Trains, Telecommunications Companies and Banks – Canadian Passive Income

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    Hello everybody

    I thought I was doing a little portfolio update for all of you. I recently sold one of our holdings and increased three of our existing ones. Neither of them was a bargain, but that’s this market. It’s getting harder and harder to find deals right now, but there are some out there. Ie tobacco stocks, nfi, lowes / hd and again Algonquin Power after its most recent offer.

    Let’s start with the last sale.

    I am selling once again one of our original holdings and once again a non-blue chip company. Small lessons on the journey, but in the future I’ll try to stick with solid blue chip companies (preferably wide moat).

    Sale of Interpipeline

    Maybe I was one of the last remaining bloggers to keep Interpipeline. I thought the supply of GDP was way too low given the heartland project and its potential. Then came the Pembina pipeline with an even bigger supply and GDP came back a little higher at $ 19.75 per share. The market was excited thinking the bidding war would continue and the stock price soared above these bid amounts.

    For the first time in a long time, we were actually in our IPL position. 1% plus that dividends over the years.

    I decided it was time to pay off after their dividend cut really didn’t entice their returns. The Heartland project, which I’m a huge fan of, continues to be over budget and to be honest, I don’t really want a position on BIP or PPL right now. (Both great companies but we are big utilities and I’d rather stick with trp and enbridge for energy)

    Perhaps PPL will counter it with an even higher offer, but who knows. I take a tiny profit and move towards the blue chips!

    So we sold our 208 IPL shares for $ 20.27 per share and lost $ 99.84 in forward dividends.

    Purchases

    With the proceeds from the sale of IPL on our or account, we have topped up 2 existing positions. Mixing higher yield and lower yield.

    BCE – Bell Canada Company

    We added 33 BCE shares at just under $ 60 a share. One of my goals lately has been to get some quarterly dividend payments in excess of $ 100 per quarter. That’s what this purchase did.

    While bce isn’t a high-growth stock, the higher initial yield paired with the average annual dividend increase of 5% can add up over time. I think bce can also benefit from opening things up. MLSE should be bringing in a handful of cash again soon.

    This purchase adds $ 115.50 in forward income.

    We also added to one of our favorite positions in Canada.

    CNR – Canadian National Railway

    We added 19 cnr shares at about $ 133 per share, which definitely increased our cost of this stake. I’m a big fan of the rails and their wide trenches. Will your deal with Kansas City Southern go through? Who knows are they going to pay too much? I don’t know, maybe in the short term, but blocking a larger rail system with more connections in the long term sounds good to me.

    If it doesn’t go through, the stock may bounce back to 140. I’m in for the long run, rails don’t go anywhere, and with today’s political landscape, they may ship tons more oil again. (I think pipelines are still better, but what do I know? =)

    I know CNR has increased its dividend every year since going public and most likely will continue to do so in the future. It’s all about this.

    These 19 shares contributed 46.74 to the appointment receipts.

    All in all, we sold our IPL position and lost 99.84, but added 162.24 with the other 2 purchases. A gain of $ 62.40 and a portfolio laggard who added 2 blue chip positions. I think it’s a good move.

    NA – National Bank

    We have also increased our position in the National Bank. Our existing position has increased by over 100%, but it is a small position, actually one of our smallest positions. The goal is always to get the stocks drained, and National needs a little extra cash to get there.

    We added 22 more shares at 91.68 per share. Yes, I would have been a lot better off buying the banks when they were dirt cheap, but I thought Covid would have more of an impact on the banks. Obviously it’s not yet. All Canadian banks are sitting on a lot of cash right now and it is only a matter of time before they can reward their shareholders.

    Credit Suisse recently said that bmo and national in particular could see huge increases. You name 34% for the National Bank. That’s crazy. I don’t see this, but 10-15% may not be excluded. Hey, if they’re rocking a 34% increase, no complaints here. .

    This purchase adds $ 62.48 to that appointment income.

    Conclusion

    Short in sweet. These purchases / sales increased term revenue by $ 124.88. We also added 10 more xaws before their ex-dividend date. That’ll be all this month as we just installed California blinds and that required some modification. Looks much better, however, and is great for replacing our previous ever-tangling blinds. The woman is happy about it, I am happy about the additional income. Win win!

    What did you buy these days?

    By the way, if you haven’t read Bob’s recent interview with a couple who generate 360,000 dividends a year, check it out. It is fantastic read and will most likely get me focused on getting this TFSA out before the rrsp moves forward

    Cheers everyone!

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