Metro Analysis

metro-inc

Hi everyone today’s post is a review of Metro Canada’s third largest supermarket operator in Canada. Metro’s ticker is (MRU on the TSX). Metro only operates in two Canadian provinces Quebec and Ontario.

About Metro

The Company operates under various grocery banners in the supermarket and discount segments. The Company operates or supplies a network of over 940 food stores under various banners, including Metro, Metro Plus, Super C, Food Basics, Adonis and Premiere Moisson, as well as approximately 260 drugstores under the Brunet, Metro Pharmacy and Drug Basics banners. The Adonis banner, which has over 10 stores, is specialized in perishables, and Mediterranean and Middle-Eastern products. It also operates Premiere Moisson, a company specialized in bakery, pastry, charcutery and other food offerings prepared on an artisanal basis. Premiere Moisson sells its products to its stores, to restaurant and distribution chains, as well as directly to consumers. It also acts as franchisor and distributor for over 180 franchised Brunet Plus, Brunet, Brunet Clinique and Clini Plus drugstores, owned by independent pharmacists.

(Source: Google Finance)

Also Metro currently owns 32.2 million shares (7.5%) of convenience store giant Alimentation Couche-Tard.

Metro’s Retail Network

Quebec Ontario Total
Supermarkets 204 Metro, Metro Plus 134 Metro 338
Discount Stores 93 Super C 125 Food Basics 218
Neighbourhood Stores
Marche Richelieu 59
350
Marche Ami 187
Marche Extra 104
Partners
Adonis 9 2 11
Premiere Moisson 24 1 25
Total 680 262 942
Drugstores 184 Brunet, Brunet Plus, Brunet Clinique, Clini Plus 74 Pharmacy Drug Basics 258

2016 Highlights

  • Sales reached $12,787.9 billion up 4.6% and same store sales were up 3.7% a key industry metric.
  • Net earnings increased 12.9% to $586.2 million.
  • Invested $350 million into it’s retail network.
  • Increased the dividend for the 22nd consecutive year a 19.3% increase over 2015.

Investing Back Into The Business

In 2016 Metro spent $350 million. It opened six new stores and carried out major renovations in 43 others. In Quebec major renovations were carried out in 11 Metro stores. Three new Super C stores were opened. Two Adonis stores were opened. In the pharmacy division three stores were added. 12 others were expanded, remodeled or relocated throughout Quebec.

In Ontario 1 new Metro, and 1 new Food Basics were opened. Also 12 Metro and 13 Food Basics were remodeled. One new pharmacy was opened and six others remodeled.

Metro is continuing to remodel and expand stores, and are adding a discount segment to allow for a more complete and diversified offer of products in an attempt to attract new customers.

Outlook for 2017

Metro is planning on once again investing $350 million this will be used mainly to open new stores, expansions and remodels. Also they are planning to add online grocery shopping to their physical store network. They are currently testing this in three stores in Quebec.

Sales

After a small blip in 2013 sales continue to climb.

Net Earnings

Metro continues to earn solid profits year over year.

Dividend & Share Buybacks

Metro pays a quarterly dividend. 2016 marked the 22nd consecutive  year that Metro has raised it’s dividend paying $0.5367 per share. In January the board of directors announced another increase for 2017 that would boost the dividend to an annual payout of $0.65. Metro’s current policy is to have a payout of 20 to 30% of net income.

  • Between Sept 10, 2015 and Sept 9, 2016 the Metro repurchased 9,842,328 common shares for a total cost of $376 million.
  • The Board of Directors has authorized the repurchase of up to 12,000,000 common shares between Sept 12, 2016 and Sept 11, 2017.

metro-port-hope

I thought I would share the above picture with you this Metro is in my hometown of Port Hope, Ontario. Several years ago a truck caught fire at the factory behind the store. There were no injuries and the fire did not spread to the store.

Conclusion 

I currently don’t own any shares of Metro but I have been thinking about starting a position. I believe Metro is in good financial shape and with a low payout ratio I think we can expect to see more dividend increases in the years to come.

Is Metro on your radar? Do you own shares?

Thanks for reading I hope you enjoyed the post.

Matthew

* Milestone* Six Figure Portfolio

Hi everyone just wanted to share something with you. Today I thought I would check into my account and see how things were going and discovered I reached a milestone that I have wanted to achieve for awhile now.

My portfolio for today at least is now in the six figures 🙂

108

Mind you the market could go up or down and I could fall below six figures, but this made me happy and I wanted to share this with you. It has taken me about 13 years to achieve this let’s hope I can reach 200k in less time lol.

minions-congrats-gif

Thanks for reading please share if you like the post.

Matthew

Two New Increases For The Portfolio

Hey folks how are you? I hope your off to a great 2017 collecting those dividends. For today’s post I thought I would share with you two increases I recently received for my portfolio. These are my fourth and fifth increases of the year.

The first increase came from BMO US Dividend ETF on January 19, 2017.

The BMO US Dividend ETF (ticker: ZDY) has 100 holdings and is designed to provide exposure to a yield weighted portfolio of U.S. dividend paying stocks. I purchased this ETF back in November 2016 and you can read about it here.

Dividend

The ETF pays a monthly dividend and was created in March 2013 paying $0.041000 since then the dividend has been raised 7 times plus 1 special distribution. Today the ETF pays $0.066000 monthly.

This is the first increase I have received from the ETF. I currently own 447 shares. With the raise my income increases by $21.48.

The second raise I received came from BCE on February 2nd, 2017

bellcanada_logo

About BCE

BCE Inc. is Canada’s largest communications company, providing a comprehensive and innovative suite of broadband communications and content services to consumer, residential, business and government customers in Canada.

Powered by industry-leading investments in advanced networks and media content, Bell communications services are offered under the Bell and Bell Aliant brands. These include fibre-based IPTV and high-speed Internet services, 4G LTE wireless, home phone and business network and communications services, including data hosting and cloud computing.

Bell Media is Canada’s premier multimedia company with leading assets in television, radio, out of home and digital media, including CTV, Canada’s #1 television network, and the country’s most-watched specialty channels.

To accelerate Bell’s broadband content strategy, BCE is a significant investor in Canada’s leading sport and entertainment institutions, the Montreal Canadiens and Maple Leaf Sports and Entertainment. The Source is one of Canada’s largest consumer electronics retailers with over 650 locations nationwide, offering Bell TV, Internet and Mobility products and home entertainment, home office and sound products.

(Source: Company’s website)

On February 2nd, 2017 Bell announced a 5.1% increase to their dividend. I have owned this stock since July 2014 and this is the third increase I have received.

Dividend

Bell pays a quarterly dividend and with the increase the dividend goes to $0.7175 from $0.6825.  I currently own 110 shares of the company and with this announcement my income increases $15.40.

Well guys I love dividend investing because you can be rewarded for doing nothing. With these two announcements my income increases $36.88 and I didn’t have to lift a finger. If you own these investments congrats on the raise.

Thank you for reading

Matthew

January 2017 Income Report

Hey guys hope you started the new year by collecting lots and lots of dividends. January was great for my portfolio I received the second most dividends ever since becoming a dividend investor in 2014. I received dividends from 15 stocks and 1 ETF.

Let’s get to the numbers shall we, well my portfolio consists of two accounts the Tax Free Savings Account (TFSA) and the Registered Retirement Savings Plan (RRSP). For my TFSA account all eight of my stocks paid me 🙂 I received $109.62 . In my RRSP 7 stocks and 1 ETF paid me and I received a total of $268.37.

TFSA

The Keg Royalties Income Fund $20.22
Inter Pipeline $17.87
Boardwalk REIT $17.63
Artis REIT $13.95
Boston Pizza Royalties Fund $12.31
Chorus Aviation $10.92
ZCL Composites Inc. $10.16
Corus Entertainment $6.56

RRSP

BCE $75.08
TransCanada $57.63
Telus $48.00
Algonquin Power & Utilities $42.78
BMO US Dividend ETF $27.71
Pizza Pizza Royalty Corp. $16.76
North West Company $0.31
Leon’s Furniture $0.10

Dividends

 

Buys/Sells

January was quiet for me on this front I did not buy or sell any stocks. Currently building up my dividends to see if the market will pull back some before jumping in again.

Dividend Increases

January was very good to me for dividend increases I received 4 this month which increased my forward income $78.98.

  • January 5th Enbridge announced a 10% increase to $0.583 from $0.53
  • January 12th Canadian Utilities 10% increase to $0.3575 from $0.3250
  • January 16th Algonquin Power & Utilities 10% increase to USD$0.1165 from USD$0.1059
  • January 19th BMO US Dividend ETF increases distribution to $0.066000 from $0.062000

 

Credit Card

I didn’t include this in my figures but last year I owned a credit card that had an annual fee of $100 and I earned one point for every dollar I spent. Since I found the card too expensive to own I replaced it with a cash back card and in January I received $31.19.

So that wraps up my January report. How did you guys do?? Please share I would love too hear how you made out.

Thanks for reading please share if you want I would appreciate it.

Matthew

Chorus Aviation Review

choruslogo100

Hey guys today’s post is about Chorus Aviation. I own this stock and it is also on my radar to purchase more shares. I originally envisioned talking about two stocks in this post but thought it would be quite lengthy enough so I decided to just focus on Chorus Aviation.

So what is Chorus Aviation? Well Chorus which is headquartered in Halifax, Nova Scotia is a company that has various regional aviation interests including Jazz and Voyageur.

Jazz

In Canada Jazz operates the largest regional airline and the third largest airline based on passengers carried. Jazz had a Capacity Purchase Agreement (CPA) with Air Canada. Under which Air Canada purchases the capacity of covered aircraft operated by Jazz under the Air Canada Express Banner.

air-canada-express-jazz-dhc-8-400-c-ggoi-04apr-yyz-tmk46-m

Through Jazz Chorus provides a significant part of Air Canada’s domestic and transborder network to 57 destinations in Canada and 13 in the United States. The CPA is in effect until December 2025. The planes under the CPA have a seating capacity of between 30-78 passengers.

Under the CPA Chorus earns revenue five ways:

  1. Controllable Revenue
  2. Fixed Fees
  3. Performance Incentives
  4. Aircraft leasing
  5. Pass Through Revenue

Chorus is paid Controllable Revenue rates based on controllable costs using variables such as block hours, flight hours, cycles and passengers carried. Fixed Fees there are two fees Fixed Margin per Covered Aircraft and Infrastructure Fee per Covered Aircraft compensates Chorus for additional service provided in support of Air Canada’s regional flying network such as airport operations. Aircraft leasing Jazz leases owned Q400s (plane in the picture above) and engines under the CPA. Annually, these aircraft and engines currently generate a cash margin of approx 20%. Pass Through Revenue Jazz is entitled to repayment of certain costs including navigation, landing and terminal fees.

Costs Under CPA

There are two types of costs under the CPA Controllable and Pass Through Costs.

  • Controllable: Crew wages & benefits, aircraft maintenance, aircraft leased through CPA.
  • Pass Through Costs: Third party food and beverage, third party ground handling, aircraft maintenance materials & supplies.

CPA Value Drivers

  • Long term predictable compensation levels that support the dividend.
  • Long term labour agreements with pilots, flight attendants, dispatch and maintenance employees until 2025.

Outside of the CPA Jazz has a dedicated, standalone charter fleet and has the ability to offer aircraft operator services such as ground handling, dispatching, maintenance, repair and overhaul services, flight load planning and training.

Voyageur Aviation

On May 1st, 2015 Chorus Aviation purchased Voyageur Aviation. Voyageur provides specialized contract flying operations to Canadian and International customers. The company operates medical, logistical and humanitarian flights serving blue chip clients in Canada and Africa, comprised primarily of government entities and international non-governmental organizations. Voyageur also has a AeroTech division which specializes in engineering and advanced maintenance operations.

Growth Strategy

Chorus has been looking for ways to diversify their business away from the CPA with Air Canada and one way they are going about it is through aircraft leasing. Under the CPA aircraft leasing revenue has been growing year-over-year, but on November 9th, 2016 it was announced that Chorus had reached a deal to buy 4 CRJ1000 aircraft from Bombardier and lease them to Air Nostrum a leading regional airline based in Valencia, Spain. The aircraft are scheduled to be delivered in November and December of 2016, and July and October of 2017.

crj1000

On December 19th, 2016 Chorus Aviation announced that they would be creating a new subsidiary called Chorus Aviation Capital to help them with this Fairfax Financial Holdings Ltd. will be investing $200 million Canadian.

Dividends

In July 2014 Chorus changed it’s dividend which at the time was paid quarterly to monthly paying $0.0375 per month. In March 2015 Chorus increased the dividend to $0.04 where it stands today.

Operating Income Per Share

Stock Info

Chorus Aviation trades on the Toronto Stock Exchange (TSX) under the ticker: CHR at a price of $7.30 (as of January 29th, 2017) a share. The stock has a dividend yield of 6.58% and has a market cap of $891.9m.

Conclusion

As mentioned at the beginning I am a current shareholder of this company, and I am currently looking to add shares. The company has long term agreements with its employees until 2025 creating labour stability. Please do your own research if interested in this stock. I believe the stock is a buy for someone looking for monthly income. The stock is up 12.3% since Dec 19th, 2016 since the announcement of the planned new subsidiary Chorus Aviation Capital.

Please let me know if you liked this post. I am looking to do more stock reviews and would like your opinion on what you want to see. Did I miss anything important?? Please let me know.

Thanks for reading

Matthew

Third Increase of 2017

Hey folks have I told you how much I love dividend investing? I love getting raises for doing nothing. In just 16 days into the new year my portfolio has received three dividend increases all have been raises of 10%. With these three increases my forward income has improved by $57.50.

On January 16th Algonquin Power & Utilities announced a 10% to their dividend.

apuc_logo

Algonquin Power & Utilities Corp. is a North American diversified generation, transmission, and distribution utility with over $10 billion of total assets. The distribution business group provides rate regulated water, electricity and natural gas utility services to over 782,000 customers in the United States. The generation business group owns a portfolio of regulated and long-term contracted North American based wind, solar, hydroelectric and thermal generating facilities representing more than 2,500 MW of installed capacity. The transmission business group invests in rate regulated electric transmission and natural gas pipeline systems in the United States and Canada. APUC delivers continuing growth through an expanding pipeline of renewable energy development projects, organic growth within its regulated distribution and transmission businesses, and the pursuit of accretive acquisitions.

(Source: Company Website)

Before this announcement Algonquin Power & Utilities paid a dividend of USD $0.1059 that now increases to USD $0.1165. I currently own 309 shares and this is the 3rd increase I have received since owning the stock. With the current exchange rate my forward income will be USD $13.12 ( $17.42 Canadian).

Congratulations on the raise to everyone who owns the stock.

Thanks for reading.

Matthew

Canadian Utilities Increases Dividend

cu-our-companies-feature

Hey fellow investors more exciting news to share with you. On January 12th I received my second dividend increase of the year. Canadian Utilities announced a 10% increase to their dividend. The company has increased the dividend every year since 1972.

About the Company

Alberta-based Canadian Utilities Limited, with nearly 5,500 employees and assets of approximately $19 billion, is an ATCO Company. ATCO is a diversified global corporation delivering service excellence and innovative business solutions in Structures & Logistics (workforce housing, innovative modular facilities, construction, site support services, and logistics and operations management); Electricity (electricity generation, transmission, and distribution); Pipelines & Liquids (natural gas transmission, distribution and infrastructure development, energy storage, and industrial water solutions); and Retail Energy (electricity and natural gas retail sales).

(Source: Canadian Utilities website)

I first purchased shares in the company back in July of 2014 and recently added to my position in November you can check out the details here. This is the third dividend increase I have received from the company.

Before the announcement Canadian Utilities paid a quarterly dividend of $0.3250 and now that increases to $0.3575. I currently own 155 shares so with this news my income increases by $5.04 or annually by $20.16.

Congrats to all the other shareholders who own this stock.

Thanks for reading please share if you enjoyed the post.

Matthew

2016 Year In Review

2016-year-in-review

Hey folks how are you? For today’s post I thought it would be fun to go back and review last year. 2016 was my second full year of becoming a dividend investor and I am very happy with the results and I wonder why didn’t I make the move sooner. My TFSA (Tax Free Savings Account) account had a terrible 2015 was I able to turn it around in 2016 well keep on reading to find out 🙂 I hope everyone was able to achieve what they wanted to last year or at least came close to.

Let’s dig into the numbers shall we?

TFSA

Before I start telling you about last year for my TFSA let’s go back to 2015. Above I mentioned that I had a terrible 2015 as an investor I committed a sin and got punished for it, I purchased a stock in 2014 without doing any research and took the advice of someone on tv.

disappointment-gif

It did not end well for me that stock was Long Run Exploration (no longer exists company was purchased in 2016). Entering the new year I only had two holdings a mutual fund and the stock I just mentioned. In February I made the decision to smarten up and focus on improving my account. I sold my mutual fund and started investing in stocks again.

Long Run Exploration left my TFSA in July when the company was purchased and I received cash for the shares I held at the time. Now let’s get to the positive stuff.

2016 saw me give my account a makeover I made 8 purchases and you can check them out here. My account increased 34.2% in value and I received record dividends. At the end of 2016 my TFSA had a value of $21,500.67

To help makeover the account I invested a total of $12,416 into my TFSA. So now let’s move onto my RRSP (Registered Retirement Savings Plan) account.

RRSP

2016 was a another good year for this account, it increased in value 21.6% and saw dividend income increase 17.7%. At the beginning of the year the account had a value of $63,446.63 and ended with $77,147.68.

I added some new stock to my portfolio as well.

  • Magna International (sold it in Oct)
  • Power Corp
  • Potash Corp
  • BMO US Dividend ETF

I also added to my position in four stocks

  • Royal Bank of Canada
  • Canadian Utilities
  • Westjet
  • Telus

Sold some stock as well.

  • JP Morgan
  • Proctor & Gamble
  • Magna International

I sold JP Morgan and Proctor & Gamble to better diversify my account and used the funds to purchase the ETF mentioned above.

I invested a total of $1,800 into this account in 2016.

Yearly Dividends

Here is a look at my dividends when I combine both accounts.

Dividend Increases

I guess this isn’t a surprise since I have added quite a few more stocks into my portfolio but 2016 saw me receive a record amount of increases. I get money for doing nothing who doesn’t like that. Last year I received 16 regular increases and 1 special distribution these increased my forward income by $66.17.

Here’s a list of who I received increases from.

Increases
The Keg Royalties Income Fund 2 Regular, 1 Special
Telus 2
Bank of Montreal 2
Alimentation Couche-Tard 2
Algonquin Power & Utilities 1
Power Corp 1
JP Morgan 1
Pizza Pizza Royalty Corp 1
Royal Bank of Canada 1
Fortis 1
Inter Pipeline 1
Canadian Utilities 1

I have a page to show all of the increases I have received to date since becoming a dividend investor you can find that here.

So that wrap’s up my 2016 I hope I can continue my success in 2017 🙂

Thanks for reading please feel free to share this and  comment I always enjoy reading them.

Matthew

First Dividend Increase of 2017

enbridge-logo

Hey folks I sure love dividend stocks. I only had to wait five days into the new year before I received my first dividend increase announcement. On Thursday January 5th Enbridge (Ticker: ENB) announced a big 10% increase. This is the 22nd consecutive year in which Enbridge was increased its common share dividend.

Enbridge Inc. (Enbridge) is an energy transportation and distribution company. The Company operates through five segments: Liquids Pipelines; Gas Distribution; Gas Pipelines, Processing and Energy Services; Sponsored Investments, and Corporate. The Company operates the crude oil and liquids transportation system in Canada and the United States. The Company also has involvement in natural gas gathering, transmission and midstream businesses. It provides natural gas distribution services in Ontario, Quebec, New Brunswick and New York State. As a generator of energy, Enbridge has interests in over 2,200 megawatts (MW) of renewable and alternative energy generating capacity and is involved in holding its interests in wind, solar and geothermal power. Gas Pipelines, Processing and Energy Services segment consists of investments in natural gas pipelines, gathering and processing facilities and its energy services businesses, along with renewable energy and transmission facilities.

(Source: Google Finance)

In 2016 $2-billion in growth capital projects were brought into service, and there are expectations of additional projects coming into service in 2017. In 2016 Enbridge announced that they planned on purchasing Spectra Energy in a $37 billion deal. Both companies shareholders have approved of the merger now it is going through the regulatory process. If approval is granted by the regulators  Enbridge has hinted of another dividend increase in 2017 of in my opinion about 5% (more is better though 🙂 ) as they said in the past about boosting the dividend by 15% in 2017.

Also if the deal goes through the board of directors projects they could be able to extend Enbridge’s dividend growth rate of 10-12% per year through to 2024.

Impact On My Portfolio

With the announcement the dividend increases to $0.583 from $0.53 the new dividend is payable on March 1st to shareholders of record on February 15th.

I currently own 94 shares and with the announcement my forward income increases $19.92 ( $4.98 quarterly).

I wish I had more shares of this terrific company. Congratulations to everyone on the raise.

Thanks for reading

Matthew

2017 Goals

Happy New Year everybody 🙂 it’s that time of year where we set goals for the new year. Well I am no different I have set some new goals that hopefully I can achieve. First though let’s review how I did with my 2016 goals.

Portfolio

  • Receive $3,500 in dividends       Success
  • Invest $4,000                                  Success

I had success with both of my portfolio goals. In 2016 I received a total of $3,570.11 in dividends, making 2016 the best year for me. I invested a total of $14,216 last year easily surpassing my goal of $4,000. Last year I made the decision to focus on investing.

Twitter

  • 1000 followers          Fail

In 2016 I set an ambitious goal of trying to reach 1000 followers, I say ambitious because at the time I only had 253. Even though I did not reach my goal I say I still had a successful year on Twitter. On Jan 1st, 2017 I had 788 followers, I increased my followers by 115%.

Blog

  • 15,000 page views            Fail
  • 100 Subscribers                 Fail
  • 45 Posts                               Fail

I did not reach my goal on any of my blog goals but I did come close. For page views I ended the year at 11,129 not to bad in my opinion for only 10 months of blogging. For subscribers I began the new year with 6 so a big miss but at the time I was only guessing, I look forward to improving that number this year. As for posts I finished the year with 44 so pretty darn close to the goal.

So that wraps up 2016 lets take a look at my 2017 goals. This year I have added a couple of personal finance goals.

Porfolio

  • Receive $4,000 in dividends
  • Invest $4,000

This year I want to see if I can increase my income by $500 with the stocks I have I believe I can reach the $4k mark. For investing I have decided to once again to keep my goal at $4k the reason for this is I won’t be able to invest as much this year as I did in 2016. I will say why below in the personal finance section.

Twitter

  • 1,500 followers

Even though last year I did not meet my goal I am going to increase it this year. In 10 months in 2016 I gained 535 so I think I can add 712 in 12 months.

Blog

  • 15,000 page views
  • 30 Subscribers/followers

This year I am only going with two goals, for page views I am keeping the same goal, I want to see if I can meet my goal before increasing it. I have lowered my subscriber/follower number as last year I made a wild guess, last year I had 6 so let’s see if I can grow that number.

Personal Finance

  • Destroy my $3,818 loan I owe
  • Boost my saving’s to $6,000

This year I have decided to focus on improving my finances which affects my investing so that is why I have added these to this post and site. I currently have a loan in which I owe $3,818 I want to pay this off quickly. Once that is paid out I will focus on building my savings, In savings I currently have $2,500 I don’t have much of a cushion if something were to happen such as my car breaking down, or needing a new laptop (my currently one is six years old) etc…