Passive Income Update for September 2019: Broke $1,000!

Coming back from vacation I’ve been swamped catching up at my day job. On top of that, things at work are really ramping up with another person leaving our team (on to bigger and better things within the same company, but different group), and the typical ramp-up of client work coming in for the fourth quarter. It’s times like this that I am appreciative of the “set it and forget it” mentality for investing. That said, in September we broke the $1,000 threshold – which was somewhat expected since this was a quarterly period: typically four-times-a-year companies pay out in March, June, September, and December. But even though we broke $1,000, year over year we were down 3.0% compared to this period last year. On the flip side, we were up 8.2% on a TTM perspective compared to this time last year.

Ticker Company Previous Year Return Current Year Return Variance Variance % Comments
ACO-X.TO ATCO Ltd. $75.32 $80.96 $5.64 7.5%
BAM.N Brookfield Class A (US) $90.87 $99.16 $8.29 9.1%
BBU.N Brookfield Business Partners LP $0.72 $0.74 $0.02 2.3%
CAE.TO CAE Inc. $5.01 $5.58 $0.57 11.4%
CIG50221.TO Sentry Small/Md Cap Income Fund A $39.07 $40.11 $1.04 2.7%
ENB.TO Enbridge Gas $4.60 $5.14 $0.54 11.7% Now receiving cash; last year was DRIP
FTS.TO Fortis Inc. $9.96 $10.96 $1.00 10.0%
HLF.TO High Liner Foods Inc. $152.25 $52.50 ($99.75) (65.5%) Dividend cut
HYG.N iShares iBoxx $ High Yield Corporate Bond Fund $11.14 $11.13 ($0.01) (0.1%) FX
INTC.N Intel $20.96 $22.28 $1.32 6.3%
MCD.N McDonalds $26.24 $30.76 $4.51 17.2%
MFC.TO Manulife $3.41 $4.05 $0.64 18.8%
MGA.N Magna International $43.01 $48.09 $5.08 11.8%
R.N Ryder $13.95 $14.87 $0.92 6.6%
SLF.TO Sun Life Financial $76.09 $138.48 $62.39 82.0%
T.TO Telus $0.53 $0.00 ($0.53) (100.0%) Timing; last year was in September, this year in October
VAB.TO Vanguard Canadian Aggregate Bond Index $62.70 $60.49 ($2.21) (3.5%)
VNQ.N Vanguard MSCI REIT ETF $373.00 $246.43 ($126.56) (33.9%)
VRE.TO Vanguard MSCI REIT $40.69 $57.82 $17.13 42.1%
XBB.TO iShares DEX Universe Bond Fund $3.33 $3.33 $0.00 0.0%
XIC.TO iShares S&P/TSX Capped Composite Index Fund $62.70 $65.70 $3.00 4.8%
XTC.TO Exco Technologies Ltd. $25.50 $54.00 $28.50 111.8%
CNR.TO Canadian National Railway Company $53.75 $53.75 100.0%
TOTAL $1,141.06 $1,106.33 ($34.73) (3.0%)

The two biggest laggards on the income for this month were High Liner Foods and the Vanguard MSCI REIT ETF, which were down 65.5% and 33.9% respectively. The High Liner drop was expected, as they cut their dividend by 50% earlier this year. I use the vanguard position to add real estate exposure to my portfolio, but because it is an ETF there is less predictability in its income. With those drags on the portfolio, there were some increases thanks to Exco Technologies and CN Rail, where I grew the positions compared to last year.

So, not a stellar month, but a good month nonetheless.

Onwards and upwards!


Passive Income Update for August 2019: 4.9% YoY Increase, 34% YoY TTM Increase

Our family was on vacation in August visiting Alberta—beautiful province!!—but while we were relaxing, the portfolio was still churning out returns. For the month of August, $509 was received in passive income. The drop relative to previous months can be attributed to this being a “non-quarterly month”: many companies pay quarterly dividends, and only a handful of my holdings pay monthly dividends/distributions.

Ticker Company Previous Year Return Current Year Return Variance Variance % Comments
BMO.N Bank of Montreal $47.50 ($47.50) (100.0%) Moved to CAD account, so captured I BMO.TO
BMO.TO Bank of Montreal $228.48 $296.64 $68.16 29.8%
C.N Citibank $4.11 $4.75 $0.65 15.7%
CIG50221.TO Sentry Small/Md Cap Income Fund A $40.02 $40.02 100.0% Replaces NCE721.TO
DII-B.TO Dorel Industries Class B $20.76 ($20.76) (100.0%) Paid in July 2019
EMA.TO Emera $25.73 $28.25 $2.52 9.8%
HYG.N iShares iBoxx $ High Yield Corporate Bond Fund $11.00 $11.02 $0.02 0.2%
NCE721.TO Sentry Small/Md Cap Income Fund $39.00 ($39.00) (100.0%) Replaced by CIG50221.TO. In 2018 the June transaction was delayed to July, so July 2018 is overstated.
VAB.TO Vanguard Canadian Aggregate Bond Index $64.84 $67.36 $2.52 3.9%
VRE.TO Vanguard MSCI REIT $30.75 $45.59 $14.84 48.3%
WRK.N WestRock $11.24 $12.12 $0.89 7.9%
XBB.TO iShares DEX Universe Bond Fund $3.29 $3.33 $0.04 1.2%
TOTAL $465.93 $509.09 $43.15 9.3%

Overall the trend is still an increase compared to this time last year, but for a true comparison some adjustments need to be made. First, last year Dorel Industries paid its dividend in July whilst this year it paid its dividend in August. Second, some of my shares in BMO were in my US$ brokerage account at this time last year, so I could receive the dividends in USD (which subjected me to currency exchange risk); I’ve since moved those shares to my CAD$ brokerage account. When I adjust (removing Dorel, merging the BMO line entries) to do a true year over year comparison, on a ticker-by-ticker basis I am actually up 9.3%.

On an even better note, trailing twelve-month (TTM) income was $9,600 last month, but with the returns this month and the increases throughout the year, TTM is now $9,700. That gain represents a 1.1% increase month to month, and even more impressive: an increase of 34% over the trailing TTM income in August 2018!

Onwards and upwards!

 


Passive Income Update for July 2019: a 24.6% YoY Increase

Continuing the trend of regular posting, I’ve finished compiling my July passive income update. Year over year, the portfolio was up 24.6% over July 2018, with some caveats.

Ticker Company Previous Year Return Current Year Return Variance Variance % Comments
ACO-X.TO ATCO Ltd. $75.32 $80.96 $5.64 7.5%
ARE.TO Aecon Group $31.25 $36.25 $5.00 16.0%
BNS.TO Bank of Nova Scotia $14.44 $15.13 $0.69 4.8%
CBO.TO iShares 1-5 Year Laddered Corp. Bond ETF $8.20 $0.00 ($8.20) (100.0%) Sold
CIG50221.TO Sentry Small/Md Cap Income Fund A $39.95 $39.95 100.0% Replaces NCE721.TO
DII-B.TO Dorel Industries Class B $10.39 $10.39 100.0%
HYG.N iShares iBoxx $ High Yield Corporate Bond Fund $11.43 $11.57 $0.14 1.2%
LGT-B.TO Logistec Class B $9.08 $9.98 $0.90 9.9%
NCE721.TO Sentry Small/Md Cap Income Fund $77.77 $0.00 ($77.77) (100.0%) Replaced by CIG50221.TO. In 2018 the June transaction was delayed to July, so July 2018 is overstated.
PM.N Philip Morris $149.92 $149.25 ($0.67) (0.4%)
T.TO Telus $12.74 $13.68 $0.94 7.4%
TD.TO Toronto Dominion Bank $67.00 $74.00 $7.00 10.4%
VAB.TO Vanguard Canadian Aggregate Bond Index $58.90 $55.17 ($3.73) (6.3%)
VCN.TO Vanguard FTSE Canadian All Cap Index $156.84 $165.46 $8.62 5.5%
VNQ.N Vanguard MSCI REIT ETF $271.26 $271.26 100.0% Previous year was in June
VOO.N Vanguard 500 Index Fund $30.32 $36.35 $6.03 19.9%
VRE.TO Vanguard MSCI REIT $32.08 $45.59 $13.51 42.1%
VXC.TO Vanguard FTSE Global All Cap Excluding US $292.17 $263.54 ($28.63) (9.8%)
WEQ.TO WesternOne $2.00 $2.00 100.0%
XBB.TO iShares DEX Universe Bond Fund $3.29 $3.33 $0.04 1.2%
TOTAL $1,030.75 $1,283.87 $253.12 24.6%

The 24.6% YoY increase should be taken with a pound–not a grain!!–of salt. As mentioned last month, there was no VNQ.TO payment as expected in June due to timing, and it came in July, so for comparisons $271.26 should be backed out. Also, NCE721.TO was replaced with CIG50221.TO in 2018, however even taking that into account, in 2018 NCE721.TO made double what CIG50221.TO did — the reason for this was timing as well. In 2018, NCE721.TO paid nothing in June but made two payments in July, so for a fair comparison $37.87 should be backed out from 2018’s July numbers.

With that in mind, the real July 2018 comparable income should be $993.05, and the 2019 comparable income should be $1012.61, resulting in only a 2.0% YoY increase. But, trailing twelve month (TTM) income for July 2019 is over $9,600 ,and for July 2018 is over $8,600, so by that measure we are up by 12.4%! Looking at the TTM is an important factor since it smooths out much of the timing issues, demonstrated above.

Onwards and upwards!