This is my October 2019 FFJ Portfolio update. The portfolio was created in January 2017 for the purpose of demonstrating how investing in high quality companies with competitive advantages and with a record of consistently increasing dividends can assist investors in reaching their long-term financial goals without the need to speculate or to chase dividend yield.
The holdings within the Core Accounts and Side Accounts within the FFJ Portfolio can be accessed here and the monthly dividend income generated can be viewed here.
NOTE: The Bank of Nova Scotia (BNS) shares held in one of the Core Accounts are currently not set up for automatic dividends reinvestment so the cash balance in the account does reflect the dividends recently received and the share count is accurate. The October 31, 2019 FFJ Portfolio report, however, does not reflect the additional shares which will be purchased from the automatic reinvestment of the dividends which were very recently distributed from the following:
In an ongoing effort to free up more time and to provide us with a greater degree of flexibility with our time, we have decided to gradually sell our investment properties. In my October 2019 Interim FFJ Report I indicated the sale of one property was expected to close October 17th. I confirm the sale did close and funds will be deployed toward the purchase of shares in high quality companies when appropriate.
Subsequent to publishing my October 2019 Interim FFJ Report I wrote articles in which I disclosed the following purchases:
- Mastercard Incorporated (MA) shares acquired within one of the Core accounts;
- McDonald’s Corporation (MCD) shares acquired within one of the accounts for which I do not disclose details;
- Alimentation Couche-Tard Inc. (ATD-b) shares acquired within one of the accounts for which I do not disclose details;
The three 3M Company (MMM) October 2019 $210 covered call contracts held in one of the Core Accounts within the FFJ Portfolio which generated ~$840 in option premium did expire worthless as I had anticipated. I have, therefore, retained 100% of the option premium I collected when I wrote the contracts in April and I also retain the underlying shares.
The only outstanding covered call contract is that for Automatic Data Processing, Inc. (ADP). I wrote 5 November 2019 $180 covered call contracts on shares held in an account for which I do not disclose details which generated $2.30/share or ~$1,134 in option premium income. With shares trading at ~$163 and only 2 weeks remaining until expiry, those options are trading at $0.20/share. I am optimistic these contracts will expire worthless thus resulting in the retention of 100% of the option premium I collected as well as the retention of the underlying shares.
Not much else has transpired from an investment perspective as I continue to be cautious in this environment.
From a blog perspective, I have had to discontinue the blog’s subscription service because I have too much on the go and am unable to devote the time to writing articles as I had originally intended. I intend to continue to write articles as time permits and I will make the entire articles accessible to all.
That’s it for my brief update.
I wish you much success on your journey to financial freedom!
Note: Thanks for reading this article. Please send any feedback, corrections, or questions to [email protected].
Disclaimer: I have no knowledge of your individual circumstances and am not providing individualized advice or recommendations. I encourage you not to make any investment decision without conducting your own research and due diligence. You should also consult your financial advisor about your specific situation.
I wrote this article myself and it expresses my own opinions. I am not receiving compensation for it and have no business relationship with any company whose stock is mentioned in this article.
