Recent Sell – Index Funds

I’ll keep this short. Another couple of sales to report in our portfolio.

Last week I sold two index funds that we’ve owned only since last year (holding period of about 18 months):

  • BMO S&P/TSX Capped Composite Index ETF (ZCN.TO)
  • Vanguard FTSE All World Ex-Canada Index ETF (VXC.TO)

Recent Sell Decision

  • This stock market continues trading at crazy valuations while all fundamentals have collapsed underneath. I am cashing out at what I consider to be market tops.
  • Yes, this is market timing. Get over it 🙂

Overall return (including dividends during holding period of 18 months):

  • 3.6% for ZCN.TO
  • 4.2% for VXC.TO

Recent Sell – Magna International

Magna International

Another sale from my portfolio. Regular readers may be aware that I have been liquidating a lot of my portfolio as this market enters the nosebleed section. Valuations are at all-time highs and the world of finance looks just as dangerous as last decade, if not worse. I am of the opinion that holding large positions of cash going into the next crisis is a better strategy than trying to stay invested and trying to squeeze out an extra 1% or 2% in dividends or capital gains.

I sold 50 shares in Magna International Inc (MG.TO) @ C$57.00 and closed my position.

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Casino Capitalism

I came across this Hedeye interview featuring David Stockman, which was a gem. It hits the nail on the head on a plethora of issues that mire not only the financial markets, but the American politics and the coming social unrest. While each of those topics themselves are complicated and will need deep dives to read and understand, an overview should pique the interest of investors on the said topics. This 30 minute video will be time well spent and I invite you watch it and delve on the topics and rethink on what it means to your personal finances and investments.

Short Bio: David Stockman is a former businessman and U.S. politician who served as a Republican U.S. Representative from the state of Michigan (1977–1981) and as the Director of the Office of Management and Budget (1981–1985) under President Ronald Reagan. After leaving government, Stockman joined Wall Street investment bank Salomon Bros. He later became one of the original partners at New York-based private equity firm, The Blackstone Group. Stockman left Blackstone in 1999 to start his own private equity fund based in Greenwich, Connecticut.

 

Passive Income Update – Sep 2016

Welcome to our monthly passive income update for September 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 September 2016 was C$660.30. The passive income for the month comprised of US$353.92 and C$196.66 (exchange rate is US$1 = C$1.31).

Passive Income Update - Sep 2016

 

Passive income change is -42.64% QoQ and -4.53% YoY for the month. The passive income YTD is $6,538.33, which achieves 72.64% of our annual goal of earning $9K.

It looks like I am pretty close to the 75% mark, but I will most likely fail to reach my goal of $9K for the year. As most regular readers are aware, I sold off a big part of our portfolio and continue with more sales which drops our forward dividend income. Dividend income plays a big part in our overall passive income sources. I am personally ok with failing to reach this goal for the year, as I wanted to take some money off the table.

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Dividend Raises & Cuts for September 2016

Dividend growth investing is a popular model followed by the investing community to build assets. As part of my ongoing commitment to keep track dividend raises and cuts in the business world, I compile and share this list publicly. Start of each month, I also profile the top raises and cuts and profile the companies.

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

Dividend raises were noted from companies such as: Campbell Soup Co (CPB), Verizon Communications Inc (VZ), Phillip Morris International Inc (PM), Royal Caribbean Cruises (RCL), Microsoft Corp (MSFT), Lockheed Martin Corp (LMT), American Express Co (AXP), Realty Income Corp (O), McDonald’s Corp (MCD) and many more. Top raises came from InterDigital Inc (IDCC), Goodyear Tire & Rubber Co (GT), Royal Caribbean Cruises (RCL), and CLARCOR Inc (CLC). Dividend Cuts were announced by Viacom Inc (VIA), Plains All American Pipeline L.P. (PAA) and Plains GP Holdings L.P. (PAGP).

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