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.

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'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).


  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.

    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.

  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.

    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.

  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...

  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.

    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).

  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.

    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.