It's my last vacation weekend. The TSX closed this past Friday's session at a robust 20,519.37 points. My non-registered portfolio closed at $136,459.13, my US portfolio at $5,422.34, my RRSP stocks-only portfolio at $65,093.69, and my TFSA portfolio at $134,846.45. Now, my TFSA portfolio is almost at the same value as my non-registered one.
I recently learned that TMX Group Limited (X) has increased its dividend distribution. On Twitter (X...), one great account I follow is @5iresearchdotca, 5i Research Inc. They are excellent at providing updates regarding stocks and dividend increases. 5i Research Inc. also has a fantastic dividend update page, including information on raised and decreased dividends, on their website.
I recently invested in Alaris Equity Partners Income Trust (AD.UN). AD.UN is a stock that I picked from Jean-François Tardif's JFT Strategies Fund Class A Units (JFS.UN), where Alaris Equity Partners Income Trust (AD.UN) holds the 5th position. It's quite enjoyable to have access to the major assets held in JFS.UN. Essentially, it gives you free access to all of Jean-François Tardif's team's hard work! Isn't that amazing?
In my TFSA portfolio, AD.UN has gained +4.68%. Goodfellow Inc. (GDL) is not a stock I often write about, but it has gained +34.93%, also in my TFSA. Finally, another stock that I like and don't often write about is Hammond Manufacturing Company Limited Class A Subordinate Voting Shares (HMM.A). In my TFSA portfolio, HMM.A has gained +60.99%. I have a fondness for family-owned businesses, and on top of that, HMM.A operates in my favorite sector, which is industrial.
In the previous post, I discussed strategies to pay down my margin debt. One option that still remains is to sell some of my investments to reduce that debt. Thanks to the monthly interest that never fails to kick in, my margin account debt now exceeds $36,000 by a few hundred dollars. Here are some stocks that I could consider selling to pay down my debt, and I will explain why I'm considering them in particular.
In my non-registered portfolio:
K-Bro Linen Inc. (KBL)
I invested in KBL a super long time ago. It was a stock that I found in Susan Brunner's blog. I don't remember if she used to be invested in it, but back in the day, I liked the review that she wrote about that stock, so I decided to invest in it. Since then, because I have been invested in KBL for so long, my return on that investment has been +64.87%. Not bad, but for the time I've held onto it, I would have appreciated a stronger result. This will need to be verified - like everything else that I write about on this blog - but I am pretty sure that K-Bro Linen Inc. (KBL) has never actually increased its dividend distribution.
In my opinion, KBL is not doing extraordinarily well.
Here are the returns for KBL:
For the past year: +3.23%
For the past 5 years: -13.29%
Overall (Max): +213.55%
TransCanada Corp (TRP)
Here are the returns for KBL:
For the past year: +3.23%
For the past 5 years: -13.29%
Overall (Max): +213.55%
Considering that KBL's performance is not extraordinarily awesome and that the company has provided zero dividend increases since I have been holding onto it, it could be a good idea for me to consider selling this investment to pay down my margin.
However, I like KBL because of its sector, and I prefer to hold stocks that are a bit off the radar, with KBL being one of them. I have to admit that I am emotionally attached to KBL since it was one of my early investments.
TransCanada Corp (TRP)
In my non-registered portfolio, the gain from my TRP stocks is even lower than KBL, with a +11.26% gain. Is it normal for a cleaning business to give me a higher return than a company in the oil sector? Sincerely, I don't think so! And that's the reason why I'm considering selling my TransCanada Corp (TRP) stocks.
I have held on to my TRP stocks for many years. Lately, TRP announced some major business changes. Many investors on Twitter are happy about that and are buying TRP stocks, but for me, that situation is a big no-no, and I am not willing to invest in TRP. Currently, the appeal toward TRP resides in its 8.22% dividend yield. Because of that, if TRP announced a dividend decrease, its stock value could go down drastically because all of those little dumb-ass investors would probably sell their shares as soon as they hear the news...
I am not emotionally attached to TRP and I really don't care about that stock.
By selling my K-Bro Linen Inc. (KBL) and TransCanada Corp (TRP) shares, I would have around $5,000 at my disposal to pay down my margin debt. It could be interesting to proceed.
Those are the two stocks that I am considering selling from my non-registered portfolio. I also have a few stocks that I am considering selling from my TFSA portfolio; we'll chat about them in the next post.
Hi Dividend Girl,
ReplyDeleteI am the guy who likes your fotos.
I have one remark regarding your margin dept. Every stock which yields (dividend + stockprice raise) less than the margin interest rates are worth selling to pay dow your dept. Every! Only those stocks with a higher yield are worth keeping. I know that it is mentally difficult to sell a stock. Maybe the following point of view will help. While you correctly calculate and report your NET worth you wrongly post your yearly GROSS dividend income. But if you deduct your interests from your dividend, your yearly NET income (NET income = dividend - interests) will suddenly be not so impressive anymore since the interests are currently so high (without the interests your income is impressive). But by selling low performing stocks to pay down your dept you can easily improve your NET income. In the best case you sell a low performing stock that doesn't pay any dividend (but don't sell Bershire which is a high performing stock ;-)
I hope this helps
I don`t like debt, even though it can be very advantageous at times.... I think you have a a good run with it for the past decade or so with the rates being so low. it appears that , that was the time to have debt :):)
ReplyDeleteI have been watching HMM.A for over 13 years. It is a great company but got very little respects due to its small size. For the past 13 years , their share prices were mostly traded below the book value. Despite that ,they managed to grow the company at a double digit rate. Now their annual EPS is close to 2x of their share price 13 years ago.
ReplyDelete