What You Should Know About Bitcoin

The following is a guest post

All of a sudden, Bitcoin seems to be one of the hottest topics in investing. It’s not exactly new because it first emerged several years ago and has been gaining attention and influence ever since. But in the last 12 to 18 months people certainly seem to be starting to take it more seriously. Specifically, some are starting to address the idea of buying Bitcoin to fund retirement.

Whether or not this is a good idea isn’t a question you can answer by reading one article. Like most any other type of investment, buying Bitcoin carries some risk, and it shouldn’t be done lightly. But Bitcoin should be evaluated at least, given its growing significance both as a currency and a commodity. Given that, here are a few things you should know about it.

What Is It?

If you’re not sure about the answer to this question, don’t worry. A lot of people are still a little unclear on the details. Bitcoin is a complex concept, but not one that’s necessarily difficult to grasp. Basically, it’s a brand new currency that exists solely in digital form. There’s a finite amount of Bitcoin that can be generated (only 21 million), and it’s initially acquired via a mathematical “mining” process. But most people don’t really need to know about that part. What you need to know is that once it’s been mined, Bitcoin is out in the world and can be traded and stored as digital wealth. You can literally buy it with your own currency and use it to purchase goods and services at participating merchants. Or, if you wish, store it away on a safe digital platform as an investment to be sold later.

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2 Recent Buys – NSU, WPM

BuySell

Another quick update on a few recent purchases. This market is giving some great buying opportunities in the resource sector and I continue buying and adding more to my portfolio.

  • I added to my position in Nevsun Resources (NSU). For this particular transaction, I put my US$ to work as I had more US$ cash in my investment accounts, but for all reporting purposes, I will simply include the TSX-listed entity in my portfolio page. I bought 1,000 shares of Nevsun Resources (NSU) @ US$2.13. Nevsun is a top tier copper producer and has interest in two massive mines, one in Serbia (Timok) and the other in Eritrea (Bisha). The latest earnings release painted a bleaker picture for Bisha than expected, and timelines have been revised to later dates for Timok. The company also has a new CEO and it is clear that the previous leadership was sitting on these problems for too long hoping to sweep things under the rug. The new CEO has decided to rip the bandaid off and set things in motion by taking the right steps. The company still pays a paltry dividend, but I expect that to get cut in the coming days. Better to save the cash and put it to better use than distribute it to shareholders. The shock sent the stock price down 20%, and it was the perfect opportunity for me to load up. As is the case with the resource sector, the mines and resources are still there, and investors are being too shortsighted for a project the scale of Timok, which is a fantastic tier-1 resource.

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Investing in Green Bonds with CoPower

I have always been intrigued with investing in renewable energy. A couple of years ago, I looked into installing a rooftop solar system to generate passive income by selling the generated power to the grid during on-peak hours. However, after some researching, it turned out that the initial investment was quite steep (approx. $30,000) and the generated returns were not sizeable enough to warrant it. In addition, there is no way to shelter the income from taxes, so I dropped the idea after some serious consideration.

Equity Space in Renewables

Over the last year or so, I started researching yieldcos – spinoffs from utility companies, which focus on the renewable space. There are plenty of such companies, which provide juicy yield in the market such as Brookfield Renewable Partners (BEP), TransAlta Renewables (RNW.TO), NextEra Energy Partners (NEP), 8Point3 Energy Partners (CAFD) to name a few. Analyzing these companies financially, I concluded that most of them are heavily debt-laden and provide immense risk as far as the principal goes, while searching for that high yield. This is the risk that comes with investing in equities and instead of investing in each individual company, if I was looking for equity investment, I’d rather look for a broader ETF – YieldCo Index ETF (YLCO) is the only one I am aware of that specializes in this space giving exposure to the sector.

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Top Dividend Raises & Cuts for July 2017

Dividend growth investing is a popular model followed by the investing community to build assets. Companies which not only pay dividends, but raise them year after year have been shown to perform better overall for investor returns. On the flip side, it is also important to keep an eye on the dividend cuts, which could signal troubling times ahead for a company. This post captures the announcements of changes in dividend amount for the week – both increases and cuts.

Note that only $2B+ (Midcap+) companies are included in this list.

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Passive Income Update – Jul 2017

Welcome to our monthly passive income update for July 2017. This is part of the scorecard series where we track our dividends and other sources of passive income. We also include changes and updates related to our investments during the month – showing the overall progress.

Passive Income  Update

Passive income for the month of July 2017 was C$609.00. The passive income for the month comprised of US$296.15 and C$238.81 (exchange rate is US$1 = C$1.25).

Passive income change is +2.4% QoQ and -19.8% YoY for the month. The passive income YTD is $4,835.77 and achieves 48.3% of our annual goal of earning $10K.

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