The following is a report reflecting the monthly and YTD dividend income generated from investments held in the FFJ Portfolio.
I imagine March will be the last month in which we will receive a quarterly dividend from DH Corporation (TSX: DH). On March 13, 2017, DH issued a press release indicating it had entered into definitive agreement to be acquired by Vista Equity Partners. Vista will acquire all the outstanding shares of DH for $25.50/share in cash including the assumption of all debt obligations including the issued convertible debentures, for a total enterprise value of approximately $4.8B. The transaction price represents a premium of about 36% over DH’s closing share price on December 5, 2016, the last trading day before media reports surfaced suggesting the Company was exploring strategic alternatives.
Unfortunately my average cost on the 414 shares in the FFJ Portfolio is $30.84 so I am taking a haircut of about $2200. The silver lining, however, is that we hold 1256 DH shares in another account at an average cost of $18.892. This will result in a gain of about $8300.
Hope your investments aptly rewarded you in March!
The purpose of this short post is to provide an update of the dividend income generated in the FFJ Portfolio during the month of February 2017. The total dividend income received was pretty meager but fortunately the vast majority of our investments are not held in this portfolio.
We generated CDN $152.15 from Smart REIT and USD $598.64 (after the 15% withholding tax) from AT&T, Verizon, and Colgate.
Year-to-date dividend income amounts to CDN $1,355.23 and USD $1,019.31.
Dividend income should pick up nicely in March. We will be receiving roughly CDN $450 from CNR, DH, and SRU.UN and USD $1,830 from CVX, JNJ, MMM, and XOM.
I have forecast our YTD dividend income at the end of March 2017. We should reach roughly CDN $1,805 and USD $2,849 which puts us on pace to exceed our FY2017 dividend income target of CDN $7,000 and USD $11,000.
This January 2017 dividend income report is the first of what I hope will be many monthly dividend income status reports.
At the beginning of 2017 I had set a FY2017 dividend income target of CDN$7,000 and US$11,000.
January 2017 is a month in which where dividend income dips slightly. We do not own many shares of companies within the FFJ Portfolio which pay dividends in January, April, July, and October. As a result, we only received CDN $1,203.08 and US$420.67.
US readers will notice the US dividend income seems to be off. The reason for this is that a 15% dividend withholding tax is levied on dividends earned on US stocks held in non-Registered accounts such as Registered Retirement Savings Plan accounts (RRSPs).
Despite the low level of dividend income received in January, I am confident we should be able to reach our target by year end.
The purpose of this post is to introduce the Financial Freedom is a Journey Portfolio (“FFJ”). This is an actual portfolio of equity investments in which all investment decisions are made with a long-term perspective in mind.
I undertake to provide monthly status reports of all activity. The vast majority of any activity will consist of the receipt of dividends and the automatic reinvestment of same. Occasional purchases will be made but sales are expected to be extremely rare.