Transaction Journal

Initially, this blog was a place for me to record the reasons why I bought and sold particular securities. As the blog evolved to be more outwardly focused, I stopped recording my reasoning for transactions. Since I find returning to my reasoning regarding particular transactions to be very helpful in my investment process, I plan to start documenting these reasons again using this page.

October 21, 2020
Buy - Initiated a half position in Brookfield Renewable Partners L.P. (TSX: BEP.UN) in my TFSA at $69.67
Reasons: Instead of focusing on quantitative metrics, most of the reasons why I initiated this position are more qualitative in nature. From the importance of renewable sources of energy, to a solid management team, to great recent momentum, I have been envious of other people holding this company for years. Dipping my toes in with a half position was a relatively easy call for me after selling my Algonquin shares in my TFSA earlier this month. Lastly, I find the divergence between shares of BEP.UN and BEPC (about $15 at the time I'm writing this) remarkable. If I can buy future income at a cheaper rate than someone buying the BEPC shares, I'm in!
Risks: Since starting to focus on this company, I have definitely overlooked some of the less desirable negative characteristics of the potential investment. Such negative characteristics include a lofty valuation of ~25 P/FFO, a relatively low 3.3% dividend yield, and a recent 15% run-up that made me kick myself for not buying in earlier. Lastly, my love of all things Brookfield is likely unjustified as their REIT keeps making hard to justify moves. 

October 19, 2020
Buy - Added to my position in Fortis Inc. (TSX:FTS) in my unregistered account at $53.88
Reasons: After establishing my position in TC in 2011, completing it in 2015, I took a closer look at the company when I noticed their shares were down about 5% last week on lower oil prices and as part of the broader market sell-off. The shares were trading at about 13X trailing earnings, the dividend yield was about 5.5%, and TC's planned projects for the next couple years should support 5-7% dividend growth guidance management has provided. 
Risks: Since I usually try to buy on dips, there's always a chance that the dip will continue, and I'll end up overpaying. If the price of oil stays low (below $40 today), TC's profits will decline and projects will be cut. Biden, if he wins the US election, has indicated he will nix TC's Keystone pipeline, which would jeopardize the company's continued dividend growth. Additionally, there's always regulatory risks when so many of TC's projects require government approvals. 

October 5, 2020
Sell - Sold my position in Algonquin Power & Utilities (TSX:AQN) in my TFSA at $20.37
Reasons: After completing my position in Fortis in December 2019, I was surprised it took me this long to add given how solid a company Fortis continues to be. I added to the position after Fortis' recent 6% dividend hike, and at a slightly elevated P/E of 20X. Having the second longest record of annual dividend hikes in Canada, and a capital plan to fund the expected dividend growth rate of 6% through 2023, Fortis deserves a premium valuation. 
Risks: Have I mentioned the elevated valuation? I'm not sure why this bugs me so much, but reality is Fortis has never been particularly cheap. Part of the reason I made this purchase was a growing cash position in my unregistered account, and being in the last quarter of the year.  Lastly, I think I'm overconfident in Fortis given their solid history, and not paying enough attention to the pipeline of projects that will support future growth. 

September 4, 2020
Buy - Added to my position in TC Energy Corp (TSX:TRP) in my unregistered account at $59.73
Reasons: After establishing my position in TC in 2011, completing it in 2015, I took a closer look at the company when I noticed their shares were down about 5% last week on lower oil prices and as part of the broader market sell-off. The shares were trading at about 13X trailing earnings, the dividend yield was about 5.5%, and TC's planned projects for the next couple years should support 5-7% dividend growth guidance management has provided. 
Risks: Since I usually try to buy on dips, there's always a chance that the dip will continue, and I'll end up overpaying. If the price of oil stays low (below $40 today), TC's profits will decline and projects will be cut. Biden, if he wins the US election, has indicated he will nix TC's Keystone pipeline, which would jeopardize the company's continued dividend growth. Additionally, there's always regulatory risks when so many of TC's projects require government approvals. 

August 27, 2020
Buy - Added to my position in Algonquin Power & Utilities (TSX:AQN) in my unregistered account at $18.16
Reasons: As stated below, my plan is to replicate my position in Alqonquin in my unregistered account, and then sell the position in my TFSA at least one month later. Despite the secondary issue last month, and underwhelming Q2 results, the company's shares continued to trend above $18 recently, so I added today before month end. With an ex-dividend date near the end of September, I thought buying now would protect my downside somewhat for the next month while I'll have a larger position in AQN than I would like to hold. 
Risks: First obvious risk is buying at month end just to continue my habit of buying shares of some company each month. Secondly, as indicated above, my position in Algonquin right now is a bit too large for my comfort level, but I'll sell sometime after the next 30 days so as to avoid any nasty tax surprises from the Canada Revenue Agency. Lastly, I find AQN a bit pricey here given the recent $900B secondary issue at $17.10 and moderate Q2 results that didn't meet expectations. 

July 8, 2020

Buy Started my position in Algonquin Power & Utilities (TSX:AQN) in my unregistered account at $17.51
Reasons: I felt like the TSX has been mostly flat for the last while, so I decided to initiate a position in Algonquin Power in my unregistered account, with the aim of selling my position in the same company in my TFSA. There's an upcoming special situation I'd like to take advantage of involving Brookfield Renewables, and creating some liquidity with which to do it in my TFSA is the most tax-efficient.
Risks: Seeing Algonquin selling for $17.50 at 3:58 on Wednesday, I quickly logged in and bought since this was a price I was targeting. Literally the next morning I was scrolling my Twitter investment feed and saw AQN was doing a massive $900B secondary issue at $17.10. Proving once and for all my timing is horrible! Additionally, worried that in the period when I'll be effectively double-positioned, something will happen and the company's value will be permanently impaired.

June 24, 2020
Buy - Added to my position in National Storage Affiliates Trust (NYSE: NSA) in my RRSP at $26.85
Reasons:  When I last bought NSA in January, I paid 34.43 and thought I was getting the fastest growing self-storage REIT at a reasonable valuation of ~15X FFO. Due to a second-wave corona-virus fueled sell-off (???), I was able to add to my position at around ~11X FFO. While other REITs are floundering, NSA is making strategic acquisitions (early June), collecting 98% of their April rent, and reporting top-line and bottom-line growth in their Q1 results. 
Risks: I still worry about NSA's relatively small size (market capitalization is ~$2B) and their ability to continue to generate sufficient growth to cover ~10% distribution hikes in the future. Also, I felt compelled to buy yesterday as my RRSP cash has climbed to the highest its been in years, and due to a wide market sell-off that I felt should yield some bargains. Lastly, I continue to worry that I’m too impressed by NSA’s 5-year stock price climb that looks smooth and almost exponential.

June 11, 2020
Buy - Added to my position in Granite REIT (TSX:GRT.UN) in my TFSA at $64.60
Reasons: After spending time recently looking at industrial REITs trading on the US-exchanges, I decided to invest in Granite as I think it's a high quality industrial REIT with global exposure. Although the P/FFO of ~18X is a tad high, given Granite has had no trouble collecting rent from their tenants during covid-19, I see the purchase as paying a premium for quality. With Granite's history of dividend growth, and an attractive initial yield of ~4.5%, I took advantage of a slumping market to add to my position. 
Risks: Using the last of my TFSA cash for 2020 to add to Granite on a day when the REIT was down 3%, but the broader market was down around 5%, might not be the best risk-return trade-off. The fact Granite recently issued more stock at $67 (ultimately used for a serious of US-property acquisitions) also left a bad taste in my mouth as a unit holder. Lastly, I think I might be blinded by the high rent collection numbers and the idea of making my portfolio pandemic-proof.

May 13, 2020
Buy Added to my position in CT REIT. (TSX:CRT.UN) in my TFSA at $12.06
Reasons: CT collected 96.5% of May 1st rent (it helps when your largest tenant, Canadian Tire, is deemed an essential service across most of Canada), the yield is about 6.5%, and they are trading at a P/FFO of just over 10X. Another reason I decided to add to this company is that REITs in general are very beat-down right now due to rent collection concerns, so I wanted to make add to a REITs while I still have cash left in my TFSA to invest.
Risks: Yet another instance of had I waited a day, I could have bought for about 5% less. The risk of focusing more on coronavirus-resistant companies, as opposed to seeking a slightly higher risk, higher return opportunity, played itself out here as well. There are some Canadian REITs that are trading at a much bigger discount to their NAV than CT.

May 13, 2020
Buy Added to my position in BCE Inc. (TSX:BCE) in my unregistered account at $54.65
Reasons: Since I added to the position about two weeks prior, the yield has eclipsed 6%, their results were in-line with expectations, and apparently the company is making some progress in customer service which should result in lower churn if they can keep that up.
Risks: If you ever want to buy into a company that I add to, a great bet is to wait for the day after I make a purchase, and then save about 2%.  Market timing is clearly not my strength. Another risk worth identifying is that I feel I'm looking for bullet-proof, coronavirus-resistant companies, as opposed to seeking a slightly higher risk, higher return opportunity. This might become a theme, to the detriment of my long-term returns.

April 30, 2020
Buy Added to my position in Capital Power (TSX:CPX) in my unregistered account at $26.92
Reasons: I felt pretty comfortable adding more to this power producer whose EBITDA comes from 78% regulated activities. They are diversifying outside of Alberta, rated BBB-, and look to grow their dividend by 5-7%. 
Risks: After buying on Thursday, mainly to continue my streak of purchases each month, CPX was down about 2% on Friday. I might be chasing yield growth right now as well with so many companies pause their payouts. Additionally, CPX is very exposed to Alberta which is experiencing tough time with the oil price route.

April 30, 2020
Buy Added to my position in BCE Inc. (TSX:BCE) in my unregistered account at $56.50
Reasons: Yielding close to 5.9%, having just raised their dividend by 5%, and priced at about 16X P/E, I thought it was time to add to my BCE position in the first time in over 10 years (February 2010 was my last purchase). It's probably worth noting that during that 10-year period, BCE has delivered pretty consistent results despite the federal government and regulator finding ways to challenge them.
Risks: After buying on Thursday, mainly to continue my streak of purchases each month, the market was down about 2% on Friday. Market timing is clearly not my thing. I also wonder if the federal government and industry regulator will succeed in finding a way to have BCE lower their prices and/or improve customer choice. 

April 29, 2020
Sale - Sold my position in Alaris Royalty (TSX: AD) in my Unregistered Account at $10.50
Reasons: With the yield around 16%, management announcing a change from a monthly to a quarterly dividend, and some large partners of Alaris unable to make royalty payments due to business closures related to coronavirus, I think a dividend cut in June is imminent. I've also grown a bit frustrated with Alaris's management selling some of their interests in some of their better performing partners over the past couple years.
Risks: Although I assume a dividend cut is imminent, I don't dislike Alaris's business model, and respect the fact management has allocated capital pretty well in a very challenging environment for private equity over the past couple years. There's some of Alaris's partners who I'd really like to invest in for the long-term (i.e. Planet Fitness & Body Contours), but I also see those as the most likely to be sold by the company. It's totally possible Alaris uses some corporate liquidity to keep the dividend constant and the market rewards them for that, I just don't think it's likely.

April 27, 2020
Sale - Sold my position in Tanger Factory Outlet Centers (NYSE: SKT) in my RRSP at $6.61
Reasons: With the yield hovering close to 25%, most of their centers closed by local government orders, and plans to "evaluate the payment and rate of any subsequent dividends" after paying out their dividend on May 15th, I took advantage of a 15% up-day on the stock as investors chased the dividend (holder of record date is April 29th) to exit my position.
Risks: I assume that Tanger will cut their dividend when their Board of Directors meets next. If they cut it to a reasonable level, and the market starts to appreciate the factory outlet center business model again, there's a chance I could have sold too early. At the start of 2020, I was hoping that Tanger might be a take-over candidate given their ridiculous price to FFO ratio of ~3X currently, but they are so small of a company that they wouldn't move the mark for most acquirers. I feel like I fell in love with Tanger after visiting some of their locations years ago, and hung on way too long.

March 18, 2020
Buy Added to my position in Realty Income Corp. (NYSE:O) in my RRSP at $41.65
Reasons: Is Realty Income, who just announced their second dividend increase of the quarter, worth 24% less than it was yesterday? My answer was 'no', and given the P/FFO of about 13X on what I consider to be the best quality REIT in the US, I felt adding to my position was a sound move.
Risks: Realty Income will likely trade lower in the coming days. There might be even bigger bargins out there on which I could have used some of my accumulated U.S. cash in my RRSP. Lastly, Realty Income has only been able to grow their distribution by about 3% in recent years, materially slower than other REITs in my portfolio. 

March 11, 2020
Buy Added to my position in Aecon Group (TSX:ARE) in my unregistered account at $15.98
Reasons: The market was down ~5% on Wednesday when I added to my position in Aecon, and I was able to buy at a P/E of about 15%, a 4% yield, on a company that just raised their dividend by 10%. Even though I think we're headed for a recession in Canada based on the plunge in oil prices and coronavirus impacts, my bet is one of the ways the federal government will try to re-start the economy is by boosting infrastructure spending...something that should benefit Aecon.
Risks: After buying on Wednesday, the market plunged on Thursday and I could have picked up the shares even cheaper. That said, I'll never buy at a market bottom, I'm not that lucky. My theory of construction spending might also take years to play out, if it plays out at all, and investing in a construction company might prove to be a bad idea. Lastly, I feel that I might be chasing dividend growth a bit with this purchase, as I don't expect many other of my holdings to be boosting payouts by 10% or more.

March 6, 2020
Buy - Added to my position in CT REIT (TSX:CRT.UN) in my TFSA at $15.78
Reasons: This is my first purchase since the Coronavirus sell-off that's been leading to some big swings in the market the last few weeks. In CRT, I'm buying the REIT on which most Canadian Tire, Sports Experts, SporkCheck, Mark's Work Wearhouse, Atmosphere, etc. stores sit, that yields close to 5%, and raised their distribution last August by about 4% (lower than they could have given AFFO growth of almost 6% in FY19). The fact the REIT was down about 5% yesterday, for no specific reason, helped convince me to deploy some of cash I still had in my TFSA. Now if only these reduced valuations could continue.
Risks: If the sell-off continues, CRT will likely go even lower. I'm also thinking that some of Canadian Tire's suppliers in China will be impacted by the Coronavirus, which could cause CT's and this REIT's prices to fall. Lastly, concentration risk is a factor for CT REIT given there's only minor tenants (i.e. banks) outside of Canadian Tire in the REIT's portfolio. 

February 21, 2020
Buy - Added to my position in Brookfield Infrastructure Partners (TSX:BIP.UN) in my TFSA at $73.24
Reasons: BIP grew their FFO by 11% in 2019, and then boosted their distribution by 7% earlier this month. I continue to have a lot of confidence in Bruce Flatt and Brookfield’s management team to grow this global infrastructure powerhouse. If management’s plan to convert this partnership into a corporate structure goes ahead, this could serve as a further catalyst as it will allow a wider variety of investors to hold shares.
Risks: Adding to one of my larger position, while the stock is trading near it’s 52-week high, is not my usual recipe to investing. That said, I have grown more comfortable in “averaging up” over the past year. With 20/20 hindsight, I can also confirm I bought too soon as BIP was down about 2% on the next trading day due to the larger coronavirus market sell-off.

February 21, 2020
Buy - Added to my position in Telus Corp. (TSX:T) in my Unregistered account at $51.96
Reasons:  Unlike Rogers and to a lesser degree Bell, Telus has a focus on dividend growth, and their business results back-up their 5-8% annual dividend increases. When management announced plans to issue $1.3B of equity last week, at $52/share, when the stock was trading at a 52-week high, I took the opportunity to add to my holding at a slightly lower price than bankers had paid to underwrite the issue.
Risks: While I don’t love when my investment holding companies announce secondary equity issues, if they use the proceeds to de-leverage their balance sheet and ready themselves for the next round of wireless frequency auctions in Canada, I can learn to live with it. Of course the next trading day after I bought, Telus was down 1% due to the larger coronavirus market sell-off.

January 31, 2020
Buy - Added to my position in National Storage Affiliates Trust (NYSE: NSA) in my RRSP at $34.43
Reasons:  I like NSA due to their history of FFO growth that supports their near 4% dividend yield and ~10% dividend growth in 2019. With some built-up cash in my RRSP, I thought adding to my position in this self-storage REIT trading at ~15X FFO was a good investment given the lofty valuations of most of my other US-holdings.
Risks: NSA is a relatively small self-storage REIT (market capitalization is ~$2B) with facilities in only 35 states. I question the company’s ability to cover ~10% distribution hikes in the future if it can’t continue to grow their top line at a similar rate given saturation in the self-storage space. Also, I felt compelled to buy on January 31st as my plan was to invest each month in 2020. Lastly, I worry that I’m too impressed by NSA’s 5-year stock price climb that looks smooth and almost exponential.

January 31, 2020
Buy - Added to my position in Power Inc. (TSX:POW) in my Unregistered account at $33.18
Reasons:  The stream-lined structure (incorporating Power Financial), the proposed 10% dividend hike in 2020, and the very reasonable ~13X P/E all helped justify my additional investment in Power.
Risks: Adding on the last day of the month, to ensure I made investments each month in 2020, will likely be a mistake in retrospect. Taking a wait-and-see approach to Power’s integration of Power Financial also would have been a more conservative approach. Lastly, I’m likely over-weighting this year’s proposed 10% dividend hike into my buying decision. 
December 23, 2019
Buy - Added to my position in Granite REIT (TSX:GRT.UN) in my TFSA at $66.74
Reasons: Further to the AQN purchase outlined below,  this purchase also helped me meet my forward dividend income and organic dividend growth goals. Unlike Algonquin, I've owned Granite for over 3 years, and love what the new management team is doing: moving away from a concentration of a single renter in Magna (now accounting for less than 50% of their rental income), seeking opportunities to purchase industrial properties in the US, and adding a bit of leverage to their balance sheet.  
Risks: Buying close to year end with an eye on meeting my dividend income and growth goals isn't a quality reasons to act. As to be expected, after I bought the shares, the stock price trended slightly downward.  Lastly, I am starting to wonder if the income Granite generates south of the border will ultimately result in higher withholding taxes when Granite makes their distributions. 

December 23, 2019
Buy - Added to my position in Algonquin Power & Utilities (TSX:AQN) in my TFSA at $18.50
Reasons: In order to avoid ending the year with a bunch of cash in my TFSA, I made this purchase that helped me meet my forward dividend income and organic dividend growth goals. To re-state my main reasons for having confidence in this company: management has shown an ability to grow both organically and through acquisition, and this growth supports the current yield and dividend growth. 
Risks: Buying near the end of the year, with the expressed reasoning for meeting goals and investing some excess cash in my TFSA aren't quality reasons to act. Of course since I made this purchase, the shares of trended downward.  Lastly, I continue to feel that I might be chasing dividend growth in AQN, without giving enough consideration to looking forward to future growth. 

December 11, 2019
Buy- Purchased a full position in National Storage Affiliates (NYSE:NSA) in my RRSP at $33.50
Reasons: This was one of three contenders I identified to replace my Life Storage Inc. holding when I sold it. I like NSA for it's initial yield of ~4%, 10% dividend growth over the past year, and reasonable P/FFO. Lastly, as this is a relatively modestly size company (market capitalization of about $2B), it's possible a bigger player could look to buy them given NSA's history of good organic growth.
Risks: Bought the day before the ex-dividend date, a mistake I've made many times before. The stock has been trading lower ever since I bought it (very common when I purchase a stock). Lastly, I could have simply added to a current position, instead of buying a new one that requires additional monitoring. 

December 11, 2019
Sell - Sold my position in Pfizer Inc. (NYSE:PFE) in my RRSP at $38.33
Reasons: Three reasons I sold out of this position. First, there's an upcoming spin-off of Mylan's and Upjohn's growth assets into a new entity Viatris, which would mean another company for me to monitor. Blending into the second reason, reading Pfizer's management talking about "keeping investors whole" when this happens, and then warning of slowing dividend growth after the spin-off, degrades my already low opinion of Pfizer's management. The already low opinion is based on what I feel is a preference for financial engineering aimed at making results look better as opposed to actually growing the company responsibly, and ethically (my last reason). 
Risks: The spin-off could work, both new companies could post fantastic results, and the share prices could climb much higher than the original entity. I also feel bad judging a company's ethics, given I'm far from perfect myself. Lastly, I feel this might be a case of me being more interested in dividend growth, than total return, which would be an error on my part. 

December 2, 2019
Buy - Completed my position in Fortis Inc. (TSX:FTS) in my unregistered account at $51.80
Reasons: After my previous purchase of Fortis on November 5th, the company announced a secondary issue priced at $52.15 to fund their capital program with proceeds set to total $1.1B. I can't blame the company for accessing cheap (less than 4%) equity funding, even if it drives the P/E from 15X to 20X. That said, on Monday, I was able to buy shares at a slight discount to the issue price, before the issue closed and the price bounced on Tuesday. 
Risks: As stated above, I'm not a fan of a huge stock issue that dilutes my ownership. There's also the fact that with one month left in the year, I still have to make a couple buys in order to meet my forward dividend income goal. Having made three quick purchases of Fortis, I also wonder if I'm overlooking red flags in order to buy a name that has been on my watch list for years. 

November 22, 2019
Donated - In-line with my five-year plan, I made a donation of Riocan REIT shares to Oxfam. By donating the shares, I support a worthy charity while avoiding a capital gain on some shares that I would rather not hold for the long-term given management's inconsistent strategy and capital allocation. This is the fourth year I've given away RioCan shares to a registered charity and it's win/win.

November 5, 2019
Buy - Added to my position in Fortis Inc. (TSX:FTS) in my unregistered account at $53.03
Reasons: After initiating the position a couple weeks ago, watching the stock dip for no apparent reason, I decided to take the 2% discount and double my position. Many of the same reasons listed last month remain: reasonable valuation, decent initial yield, long history of dividend growth, a 6% targeted growth rate through 2024...what's not to like?
Risks: It's very normal for a stock to fall after I buy it, and Fortis is no exception. Instead of simply thinking I'm buying more shares at a cheaper valuation, I have to learn to think more critically and ask myself why I was content to buy it at a higher price the first time. Was I in a rush? Did the length of time I've been watching this company, waiting for a better entry valuation, cause me to strike to fast? Was I simply feeling greedy on the day in question? All possible answers, and there are probably more I'm overlooking. 

November 5, 2019
Buy - Completed my position in CoreSite Realty (NYSE: COR) in my RRSP at $115.40
Reasons: After initiating my position in July, I've been saving up my cash in my RRSP, waiting for a dip in order to complete my position in this data center REIT. With the stock trading down a couple percent, this seemed like a good time to add to this REIT with a 4%+ initial  yield, ~10% distribution growth of the past year, trading at a reasonable valuation. 
Risks: Something I know about myself: once I initiate a position, I look to complete it in a pretty quick period of time. This leads me to fixate on a stock, wait for a dip, then close out the position. The big risk here is that my timing is too early and I overpay. As it relates to CoreSite, I'm quite over-weight data center REITs now, especially given Iron Mountain spent most of their Q3 earnings call talking about how they are moving more toward that sector. Lastly, I feel like most of the second half of 2019 has consisted of me chasing dividend growth in order to meet my 5.5% average organic dividend growth rate target; the CoreSite purchase along with the Fortis purchase helped push me to above my target (sitting at ~5.75% currently). 

October 23, 2019
Buy - Started a position in Fortis Inc. (TSX:FTS) in my unregistered account at $54.11
Reasons: Fortis has been on my watch list for years, so when I found myself struggling to figure out what position to add to in my unregistered account, I took a closer look at it and saw the trailing P/E of 15X, a 3.5% yield, and their recent 6% dividend hike. The company also recently extended their 6% dividend growth rate target through 2024. Management's 46 year record of increasing its payout is backed by rising revenue, income and free cash flow. I'd be remiss not to mention the company's regulated US assets were a big selling point for me in establishing this position. 
Risks: Adding my 40th company to my portfolio means more monitoring, but I feel like the benefits far exceed this particular cost. Buying in on a day when the shares were only trading down a 1% likely means I bought too soon as well (my personal specialty). Given how long this company has been on my watch list, and the build-up of cash in my unregistered account, it's very possible that I let greed to finally own this company over-ride rationality that would have normally caused me to wait until the price fell even more to make this an even more attractive investment. 

October 16, 2019
Buy - Completed my position in Algonquin Power & Utilities (TSX:AQN) in my TFSA at $17.81
Reasons: After the company announced it was issuing new shares at USD 13.50 via a syndicate, I decided now would be a good time to complete my position at a slight discount to my September purchase. To re-state my main reasons for this position: management has shown an ability to grow both organically and through acquisition, and this growth supports the current yield and dividend growth. 
Risks: Buying after a company announces a 4% share issue that dilutes my position isn't a logical purchase. Especially given the elevated valuation after the share price has run up materially over the past year. There's also something to be said about my perceived need to "complete" this position. Additionally, I continue to feel that I might be chasing dividend growth in AQN. 

October 8, 2019
Buy Topped up my position in Kinder Morgan, Inc. (NYSE:KMI) in my RRSP at $20.03
Reasons: Since my last purchase of KMI in November 2015, the company cut their dividend and grew it again at a rapid pace. They were able to grow their payout by 25% in the past year despite funding projects internally and decreasing debt (selling some assets helped). Yesterday, the company traded at a reasonable 20X P/E and had a 5% dividend yield. Although I don't expect rapid dividend growth going forward, I think 5% is a reasonable rate over the next 5-years given the high quality of assets that KMI owns.
Risks: As the end of the year approaches, I feel a bit rushed to allocate some cash to stocks. This will likely lead me to buying stocks too soon, without any downtick/discounts. For KMI, I think there's an endowment effect in that I own these shares, and didn't look at any other US pipelines for purchase. Lastly, I continue to think that I'm chasing dividend growth in order to achieve my 5.5% organic dividend growth rate goal. 

September 27, 2019
Buy - Added to my position in Algonquin Power & Utilities (TSX:AQN) in my TFSA at $18.05
Reasons: With an elevated amount of cash in my TFSA, I bit the bullet an added to this position before the end of September. I continue to like this company, their great assets, growth-oriented management, and near flawless execution of their inorganic growth plan Although I continue to think the valuation is expensive, the plan is to slowly add to this position and test if they are worth the premium valuation (given my results in 4-months of ownership, I'm tempted to say 'yes').
Risks: Although I bought AQN on a bit of a dip (down over 1% that day), I definitely bought too early as it traded below $18 with the subsequent impeachment route. Additionally, I continue to feel that I might be chasing dividend growth in AQN. That said, I think there's something to be said for owning quality companies, with a history of good results.

September 11, 2019
Buy Topped up my position in A&W  Revenue Royalties Income Fund (TSX:AW.UN) in my TFSA at $38.63
Reasons: The proceeds of my KEG disposition were reinvested into this REIT that has managed to increase their same-store-sales by double digits over the last year, add tens of new restaurants to their royalty pool, and organically grow their revenues by price increases. Bought in at a 4.9% yield and the company has increased their distribution by 11% in 2019 alone. 
Risks: How long can A&W continue to grow same-store-sales by double digits and add new restaurants to their royalty pool? I don't know. The fact this is now the largest or second largest holding in my portfolio show my overconfidence and recency biases in spades. Lastly, the fact I tend to enjoy A&W restaurants and eat there a couple times a month also adds bias to my feelings toward this investment. 

September 11, 2019
Buy Initiated a full position in CT REIT (TSX:CRT.UN) in my TFSA at $14.06
Reasons: The proceeds of my H&R disposition were reinvested into this REIT that owns Canadian Tire/Marks/Sports Check properties all over Canada. This REIT has grown their distribution each of their five years in existence (by about 4% last November), has a well covered 5.5% yield based on my purchase price, and had fallen about 5% yesterday based on the news that Canadian Tire would be selling a portion of their position for $14.25. Given the dominance that Canadian Tire and their associated brands have in the sports retailing world in Canada, I'm much more confident investing in this REIT than H&R. 
Risks: Canadian Tire has been slowly divesting their position in this REIT ever since it came into existence. There will likely be other steep declines in the price of their REIT when these announcements come in the future. Also, if Amazon ever focused on sports retailing in Canada, it could cause severe problems for Canadian Tire to expand their footprint and this REIT to continue to increase distributions going forward. 


September 11, 2019
Sold Sold my position in H&R REIT (TSX: HR.UN) in my TFSA at $21.51
Reasons: It's been three years since H&R raised its monthly distribution. Their revenue and FFO have shrunk in that time as management has sold off assets (some great, irreplaceable, one of a kind buildings) as it has focused on decreasing leverage and exposure to the US/malls/Alberta. My hot take on H&R's management is that they lack any kind of focus, and seem to change their strategy on whims (i.e. developing an apartment complex in Long Island as rental REITs became hot).  I got tired of holding an albeit cheap, but poorly managed REIT.
Risks: There's two possible catalysts that I could see benefiting H&R in the short-term. An activist investor could shake things up demanding management changes and a firm strategic direction (similar to what happened with Granite REIT). The other possibility is that their first residential complex in Long Island becomes a huge success, and the REIT refocuses on developing apartment complexes, which could push up the valuation considerably. In the former case, I might be interested in re-entering this position, in the latter, I wouldn't as I'm happy with my position in Canadian Apartment REIT. 

September 11, 2019
Sold Sold my position in the Keg Royalties Income Fund (TSX: KEG.UN) in my TFSA at $16.45
Reasons: For restaurant revenue royalty vehicles, the ability to increase distributions to unit holders are based on same-store-sales growth, the growth in the number of stores in the pool, and increases in top-line sales (think raising prices). The Keg has anemic same-store-sales growth, has kept the number of restaurants steady (~100) and hasn't had much success in raising sales. The distribution has now been kept steady for 20 months, and I didn't expect it to go up anytime soon. 
Risks: One possibility that might happen with the Keg fund is that it is acquired by Recipe Unlimited (formerly Cara) buys it like it did the Keg operating company back in 2018. If this happens, I might have sold these shares too soon. 


September 11, 2019
Sold Sold my position in Life Storage Inc. (NYSE: LSI) in my RRSP at $104.10
Reasons: Most of the reasons why I sold are covered in this post. I'd add that after reaching 40 positions, I felt it was time to start trimming a few investments that hadn't lived up to the expectations when I initiated the position (namely, long-term dividend growth supported by revenue/earnings/FFO growth). 
Risks: LSI could easily announce a dividend increase this month or indicate they were a target for an acquisition; I wouldn't be surprised at all if I sold too early. That said, after three years of holding the company, I felt I had waited for such announcements a couple years too long. 

August 26, 2019
Buy Completed my position in Aecon Group (TSX:ARE) in my unregistered account at $18.21
Reasons: After waiting since April for Aecon to dip again so I could complete my position, I pulled the trigger when the stock was down 2% in a broader sell-off. Aecon should benefit as SNC faces regulatory headwinds in Canada and exits fixed price contracts. I think the company is reasonably valued at ~15X trailing earnings, has an attractive 3.2% dividend yield, and grew their dividend by 16% earlier this year. Lastly, this is one of the few positions that I wanted to complete in 2019, and feel good having bought enough shares to consider it closed. 
Risks: Aecon is not a consistent dividend grower, having taken 2018 off after their acquisition by the Chinese construction company fell through. Although the company has been able to grow revenue and EPS over the long-term, construction is a more fickle industry than most of the ones I invest in. Lastly, of course I bought in too early (the company has traded lower in the the two days since my purchase). 

August 14, 2019
Buy Added to my position in Toronto-Dominion Bank (TSX:TD) in my unregistered account at $73.28
Reasons: On a day when US-traded stocks were down 3%+ on trade war fears, I felt totally comfortable adding to my TD position given the trailing P/E of ~12X, 4.1% dividend yield, 10% dividend growth in the last year, and the bank's growing market position in the US. 
Risks: Knowing I'm already very overweight in Canadian banks, adding more TD didn't diversify my portfolio any. If Trump's trade war with China continues to negatively impact the US economy and drive down interest rates, TD will suffer more than other Canadian banks. Lastly, by adding more to TD and making it my largest Canadian bank holding, my overconfidence in it is likely causing a blind spot to some of the risks it faces. Oh, and of course I bought too early as it continued to drop in recent days.

July 26, 2019
Buy Added to my position in Canadian Utilities (TSX:CU) in my unregistered account at $35.30
Reasons: Very comfortable adding to my CU position given the trailing P/E of ~10X, 4.7% dividend yield, 7.5% dividend growth in the last year, and the fact the company is the longest-running Canadian company with a history of annual dividend increases. 
Risks: I thought about starting a new position in Fortis instead of adding to CU in order to diversify a bit by company. CU has a lot of exposure to the Alberta economy, which is facing some headwinds at this moment. Lastly, I might be overconfident in CU given their great history of dividend growth. 

July 19, 2019
Buy Started a new position in CoreSite Realty Corp. (NYSE:COR) in my RRSP at $114.30
Reasons: COR has been on my watch list for the last couple years as an alternative to Digital Realty, which I feel I overweighted. Data Center REITs provide the nice REIT characteristics I look for (4%+ starting yield, ~10% distribution growth, 5+ years of growing revenue/FFO), with the kicker of being in an industry that companies are very willing to invest in. I bought this half-position before the Q2 earnings were released, when COR was priced ~16.5X FFO. 
Risks: A new position means more monitoring work for me, and given COR is now about $10/ share lower, after they revised their FY19 guidance downward by a few pennies, I definitely bought too soon. Another key risk, as semi-indicated above, is that I might be too positive on data center REITs that have shown a good growth history. 

June 28, 2019
Buy Started a new position in Algonquin Power & Utilities (TSX:AQN) in my TFSA at $15.90
Reasons: AQN has been on my watch list for the past 4-5 years: I like the company, they have great assets, decent management, and have executed their inorganic growth plan very well. They were always a bit expensive for me, and now is now different with the stock up 20% YTD. That said, I established a small position, bit the bullet, and plan to add to it over time. 
Risks: A new position means more monitoring work for me, I definitely didn't buy AQN on a dip, buying on the last day of the month means I bought too early, and I feel that I might be chasing dividend growth in AQN. That said, I'm starting to lean more toward quality companies, than cheap companies...here's hoping AQN is the former, since it has never been the latter. 

June 28, 2019
Buy Added to my position in Brookfield Property Partners (TSX:BPY.UN) in my TFSA at $24.80
Reasons: Given a glut of cash, my plan is to deploy it in near-equal installments the rest of the year, starting with this buy and Algonquin. In terms of companies that I own in my TFSA, that I feel completely comfortable adding to, BPY and BIP are top of the list. I chose BPY due to the near 7% yield, 5% dividend growth rate (in-line with management guidance), exceptional management, and the attractive valuation of less than 10X P/FFO. 
Risks: I'm overconfident in Brookfield's management, the company has a complex organization structure, this particular REIT has above-average exposure to shopping malls, and the fact I bought on the last day of the month in order to start executing an new plan, means I likely bought too early (as always). 

May 6, 2019
Buy Added a new position in Capital Power (TSX:CPX) in my unregistered account at $30.00
Reasons: This power generation company provides me with my first exposure to some clean sources of energy generation, it's reasonably priced (~12X trailing earnings), management has been able to grow net income over the past five years while investing in growth projects, dividend yield is generous at 6%, and there's target dividend annual growth of 7% until 2021. Lastly, I got a 1% discount to the price underwriters were using for the secondary offering that is being used to pay for a small acquisition. 
Risks: Adding an additional company to my portfolio entails additional monitoring work for me. Looking at CPX's revenue over the past five years, its been stable, but hasn't grown at the 7% rate that would be required to fund its dividend growth ambitions. Lastly, while I'm trying to find good opportunities to deploy capital, I might be looking too hard as opposed to sitting back and waiting.

April 17, 2019
Buy Added to my position in Aecon Group (TSX:ARE) in my unregistered account at $16.99
Reasons: After the Canadian government invoked national security reasons to kill the acquisition of Aecon by a state-owned Chinese construction last summer, I was quite happy. Avoiding capital gains taxes and getting the chance to grow my position in this construction company that will continue to benefit as SNC faces regulatory headwinds in Canada are two of the qualitative reasons I added to this position. I think the company is fairly valued at ~18X trailing earnings, supports an attractive 3.4% dividend yield, and grew their dividend by 16% earlier this year. Lastly, I think the cash in my various investment accounts has grown to the point where I feel obligated to at least deploy some of it before I hit a mental block and am unable to pull the trigger on any buys.
Risks: Aecon is not a consistent dividend grower, having taken last year off after their acquisition by the Chinese company fell through. Although the company has been able to grow revenue and EPS over the long-term, construction is a more fickle industry than most of the ones I invest in. It is also worth noting that as stated above, after more than four months of inactivity, I felt obligated to buy something (never the best reason to make an investment).

January 17, 2019
Sold Sold my position in National Bank of Canada (TSX: NA) in my TFSA at $60.25
Reasons: After logging onto my account and noticing my largest position was National Bank of Canada, I remembered that I could sell the shares I held in my TFSA as it had been more than a month. Don't get me wrong, I like National Bank, but having a bank operating mainly in my home province as a largest position made little common sense as a life hedge. 
Risks: Since I'm writing this three weeks after selling, I can confirm that I sold too early and a missing out on a fairly nice gain by not holding it longer. That said, as soon as I realized it had been over a month, I felt compelled to get rid of my shares in my TFSA, so no regrets on this sale. 

December 24, 2018
Buy Added to my position in Johnson & Johnson (NYSE: JNJ) in my RRSP account at $123.50
Reasons: In the midst of an asbestos scandal (which seems pretty immaterial to me) and a US market plunge into bear territory, I decided to add a couple shares of JNJ at about 16X current year earnings. I like the company's focus on health care, relatively low dividend payout ratio less than 50%, global diversification, and competent management team.
Risks: Maybe there's some legs behind the asbestos claims and shares will plunge further. Or perhaps the US market will go into a free-fall and I would have been able to pick up the shares even cheaper. That said, I felt very comfortable adding to this relatively old position (established in 2010).  

December 12, 2018
Buy Initiated a position in Alaris Royalty Corporation (TSX: AD) in my unregistered account at $18.01
Reasons: After waiting a bit more than a month to lock in my capital loss, I re-initiated a smaller position in Alaris Royalty. Reasons I like the company are management's commitment to dividend growth, the 9% yield, very reasonable P/E of 12X based on trailing earnings, and exposure to businesses I would never be able to access as a retail investor without Alaris. 
Risks: Although dividend coverage is tight (90% payout), management still had confidence to boost the payout for the first time in several years in November when they signed a new partner. The bigger risk is that I like Alaris the company too much and made today's purchase with an eye on meeting my forward dividend income goal for 2018. 

December 11, 2018
Donated - In-line with my five-year plan, I made a donation of Riocan REIT shares to Oxfam. By donating the shares, I support a worthy charity while avoiding a capital gain on some shares that I would rather not hold in the long-term given management's constant shifting priorities. This is the third year I've given away RioCan shares to a registered charity and it's win/win.

December 4, 2018
Buy Initiated a position in National Bank of Canada (TSX: NA) in my unregistered account at $59.95
Reasons: Bought a day before earnings release, with the ultimate goal of moving my TFSA position into my unregistered account. The 4.1% dividend yield at time of purchase, 8.3% dividend growth in FY18, and P/E around 10X continue to make this an attractive bank to own.
Risks: Buying companies before an earnings release (and anticipated dividend raise) is always a bet on what earnings might be. As the year draws to a close, and I continue to have plenty of cash in my unregistered account, without many good ideas, I am feeling compelled to put some cash to work instead of waiting for a recession/correction/dip. Buying NA with a plan of holding my TFSA position long enough to collect the dividend, and keep the tax authorities happy, seems like a low-risk plan for me, but lots can happen in a month. 

November 30, 2018
Buy Initiated a position in Power Corporation of Canada (TSX: POW) in my unregistered account at $26.42
Reasons: The combination of a nice yield ~5.7%, dividend growth  over the past year of 6.5% , a cheap P/E under 10X, trading right near a 52-week low, and the rising rate environment that should benefit Power's insurance holdings (Great West Life). From a qualitative standpoint, increasing exposure to insurance, China and Wealthsimple (robo-advisor) was attractive, as was the 'A/Stable' credit rating.
Risks: Buying companies as their stock prices bounce around 52-week lows isn't a quick recipe for success, but I thought it was warranted in this case. I'm also not crazy about adding another new holding to my portfolio. Another knock on Power is that the Desmarais family, who controls/manages the company, don't always act in other shareholders' best interest. 

November 19, 2018
Buy Initiated a position in Brookfield Property Partners (TSX: BPY.UN) in my TFSA at $24.17
Reasons: I like the Brookfield management team, the 6.5% yield, ~7% distribution growth earlier this year, the guidance of 5-8% distribution growth going forward, the cheap price of ~ 13X trailing FFO, and the global & property type diversification
Risks: Every Brookfield company has a complex organizational structure and aggressive accounting practices. Traders might be punishing Brookfield Property these days for their recent acquisition of GGP Inc. (mall operator). As the year is drawing to a close, and I'm sitting on a bunch of cash, I feel I might be deploying it too quickly, which is another key risk. 

November 5, 2018
Sold - I sold my entire position Alaris Royalty (TSX: AD) for $19.48
Reasons: Primarily, this sale creates enough of a tax loss for me to offset the gain from the Enercare sale in mid-October. Beyond the tax implications, Alaris has had a tough couple years with their investments going sour and redemptions from important partners. I think they're back on track now, but I'm not sure I'll be buying back my position after a month.
Risks: I sold the afternoon before Alaris released their Q3 results, which I thought were actually decent, but the stock went down ~7% the next day. Reading their earnings call transcript, I think they might announce another investment before year end, and possibly even raise their dividend for the first time in years. If they don't make that kind of announcement, I know I'll be overthinking if I want to buy back shares in the company after December 5th.

October 26, 2018
Buy Added to my position in Brookfield Infrastructure Partners (TSX: BIP.UN) in my TFSA at $48.90
Reasons: After selling my Enercare position earlier this month before it got converted into units of BIP, I decided to increase my position in this company since I think it will benefit from that acquisition. As the market has punished interest rate sensitive stocks, it seemed like a good time to add more of this 5% yielding, globally diversified, infrastructure company. 
Risks: As previously mentioned, every Brookfield company has a complex organizational structure and aggressive accounting practices. This is now one of my larger positions in my portfolio, so that increases my risk of loss as well. 

October 18, 2018
Sold - I sold my TFSA holding of Rogers Communications (TSX: RCI.B) for $67.30
Reasons: This was the second half of the August 31st transaction that was meant to transfer this holding from my TFSA to my taxable account. The main reason I chose to sell it on the 18th was that Q3 earnings were being released the morning of the 19th, and I didn't want to gamble on a favorable report.
Risks: Although I could have sold for slightly higher than $67.30 later in the afternoon on the 18th or even on the 19th, I'm happy to take some cash off the table as it relates to Rogers. During the earnings call this morning, Rogers' CEO again indicated that he was waiting for the right time in order to recommence dividend growth. Since I find myself at odds with many of the decisions that Rogers' management makes, I want to limit my position in this company.

October 16, 2018
Sold - I sold my entire position in Enercare Inc. (TSX: ECI) for $28.99
Reasons: One of my harder investing decisions of the year came down to realizing a capital gain on Enercare after its purchase by Brookfield Infrastructure Partners or letting my shares convert to units in Brookfield which are heavily taxed in my unregistered account. I decided on the former, and plan to sell some of my Alaris position in the coming weeks to offset the capital gain on Enercare.
Risks: Having to sell some Alaris, realize a capital loss, and then possibly buy it back later, introduces complexity into an already hectic period of the year. Long-term, I think I made the right decision in order to minimize taxes, but there will be some short-term pain in terms of executing the offsetting Alaris trade(s?) by year end.

October 11, 2018
Buy - Added to my position in Bank of Nova Scotia (TSX: BNS) in my taxable account at $72.58
Reasons: With my monthly contribution to my taxable account, I decided to take advantage of the ~5% sell-off in BNS this week to add to my position. I like the 4.5% dividend yield, the 7%+ dividend growth this year well supported by growing earnings, and the reasonable valuation at ~10.5X P/E.
Risks: My stock portfolio is definitely concentrated in Canadian banks, and this buy doesn't help. As always, I bought too soon as the stock is off another 1% this morning. Lastly, Canadian banks, even ones with a large international presence like BNS, are heavily exposed to domestic real estate prices via mortgage lending. I think certain real estate markets in Canada (i.e. Toronto, Vancouver, Montreal) are approaching bubble territory.

September 26, 2018
Buy - Completed my position in Digital Realty Trust (NYSE: DLR) inside my RRSP at $112.50
Reasons: With the cash accumulating from dividends in my RRSP,  the proceeds of the sale of my Keg units (below), and because my brokerage decided to enable splitting RRSPs into USD and CAD,  I decided to complete my position in this US data center REIT. The reasonable valuation P/FFO below 20x, dividend yield of about 3.5%, this year's distribution growth of 8.6%, BBB issuer rating, and recent dip helped motivate my purchase.
Risks: Definitely bought too side as DLR is now trading below $110. Also feel I jumped the gun in order to immediately replace one holding with another. This is a mental issue I have to monitor and work on in the future. That said, I'm in DLR for the long-term and have a lot of confidence in management.

September 26, 2018
Sold - I sold my RRSP holding of Keg Royalties Income Fund (TSX: KEG.UN) at $17.65
Reasons: This was the second half of June 6th transaction that was meant to transfer this holding to my TFSA in order to create room for more US-traded dividend payers in my RRSP. I dragged my feet selling the Keg units since I didn't know what I'd use the funds for until Digital Realty started to look very attractive (see above entry).
Risks: I have this mental flaw where even if I'm doing transactions for tax reasons, I like to break even. I held onto my units in the Keg for much longer than expected and made sure to break even (actually up a bit after accounting for distributions). I recognize this is a problem for me, and is something I'll continue to work on.

August 31, 2018
Buy Replicated my TFSA holding of Rogers Communications (TSX: RCI.B) in my taxable account at $67.70
Reasons: Since Rogers is my lowest yielding Canadian holding (dividend yield ~2.9%), from a taxation perspective, it made sense to hold this in my taxable account. Even though they haven't raised their dividend in past couple years, Rogers has deleveraged their balance sheet materially, and I continue to like the company as a play on cellular usage in Canada. 
Risks: It took me quite a while to build up my cash position in my taxable account so that I could afford to make this purchase, and I was likely a litter trigger happy when I realized had enough cash to buy. Like Brookfield below, this was another situation while waiting until the stock went ex-dividend might have saved some money. Lastly, I don't love the fact that the Rogers kids have so much influence over the strategy of the company, but think they brought in a great CEO in Joe Natale. 

August 29, 2018
Buy Added to my position in Brookfield Infrastructure Partners (TSX: BIP.UN) in my TFSA at $52.50
Reasons: Before it went ex-dividend tomorrow, I decided to use the leftover cash in my TFSA to get me a little closer to a full position in BIP. I like their recent A&T call center and proposed Enercare transaction, the ~4.5% yield, and 8% dividend raise earlier this year. 
Risks: I try not to make it a habit to buy something right before it goes ex-dividend, since the price of the company should go down by the amount paid (in theory) after the dividend is paid. Also, the company has a complex organizational structure and their accounting practices are aggressive.

June 28, 2018
Buy - Replicated my RRSP holding of A&W Revenue Royalties Income Fund (TSX: AW.UN) in my TFSA at $32.17
Reasons: Replicating my RRSP position in A&W inside my TFSA will ultimately allow me to only hold US dividend paying stocks in my RRSP. I continue to be a fan of A&W's food, think the 5% yield is reasonable, and expect 2-5% growth going forward.
Risks: Since I've been looking to add these shares to my TFSA since mid-May, and given I had a higher cash position in my portfolio than I'm comfortable with, I likely bought too soon. Additionally, much like my KEG.UN purchase below, I wonder if sticking to my plan vs trying to find the best value company was the right course of action.

June 6, 2018
Buy - Replicated my RRSP holding of Keg Royalties Income Fund (TSX: KEG.UN) in my TFSA at $17.87
Reasons: Over the past few years, I've been trying to focus my RRSP holdings to US dividend payers. My ultimate plan is to switch from my current brokerage to another that allows has a US dollar RRSP. The Keg units are the second last Canadian traded company in my RRSP that will still be tax advantaged in my TFSA. Although a slow grower, the units current yield a little over 6%, sell for around 15X historical earnings, and I think the restaurants will benefit from Cara's management that is focused on keeping costs low.
Risks: Distribution growth was only 3% last year (not including the special distribution in December) and the total number of restaurants is not expanding as quickly as A&W (which will likely be my next TFSA buy). I also wonder if sticking to a plan years in the making is the right course of action in the current market environment, as opposed to trying to buy the most attractively valued companies in my TFSA.

May 18, 2018
Sold - I sold my TFSA holding of TD Bank (TSX: TD) at $75.62
Reasons: As explained below, I wanted to move my holding of TD Bank from my TFSA into my unregistered account as it's a bank I'd like to add to from time-to-time, it's low yielding relative to my other investments making it tax efficient to hold in my unregistered portfolio, and to create some liquidity in my TFSA. After waiting more than a month (to avoid tax penalties), I sold today at a small gain ahead of the earnings release next week.
Risks: If they report good earnings next week, like most other transactions, this could prove to be too early. That said, TD Bank was my largest holding for the past ~2 months, and I didn't feel super comfortable keeping it any longer.

March 22, 2018
Buy – Replicated my TFSA holding of TD Bank (TSX: TS) in my unregistered account with a buy at $75.30
Reasons: Since I’d rather not add any more companies to my holdings, my plan was to pick one of my lowest yielding stocks from within my TFSA, buy it in my unregistered account, and then wait at least a month before selling my TFSA position. I chose TD Bank as it yields around 3.5%, it recently announced an 11% dividend increase and it’s a name I’d consider increasing exposure to in the future. The fact that I had a good amount of cash inside my unregistered account also contributed to this buy.
Risks: Given TD is trading around $72.50 today, I clearly bought too soon. My thought was to get in before the ex-dividend date (early April) and I had anchored at $75 which is a mental bias I’m often guilty of. Having a fair amount of cash in my unregistered account near the end of a quarter also contributed to me buying too early. 

January 4, 2018
Buy – Added to my position in Brookfield Infrastructure Partners (TSX: BIP.UN) inside my TFSA at $53.80
Reasons: With my annual TFSA contribution and the accumulated dividends I added shares in Brookfield as the share price has fallen ~5% this week leading to a P/FFO of about 14X. The exposure to the global utility, transport, energy, and communication infrastructure assets that have allowed the excellent management team to grow distributions by over 10% in recent years continues to interest me.
Risks: Although the recent $1.3B sale of an aging Chilean utility investment might mean less or no dilution in 2018, Brookfield does tend to issue shares annually in order to fund their growing back log. I also have planned to add to this position since initiating it last year, so there might be better opportunities out there that I could have used the 2018 TFSA contribution to pursue. 

December 21, 2017
Buy - Initiated a small position in Digital Realty Trust (NYSE: DLR) inside my RRSP at $109.60
Reasons: With the cash accumulating from dividends in my RRSP, I decided to add this US data center REIT. Although I was reluctant to start a new position, the reasonable valuation P/FFO below 20x, starting yield of about 3.4%, last year distribution growth of almost 6%, BBB issuer rating, and impressive list of clients drew me to this new REIT sector for my portfolio.
Risks: Definitely not as cheap of valuation or as high of initial yield as I hope for in REITs, but relatively fair for this Sub-sector. I also felt compelled to make a US purchase in my RRSP given I paid $30 this quarter for a fair exchange rate. Likely bought too soon as this purchase also meant accomplishing my incremental forward income goal for 2017 ahead of year end.

November 15, 2017
Buy - Completed my position in Canadian Utilities (TSE: CU) at $37.92
Reasons: Instead of initiating a new position in Cineplex or Power Fnancial, I decided to complete my position in Canadian Utilities, a utility company with the longest streak of consecutive dividend increases in Canada. Given the elevated level of the overall market, I was drawn to the simplicity of this utility company that is priced fairly (P/E ~ 18.5X) provides a nice initial yield (3.8%), and will likely grow their dividend again in January as it has for 45 consecutive years.
Risks: Beyond sensitivity to interest rate increases, an elevated amount of debt, and likely slower dividend growth going forward (I don't think the company can maintain their recent 10% annual DGR), I have the feeling that I made an investment due to excess cash, instead of waiting for a better moment to buy. Furthermore, this particular buy puts me in a better position to meet my forward dividend income and average dividend growth rate goals by year end. In summary, I don't know this was the best possible buy if I wanted to maximize the total long-term return of my portfolio.

October 27, 2017
Buy - Completed my position in Tanger Factory Outlet Centers (NYSE: SKT) at $23.00
Reasons: JC Penney cut their outlook for 2017 and I was able to purchase shares in Tanger at a ~5% discount to yesterday's price (which was a good deal at about P/FFO of 10X) in order to complete my position. Dual kickers: JC Penney isn't even a tenant of Tanger and by buying today, I will benefit from owning before the shares trade ex-dividend on Monday.
Risks: My bet is that Tanger will continue to trend downward in the short-term, and I'll likely miss out on buying at the bottom. That said, I can't time the market, and I view Tanger as a long-term holding. The way mall stocks are trading lately, the death of bricks-and-mortar retail seems to be imminent, even though online retail only accounts for about 10% of total US retail sales.

September 15, 2017
Buy - Initiated a new almost full position in Canadian Utilities (TSE: CU) at $37.95
Reasons: With the longest streak of consecutive dividend increases by any Canadian company, CU has always been on my watchlist. I've owned it twice before, but bought it this time in my unregistered account knowing I barely ever sell anything that will trigger tax consequences. Dividend streak aside, with a P/E under 18X, yielding 3.8%, and with nice exposure to the US market, this will likely be staying in my portfolio for the long-term.
Risks: Utility stocks tend to be very sensitive to interest rates given the elevated amount of debt most of them have outstanding; CU is no different. There's also the potential that if dividend growth slows (it's been 10% the last couple of years), investors might abandon ship driving the share price lower. Lastly, although I waited for a dip in the share price, I think I once again bought too early as the share price did proceed a bit lower after I purchased. Oh well, market timing is clearly not my strength.

September 5, 2017
Buy - Initiated a new full position in Canadian Imperial Bank of Commerce (TSE: CM) at $103.90
Reasons: Given my fondness of Canadian banks, I decided to add the only one I didn't already own given its currently the cheapest (P/E < 10X), had good dividend growth (~7% over the past 12 months), a generous initial yield of 5%, and I like their recent US acquisition to give them some international wealth management exposure. To be frank, another reason was after taking a couple months off, I had quite a bit of cash in my unregistered account and felt I should put some of it to use.
Risks: Over-concentrated in the Canadian banking sector, yet, so are the Canadian indices that passive investors favor. CIBC does tend to be headline prone, in a bad way. They also may have overpaid for their recent US acquisition. I also wonder if I felt the need to put my cash to work might have forced me to buy too soon?

June 21, 2017
Buy - Added to half position of Tanger Factory Outlet Centers (NYSE: SKT) at $24.98
Reasons: With the valuation sitting around P/FFO of 10X, I think this discount mall REIT is one the biggest bargains I see in the US markets. The 5.5% yield, proven management team, and history of distribution growth throughout different points in the economic cycle all led me to add to this position.
Risks: Even though Tanger was down 3% when I bought for no reason, I do think it will go lower with any bad news/results in coming months. Chose to add now given my plans to discontinue paying the $30/quarter to my discount broker to give me a better CAD/USD exchange rate. Lastly, although I think the "death of the mall" rhetoric is overdone, I don't expect strong growth out of Tanger in 2017 given secular headwinds.

May 26, 2017
Buy - Initiated half position in Aecon Group, Inc (TSE: ARE) at $15.10
Reasons: Exposure to the construction sector in Canada (new for me), solid history of dividend growth (8.7% in 2017), decent current yield of 3.3%, and tax efficient to hold in unregistered account (lower yield than my portfolio average).
Risks: Doesn't have a full economic cycle of dividend growth, P/E of 20X is slightly high vs historic average, and I have been making a lot of purchases lately so this might not be my best idea.

May 24, 2017
Buy - Bought a small number of shares in Bank of Montreal (TSE: BMO) at $92.40
Reasons: Was down 2.5% due to earnings disappointment, part of my 2017 plan of adding to positions in which I am comfortable, fair P/E valuation of ~12X, and a decent current yield of 3.8%.
Risks: Fell further in subsequent days (struck too soon), seems to be the only Canadian bank to report weaker results in the US, and I'm already overweight in the Canadian financial sector.

May 18, 2017
Buy - Initiated a half position in Brookfield Infrastructure Partners (TSE: BIP.UN) at $53.01 in my TFSA
Reasons: Exposure to infrastructure assets located worldwide (new for me), love the management team and their focus on dividend growth (10.6% in 2017), and a good use of remaining 2017 TFSA contribution due to the unfavorable taxation of their distribution if held in an unregistered account.
Risks: Paid about 19X the FFO/Share (slightly high), considering selling it after price appreciated and was in for dividend holder of record date, thinking it would be smarter to hold in my RRSP with other companies who pay US distributions (in preparation for potential move to a brokerage with USD RRSP).

May 18, 2017
Buy - Bought a small number of shares of Cisco Systems, Inc. (NYSE: CSCO) at $31.18 in my RRSP
Reasons: Stock was down 6% after providing disappointment guidance for next quarter, part of my plan to add to positions in which I am comfortable, good dividend yield (3.7%) and growth (11.5% in 2017), pretty fair P/E valuation of ~16X vs broader US market P/E of ~27X.
Risks: Having a difficult time growing top line as they move from a hardware to services business, three recent acquisitions in May that result in integration risk, and buying at a time when the CAD/USD exchange rate was ~$1.36.

May 17, 2017
Buy - Bought enough shares of Emera Inc. (TSE: EMA) at $46.60 to close my position
Reasons: P/E Valuation of ~16.5X was fair, in before the next dividend holder of record date, closing a position, and management's guidance of dividend growth of 8-10% over the next couple years.
Risks: Bumpy earnings, continued use of bond and secondary share offerrngs to fund their aggressive CAPEX plans, can never trust management guidance, and my need to complete/close positions had a roll in pushing me to make the purchase (i.e. there might be better utilities out there than EMA).

May 9, 2017
Buy - Bought a small number of shares of Bank of Nova Scotia (TSE: BNS) at $76.03
Reasons: Part of plan to add to positions in which I am comfortable, fair P/E valuation around 13X, good dividend yield (4%), and getting in before dividend holder of record date.
Risks: Latin American exposure, already overweight on Canadian financial sector, bought too early (has been down further since purchase).

April 28, 2017
Buy - Bought a small number of shares of Toronto-Dominion Bank (TSE: TD) at $64.25 in my TFSA
Reasons: Part of plan to add to positions in which I am comfortable, the best dividend growth among Canadian banks in my portfolio (9% in 2017), fair P/E valuation of ~13X.
Risks: Dependence on the US for earnings growth, already overweight on Canadian financial sector, bought too early (has been down further since purchase).

April 26, 2017
Sale - Sold my half position in Corus Entertainment (TSE: CJR.B) at $13.08 in order to create a tax loss
Reasons: Creating a tax loss to carry forward in my unregistered account since I had a minimal tax loss to use in 2017, stalled dividend growth, constantly disappointing quarterly results, the Shaw family dictate actions in their best interests vs. those of minority shareholders.
Risks: Selling the highest yielding security in my investment holdings, prompting a decision of whether or not to buy the shares back after a month plus a day, and selling too soon (share price has rallied since I sold my shares).



9 comments:

  1. Interesting post man. Great companies there. I will also do an update on my latest buys in my next dividend post. I also bought some BNS. As well as some REI.UN, CUF.UN and ENB. Thanks for posting.

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    1. Merci Monsieur. Great minds think alike on BNS ;-) ENB has been pretty tempting to me as well. Enjoyed your post about the companies you added last month.

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  2. I recently heard of SKT as well so your post about Tanger caught my eye. My husband recently bought some more CU. I have FTS myself and added to that.

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    1. Seems like we have quite a bit of overlap in our portfolios. I think FTS will be on my watch list for Q1 2018. I like the consistency and predictability of their business.

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  3. CU has been good to me. Its parent company, Atco, has a lower yield but increases its dividends faster. (And it's more diviersified.) Both good companies...

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  4. Nice move. Im curious with your bip in a tfsa. Is there no withholding tax on it? Seem to find mixes reviews online but my brookfield renewable has been tax free in the tfsa.

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    1. Yes, there’s no withholding tax on BIP in my TFSA. I try to structure my investments to be as tax efficient as possible. Sadly, I don’t always succeed (I.e. paying withholding tax on Granite due to their US income included in their distribution).

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  5. I bought GGP for the merger arbitrage and then kept the BPY shares when the deal closed. I have since added to my position. I personally believe that BPY bought GGP at a very good price and the death of class A properties is overrated. They will have to spend significant money to repurpose some of the properties but if you are prepared to hold for 10 years, I think you can do quite well.

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    1. Although I'm not as familiar with the GGP property portfolio as you are, I agree that there will likely continue to be demand for class A properties. Brookfield has the management team in place to repurpose and resell properties, and the track record of doing it well. I'm fine with being patient and letting the magic of compounding happen.

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