of weeks ago – but it showed up on my stock screen and after doing a bit more research I thought the price was too good to pass up. The business itself is boring, but it has paid and increased the dividend for over 5 years (yields 3.5%)in US dollars, has increased earnings year over year and was trading at a 30% discount to the 52 week high. I purchased 275 shares @ 19.08.
The addition of these shares will boost my dividend income by $192.50 (at current exchange rate).
Both purchases were made in our TFSA so all gains & dividends will be tax free.
I am still keeping my eye on Andrew Peller & Exco Technologies. Hopefully the next time I have some cash on the sideline they are in my buy range.
It feels like forever since I’ve been in a position to make a purchase. The house sale has officially closed, funds have been transferred, and I have a bit of cash to play around with in one of the TFSA Accounts.
I’ve spent the last couple days narrowing down my potential buy(s).
These are the stocks that have caught my eye:
XTC – Exco Technologies
- Current Price: $9.93
- Currently yields 3.22%
- Trading at almost 30% discount to 52 week high
- Have consecutively increased dividend 11 times
- Strong EPS growth
ADW.A- Andrew Peller
- Current Price: $11.65
- Currently yields 1.55%
- Trading at almost 12% discount to 52 week high
- Have consecutively increased dividend 11 times
- Payout ratio under 30%
- Strong earnings growth last 5 years
ATD.B – Alimentation Couche Tard
- Current Price: $58.69
- Currently yields 0.61%
- Trading at 16% discount to 52 week high
- Low Yield, but have raised it and lots of room to grow it
- Very low payout ratio
- Strong earnings growth last 5 years
ITP – Intertape Polymer
- Current Price: $19.19
- Currently yields 3.5%
- Trading at 35% discount to 52 week high
- Payout ratio creeping up
CAL -Caledonia Mining
- Current Price: $7.47
- Currently yields 4.70%
- Trading at 68% discount to 52 week high
- Profitable low cost producer
- Recently moved to NYSE – should get more exposure
Just a couple notes:
I’ve had my eye on Andrew Peller,Couche Tard & Exco for some time – they seem to finally be trading at reasonable prices.
I already own some Caledonia, and have been looking for point to increase my position.
I do not know much about ITP – however they kept showing up in my stock screen, so thought I’d dig a bit more into them.
My stocks are purchased via RBC direct investing. Not all stocks are eligible to be dripped via RBC. Of the 5 listed above only ATD.B is eligible to DRIP which is fairly annoying.
If you have any thoughts about any of the stocks listed above – I’d love to hear.