Sunday, February 28, 2016

February Summary - 1 Buy (TD), 1 Sell (SU), 6 Dividend Raises

Even with the extra day this year, February seems to have flown by in a blur. It was a pretty quiet month for my portfolio of investment holdings, which is great as it means my transaction costs were low.  Below is a summary of my portfolio activity for the month.

After indicating in my February watch list post that I would like to complete my position in TD Bank inside my TFSA at a strike price of $50, I was fortunate to pick up enough shares to complete my position on February 9th at a price of *drum roll*....$50! I was happy to complete my position in early February as TD Bank increased their dividend by 7.8% on February 25th.

Although I stated in my February watch list post that I was looking to add to my small position in Suncor, when they announced their Q4 2015 results on February 3rd, I took some time to go through their financial results, and then sold my position on February 12th. Looking at their operating results and cash flows scared me given those less than impressive results represented a higher average price of oil than what the company has been dealing with thus far in 2016. Additionally, the recent rash of dividend cuts from other integrated oil companies along with Suncor's pending acquisition of Canadian Oil Sands has led me to question if Suncor can maintain their dividend at its current level, yet alone grow it. I remain open to revisiting Suncor in the future, but see too many near-term concerns to feel comfortable investing in the company at this time. 

After achieving an all-time high SEVEN dividend raises in December 2015, I was pleasantly surprised to receive SIX in February 2016. Upon further reflection, it makes sense that companies with fiscal years ending in December would be in a position to announce dividend increases reflecting their 2016 forecasts when they reported their 2015 results. My holdings that raised their payouts included:
- TD Bank grew their dividend by 7.8% ($0.51 to $0.55 per quarter)
- BCE Inc increased their dividend by 5% ($0.65 to $0.6825 per quarter)
- Royal Bank raised their dividend by 2.5% ($0.79 to $0.81 per quarter)
- TransCanada Corp grew their dividend by 8.7% ($0.52 to $565 per quarter)
- Cisco Systems blew my mind with a 24% dividend increase ($0.21 to $0.26 per quarter)
- Coca-Cola delivered a solid 6% dividend boost ($0.33 to $0.35 per quarter)

With my cash balance accounting for about 3% of my portfolio value heading into March, which is quite high for me, I expect to be more active adding to positions and possibly starting a new on next month. My March watch list post should be out on Tuesday, so stay tuned!

Which companies are on your watch list for March? 


2 comments:

  1. I understand your stand on Suncor. It's a concern for me too. Might (just might) average-down my weight in it. A tiny bit. Will see. If it reaches 34-35$ I might pull the trigger and see 50 shares or so.

    How about those noce dividend increases! Six in one month is pretty cool. I have six in two months. Not bad either.

    My companies on my watch list are all oh the ones I'm already invested in. Although i might want to have a check on other REIT's. I feel too concentrated with Cominar at the moment. Boardwalk, Brookfield asset Management... will see.

    A plus mon ami!

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    1. I just don't have enough knowledge of their business to feel comfortable on Suncor at the moment. Even though I think it's the best integrated oil company in Canada, I don't know if they can sustain their dividend at $30/barrel.

      Brookfield m'interesse comme un REIT. J'ai fait une recherhe des REIT canadien qui ont augmente leur dividendes dans 2015...il y a 11...et Brookfield compete pour 2. Cominar yield comme 9%? C'est haute.

      Merci pour avoir visite mon ami!

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