Portfolio Update – Home Capital Group Inc. Purchased Again

Home Capital Group Inc.

I first purchased shares of Home Capital Group Inc. [HCG Trend] at $41 in June 2015. In hindsight I should have waited another month as the price is now around $32. Over the past week shares have dropped almost 25%. I took this as an opportunity to average down twice. On July 13, 2015 I purchased shares at $36.21 and on July 14, 2015 I purchased more shares at $32.00.

I tweeted these purchases the day of, so if you are looking for the most up to date portfolio updates follow me on twitter as I typically tweet first and then write the blog post later.

I’m not going to go into a full analysis of Home Capital Group Inc. as I already wrote two articles on the topic: Home Capital Group Dividend Stock Analysis & Bird Poop & Portfolio Update: Home Capital Group Inc. Purchased. Fundamentally I don’t think the company has changed much in the past month, so I took it as an opportunity to buy more

… Continue reading Portfolio Update – Home Capital Group Inc. Purchased Again

Is low to moderate dividend growth expected for dividend growth utility stocks?

Utility Pole / 電柱

As a dividend growth investor there are four Canadian utility stocks that I’d consider investing in: Canadian Utilities Ltd. [TSE:CU Trend], Fortis Inc. [TSE:FTS Trend], Atco Ltd. [TSE:ACO.X Trend], and Emera Inc. [TSE:EMA Trend]. Atco Ltd. owns Canadian Utilities Ltd. and has some other activities, so you could say there are really only 3 ½ companies I’m interested in. Canadian Utilities Ltd, Fortis Inc. and Atco Ltd. have been able to increase dividends in each calendar year for over two decades, while Emera Inc. has a dividend streak of 8 years. These are impressive streaks, but what has me worried with some of these utility stocks is their long term dividend growth rates.

Typically I try and target annual dividend growth of 8% or higher, but for utility companies this may not be realistic due to the regulated nature of their industry. Regulated utilities allow for a more reliable income stream, but it can be difficult to get consistent high dividend growth from these companies over the long term. A good example would be Fortis Inc. which has a 5 year average annual dividend growth

… Continue reading Is low to moderate dividend growth expected for dividend growth utility stocks?

June 2015 Canadian Dividend All-Star List Update

the list

The Canadian Dividend All-Star List is a list that started as an excel spreadsheet of Canadian companies that have increased their dividend for 5 or more consecutive calendar years in a row. The list has expanded a bit beyond the original criteria and includes companies with a dividend streak of less than 5 years in the “Others” tab. The “Others” tab was meant to help identify other Canadian dividend growth companies with streaks under 5 years. Think of the big Canadian banks.

I typically update the list on a monthly basis, but I’ve recently added a July 3, 2015 version after the June 30th one. When I ran my macro for the June 30th version it was missing the PEG ratios and 5 year growth estimates. The macro started working properly a few days later, so I released the July 3rd version. Hopefully these technical problems don’t continue.

As I’m already talking about the Canadian Dividend All-Star List I thought it might be a good time to talk about some of the dividend increases that were announced in June 2015. When I went through the list I found

… Continue reading June 2015 Canadian Dividend All-Star List Update

Dividend Income Update: May & June 2015

Dividend Income Chart

“Dividends have been a key and underrated part of North American markets’ total returns over the decades. As the British used to say: ‘Milk from the cows, eggs from the hens. A stock, by God, for its dividends.’ ”

David Chilton, The Wealthy Barber Returns

My retirement plan involves collecting an increasing stream of dividend income to help pay for retirement expenses and inflation. While I am a ways off from reaching my long term financial goals, I find it encouraging to track and witness my monthly dividends grow over time. From the quote above it sounds like the British are fans of this too.

May 2015 dividend income

No dividends received in the month.

Line of Credit Interest – $159.05

June 2015 dividend income

June Canadian Dividend Income

Total June Canadian Dividend Income – $202.80

June US Dividend Income

Total June US Dividend Income – $142.80

Line of Credit Interest – $164.34

I’m

… Continue reading Dividend Income Update: May & June 2015

Portfolio Update: Exxon Mobil Corp. Purchased

exxon mobil

One of the great benefits of this blog is that it keeps me honest and takes the moodiness out of my investing. Every time I buy or sell a stock I post a portfolio update. Having to justify my reasons for buying or selling a stock in these posts has made me a better investor. Thanks guys!

I try and post these portfolio updates close to the time they happen, but I don’t always have time to write a full blog post, so they can be a bit delayed. For the most up to date portfolio updates follow me on twitter as I typically tweet the purchase/sale the same day it occurs and then write the blog post later.

Now on to the latest addition to my portfolio…

On June 29, 2015 I purchased shares of Exxon Mobil [XOM Trend] for $83.00 per share + commission. After commission my average price was $83.10. Exxon Mobil is an American multinational oil and gas corporation. I was excited to purchase shares for a number of reasons.

Dividend Champion

Exxon Mobil is dividend champion having raised their dividend for 33 years

… Continue reading Portfolio Update: Exxon Mobil Corp. Purchased

Home Capital Group Dividend Stock Analysis

Money House

So first let me apologize … this article is over 4,000 words. I could have split this analysis into multiple articles, but when I read other blogs I like it when all the information is in one place so I kept this as one big article. Feel free to jump around to the areas you are interested in as there are four general topics:

  • Overall dividend stock analysis of Home Capital Group Inc.
  • Financial strength & stress testing of the company.
  • Why I’d consider investing in the company when I think the housing market is over-valued.
  • Home Capital Group Inc. valuation metrics.
  • Company Description

    Home Capital Group Inc. [TSE:HCG Trend] is a Canadian holding company that operates primarily through its federally regulated subsidiary Home Trust Company, a non-traditional mortgage lender. They are Canada’s largest alternative mortgage lender. Home Capital Group Inc.’s main source of income is from residential mortgage lending, but they also offer non-residential mortgage lending, consumer lending and credit card products. Their mortgages are a mix of uninsured mortgages and securitized mortgages that are insured by Canada Mortgage Housing Corp. or other mortgage insurers. The uninsured mortgages are made with

    … Continue reading Home Capital Group Dividend Stock Analysis

    Bird Poop & Portfolio Update: Home Capital Group Inc. Purchased

    Birds Poop

    Apparently I’m a lucky man, but I’m not entirely convinced yet. I recently returned from a vacation in Europe where a good deal of time was spent in Italy. It was there that I learned about a superstition about bird poop … yep, you heard right. Apparently if a bird poops on you, it will bring you good luck. I did some Googling and found some more info on the topic from this website:

    “Many people the world over believe that if a bird lets loose on you, then good things are coming your way. One idea is that it’s a sign of major wealth coming from heaven, based on the belief that when you suffer an inconvenience (albeit a pretty gross one), you’ll have good fortune in return.”

    The part about major wealth coming from heaven sounds alright to me, but you’ll understand why I’m still a bit skeptical that a bird shitting on you is “lucky”.

    Anyways, so here I am doing my zombie walk to work, when I stop at the intersection and wait to cross the street. I’m standing there, minding my own business, when PLOP … a

    … Continue reading Bird Poop & Portfolio Update: Home Capital Group Inc. Purchased

    Is Living Off Of Your Dividends A Mistake?

    Delete "MISTAKE"

    Part of the reason I started this blog was to become a better investor. I’ve found that having to justify my investing decisions publicly has made me a better investor as it encourages me to think and justify my actions. It also provides a platform where I can hear and learn from readers.

    I’m always curious to hear opposing views so that I can hopefully defend my strategy or make necessary adjustments. Part of my retirement strategy involves utilizing a growing stream of dividends to help pay for retirement. Naturally, when I read a National Post article by Jason Heath titled “Why living off your dividends in retirement may be a mistake“ it got me thinking about my retirement plan. One quote stuck with me particularly.

    Retirement planning is a personal decision, but you might be making a big mistake if you go out of your way to ensure you can live off your dividends, since you will be leaving a great deal of money when you die. In the process, you may have worked too hard at the expense of family time or spent too little at the expense of treating yourself.

    I thought the

    … Continue reading Is Living Off Of Your Dividends A Mistake?

    September 2014 to April 2015 Dividend Income Update

    Dividend Income & Line of Credit Interest Chart

    Dividends Tell the Truth

    Dividends and dividend growth are the real-life signal that a company has the wherewithal to pay you dividends, that it has your interests at heart in the fact that it pays you dividends, and that it is experiencing real growth as proven by the real growth in its real dividends.

    Lowell Miller (2006). The Single Best Investment: Creating Wealth with Dividend Growth

    My retirement plans involve collecting an increasing stream of dividend income to help pay for retirement expenses and inflation. While I am a ways off from reaching my long term financial goals, I find it encouraging to track and witness my monthly dividends grow over time. As indicated in the quote above, this also acts as a good barometer for my portfolio. If the dividends in my portfolio continue to increase it is a good sign that the companies I have invested in are continuing to perform well. These are just a few reasons I track my dividend income monthly.

    Since my last dividend income update things have changed a bit. I liquidated my entire portfolio to help come up with a large down payment for the condo I moved into

    … Continue reading September 2014 to April 2015 Dividend Income Update

    Portfolio Update: Canadian Western Bank Purchased … Again

    plummet

    For those new to the blog, I like to keep my readers up to date on portfolio changes. One of the reasons I started this blog was to educate others, but also to improve my own investing. By keeping an open book of my portfolio and changes to it, I hope to generate discussion so others can see how I put my investing philosophy into practice. For the most up to date portfolio changes follow my twitter account as I will usually tweet first and then follow-up with a blog post.

    On February 23, 2015 I decided to buy Canadian Western Bank (TSE:CWB Trend) again as it had dropped another 10% from my target buy price of $30 to around $27. I picked up shares for an average price of $26.93. I first bought shares in the company on December 16, 2014 at $29.33. With my latest purchase I was able to average down bringing my cost base to $28.45.

    Canadian Western Bank is a regional Canadian bank in you guessed it Western Canada (mainly Alberta and BC). They have managed to increase

    … Continue reading Portfolio Update: Canadian Western Bank Purchased … Again