Dividend Investing Blog Personal Finance Canada REIT

New Purchase..and the one that got away(for now)

About 3-4 years ago, I had my eye on a stock – a Residential Reit that kept showing up on all my stock screens.  Unfortunately I never pulled the trigger.  That stock was Northview Apartment Reit – and at the time it was trading around $14.00/share.  Today it is trading at $24 (and would have been paying me a juicy 7%+ dividend on cost for the last 3 years as well.

Truth be told – Northview is still a great stock, and trading at a great price, and one day I may initiate a position – but today is not that day.  For now Northview is still the one that got away….

I did learn my lesson though – and I won’t let another great stock get away!

For the last 6+ months, every time I ran a custom stock screen – another company kept coming up.  It trades at a very low multiple, has a reasonable payout ratio, pays a solid & more importantly SAFE dividend and a growing revenue/NOI.  In a lot of ways it reminds me of Northview REIT.

The company: Interrent Reit

About Interrent (From their website):
InterRent REIT is a growth-oriented real estate investment trust engaged in increasing Unitholder value and creating a growing and sustainable distribution through the acquisition and ownership of multi-residential properties.  

A few highlights from their most recent news release:

  • Gross rental revenue for the year increased by 9.0%, or $9.0 million, to $108.5 million.
  • Gross rental revenue from stabilized operations for the year increased by 4.4%, or $3.5 million, to $83.0 million.
  • Occupancy up in 2017 to 98.4%
  • NOI margin for the year was 60.7%.
  • AFFO per fully diluted unit for the year was $0.374, an increase of 11.0% over 2016.
  • AFFO Payout ratio decreased 3% over the year to 65.8%

Aside from all the fundamentals looking strong – it also fits into a category I was looking to get some exposure to (Residential REIT’s).  I already own Plaza & Artis, so it was a natural fit.

Unfortunately I didn’t have much capital to deploy so I was only able to pick up 103 shares.  This purchase will add $2.31 to my monthly income.

I plan to add to my position over the next few months – until I am able to fully drip a share each month.  At the current stock price & dividend , this means I need to acquire another 340 shares or so.

What do you think of this purchase/stock? Do you own it?  Let me know!

 

 

 

 

 

 

Advertisements
RBC Dividend Growth Investing INvestment blog winnipeg canada

F*#K You RBC! You are the WORST – And why you should buy their stock. *Warning Vulgar Language*

I have had an RBC bank account since I was about 8 years old.  My parents signed me up with the Leo Lion Savings account.  I will be turning 35 this year – and have added the following RBC products over the years:

  • RBC Visa
  • RBC Mutual Funds
  • RBC Line of Credit
  • TFSA Via RBA
  • Direct Investing
  • RESP
  • Spousal RSP
  • Joint Account with Wife

In the last 12 months, RBC has fucked me over more times than I can count.  Here are a few examples:

Example 1:
I had a $40,000 line of credit with a very good interest rate.  I usually didn’t carry a balance on this – however every now and then I would use it to invest if there was a stock I really wanted to buy – but didn’t have the cash on hand.  When we recently purchased our new house – the lender giving us the mortgage wanted us to pay off the line of credit before approving us- so my lawyer sent a letter & Cheque to RBC saying part of the proceeds of my house sale should pay down the L.O.C to zero.  RBC not only paid off the Line of Credit – they also closed it altogether (without telling me).  To make matters worse, at my next appointment RBC told me they had a special offer for me.  Can you guess what it was?  A $10,000 line of credit with a higher interest rate.

Example 2:

I had previously set up opened a Direct Investing Account for my wife as well as a TFSA & Spousal RRSP.  I made sure to ensure I had trading authority on her accounts (as she has no interest in any of this).  I recently redeemed some of my RBC rewards for $650 that I could deposit into a RRSP.   I set up an appointment at the branch to make the deposit into my spousal RRSP.  The guy at the branch said no problem – but that he wasn’t licensed to sell that fund so we would have to call the head office and do it over the phone. (Annoying – but no big deal).  After waiting on hold for a few minutes, the guy from head office said I couldn’t deposit this into the spousal RRSP without speaking to my wife (who wasn’t with me).  I explained I had trading authority and even gave him the password they had set me up with for instances just like this.  Again – he said I couldn’t deposit this into her spousal RRSP without her first reviewing the fund facts as it is a 100% equity fund.  I explained we JUST opened this spousal RRSP a few months prior, she had signed off on the fund facts, it fit her risk profile AND I HAD TRADING AUTHORITY anyway….  Still – it wasn’t good enough for this guy – and finally I had enough/gave up and decided to just deposit it into my RRSP.

***This is where it gets really interesting***

Example 3:

After finally giving up – I told the guy at the bank to just put the funds into my RRSP in one of the funds I already own (Canadian Equity Income Fund).  I watched him type “Canadian Equity Fund”.  I see this and say – “just to confirm this is the equity INCOME fund- not the Equity Fund right?  He assures me – that yes- it will go into the fund I already own.  A few days pass and I log into my online banking only to find I now own $650 of a new fund (Canadian Equity Fund).

Dividends Investing RBC Personal Finance Blog Canada Winnipeg Jordan Maas

 

So now I am on the phone with head office – trying to fix the situation – I just need to  transfer all the funds out of the Canadian Equity fund and into the Canadian Equity Income fund.  To his credit – the guy on the phone was very understanding and did this right away.  So I assumed (BAD IDEA) this guy was competent and could help me with something else.  I decided I wanted to reduce my bi weekly contributions into my RRSP and put the difference into the spousal RRSP instead since my account was quite a bit larger than my wife’s.  I have done this on the phone before – so figured it would be no big deal (BIG MISTAKE).  The guy tells me I can’t increase my contributions into Amber’s account because by doing so it means too high a % of her account will be in equities.  Here is the kicker.  She only has 1 fund which is already 100% equities.  All I was trying to do was to increase the bi weekly contribution to this account.  I tried explaining to this guy that whether you put 1 dollar or 100 dollars into the fund- it is still the EXACT same % …but he somehow couldn’t grasp this.  At this point I am seeing red.  I was ready to lose it.  I tell him forget it – and I am just going to close down all my RBC accounts.

.RBC Dividend Growth Investing INvestment blog winnipeg canada

After a day or two of deciding how I was going to stick it to RBC for Fuckin’ with me – I started thinking about all the things i would need to do to actually make this happen:

  • Get a new bank account
  • Set up Direct deposit with my employer
  • Close out mutual funds, transfer RRSPs, get a new brokerage
  • Cancel all the accounts I just set up for my wife
  • Contact my cell phone, internet, mortgage, insurance companies, and more and get them to switch everything over.

In the end, I decided I really didn’t want to go through all that – hell that would take even more time – and surely I’d become even more frustrated with some of those companies along the way – Plus who is to say a new bank would be any better?

And this is why I believe RBC (or any major Canadian bank) is a great stock to buy.  What other company/industry would I be willing to put up with so much shit – only to end up saying “Awww, fuck it – it’s not THAT bad”.

If that anecdotal evidence isn’t enough to convince you RBC would be a good buy – these results just came in today:

  • RBC reported net income of C$3 billion this quarter ($2.4 billion), up 7 percent.
  • RBC reported net income of C$3 billion this quarter ($2.4 billion), up 7 percent.
  • RBC increased its dividend 3 cents to .94 per quarter
  • After adjustments, Canada’s biggest lender by market capitalization earned $2.05 per diluted share, beating the $1.99 expected by analysts surveyed by Thomson Reuters.

Sorry for the long rant – but I figure if RBC is going to bend us over so much – we may as well at least get them to pay us back in dividends & strong capital gains.

*To my credit – I DID close down all my mutual funds, and move everything to Direct Investing – which will result in me saving about $2000 in fees I would have paid to RBC.

That’ll show em 😛

 

 

 

Side hustle dividends stock canada personal finance blog winnipeg

Does this count as a side hustle? Also I made a *New Purchase*

I see a lot of personal finance bloggers talk about side hustles. This is just a “cool” way to say make some extra cash on the side.  People do all sorts of things (monetize their blogs, complete surveys, drive Uber, rent out their home on AirBnB, etc.  I don’t really have the desire or time right now to worry about anything like that – however one thing I can get behind is getting rid of the clutter in my house and selling some of the things I’ve accumulated over the years that I really have no need for.

I’ve always been somewhat of a collector, everything from comics, to hockey cards, to coins, and memorabilia.  I realized I have a lot of sports memorabilia, and now that we moved I am not sure if I will ever hang any of it up.  At our old place I had the basement walls full of things – however we recently moved and the rec room in the new house doesn’t really suit a “man cave”.  One day I may redo the basement into a bit of a man cave – but probably not…so in the meantime I have a few cool items that are just collecting dust.  I decided to list one of my more unique pieces for sale since it was literally sitting a closet collecting dust.  It was a game worn NHL All star Jersey which I had won in a sports auction by our local team.  The team said the prize was valued at $2700 although I knew i wouldn’t get that.  I listed it on Kijiji and a Facebook group and within 3 days had about 10 offers.  I finally ended up settling on an offer for $1250 to a local collector.

Here is a picture of me wearing the Jersey the day I won it:

Winnipeg Jets Side Hustle personal finance winnipeg dividends investing blog

I felt a little bad about losing the jersey – but thought to myself in the 3 years that I’ve had it – I’ve probably looked at it 5 times.  In the end – I am really happy with the decision and the next day I transferred the proceeds into my TFSA and made a new purchase!

I was debating between the following stocks: (all which have been on my watchlist for some time)

Andrew Peller, Cascades, Interrent Reit, Northview Apartment Reit, Caledonia Mining.

I looked at each of them again today – but ended up deciding against all of them (mainly due to the fact I wouldn’t have enough to drip a full share of any of them).  I decided to start looking at some of my current holdings to see if any were at a price I felt comfortable adding to (and would put me in a position to drip more shares).  I eventually narrowed it down to Western Forest, Algonquin Power & Power Corp of Canada.

In the end I settled on ol’ faithful Algonquin Power.  I was able to add 98 shares – which means I should now drip 10 full shares each quarter.  This purchase will add $57.10 to my annual dividend income (based on the current exchange rate).

I am not sure if or when I will list anything else for sale – but it definitely feels good to get something out of the house that we weren’t using and be able to to put the proceeds to work for us.

PS — Happy valentine’s day.  Go get laid!

Stock Market Winnipeg Canada Personal Finance Investing Blog

Worried about this stock market dip? If so – you’re doing it wrong!

I cannot believe the amount of worried/panicked Tweets, Facebook posts & Articles I have seen the last couple of days (especially from people in the personal finance community).

Everybody breathe.  It’s going to be okay.

I’m going to break this down for you: Markets go up AND down.  Crazy right?

The last little while has been an exceptional run for the markets, and now it looks like a correction or perhaps even a big pull could happen.  THIS IS NORMAL.  It has happened before and it will happen again.  What should you do? NOTHING!  Stick to your plan.

Everyone knows the phrase “buy low, sell high” but so few people actually follow this advice.  Don’t get me wrong I GET IT – holding during a big drop can really test your nerves…but PLEASE FOR THE LOVE OF GOD – don’t fall for the sky is falling routine – you will be better off holding (or buying more during a big dip).  If you are close to retirement or  the phase of your life when you need to start withdrawing funds – chances are you have already adjusted your portfolio accordingly and have nothing to worry about – and if you haven’t then why are you reading this post – you clearly don’t listen to good advice:)

Don’t worry about timing the market for good buys.  Just remember:

TIME IN THE MARKET >>> TIMING THE MARKET 

Keep finding solid companies, with proven track records and don’t worry about the rest of the noise.  Of course you would be better off buying a solid company at its low point – but SPOILER ALERT you don’t know when that will be – and neither does anyone else.

If you routinely look at your portfolio and get excited or upset about hourly, daily or weekly fluctuations, you are doing it wrong.  Find companies you believe in, and will let you sleep well at night.  If you are making decisions based on daily stock price  fluctuations you are not an investor, you are a gambler.

Sorry for my little rant – but my news feeds are seriously filled with panic, and people asking insane questions about what they should do.  My answer:

Sit tight and don’t do anything you will regret it.  You have a plan (obviously since you are reading personal finance blogs) so stick with it and you will be fine. Now ignore the noise and enjoy the rest of your day!

 

 

 

 

 

 

Personal Finance Blog Update dividends early retirement FIRE Jordan Maas

First monthly update of 2018 & 5 stocks I’m keeping an eye on.

Sweet Jebus…the first month of 2018 is already over & although it went by too fast – I am happy with what was accomplished!

Personal Highlights for January:

  • One of my goals for the year was to take the wife out to dinner at least 5 times, and I am happy to say we were able to get a baby sitter and went to a nice steakhouse earlier this month!
  • I was able to find the time to write 6 new blog posts as well as play with the theme/look of the site.  This will continue to be a work in progress.
  • Added a new section to the website called “My Bar” which although is(slightly off topic) a lot  of fun for me to write about & even more fun making and trying new drinks.
  • Started (finally) watching Last Man On Earth on Netflix and it is GREAT!
  • Had over 1000 visitors to the website in a month for the first time.Personal Finance Blog Winnipeg Canada Investing Dividends Jordan Maas

 

Financial Highlights for January:

I am happy to report that I have already followed through with one of my financial goals for the year – and one that I have wanted to do for some time.

  • Sold my high cost RBC mutual funds and moved them to my direct investing RSP.  Replaced with a lower cost Canadian equity fund & super low cost Global fund. As detailed in this post
  • Started gathering all my statements for tax time 🙂
  • Continued bi weekly payments into RRSPs & Spousal RSP.
  • Increased Spousal RSP amount by $100 bi weekly to try and get our accounts closer in size.
  • Set up an RESP for my kids
  • Got out of the Penny stock/speculation game completely(for good) and made 2 new stock purchases.  You can read more about that HERE.

 

Passive Income Update For January 2018.

TFSA’S:

Diversified Royalty: $9.07 (Dripped 2 new shares)

Canadian Western Bank: $0.24

Artis Reit: $49.86 (Dripped 3 shares)

Plaza Reit: $24.75 (Dripped 5 shares)

Algonquin Power: $110.35 (Dripped 8 shares)

Chorus Aviation: $10.80 (Dripped 1 share)

TFSA’s Total: $205.07

RRSP:

Canadian Equity Income Distribution: $213.99

Total Passive Income January 2018:  $419.06

*The transfer of funds from mutual fund to ETF/Direct investing hasn’t happened as of writing this – even though papers have been signed – so next month will represent the new funds.

Portfolio Update:

My portfolio grew by 1.67% month over month and once again hit an all time!  The early retirement portfolio now sits at $306,396.65.  Dividends grew by $14.95 vs last January (year over year growth of 3.69%).  I expect my dividend growth rate to increase quite a bit more this year once my funds are transferred from my Mutual Funds and into my direct investing account/redeployed.  I am also planning on trying to contribute more into my TFSA this year which should help increase dividends for the year.

I’ve decided to add a new section to the monthly updates, which will be my top 5 stocks I am looking to buy in the future/keeping an eye on:

Current Watch List:

Andrew Peller: ADW

Cascades: CAS

InterRent Reit: IIP

Northview Apartment Reit: NVU

Caledonia Mining: CAL

 

How was your month?