October 2014 Dividend , Options and Interest monthly report

October has been a roller coaster of the month with my portfolio taking a huge hit and a big recovery at the end of the month. Very high volatility that's for sure. I have been taking advantage of the volatility with big puts and calls on Apple stock and  a little bit of AliBaba. Apple puts have been free money of lately leading into their big earnings report and juicy premiums have subsided for now. So far my strategy has been selling puts on Apple a few dollars below market value weekly. If it drops my puts gets executed and I then write covered calls on the shares I attain.

Next mid months net worth report should be looking good and very green, would be hard to see it back in the red pending another major dip. Dividend payers were out in full force this month to my highest total yet but I have to keep my margin in check as interest payments also rise. Been contemplating a bit of restructuring of the portfolio.

In other news I have been feeling pretty depressed lately. Been quite tired for a month now and just feel a bit burnt out. I don't have a specific reason but it just feels like things are adding up. Fell off my healthy diet a bit and the weight is slowly creeping up, Been dealing with family issues that has put a bit of stress on me, Haven't been exercising as much as I usually do as well and another wild card might be the lack of sunlight as winter looms. I think every year i get in a grumpy mood when winter looms. I have decided to take action with all this to get me out of this funk. Just started taking some Vitamin D too hopefully lift my spirits and gone for a fake tan. My doctor thought it would be a good idea as he said I have some Vitamin D deficiencies after examining my blood work and he thinks it will help my yearly depression. Next I will renew my gym membership and start going back again. Also new strict diet will start next week to get my weight and self confidence going back in the right direction. Time to get off my lazy butt and make some things happen.

October 2014 Dividends Paid
        Monthly payers
 86.62  - HR.UN HR Reit
232.65 - AX.UN Artis Reit
177.33 - D.UN Dream Office Reit
133.34 - DRG.UN Dream Global Reit
 94.36 - REI.UN RioCan Reit
183.75 - CUF.UN Cominar Reit
123.75 - RMM.UN Retrocom Reit
105.00 - BTB.UN BTB Reit
  57.50 - CPG Crescent Point Energy
 18.33 - SJR.B Shaw Communications
 22.92 - ENF Enbridge Income fund
   Quarterly Payers
141.00 - TD Toronto Dominion
 26.40 - TRP TransCanada
 66.00 - BNS Bank of Nova Scotia
110.00 - CIBC CIBC Bank
  33.25 - AGU Agrium
135.85 - BCE BCE Inc.
  22.50 - CNQ Canadian Nat Resources
 30.00 - HSE Husky Energy
 61.76 - RCI.B Rogers Communications
 76.00 - T  Telus Corp
 33.97 - DOW Dow Chemical
 37.88 - TOT Total SA ADR
  89.20 - CHL China Mobile
  63.81 - PM Philip Morris
129.64 - GSK GlaxoSmithKline
 32.27 - BAX Baxter
 53.22 - IDV Ishares Int Select Div
 42.56 - GE General Electric
 45.32 - KMB Kimberly Clark
 33.69 - KO Coca-Cola                             
$2,499.87 - TOTAL

Dividend Notes -
- Dividend raises by MCD Mcdonalds, KMI Kinder Morgan

Total option premiums in September
 $2,167.48
 Options Notes -
- Playing Apple and a bit of AliBaba puts and calls

Total interest paid towards margin for October
$538.20




2014 Running Dividend Total               $8,840.59
2014 Running Interest Total                    $944.72
2014 Running Option premiums total $3,686.24

2014 Breakdown    Dividends     Options       Interest
 - October               $2,499.87    $2,167.48     $538.20
- September           $2,088.65     $1,518.76     $318.73
 - August                $1,482.38                            $87.79
 - July                     $1,239.74
 - June                       $608.62
 - May                       $531.13
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TOTALS                $8,840.59    $3,686.24      $944.72

$2,111,011 Net Worth Update October 2014

My Net Worth Update October 2014

     October 16 / 2014  : Updated every mid month

    ASSETS

Home 2014 assessed value                                  total                 $1,190,000

-Equity Investments

Tax free saving account TFSA -                 $32,870

Retirement saving plan RSP -                  $105,840

Canadian margin account -                      $286,059

US margin account ( Ex Rate 1.1076)-    $202,729
margin available $102,775
                                             Total equity    $445,413

                                                                               total:                 $627,237

-Rental Property

Warehouse Income Property 2014 assessed value

                                                         

                                                                               total:                 $384,000

-Start Up Company

Brewery start up share value

                                                                               total:                   $85,000

-Cash                  

Checking account                                        $1,306

Business account                                        $5,292

     

                                                                               total:                    $6,598

                                                                        Assets total :          $2,292,835

                                         

   Liabilities

US margin account   
(margin rate 3.75%) 

CDN margin account

(margin rate 3.00%)

                                                                           Liabilities total :        $181,824

                        

                 August 2014 Grand Total Net Worth:      $2,111,011

                                     Gain/loss from last month - $28,473


Sept.    2014 : $2,139,484 Details Link + $13,390
August 2014: $2,126,094 Details Link + $14,613
July    2014  : $2,111,481 Details Link  + $5,584
June    2014 : $2,105,897 Details Link   + $3,165
May    2014 : $2,102,732 Details Link

  Investment Yields

- Start Up Brewery : No expected return for a year

-Warehouse commercial property Income 

 $1,912 a month minus $678 expenses ( maintenance,tax) =  Per month: $1,234                                                      Yield on assessed value:  3.85%                Total year profits :$14,808

                                                              Forward Monthly dividends Avg:  $2,272

                                                              Total Forwards dividends yearly $27,273

 Margin costs  forward interest per year $6,440

    Grand Total Passive Forward Yearly Income :    $35,641

 

                  Per month average total     :          $2,970

 In Summary-

Wow what a dip in the markets. Markets tanked from my last net worth wiping out over 2 months of solid gains. Oh well thats how the markets go. I was a month late making margin plays as I bought at the height as well which also hurt me. No worries though as the margin I am using is only less than 10% of my net worth. I am not planning on selling anything and riding out the storm.

Despite the big hit on my portfolio my average monthly forward passive income has increased from $2,533 to $2,970 largely due to the margin REIT play I made couple months ago. Also the weakening Canadian dollar helps out my portfolio a lil bit.


Plan right now is to pay down my margin a bit and see how the markets shake out before making any other moves. Some stocks look very attractive right now but like they say you do not want to catch a falling knife in this volatile market right now. Will be keeping my eye on the energy and financial sector right now as potential buys.



How is your guys October shaping up and are you buying, holding or selling right now?

“The best time to plant a tree was 20 years ago. The second best time is now.” – Chinese Proverb

 

$192,000 ETF Report Update

As some of you know I have constructed a $192,000 ETF portfolio for my mother in law Grandma Olga. Original Link HERE

Here is a dividend report since original inception of June 25

A recap of the particulars

The Allocation: 

Fixed Income: 46%

• Bonds 34% : Investment grade corporate 1-5 year laddered Fund
• Preferred Shares 12% : Canada and American high quality holdings Fund

Equity Income 54%

• Reits 12% : Canadian Income Real Estate Investment Trusts Fund
• Canada 12.5% : High dividend paying stock fund
• American 12.5% : High dividend paying stock fund
• Covered Calls 7.5% : Covered calls of select North American stock fund
• World 12% : High yielding mainly Europe/Asia Fund

    Total portfolio original value $192,000



Now the list of the individual funds!

Bonds

• CBO - iShares 1-5 year laddered corporate bond.            .28% Mer     4.18% Yield
• ZCS - BMO Short Corp Bond Index                                .34% Mer     3.16% Yield

Preferred Shares

• XPF - iShares Preferred Stock North America                  .47% Mer      5.21% Yield

REITs

• XRE - iShares S/P TSX Cap Reit                                       .60% Mer      4.96% Yield

Canada Equity

• XEI - iShares Equity Income                                               .61% Mer      4.21% Yield
• ZWU - BMO Covered Call Utilities                                   .71% Mer      5.60% Yield
• ZWB - BMO Covered Call Financials                                .74% Mer      4.80% Yield

America and World Equites

• ZWH - BMO US High Div Covered Calls                           .65% Mer     6.07% Yield
• XHD - iShares US High Div Index                                      .33% Mer     2.62% Yield
• CYH - iShares Global Monthly Dividend Index                  .34% Mer     3.59% Yield
• VEF - Vanguard Developed excluding NA                          .34% Mer     3.50% Yield

This selected portfolio is currently yielding 4.11% 
or about $7,891 a year or $657 a month average






Now an update of the payouts and thoughts

July               $451.96
August          $610.00
September     $610.00
October         $217.12


They are a little bit lower than I had anticipated. All but one of the funds are monthly payers so $610 will be the lowest total going forward I would hope which depends on payouts remaining the same.

Revised forward dividends are $7500 for the year or $625 a month (3.9% yield)

And now even more bad news

The portfolio holdings of $192,000 is down 2.16% to $187,849 due to markets taking a severe dip.


In Conclusion

Not the best update with lower than anticipated payout and the portfolio taking a hit but it could be worse. No panic here as its is a long term hold. Nobody can time the markets efficiently and history shows always better to be in than out. We will stand not making any moves until possibly next year where we will analyze a couple things. We will more than likely switch from the reit fund etf into individual reit holdings if the Mers do not go down on that fund. 4% yield is what I am after and will adjust accordingly to make it happen.


Other News

Markets taking a good sized dip wiping out my gains. Net worth report coming in a few days and its looking pretty red!!!! Ouchy!!!

September 2014 Dividend , Options and Interest monthly report

September has been a rocky road. I have bet big on Canadian REITS and so far they are down 4.5% or about $6,800 buck OUCHY. I have stepped up my options trading and now will keep track of the premiums I am getting per month. My strategy has been aggressive APPL put and call options. I am not scared to get assigned as I have plenty of room on my margin account to make such plays. Also since I am using margin now I will also track my interest charges along with my dividends.


Here is my Dividends recieved for September

September 2014 Dividends Paid
        Monthly payers
 86.62  - HR.UN HR Reit
232.65 - AX.UN Artis Reit
177.33 - D.UN Dream Office Reit
133.34 - DRG.UN Dream Global Reit
 94.33 - REI.UN RioCan Reit
183.75 - CUF.UN Cominar Reit
123.75 - RMM.UN Retrocom Reit
105.00 - BTB.UN BTB Reit
  57.50 - CPG Crescent Point Energy
 18.33 - SJR.B Shaw Communications
 22.92 - ENF Enbridge Income fund
       Quarterly Payers
 33.60 - SU Suncor Energy
 32.00 - THI Tim Hortons
 35.00 - ENB Enbridge
 96.00 - FTS Fortis Inc
 45.38 - PEP PepsiCo
 54.53 - PFE Pfizer
 59.22 - RDS.B Royal Dutch Shell
 19.64 - QCOM Qualcomm
 63.18 - BP BP
 34.43 - MCD McDonalds
 23.97 - DD Dupont
 46.64 - UL Unilever
 29.61 - EMR Emerson electric
 23.38 - IBM IBM
 83.80 - JNJ Johnson and Johnson
 13.60 - V Visa
 40.80 - WMT Walmart
 31.48 - AFL Aflac
 86.87 - COP Conoco Phillips
$2,088.65 - TOTAL

Dividend Notes -
- Two Dividend raises this month by MCD McDonalds and TOT TOTAL

Total option premiums in September
 $1,518.76
 Options Notes -
- Playing Apple puts and calls

Total interest paid towards margin for September
$318.73

2014 Running Dividend Total               $6,340.72
2014 Running Interest Total                    $406.52
2014 Running Option premiums total $1,518.76

2014 Breakdown    Dividends     Options       Interest
 - September           $2,088.65     $1,518.76     $318.73
 - August                $1,482.38                            $87.79
 - July                     $1,239.74
 - June                       $608.62
 - May                       $531.13
---------------------------------------------------------------------
TOTALS                $6,340.72     $1,518.76      $406.52

I have failed BANKRUPTCY !!!

So a while back I decided to try to get a friend out of debt detailed here. LINK


My friend Ali was is in deep debt to the tune of $50,000 , It was actually $80,000 as there was another $30,000 credit line his father took out for him as well which he did not tell me about. Even worse his house is appraised for lower than the mortgage amount owed ($10,000-25,000)

Shortly after that post my friend Ali kind of fell off the map, he did not return my calls or emails until just this past week. He lives across the other side of Canada and I had no way of getting a hold of him.

He called me last week to tell me the bad news. He was in the hospital for over a month. He was battling severe depression and was also diagnosed with a severe bi-polar condition. I don't know many of the details leading up to it as he is not wanting to delve in to details on the matter.

So within the couple of months things kind of fell apart for him. Most of the renters moved out of his home, he has not gone back to work and started losing the customers on his landscaping job. He has fallen behind on his mortgage. His credit cards and accounts are maxed out so he can not afford to live so he has moved back home to his parents. He was on the verge of bankruptcy then and now he is there.

He said the pressure of everything had come down on him. The stress of his debt. The stress with dealing with tenants and home repairs plus the stress with his business where customers were taking advantage of him and not paying their bills with some accounts in arrears from last year.

Perhaps I pushed him too hard for a debt plan and that was the tipping point since he was pretty much one paycheck away from bankruptcy. I feel somewhat responsible for his breaking point but the house of cards was bound to fall if he did not get help. I feel I have failed in getting him back on his feet. I will use this experience as a learning point on how to handle these types of situations in the future. Perhaps smaller steps would of been the better course of action than a complete overhaul. Sometimes I am out of touch with others feelings and I base decisions on how I would handle stress and the situation.

I just want Ali to be happy and live a secure and less stressful life.

The only advice I have for him now.

Is to work a regular 9-5 job. Hopefully its one he can enjoy while he goes through 1-2 years of bankruptcy. He can live at his parents till he is back on his feet and then rent a cheap room or place. Then when he wants to start something on his own he could do something to supplement his income but still keep his day job. I feel he needs a secure year round paycheck and not get ahead of himself again. He really wants to start his own business but I really don't think he is mentally capable of doing that right now.

Basically it boils down to whats the point of anything if you are not happy. I just want my good friend Ali who will do anything for a friend of his to be happy. I want him to find a secure job he enjoys that is stress free, find a woman and start a family. All things he desperately needs.



In other news

The market is taking a beating lol. Things not looking good for a green month. Will have my dividend report in a day or two and will also have an ETF report for grandma Olga. I will try and be more active blogging this month as well.