Dividend Increase for MacDonald's

Yep, MacDonald's Corp (NYSE: MCD) is doing it again this year, increasing its quarterly dividend 15% from $0.61 to $0.70 per share.

Net Worth Update

As of September 1st, my net worth was $143 703 (down 2.2% from $146 887). If I exclude house-related assets and liabilities, my net worth was $97 126 (down 3.7% from $100 844). The last two months were hard on my net worth, due to expenses related to my vacation. This was compounded by the volatile markets, which cut down the value of my investments.

Assets ($239 189, down 1.5% from $242 779)

• Bank Accounts $3 782 (down 24% from 4 927)


• Emergency Funds $4 000 (up 2% from $3 922)


• RRSP Accounts $67 154 (down 3.6% from $69 641)


• Non-Retirement Investments $35 228 (up 1.3% from $34 761)


• Home $100 530 (stable)


• Car $28 041 (down 1.7% from $28 517)

Liabilities $95 486 (down 0.4% from $95 892)

• Credit Cards $4 473 (up 41% from $3 169)


• Mortgage $53 953 (down 1% from $54 487)


• Line of Credit $0 (stable)


• Car Loan $36 998 (down 3% from $38 154)

Ratios

• Debt / assets: 0.399 (up from 0.395)


• House value / total assets: 0.420 (up from 0.414)

You may have noticed that my net worth updates are now bi-monthly instead of monthly. This started out because of the timing of my vacations over the summer, but since I have found that I've got less time to blog, I will probably keep it that way moving forward. I still track my numbers every month, though I will only report them every two months.

Chances are that my next update will also show negative results, because we are replacing the roof in September.

Net Worth Update

As of July 1st, my net worth was $146 887 (down 2.1% from $150 080). If I exclude house-related assets and liabilities, my net worth was $100 844 (down 5.5% from $106 667). The significant decrease in my net worth is due to the purchase of my new car and how I record its value. That impact is muted somewhat because my last net worth update was for May 1st, and May was a good month with a tax return and a slight increase in the value of our house.

Assets ($242 779, up 17% from $207 064)

• Bank Accounts $4 927 (up 28% from 3 837)


• Emergency Funds $3 922 (up 130% from $1 697)


• RRSP Accounts $69 641 (up 0.9% from $69 005)


• Non-Retirement Investments $34 761 (up 2.3% from $33 980)


• Home $100 530 (up 2.1% from $98 430)


• Car $28 517 -- New!

Liabilities $95 892 (up 68% from $56 984)

• Credit Cards $3 169 (up 70% from $1 868)


• Mortgage $54 487 (down 1% from $55 017)


• Line of Credit $0 (stable)


• Car Loan $38 154 -- New!

Ratios

• Debt / assets: 0.395 (up from 0.275)


• House value / total assets: 0.414 (down from 0.475)

As you can see, purchasing a new car has had a big impact on my financial situation on paper. One reason for this is how I evaluate the value of the car vs the amount of the car loan. While the car loan includes the taxes various fees associated with a new car, I do not include these in the actual value of the car. Above that, I immediately remove 10% off the value of the car. So, even though it cost me $38 000, I record its actual value at $28 500. That's almost $10 000 removed from my net worth right there.

Going forward, I will decrease the car's value by 9% of its original value every year (or 0.75% per month). This means the car will be worth $0 after 10 years. Meanwhile, the car loan will be paid back in 5 years. This means that the net value of the car will rise with time, as the car loan is paid back fater than the car itself devaluates. Then, once the car is fully paid back in 5 years, depreciation will keep reducing its value until it reaches $0 in 10 years. This, I think, reflects reality fairly well.

Another Dividend Increase (Telus)

This morning, Telus (Toronto: T, T.A) has announced that it was boosting its dividend again (that's the second time in the last year), from $0.525 to $0.55 per quarter, a 4.8% increase. I own Telus in my DRiP portfolio.

More Dividend Increases (EIF, JNJ, SU, PEP)

Three more of my companies have recently increased their dividend payments.

Exchange Income Corporation (Toronto: EIF) announced in early April that it was raising its dividend from $0.13 to $0.135 each month, a 3.8% increase. The company was also announcing the acquisition of Westower Communications, a company that designs, builds, maintains and services wireless phone and other communications towers throughout North America.

Last week, Johnson & Johnson (NYSE: JNJ) announced a small 5.6% boost to the quarterly dividend, from $0.54 to $0.57 per share.

On Monday, Suncor (Toronto: SU) also announced an increase to the quarterly dividend, from $0.10 to $0.11 per share, a 10% increase.

Finally, this morning PepsiCo (NYSE: PEP) announced a 7% increase to its dividend, from $0.48 to $0.515 per quarter.

I own shares of EIF, JNJ and SU in my DRiP portfolio, whereas most of my PEP shares are in my RRSP.

Net Worth Update

As of May 1st, my net worth was $150 080 (up 3.7% from $144 699). If I exclude house-related assets and liabilities, my net worth was $106 667 (up 5% from $101 550). Being paid back for my business trip to Vancouver was a factor in this big increase, as was reduced expenses this month.

Assets ($207 064, up 1.4% from $204 217)

• Bank Accounts $3 837 (up 4% from $3 688)


• Emergency Funds $1 697 (up 240% from $495)


• RRSP Accounts $69 005 (up 1.8% from $67 784)


• Non-Retirement Investments $33 980 (up 0.9% from $33 686)


• Home $98 430 (stable)

Liabilities ($56 984, down 4.3% from $59 518)

• Credit Cards $1 868 (down 55% from $4 154)


• Mortgage $55 017 (down 0.5% from $55 280)


• Line of Credit $0 (stable)

Ratios

• Debt / assets: 0.275 (down from 0.291)


• House value / total assets: 0.475 (down from 0.482)

Liquidities are getting much better, with my business travel expenses paid back and the tax returns coming in. My emergency fund should be back to its normal level by the end of the month.

We had a little plumbing problem this month, and had to call a professional to fix it. That cost us a little under $300. I've also started getting quotes for the roof. I'll continue looking at all options before taking a final decision on this front.

Procter & Gamble Dividend Increases

Like clockwork, Procter & Gamble (NYSE: PG) has announced its yearly dividend increase, from $0.4818 to $0.525 per quarter. That constitues a 9% increase, always a nice boost. I own shares of PG in my RRSP account.

Net Worth Update

As of April 1st, my net worth was $144 699 (down 0.2% from $144 958). If I exclude house-related assets and liabilities, my net worth was $101 550 (down 0.5% from $102 070). This slight decrease is due to the fact that I had a business trip to Vancouver in March, and I'm still waiting for my expenses to be paid back by my employer. These were paid using my credit card, so expect an increase there.

Assets ($204 217, up 0.2% from $203 811)

• Bank Accounts $3 688 (up 9% from $3 387)


• Emergency Funds $495 (up 3% from $480)


• RRSP Accounts $67 784 (up 0.4% from $67 515)


• Non-Retirement Investments $33 686 (up 1.5% from $33 176)


• Home $98 430 (stable)

Liabilities ($59 518, up 2.3% from $58 156)

• Credit Cards $4 154 (up 62% from $2 567)


• Mortgage $55 280 (down 0.5% from $55 543)


• Line of Credit $0 (stable)

Ratios

• Debt / assets: 0.291 (up from 0.286)


• House value / total assets: 0.482 (down from 0.485)

Liquidities are still tight, since I have to pay my credit card even if my employer hasn't paid me back the expenses for my business trip. So putting back the money into my emergency fund will wait a few more weeks.

Still quite busy, between work and my involvement with a non-profit group related to my hobbies. Summer is coming soon, so activities on that side will pick up soon. I'm also planning the renovation and maintenance work on the house for this summer. Some more landscaping, ongoing repainting of the outside of the house, and the big job for this summer -- the roof.

My Recent Dividend Increases

Since the beginning of the year, I've gotten a series of dividend increases from the companies I hold in my different portfolios. Here's a quick run-down of those.

Bank of Nova Scotia (Toronto: BNS) has just announced that after a 2-year freeze of its dividend, it was again on the rise with a 6% increase (from $0.49 to $0.52 per qurter). I own BNS in my TFSA account and in my DRiP portfolio. [Sector: Financials]

A few weeks ago, TransCanada Corp (Toronto: TRP) announced a 5% increase (from $0.40 to $0.42 per quarter). TRP kept icreasing its dividend steadily even during the worst of the financial crisis. I own TRP in my DRiP portfolio. [Sector: Utilities]

Another company was Abbott Laboratories (NYSE: ABT), which increased its quarterly dividend 9% (from US$0.44 to US$0.48). Abbott is another company in my DRiP portfolio. [Sector: Pharma]

Pfizer (NYSE: PFE) also announced a dividend increase, bumping it up 11% (from US$0.18 to US$0.20 per quarter). Againg, I own some Pfizer shares in my DRiP portfolio. [Sector: Pharma]

In a different sector, 3M Company (NYSE: MMM) raised its quarterly dividend 4.7% (from US$0.525 to US$0.55). My 3M shares are in my RRSP account and in my DRiP portfolio. [Sector: Industrial]

Hasbor (NYSE:HAS) played its part with an impressive 20% increase (from US$0.25 to US$0.30 quarterly) in my DRiP portfolio. [Sector: Consumer discretionary]

All told, these increases will add about $14 to my dividend income for 2011. This may look small, but that's because my holdings in most of these companies are small. Still, it means an additional 0.126% to my dividend yield.

Net Worth Update

As of March 1st, my net worth was $144 958 (up 2.3% from $141 766). If I exclude house-related assets and liabilities, my net worth was $102 070 (up 3% from $99 141). All of this increase came from my investments, both registered and not.

Assets ($203 811, down 0.2% from $204 124)

• Bank Accounts $3 387 (down 45% from $6 158)
• Emergency Funds $480 (down 83% from $2 877)
• RRSP Accounts $67 515 (up 5.4% from $64 043)
• Non-Retirement Investments $33 176 (up 2.8% from $32 267)
• Home $98 430 (stable)

Liabilities ($58 156, down 6.3% from $62 044)

• Credit Cards $2 567 (down 57% from $5 936)
• Mortgage $55 543 (down 1% from $56 073)
• Line of Credit $0 (stable)

Ratios

• Debt / assets: 0.286 (down from 0.304)
• House value / total assets: 0.485 (up from 0.483)

Moved money from my emergency fund to my RRSP, to complete my contributions for 2010. Liquidities also moved down because I paid back my credit card bill where the car repairs and new computer for Princess.

I'm still very busy, moving to another new project at work. This is taking me a lot of energy, as I'm learning another new business domain and the delivery schedule is quite tight. I barely have time to update my spreadsheets, let alone blog about them. But things are going well! That's one good thing about dividend investments and DRiPs -- once they're set up they run themselves for the most part.

Future blog posts that I plan on doing: Recent Dividend Increases, and My Portfolio in Details (maybe split in a series of posts).

Net Worth Update

As of February 1st, my net worth was $141 766 (down 0.1% from $141 897). If I exclude house-related assets and liabilities, my net worth was $99 141 (down 0.4% from $99 532). The the last payment for the windows has been made, so this impacted this month's numbers, as expected.

Assets ($203 811, down 0.2% from $204 124)

• Bank Accounts $6 158 (down 25% from $8 132)
• Emergency Funds $2 877 (up 3.4% from $2 783)
• RRSP Accounts $64 043 (up 1.4% from $63 134)
• Non-Retirement Investments $32 267 (up 2.7% from $31 423)
• Home $98 430 (stable)

Liabilities ($62 044, down 0.3% from $62 226)

• Credit Cards $5 936 (down 2.3% from $6 076)
• Mortgage $56 073 (up slightly from $56 065)
• Line of Credit $0 (stable)

Ratios

• Debt / assets: 0.304 (down from 0.305)
• House value / total assets: 0.483 (up from 0.482)

As usual, the beginning of the year is tight in liquidities. This is particularly tru this year because I helped my lady for her car repairs, as stated in last month's update. The coming deadline for RRSP contributions is coming, so I'll have to decide soon whether I empty out my emergency fund to make a lump contribution while there is still time.

On top of that, I've also been quite busy lately, as I began working on a new project at work. I've also been working on some small crafting projects at home, and I had some meetings to attend for my hobbies. This explain my lack of message in January, and my lateness in posting my net worth update. Things should come back to normal soon, I hope!

Net Worth Update

As of January 1st, my net worth was $141 897 (up 2.8% from $137 993). If I exclude house-related assets and liabilities, my net worth was $99 532 (up 3.8% from $95 888). However, the last payment for the windows has not been made yet, so the totals should actually be $2 500 lower. And December was a 3-payweek month, so this also boosted my assets. But the year 2010 has been a very good year. :o)

Assets ($204 124, up 3.5% from $197 251)

• Bank Accounts $8 132 (up 41% from $5 754)
• Emergency Funds $2 783 (up 3.9% from $2 678)
• RRSP Accounts $63 134 (up 4.6% from $60 361)
• Non-Retirement Investments $31 423 (up 3.3% from $30 411)
• Home $98 430 (stable)

Liabilities ($62 226, up 4.1% from $59 779)

• Credit Cards $6 076 (up 75% from $3 482)
• Mortgage $56 065 (down 0.4% from $56 324)
• Line of Credit $0 (stable)

Ratios

• Debt / assets: 0.305 (up from 0.303)
• House value / total assets: 0.482 (down from 0.498)

Just before the Holidays, there were some big unplanned expenses. First, my lady's car had some extensive repairs that needed to be done, which were a safety issue. She didn't have the cash on hand to pay for those, and was looking at a 9% financing to pay for it. So I offered to pay for the repairs and she'll pay me back. Similar story for her computer -- it had been troublesome for some time and key features began to fail, so we replaced to. Together, those two items cost about $3 000, which explains the spiking of the amount on my credit card. I'll pay this fully (out of available cash from my emergency fund) when the CC statement comes in.

If not for this, expenses for the Christmas would have been quite reasonable. Even with those, things are still running smoothly. It's good to have some margin of safety!