FFJ Portfolio – July 2017 Dividend Income Report

This post reflects the FFJ Portfolio activity in July 2017 and the YTD dividend income generated from investments held in the portfolio.

In June I posted my analysis on J.M. Smucker (NYSE: SJM) and indicated I had initiated a position in this company. The share price subsequently deteriorated but I view the company as a long-term investment. I, therefore, acquired another 200 shares July 24th at $118.63 which is about $9/share less than my June entry point.

On July 19th, SJM announced that its Board of Directors had approved an increase in the quarterly dividend from $0.75 to $0.78 per common share, an increase of 4 percent.  The dividend will be paid on Friday, September 1, 2017, to shareholders of record at the close of business on Friday, August 11, 2017. I can now expect to receive $265.20 ($312.00 in gross dividends less the 15% withholding tax).

On July 24th I posted my analysis on Genuine Parts Company (NYSE: GPC). Based on my analysis I initiated a position by acquiring 300 shares.

On July 27th I received CDN $583.68 from 768 BNS shares. I DRIP all dividends and in certain cases, there is a lag of several days when the shares actually get credited to my account. You can see from the following image that 7 additional BNS shares were purchased August 4, 2017.

Example of DRIP transactions
Example of DRIP transactions

Given that the purchase was made in August, the total number of BNS shares I am reflecting in my portfolio update as at July 31st remains unchanged from that reflected June 30th. While $583.68 is really mine either in the form of cash and/or shares, my brokerage account reflects no change because of the wash entry. I honestly can’t be bothered to adjust my FFJ Portfolio update to reflect the amount that is in a holding pattern. I would much prefer that these updates reflect exactly what is reported on the brokerage statements.

On July 31st I posted my analysis on MasterCard (NYSE: MA). We already owned MA shares in another investment account for which I am not prepared to disclose details but I decided I wanted to also hold shares in the FFJ Portfolio. While I purchased 400 shares for the FFJ Portfolio on July 27th, the settlement date was not until Aug 1st. I will, therefore, only reflect these new MA shares when I post my August update.

The Canadian dollar has strengthened subsequent to the second week of May 2017 which has certainly helped me with my recent purchases.

Recent USD CDN FX conversion rates
Recent USD CDN FX conversion rates

In my inaugural FFJ Portfolio report which was published February 9th, 2017, I indicated I had set a FY2017 dividend income target of CDN $7,000 and US$11,000. After 7 months in 2017, I have exceeded my Canadian dividend target and I am on track to exceed the US target by the end of the year.

FFJ Portfolio Monthly Dividend Income

On a final note, I have changed the reporting format. I realize that my previously posted format was probably not the most intuitive. In addition, I was reporting the value of the portfolio at inception (December 31, 2016). I am not sure how relevant that is since I have been making additional purchases and I am automatically reinvesting all dividends. I think it makes more sense to reflect the current number of shares, the average cost of each security, and the closing share price as at month end.

FFJ Portfolio July 31 2017

That’s it for July. Now if only we would get a healthy market correction so the dividends I receive would stretch a bit further with the share purchases….!

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