January Stock Consideration

This month I want to buy shares in a company that I already own. So I screened my portfolio to see which of my companies trades at 52-week low. I screened out two REIT stocks that offer good value today.

Brookfield Property Partners (TSX: BPY.UN)
Brookfield Property owns, operates, and invests in commercial properties in North America, Europe, Australia, and Brazil. They diversify themselves into different sectors such as Office, Residential, Retail, Industrial, Hospitality, and Others.

The stock currently trades at 0.7 to its book value and offers a dividend yield of 5.6%. Its 5-year historical average suggests that the stock can trade as low as 0.5 to book value and as high as 1.0 to book value.

The 3-year chart suggests that the stock reached a solid support level and should bounce off from here. But it struggles every time it reaches the $31 level. My intuition tells me the next time it reaches $31, it will break that resistance.



If the stock trades below $27 level in two weeks then I will buy it. If it bounces off from here and rise above $29 then I won’t touch it.



Plaza Retail REIT (TSX: PLZ.UN)
Plaza Retail REIT is a developer, owner and manager of retail real estate, with a focus on central and eastern Canada. It’s a pure Retail play.

The stock currently trades at 1.0 to its book value and offers a dividend yield of 6.3%. Its 5-year historical average suggests that the stock can trade as low as 0.9 to book value and as high as 1.1 to book value.

The 3-year chart shows that the stock peaked at $4.90 and started to go down. However it built a nice support base around $4.20 and held up very well. 



If the stock trades below $4.30 in two weeks then I will buy it. If it bounces off from here and rise above $4.60 then I won’t touch it.



So these are my two picks for January. Let me know what you think about both companies. Would you buy them at those levels?

Portfolio Value Update - December 2017

I would like to wish everybody all the best in the New Year! May you all be healthy, happy and surrounded by the loved ones. May 2018 bring us new investment opportunities.

Portfolio Value
As of December 31, 2017 my investment portfolio balance stood at $52,597.91. That’s an increase of $1,977.55 from last month. December was the best performing month in 2017.

Dividends
In December, I received a total of $348.19 in dividends vs $201.06 for the same period a year ago. That's an increase of $147.13 or 73% on year-over-year basis. My cumulative dividend income for this year is $2,709.82.

It wouldn’t be fair to compare my dividends to previous year because last year I did not receive any special dividends in December. First National (FN.TO) paid me a special dividend of $106.25. If I exclude the special dividend, I would have received $241.94 which represents a 20% increase in dividend income compared to last year.

Contributions
In December, I added $800 of fresh capital to my TFSA account. As of January 2018, I will contribute $700 per month into my TFSA account. This way I will max it out by December of next year.

My Investment Account (TFSA)
My portfolio consists of 30 Canadian dividend paying stocks. Most of my stocks pay dividends on monthly basis. This allows me to collect dividends and reinvest them into dividend paying stocks more rapidly.

Transactions
My recent and the last purchase of the year is RioCan. I decided to double my position in RioCan by purchasing another block of 45 shares. I paid $24.95 per share. This purchase will add $5.29 to my monthly dividend income. More details about this purchase in my previous post.

Online Income
December’s online income from side hustles.

Neobux: $29.97
LegerWeb: $3.50
Adsense: $12.20

Total income from online sources is $45.67. The biggest increase in online income came from NeoBux. I have about 150 referrals in my downline and I earn a small commission from what they earn. So Neobux is making me a buck a day on autopilot. By the way, I created a separate page to track my online income.

Recent Purchase: RioCan (REI.UN.TO)

RioCan Highlights
  • RioCan is Canada’s biggest REIT with enterprise value of $13.9 billion
  • They own 294 properties, including 16 under development
  • They lease to reliable tenants such as Walmart, Canadian Tire, Cineplex and Metro

Stock Purchase
My recent and the last purchase of the year is RioCan. I decided to double my position in RioCan by purchasing another block of 45 shares. I paid $24.95 per share. This purchase will add $5.29 to my monthly dividend income.

Potential Risks
You may have mixed feelings about my purchase, since it’s a retail focused REIT and is sensitive to interest rates. So why invest in this name if retail space is challenging and interest rates are slowly going up?

Time Change
A few years ago I had a different opinion about RioCan. I did not want to buy it because it was losing big tenants including Future Shop and Target. But that is in the past. They were able to lease most of those locations with other retailers.


Property Consolidation
A few months ago they announced that they want to sell 100 properties in smaller Canadian cities. After the sale, they plan to focus mainly in Toronto, Ottawa, Vancouver, Calgary, Edmonton and Montreal. I like their plan because it will help them cut operating cost by focusing on fewer locations. They will capitalize on areas that are heavily populated. They also plan to buy back shares and develop mix-used properties for residential, shopping and offices.


My biggest reason to be bullish on the stock
The main reason why I decided to invest more money in this company is because they want to develop residential units around their properties. So it’s a win-win situation. RioCan will be able to benefit from residential towers and increase traffic to retail outlets. If more people live around those outlets, there’s more chance that those residents will shop locally. RioCan can use some parts of the empty parking lots to build residential buildings. They don’t need to buy land. It can take 3 to 5 years to realize their plans, but with their 5.6% dividend yield, I’m willing to wait.

Portfolio Value Update - November 2017

Welcome back, my friends! I can’t believe how fast November passed by. It seems like I wrote my October update just yesterday. Anyway, I’m happy to report that I finally reached my goal of $50K portfolio. It wouldn’t be possible without my new contribution, dividend reinvestment and stocks appreciation. Without further ado, let’s get straight to the numbers.

Portfolio Value
As of November 30, 2017 my investment portfolio balance stood at $50,620.37. That’s an increase of $1,215.34 from last month. A year ago, at the end of November, my portfolio value was $37,745.91. You will find my last year’s update here.

Dividends
Dividend income is a passive income for which I don’t have to work for. I simply invest in different corporations and collect dividends for owning the stock. In November, I received a total of $222.71 in dividends vs $192.04 for the same period a year ago. That's an increase of $30.67 or 16% on year-over-year basis. My cumulative dividend income for this year is $2,361.63.

Contributions
In November, I added $800 of fresh capital to my TFSA account. The maximum amount that I can contribute in 2017 is $5,500. Since I have contribution room from prior years, I will continue to add $800 per month until I reach my maximum contribution.

My Investment Account (TFSA)
My portfolio consists of 30 Canadian dividend paying stocks. Most of my stocks pay dividends on monthly basis. This allows me to collect dividends and reinvest them into dividend paying stocks more rapidly.

Transactions
On November 17, 2017 I doubled my position in Medical Facilities (DR.TO) by purchasing another set of 80 shares. Please refer to my previous posting to read more about this purchase.

November Online Income
Here’s the breakdown of my online income during the month.

Neobux: $17.15
LegerWeb: $3.50
Adsense: $8.64

Total income from online sources: $29.29

My online earnings came out slightly higher compared to previous month. I have dedicated a separate page for my online income. You can read more about it here.

Recent Purchase: Medical Facilities (DR.TO)


Today I doubled my position in Medicial Faciliaties. I started to buy this stock last month and was looking to add more this month. Now it’s trading a few bucks cheaper so I picked up another 80 shares of DR.TO for $12.83 per share. 

My plan is to hold them until they reach $20 again and then I will trim my position in half. While I wait I will collect 7.5% dividend. Usually this stock yields 5% when it trades at $20, but because the stock price is low, the dividend yield looks high. The current payout ratio is 70% so the dividend looks safe.