My investment portfolio on date of June 2, 2020

Cold cash: $2,001.77

Stocks and Units investment portfolio $CAN

Bank of Nova Scotia (BNS): $10,353.20

Methanex Corporation (MX): $2,586.40

Fortis Inc. (FTS): $6,750.72

Pembina Pipeline Corporation (PPL): $27,083.34

iShares S&P/TSX Capped REIT Index (XRE): $2,244.40

New Flyer Industries Inc. (NFI): $2,025.78

TMX Group Inc. (X): $1,049.76

K-Bro Linen Inc. (KBL): $2,930.00

TransCanada Corp (TRP): $1,538.00

Canadian National Railway Co (CNR): $10,657.80

Enbridge Inc. (ENB): $15,778.00

Emera Inc. (EMA): $1,368.25

BCE Inc. (BCE): $1,268.74

Saputo Inc. (SAP): $1,348.40

Loblaw Companies (L): $810.96

Savaria Corporation (SIS): $7,289.62

WSP Global Inc. (WSP): $4,294.50

Aphria Inc. (APH): $1,214.00

George Weston Limited (WN): $98.13

Rogers Communications Inc. (RCI.B): $1,714.20

Telus Corp (T): $2,187.00

Power Corporation of Canada Subordinate Voting Shares (POW): $2,146.50

TOTAL: $106,737.70

Stocks and Units investment portfolio $US:

Berkshire Hathaway Inc. (BRK.B): $1,486.48

General Mills Inc. (GIS): $2,029.12

Cash: $39.99

TOTAL: $3,555.59 US: $4 908,14 CAN

Tax-free savings account (TFSA):

Dumont Nickel Inc. (DNI): $12.92

CT Real Estate Investment Trust (CRT.UN): $1,312.00

Canadian National Railway Co (CNR): $4,736.80

Exchange Income Corporation (EIF): $26.69

Brookfield Infrastructure Partners L.P. (BIP.UN): $3,855.60

Brookfield Renewable Energy Partners L.P. (BEP.UN): $1,966.80

Andrew Peller Limited (ADW.A): $1,592.01

Toronto-Dominion Bank (TD): $1,215.80

Boyd Group Services Inc. (BYD): $6,167.10

Canadian Apartment Properties Real Estate Investment Trust (CAR.UN): $3,249.40

Data Communications Mgmt (DCM): $0.72

Morneau Shepell Inc. (MSI): $2,919.60

Royal Bank of Canada (RY): $6,086.60

Park Lawn Corporation (PLC): $1,399.20

Toromont Industries Ltd (TIH): $2,700.00

BCE Inc. (BCE): $519.03

Boralex Inc. Class A Shares (BLX): $1,127.20

Richelieu Hardware Ltd. (RCH): $1,301.80

Savaria Corporation (SIS): $964.60

Northland Power Inc. (NPI): $3,215.00

Calian Group Ltd. (CGY): $3,925.70

Canadian Utilities Limited (CU): $1,364.16

WSP Global Inc. (WSP): $2,147.25

Granite Real Estate Investment Trust (GRT.UN): $672.60

Cargojet Inc. (CJT): $3,737.81

Nutrien Ltd. (NTR): $2,464.00

TFI International Inc. (TFII): $3,347.20

Canadian Imperial Bank Of Commerce (CM): $2,773.80

SIR Royalty Income Fund (SRV.UN): $243.54

ATCO Ltd. (ACO.Y): $2,439.00

Aecon Group Inc. (ARE): $1,492.78

Brookfield Asset Management Inc. Class A Limited Voting Shares (BAM.A): $2,532.51

Metro Inc. (MRU): $2,107.48

Alimentation Couche-Tard Inc. (ATD.A): $517.68

Fortis Inc. (FTS): $1,845.90

CGI Inc. (GIB.A): $1,773.60

TMX Group Limited (X): $3,280.50

Brookfield Infrastructure Corporation Class A Exchangeable Subordinate Voting Shares (BIPC): $436.59

Suncor Energy Inc. (SU): $420.41

Cash: $334.62

TOTAL: $82,226.00

RSP investment portfolio: 

Emera Incorporated (EMA): $16,254.81

Ovintiv Inc. (OVV): $253.89

Toronto-Dominion Bank (TD): $1,823.70

Telus Corp (T): $2,454.30

Royal Bank of Canada (RY): $1,872.80

Savaria Corporation (SIS): $2,783.56

Thomson Reuters Corporation (TRI): $3,417.12

Park Lawn Corporation (PLC): $4,664.00

Richards Packaging Income Fund (RPI.UN): $1,876.71

Toromont Industries Ltd (TIH): $472.50

CAE Inc. (CAE): $1,502.90

CGI Group Inc. Class A Subordinate Voting Shares (GIB.A): $3,103.80

Boralex Inc. Class A Shares (BLX): $1,409.00

Quebecor Inc. (QBR.B): $760.75

Logistec Corporation Class B Subordinate Voting Shares (LGT.B): $219.80

Brookfield Renewable Partners L.P. (BEP.UN): $1,245.64

Leon's Furniture Limited (LNF): $469.20

Bank of Nova Scotia (BNS): $343.20

Cash: $231.54

Total: $45,159.22

CIBC Dividend Growth Fund + CIBC Emerging Markets Index Fund + CIBC Monthly Income Fund: $2,816.76

Energy and Base Metals Term Savings (Indexed term savings): $577.30

Natural Resources Term Savings (Indexed term savings): $502.45

NBI Income Fund: $1 387,81     

Manulife Fidelity NorthStar GIF CAP: $1 653,07

Manulife Simplicity Growth Portfolio: $1 406,10

Maritime Life CI Harbour Seg Fund: $1 257,40

Maritime Life Fidelity True North Seg Fund: $1 227,70

Manulife GIF MLIA B World Invest: $1 260,48

Total: $6 804.75

Other various: $15,879.17

TOTAL: $73,127.46

Social Capital at Desjardins Membership share: $35

Online money: $61.25

Savings + Stocks, units, mutual funds + Tax-free Savings account + RRSP:

$269,097.32

On the date of June 2, 2020

My debt situation on date of June 2, 2020

Margin account: $46,213.48 @ 4%
Annual interest:  $‭1,848.54

Credit line: $4 700 @ 4.31%
Annual interest: $202.57

Total: $50,913.48‬
Total annual interest: $2,051.11
On the date of June 2, 2020

**For a complete update regarding my debt, click on the label "Debt situation" located at the right column of this blog.

WOW WOW WOW, the TSX reached in the 15 300 points today!

And this was really exciting, but the TSX closed today's session below the 15 300 points. Currently, I under the impression that my net worth is in the $216 000, which is a gain of $5 000 compared to almost exactly one month ago. If the TSX closed on positive gains tomorrow or if it remains the same, I will post a new update of my portfolio. I preferred to post an update of my investment portfolio only when it plays to my advantage, to show off as a diamond. I guess that many mutual funds would like to have the exact same privilege, but we cannot all be Dividend Girl. My non-registered portfolio closed today session at $105,415.06, my TFSA portfolio at $81,846.63, and my RRSP portfolio at $44,826.25.

I don't  have an air conditioner in my apartment, but that's my choice. I could afford the big machine, but it would be for me a waste of space in my little apartment, however, it could easily fit. However,  I never wanted to spend money on it. Feeling the deep heat in my body is my way to feel that yeah, I am alive bitch! And I certainly felt quite alive during the past two days. Today was better, and tomorrow, it won't be as ho, it will be more tolerable. 

Lately, Canada's big banks had come with their financial results and many are facing problems with loans. And their profits are a lot lower. Despite it all, the TSX closed today almost at 15 300 points. This is not making much sense, but I stopped a long time ago trying to actually understand because too many times, the TSX doesn't obey to any logic and that's something really important to catch quickly when you are investing in stocks. Despite it all, I believe in the capitalist system. Capitalist will never let us down. Governments all over the world are injecting millions and millions in their economy. Be sure that no one wants the market to do down. Rich wants to get richer, and so retail investors, so watch out.

Everything you need to know about owning a margin account - Part 2

As expected, it was quite hot in Montreal today, but it's tolerable. In times like these, I am missing working from my usual workplace. We all knew that terrible things were happening in Quebec province when it comes to health care who are giving to seniors in a specialized establishment, but it seems that the province of Ontario is suffering from the same lack of medical care, and not only medical, but also, simply basic care, and it's a real shame. Quebec and Ontario are among Canada's richest province, but it comparison, New Brunswick is in a much better position because we are simply the best, almost perfectly bilingual - and best investors of course, you cannot say otherwise because you are reading this right now - and we are caring. This being said, no place is perfect - even my beloved New Brunswick.

Today, the TSX was the place to be. The TSX closed today session at a good 15,148.12 points. My non-registered portfolio closed today session at $104,970.77, my TFSA portfolio at $81,396.56 and my RRSP portfolio at $43,967.58. My margin debt is at 45,526.03, and I have left $17,900.34 available in margin money. Earlier this month, I wrote a post about my margin account, but I have a bit more to say on the topic, so you can really understand what it is to have a margin account.

Currently, I have over $18 000 available in contribution room for my TFSA. One reason why I didn't maximize my TFSA usage yet is that specifically of my margin account. Personally, I like to do contribution in kind for my TFSA portfolio. It's a simple way to contribute to my TFSA when I don't have savings available. A contribution in kind is when you take an existing stock investment that you hold inside your non-registered portfolio, and get it transfer to your TFSA portfolio. This is something that appears quite simple to do, but nothing is simple when you have a margin account link to the exact non-registered portfolio.

Currently, I have left $17,900.34 on my margin - which secures it from the volatility of the market. Personally, to feel safe, I like to have at least a $15 000 left available on my margin. That way, if the value of my non-registered portfolio suddenly decreased, it will help me to keep my head out of the water. But that being said, if the value of my non-registered portfolio goes lower, the amount left that is at my disposal on my margin will go lower too. So it's always a struggle. While having a margin debt, you'll never remain out of the market, you'll always remain link to it, no matter that you like it or not. A margin debt really does take away your freedom. That's something really important to know. However, don't feel sorry for me, I wanted this, and it's had been my reality for a couple of years now. It's just that I really want to explain things the way they are because I feel that your broker probably won't explain things as clearly if you decided to sign up for a margin account. Your broker just wants to maximize the amount of money they can do on your back. Other than that, they won't give damn. Don't count on anyone when it comes to your personal finance.

The following will explain to you why I still have a $18 000 left in contribution room when it comes to my TFSA portfolio. I have spotted a few stocks that I hold inside my non-registered portfolio that I would like to take in consideration for a contribution in kind for my TFSA portfolio:

BCE Inc. (BCE): $1,261.04 (value on date of April 29, 2020). Margin value: $873

Rogers Communications Inc. (RCI.B): $1,779.90 (value on date of April 29, 2020).  

Margin value: $1 195

Telus Corp (T): $2,082.60 (value on date of April 29, 2020). Margin value: $1 437

Power Corporation of Canada Subordinate Voting Shares (POW): $2,053.80 (value on date of April 29, 2020). Margin value: $1 316

 

Like you know, I have exactly $17,900.34 left available on my margin account. If, I decided to take all the shares that I own of BCE Inc. (BCE) inside my non-registered portfolio in order to proceed with a contribution in kind for my TFSA portfolio, that move will take away exactly $873 from that $17,900.34, which will leave me with a $17,027.34 as available money on my margin account.

While proceeding with a contribution in kind, it's always better, to stay on the safe side, to put the equivalent of the margin value of the stock you decided to use for the contribution in kind in cash, inside your non-registered portfolio. For example, if I would take my BCE Inc. (BCE) shares that are from my non-registered portfolio in order to proceed with a contribution in kind for my TFSA portfolio, I would have to inject exactly $873 inside my non-registered portfolio.

And this close for today your lesson for the margin account.

Another secret super hot stock that I barely write about: Emera Incorporated (EMA)

It's been a good day for the TSX, who closed today's session in the 15 077.46 points. In this pandemic, anything exceeding the 15 000 points is just really surprising. Currently, I am closed to the portfolio value that I had back at the end of April, so I can say that my net worth is still somewhere in the $210 000, which is still quite good. Today, my non-registered portfolio closed the session at $103,213.49, my TFSA portfolio at $80,641.80 and my RRSP portfolio at $43,079.38. My margin debt is at $45,541.34, and I have left at my disposal $17,514.44 as margin party money. Overall my numbers are looking good, I am satisfied. So far so good, but remember that the markets remain volatile for now and anything and everything can quickly happen.

I am looking forward to pay down that margin debt. For now, I don't have any new investments in mind, I have nothing much going on in that sector. I am not in a mood to invest in stocks. I feel there's somewhat a morosity in the air that is BORING. Currently, my view is that I had invested enough and the best thing I can do right now is to pay off some debt/and build up some savings. This pandemic situation is making everything easier for me, but in terms of expenses only. I don't buy makeup or nail polish anymore. I don't buy clothes, I don't go to the hairdresser... Stylists are about to open soon here in Montreal. I have to say, a good hair cut won't do any warm to this girl! I actually admire people who have the courage to cut their own hair. I don't touch mine because I know for sure it would turn into a complete disaster. But one thing for sure I don't want to spend much money at all in summer clothes. Actually, I don't want to spend much at all. I would really like to decrease the usage of my margin to 40k. We'll see if it actually happens or not. Personally, this pandemic is helping me because I had been able to cut my spending.

The past week had been amazing here in Montreal, it's why I haven't been posting anything. But starting tomorrow, the really heavy hot temperatures are coming out so I am getting ready. It's going to be a little nightmare on its own because malls are not open, it's impossible to sit down at a coffee shop, or a restaurant. This is not going to fun at all. Earlier today, I found that the weather was a bit cold outside, the air was fresh. I am having a problem realizing that it's actually going to be super hot for at least the next two-three days starting tomorrow so wish me luck.

I am not in the mood to invest, but I am always in the mood to share my best investments! An investment portfolio can always be bigger and better, but at a point, at least for now, I am satisfied with what I have and I am not looking for more. It's almost like I am not the same person anymore. I hold on to many many stocks in my portfolio, but they're a few of them that are my favorites. One of my little favorites is Fortis Inc. (FTS), but I already exposed that stock before. Another stock, precious like a rose, that, just like Fortis Inc. (FTS), I barely ever write anything about is: Emera Incorporated (EMA). EMA is another super great stock that you can perfectly rely on. 

You are truly welcome. ;-)

Everything you need to know about owning a margin account

Investing is hard enough, investing in a margin account is something I do, but it's not something that is recommended or that I recommend. Derek Foster doesn't recommend investing on borrowed money either, he also said so during his speech at his latest MoneyShow conference. I don't recommend you have a margin account link to your non-register broker account, and you'll understand why with what comes next. I often write about my margin account, so you already know the drill.

Personally, I don't mind having a margin account, it actually gave me the leverage I needed back in the time, which is several years ago, and I don't think that I would now have a net worth in the $200 000 without it. But that being said, I wouldn't recommend opening a margin account now, with this current really bad economic environment, and I wouldn't recommend either way to invest using borrowed money, even if it's what I still do from time to time.

Holding on to a margin account comes with high risks. Personally, I follow the stock market every business day. A margin account contains two important numbers: the first number is a minus number that contains all the money you had borrowed using your margin. That number is static and will only move whenever you borrow money from your margin account. That static number that represents your debt is not exactly static because unfortunately, that debt will increase on a monthly basis upon reception of the interest earned on the borrowed money.

The amount that you have at your disposal to borrow is base on the value of your portfolio. While borrowing money from your margin account to invest or to do whatever else with the money, it's of a wise advise to recommend not to use all of the money that is at your disposal. Actually, it's better to simply borrow as little as possible and the real best is not to invest at all using a margin account. The best is really not to have a margin account at all. The reason behind this is simple: the amount you have at your disposal to borrow on a margin account is directly linked to the value of the different stocks that you hold in your non-registered portfolio, and that value vary every single business day when the stock market is open. You can only have a margin account with non-registered portfolio, which can be in US and Canadian dollars. I actually have a margin account in my US non-registered portfolio, but I never use it, and I plan to never ever use it.  A Canadian margin account is risky enough, imagine now in US dollars! Because US dollars worth more than Canadian ones, it would be an extra risk to take. I already have enough on my plate in terms of risks.

The second number that is really important while dealing with a margin account, after the minus number that contains the amount of money that is borrowed, is the amount (and that one is positive +) of money that you have left at your disposal to invest. For example, in my current situation, my margin debt is of -46 000$, and the amount of money left at my disposal to invest using my margin is around $15 000. That positive amount is what is being left, what remains at your disposal varies on each and every single trading day, depending on the value of your portfolio.

And the value of my portfolio is directly link to each and single stocks that I hold in my non-registered portfolio. Each stock has it's own margin value, which can represent, for the best stocks, 70% of the stock value. Let say that I have a $1 000 invested in X stock which has a margin value of 70%, that specific stock brings on a $700 in buying power - which represents the margin account on itself. Of course, and we know that for sure, a $1 000 that is invested in a stock won't remain at a $1 000 value. That value could go up or down, depending on the stock market situation, and depending on the situation for the stock itself. All of those ups and downs are being defined as a splendid word: volatility. 

Another great thing to know is that the margin value that each stock owns is being determined by the broker, and is subject to be change. Usually, good quality stocks equal a good margin value, which is generally in the 70%, but that value is subject to be changed from time to time by the broker. The broker published updates from time to time, when margin value change for stocks.

For all of those reasons, you shouldn't do like me, you shouldn't borrow money on a margin account to invest, to be used as a banking account or to pay down other debts. And yes, I did all of the above.