Not Working As Intended

Finally i hated that ETFs held crappy stocks i don’t want, so i made my own ETF fuck them. It costed me 44.55$ to get all those stocks (about 1%) This is about the same as holding a ETF for 4 years. Since i intend to hold them for 10 years + (rebalance each 3 months). I called this portfolio MY LAST PORTFOLIO because i think after my research it is my way to invest, i love to be all over the place and have less risk if any of them goes bankrupt.

It even has it’s advantage today (march 26th) i went ex-dividend date on :

RioCan Real Estate Investment Trust
Canadian Imperial Bank of Commerce
Cominar Real Estate Investment Trust
National Bank of Canada
Power Financial Corp
Kraft Foods Group Inc
Philip Morris Intl. Inc.
Cineplex Inc
Shoppers Drug Mart Corp.

i definitely prefer to receive a few smalls payments monthly than 1 big each 3 months.

As you may have seen in one of my last year post Stocks are just not for me i decided to stop investing in individual stocks, stock picking might just not be for me. I seem to be expecting way quicker results from stocks, after all they are not a Get Rich Quick Scheme.

I have focused on low MER Dividend ETF, the average MER for those funds is 0.258%. The actual cost for this much diversification ? A ENORMOUS 5.20$ per year on my current 2000$I already expect dividends from those

iShares S&P/TSX North American Preferred Stock - XPF - 0.08203 (0.66$)

iShares S&P/TSX 60 Index Fund - XIU - 0.16469 (6.26$)

I am looking for 1 more ETF (Weight would be 10%). Any Advices ?

Just before i sold all my holdings i received some dividends from those great company. I can’t wait to pass the 100$ per month mark. It still seems so far away…

3.83$ – PROCTER & GAMBLE CO/THE
4.80$ – ROYAL BANK OF CANADA
11.70$ – A&W REVENUE ROYALTIES

It’s a bit late to post them but here they are

5.12$ – TELUS CORPORATION
4.34$ – PHILIP MORRIS INTERNATIONAL
4.68$ – KRAFT FOODS GROUP INC
2.00$ – CARFINCO FINANCIAL GROUP INC

I just closed my first Put Selling trade, i received 1.41$ per Put i sold on January 29th (KO May18th 37.50), 1 week later those same Puts were selling at 1,00$ so i bought them back for a nice profit of $61.52 on my investment (after commissions) i am still in 2 positive trade and 1 at cost.I might buy those back if price fall a bit more.

I found out that virtual brokers has many commissions structure, and you can switch from one to the other each 24 hours. It’s better for me to use The 99 when i buy stock but when i sell puts it’s better to use the Per Share structure. 6.49$ + 1$ per option.It’s a pretty nice price, wish i knew earlier (before i sold my first batch).

Today, i sold my positions, BUT WHY ??? 0_0 (Made a nice 400$ profit on 5900$ since january 3rd)

I decided to invest another way, i personally think it has more potential. I now sell puts for the premium. My goal is to never get attributed the shares. Buying to close cost less than getting the shares attributed it’s a bit weird but ill take it. Otherwise i would sell covered calls on my holdings.

I changed the my portfolio menu for My Strategy.

Ill update each time i make a trade !

Couldn’t resist, can’t wait for the summer haha[youtube_sc url="IwBS6QGsH_4"]

I have a colleague who is new in Canada, as crazy as it seems he wanted a car even if he lives in Montreal, a city where the subway and the bus are the most used transport method. He financed his car at 29.99% ( WOAH -_- ) with a lender for people with no/bad credit. CARFINCO

I then looked into how this company worked. Here is some interesting fact about them

1. They Pay a 4.40% dividend as January 17th
2. They increased their dividend at least once a year in the last 3 years.
3. They paid a Special dividend at least once a year in the last 4 years.
4. Payout Ratio is 43%

As you can see most of their market is no/bad credit

But how do you handle lending to people who does not have credit or bad credit ? Here is how they do it:

1. 29.99% interest of course.
2. The Car insurance is in Carfinco Name’s so if the buyer has a accident with the car the money goes directly to them.
3. They install a tracking device inside the car to be sure you be able to track the car if you don’t make payments.
4. They charge a 499$ administrative fee upfront when you purchase the vehicule.

The only thing bad i can see about them is they are not recognised as a approved lender (they might be too new to compete with the big banks)

I normally only invest in thing i know, but in that case i sure know that as long as there will be people buying expensive cars CARFINCO will be there to help them at 29.99% : )

December 2012 : 29.38$

I do not have the exact record from who i received the dividends because virtualbrokers is transfering from penson canada to selfclearing. However i received 29.38$ : )