Welcome to October’s monthly update. October has come and gone and overall it was a good month. The stock market was relatively quite for once almost ending where it started during the month.The easing of Tariff talks probably helped the market stay relatively normal
Before i get into the the portfolio here are a few things we were up too this October
- Z celebrated her 7th birthday.
- We got some family fall pictures and actually got quite a few good ones.
- Went to Calgary for a conference for my wife and I’s soon to be plan A.
- Halloween is always a blast
Here are a few pictures
Now let’s get down to business
Portfolio details:
As you know if you have been following my blog we slightly changed the strategy using about 5% of the portfolio to trade mainly well respected companies, when short term noise has hurt the stock price we purchase these companies and then move on to the next candidate. This month saw the strategy bring in $25 by selling a couple stocks. This bring’s the 2019 total to $4,219 not including any dividends received.
Sold
Reduced position in Savaria by selling 85 shares at $13.32
Just freeing up a few dollars for other opportunities. The good news is i took a small profit and collected dividends throughout.
Reduced position in NFI group by selling 65 shares at $29.03
Original purchase was at $28.82 and also received the dividend. Was freeing up some cash for my purchase below.
Purchased
Opened up a new position in Exchange Income Corporation (EIF.TO) by purchasing 80 shares @ $37.81
Who is NFI Group INC?
Exchange Income Corporation engages in aerospace and aviation services and equipment, and manufacturing businesses worldwide. It operates through two segments, Aerospace & Aviation, and Manufacturing. The Aerospace & Aviation segment offers scheduled airline and charter services, and emergency medical services to communities located in Manitoba, Ontario, and Nunavut, as well as Newfoundland and Labrador, Quebec, New Brunswick, and Nova Scotia. It also provides after-market aircraft, engines, and component parts to regional airline operators; designs, modifies, maintains, and operates custom sensor equipped aircraft; and offers maritime surveillance and support services in Canada, the Caribbean, and the Middle East. In addition, this segment provides a range of pilot flight training services. The Manufacturing segment manufactures window wall systems primarily used in high-rise multi-family residential projects; stainless steel tanks, vessels, and processing equipment; heavy duty pressure washing and steam systems, commercial water recycling systems, and custom tanks for the transportation of oil, gasoline, and water products; precision parts and components primarily used in the aerospace and defense sectors; and precision sheet metal and tubular products. This segment also focuses on the engineering, design, manufacture, and construction of communication infrastructure, as well as provision of technical services. Exchange Income Corporation is based in Winnipeg, Canada.
My Why:
I recently sold this as it was trading around it’s all time high and the market seems to be slightly overvalued. However shortly after i sold they announced a new acquisition of Advanced Window, Inc and roughly at the same time announced a bought deal public offering (the “Offering”) of 2,139,000 common shares. The Shares were issued at a price of $37.65 per Share. Well if you like the company and they do something like this it can sometimes be a great time to get it because the following day the shares dropped like a rock all the way to around $37.65. My recent sell was at $40.73 and i had to jump back in when i saw this news. You can check my old posts on why i originally purchased them. EIF has been knocking it out of the park this year and shareholders have been rewarded.
Dividend increases or decreases
October
No decreases this month
2016 – 2017 – 2018 – 2019 Dividends
Dividends received in October were $257.54 which is a 111% increase year over year and this keeps us on track to hitting our 2019 dividend goal of $2,400.
Dividends received per stock
| Stock List | October |
| CSH.UN | $11.10 |
| CJ.TO | $4.02 |
| PLZ.UN | $9.29 |
| ARX.TO | $8.85 |
| ALA.TO | $5.36 |
| CPG.TO | $0.00 |
| EXE.TO | $6.92 |
| FRU.TO | $5.99 |
| GH.TO | $5.18 |
| CHW.TO | $7.00 |
| TD.TO | $56.24 |
| ZZZ.TO | $0.00 |
| NPI.TO | $14.00 |
| CHR.TO | $20.48 |
| SIS.TO | $13.18 |
| TOG.TO | $9.03 |
| NFI.TO | $57.38 |
| CPX.TO | $23.52 |
| Total | $257.54 |
As we approach the remaining 2 months of the year we will be focusing on some rebalancing and taking profits where necessary. We try not to hold more than 5% in any one company so when they do edge higher we typically take some off the table and look for other opportunities.
If you have any suggestions please feel free to leave a comment.
What are you currently looking at purchasing?
Do you see a correction coming or even a full blown recession?
What sectors look attractive to you in this fairly valued market?
Thank you for reading, see you next month and remember:
INVEST IN YOURSELF
Brian
Thank you, Brian. What I find particularly interesting is that although we have similar goals, strategies and even size of portfolios, our tactics are so different. You have 23 stocks listed, yet I have only one of them (TD), although I have had several others in the past. After well over two decades of investing, I feel I am only just beginning to achieve a stable, safe and productive portfolio. Probably others would not agree if they saw what I had. My big frustration is in finding another stock to flesh the portfolio out a bit. But I have concluded that (a) US stocks outperform Canadian, (b) I am no good at picking US stocks, and (c) I can best achieve US exposure through ETFs, of which I am currently using XMU, VFV and VGG. (I also use TDB902 for temporary accumulation of dividends and then flip the whole lot into one of the former.) It comes as a bit of shock when you chart your favoured Canadian stocks against any of these US funds.
Hey Doug,
This year i have tried something new and started to sell off my good performers and move to another solid company that may be trading out of favour. So far it has worked as i believe as i type this im over $5k profit from the trades this year and an additional $2,500 in dividends by years end. This does not include my gains within the portfolio that i have not sold such as MFC.
I will have to take at the ETF’s you mentioned
I have focused mainly on Canadian dividend companies as a majority of my portfolio is within 2 separate TFSA’s. As i start to fund an RRSP i will be focusing mainly on US stocks.
Thanks for reading and i appreciate the comments!
Brian
Looks like a productive month.
What do you mean by your plan “A”? I was confused by this sentence:
“Went to Calgary for a conference for my wife and I’s soon to be plan A.”
Sorry to see you sold your shares in NFI, I’m, actually planning to pick some up soon – think although it may be a little volatile next year or two, long term it should be a great hold.
Cheers!
Hey Jordan,
Currently I work for a large US corporation and my wife and I have a home based business that we have been working together over the past 5 years (More her than I) and the income from it pays our mortgage and bills each month. Our goal is to have it take over so I can step away from the Corp life and focus more on something that I’m passionate about.
I sold my remaining shares of NFI prior to their results as I had a gut feeling the quarter was going to be rough. My instinct came from reading about them and the red flag that i saw was although they are getting orders most of them are backlog items. I am planning on taking a full position over the next month after tax selling is complete unless i chicken out as i like the space and we can see the economy is starting to focus on more green space infrastructure.
All the best,
Brian
nice Brian
Another great month with a huge yr over yr growth rate.
keep it up Brian
cheers
Thanks i was a bit in shock when adding it all up and saw that type of gain.
Brian
Hi Brian, thanks for posting this article. I’m curious about what your transactional costs (trade commissions) are per year? I use Questrade and don’t trade too often, but I was still surprised to see that my 2019 YTD costs for my RRSP are about $187. Thanks!
That’s a good question. Out of all the trades I’ve made and the profit i show within my blog already accounts for all trading fees so that i have a real number. This year alone i have spent $575 dollars on trades, which seems high however 113 different trades were made.