Money While You Sleep 2018 December Edition

Welcome to December’s edition of more free money from dividend investing. Before we get started with the portfolio this is what we have been up to while the dividends continue to roll in.

Here are a few things we have been up to:

Got a few weeks off to spend with the family
Enjoyed a great Christmas
Set up our tower garden to grow our own vegetables
Potty training a 2 year old is still not fun
Watched the markets crash hard
Setting 2019 goals
Z went on skates for the very first time
Family outing to see the new Grinch movie
Rang in the new year with family

Here’s are a few pictures

My wife and I

Christmas with family

Pics of the kids having fun and Z with Nana

Now lets get down to business

Portfolio details:

Sold

Other than the odd day trading I sold no dividend stocks this month

Purchased

I purchased 55 shares of Exchange Income Corporation @ $27.27

Who EIF is:

Exchange Income Corp is Canadian diversified acquisition-oriented corporation focused on opportunities in two sectors, aviation services and equipment, and manufacturing. In particular, the company is focused on businesses that are suited for public markets, except, in certain circumstances, for their size. The business plan of the Corporation is to invest in profitable, well-established companies with strong cash flows operating in niche markets. The Aviation segment recognizes revenue on the provision of flight, flight ancillary services, and the sale or lease of aircraft and aftermarket parts. The Manufacturing segment recognizes revenue on the sales of manufacturing products and services.

My why:

EIF is very well diversified with multiple companies under their umbrella such as: Perimeter,Keewatin Air, Jasper Tank, Overlanders Manufacturing, Stainless, Water Blast, Calm Air, Bearskin, Westower Canada, Custom Helicopters, Regional One, Provincial Aerospace, Ben Machine Products, Quest Window Systems,Moncton Flight College and a couple being finalized within the past few weeks. EIF has also increased their dividend for 14 consecutive years, yes please! They carry a PE ratio of 12.4 which is below it’s 5 year average of 29, to me this a healthy entry point. With the recent pullback in the market and the 8% yield this is a place i’d like to be. This will add about $10/month to dividend income.

I purchased 475 shares of Alcanna (Cliq) at an average price of $4.08/share

Who CLIQ is:

Alcanna is one of the largest private sector retailers of alcohol in North America and the largest in Canada – owning and operating 227 locations in Alberta, B.C. and Alaska. With revenues in excess of $600 million per year, Alcanna processes over 20 million individual retail transactions of beverage alcohol. As of October 17, 2018 Alcanna, opened the first five of its new retail cannabis stores under the “Nova Cannabis” brand in the Province of Alberta.

My why: This comes down to a strict value play and not a long term hold. Alcanna has partnered with Aurora to sell Cannabis.
Alcanna also has entered into a non-binding letter of intent (“LOI”) with a discount liquor store operator in Alberta, Ace Liquor Corporation (“Ace”), to form a new partnership in the discount liquor store business. On December 13 Alcanna announced a termination of their dividend. Prior to the news the stock had already dropped from $11.24 down to $6.16. After the news the stock dropped down to $4.08 about 5 days later before insider ownership starting buying up about 100,000 shares on Dec 22. Again this is a short term hold and was purchased as I believe the sell off was too crazy. Stock has shown positive momentum as of late and has creeped up to about $4.30 as I write this post.