Canadian Pacific Dividend Stock Analysis

Canadian Pacific Railway Ltd (CP) is the fourth largest publicly traded railroad company in North America. The company commands 12,500 miles of rail network. CP operates and services mostly in Canada with some extension into Midwest and Northeast US. CP directly competes with Canadian National (CNR.TO, CNI), but does not have the reach of extending down to the Gulf coast as CN does.

Railroads are the pulse of the economy. While crude shipments are on their way to a recovery thanks to the rise in oil prices, coal remains in a secular downtrend. CP has worked hard over the last year or two on M&A activity with both NSC and CSX, but to no avail. Eventually, the activist investors have thrown in the towel, shares sold and capital returned to shareholders via higher dividends after years of cuts and freezes.

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Recent Buy – B2Gold Corp

Whenever I make a purchase, I like to share my buys to document my journey towards financial independence. As regular readers are aware, I have broken from the pack of DGI and sold some of my investments to move to a cash position. I shared details on my motivation to do so in this post. In that post, I have indicated that I am bullish only on one sector currently — the resource/materials sector, and more specifically gold and silver.

I continued adding to my precious metals equity sector as I still see tremendous value. Last week, I added to my position in B2Gold Corp (BTO.TO) (also trades as NYSE:BTG) with 700 shares @ C$3.45. The company does not pay any dividends

I usually present my thesis on why I bought a particular investment security and present the risks associated in the Recent Buys posts. In this case, I will simply link to my last post on B2Gold purchase as nothing has changed as far as the outlook goes since my last purchase.

Recent Buy – B2Gold Corp

Full Disclosure: My full list of holdings can be found here.

Recent Sell – Realty Income Corp

Realty Income

As most regular readers are aware, I have been liquidating some of my holdings lately. This has been driven by a few different reasons – driven by a combination of market conditions, complacency in the market, lack of belief in individual holdings, the yearn for simplicity provided by index funds etc. Some of these reasons have been summarized in this post. This post captures another recent sell in my portfolio.

As the market continues to hover around all time highs, I have been thinking more about investor psychology and introspecting my own mentality. Recently I posted an article entitled “Do You Love Your Investment Holdings?” detailing how investors can fall in love with a holding and try to justify it even when the evidence points to investors to come to different conclusions instead. This can be driven by familiarity and a bias that comes with ownership of shares in a company for a prolonged period of time. This is a common pitfall that investors fall for and I came to the conclusion that I was facing the same issue with this holding. While this particular company is one that I didn’t quite love, I have noticed that most investors in the community seem to love it thanks for the dividends.

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Passive Income Update – Aug 2016

Welcome to our monthly passive income update for August 2016. 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 growth of our dividends going forward.

Passive Income  Update

Passive income for the month of August 2016 was C$546.35. The passive income for the month comprised of US$318.63 and C$128.94 (exchange rate is US$1 = C$1.31).

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Passive income change is -11.29% QoQ and -18.91% YoY for the month. The passive income YTD is $5,878.03, which achieves 65.3% of our annual goal of earning $9K.

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Chatter Around the World – 160

Chatter Around the World is a curated weekly update of articles related to economics, investing, dividends and personal finance. In these weekly updates, I also capture my blog updates and news related to my portfolio holdings.

Announcement: This will be the last weekly links edition. While I have enjoyed putting this together for the readers (and also for me personally as a way to collect links for later reference), I have been spending too much time on this series of posts for which I am not seeing a good return on investment (of my time). I will be spending more time on newer projects that I am pursuing. Meanwhile I still intend to continue the rest of my posts about my personal journey towards financial independence. Thank you for the continued support through the years.

New Blog Posts

Let’s dive into the links that caught my attention this week.

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