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Optimism #70 - January 4, 2024

Dear clients and friends, Happy New Year.

Despite the dark clouds and incessantly negative media, there are always bright happy things taking place.

Even after Christmas, I am feeling rich.  We received dividends from Rogers, Scotiabank, Telus, CN Rail, Couche Tard, Fortis, Enbridge and Canadian Tire, all since the beginning of December.

It’s time to add to our TFSAs.  The 2024 limit is $7,000 per person.
Young adults saving for a home can add another $8,000 to the FHSA accounts.
Interest on spousal loans is due before January 30th.

If you have helped your son or daughter purchase a home and you are a joint owner, or if you have made yourself a joint owner, for example, with your aging parent on a home, investment portfolio or even a bank account with more than $50,000 in it, you may have an issue to resolve.
In simple terms, these are deemed to be trust situations, and a trust tax return may be required. 
Best to see your tax pro.  Trust returns are not due until the end of March, so you have some time. Read more here also available in Word format.

Courtesy of Dividend Growth Investing & Retirement we have many dividend increases during November alone to report.
  1. Alimentation Couche-Tard Inc. (TSE:ATD): 25.0% Dividend Increase [Dividend Streak: 13 years, Yield: 0.9%]
  2. Cogeco Inc. (TSE:CGO): 16.8% Dividend Increase [Dividend Streak: 18 years, Yield: 7.3%]
  3. Canadian Natural Resources (TSE:CNQ): 11.1% Dividend Increase [Dividend Streak: 22 years, Yield: 4.4%]
  4. Cogeco Communications Inc. (TSE:CCA): 10.1% Dividend Increase [Dividend Streak: 19 years, Yield: 6.6%]
  5. ADENTRA Inc. (TSE:ADEN): 7.7% Dividend Increase [Dividend Streak: 12 years, Yield: 2.2%]
  6. Toronto-Dominion Bank (TSE:TD): 6.3% Dividend Increase [Dividend Streak: 12 years, Yield: 4.9%]
  7. InterRent Real Estate Investment Trust (TSE:IIP.UN): 5.0% Dividend Increase [Dividend Streak: 11 years, Yield: 3.1%]
  8. Sunlife (TSE:SLF): 4.0% Dividend Increase [Dividend Streak: 8 years, Yield: 4.6%]
  9. Canadian Imperial Bank of Commerce (TSE:CM): 3.4% Dividend Increase [Dividend Streak: 12 years, Yield: 6.4%]
  10. Telus Corporation (TSE:T): 3.4% Dividend Increase [Dividend Streak: 19 years, Yield: 6.2%]
  11. Enbridge Inc (TSE:ENB): 3.1% Dividend Increase [Dividend Streak: 27 years, Yield: 7.7%]
  12. Royal Bank of Canada (TSE:RY): 2.2% Dividend Increase [Dividend Streak: 12 years, Yield: 4.5%]
  13. First National Financial Corp (TSE:FN): 2.1% Dividend Increase [Dividend Streak: 11 years, Yield: 6.7%]
  14. Canadian Tire Corp Ltd A Nvtg (TSE:CTC.A): 1.4% Dividend Increase [Dividend Streak: 12 years, Yield: 5.0%]
  15. Leon's Furniture Limited (TSE:LNF): 12.5% Dividend Increase [Dividend Streak: 0 years, Yield: 4.0%]
  16. Cargojet Inc. (TSE:CJT): 10.1% Dividend Increase [Dividend Streak: 2 years, Yield: 1.3%]
  17. Exchange Income Corporation (TSE:EIF): 4.8% Dividend Increase [Dividend Streak: 1 year, Yield: 5.8%]

For 2024, it looks like households with income under $90,000 per year will be eligible for free dental coverage.

There are many reasons people sell, but there is only one reason they buy. Insiders have been buying at the following companies: Cenovus (energy), Dentalcorp Holdings, Telus and Mullen Group.

Sadly, Warren Buffet’s brilliant and entertaining sidekick Charlie Munger died recently at age 99.
If you are looking for a wonderfully entertaining read, try Damn Right, a book about Charlie.
He is famous for saying “You don’t have to be brilliant, only a little bit wiser than the other guys, on average, for a long, long time.”  You don’t have to be smart if your plan is.

“But the kind of facts I’m watching - income, growth and dividend return potential - are timeless. I have complete confidence that my portfolios’ income will grow, accumulate and compound. I’m investing for the long haul, and I’m investing for cash. Let Mr Market have his games. With the dividends providing the right income, the right insight, and a truly independent frame of mind, you can do the same.”  Josh Peters.

The Federal Government created something called the ALDA, or Advanced Life Deferred Annuity. It allows us to buy a deferred annuity at age 71 with RRIF money, deferring payments for a number of years and locking the money into an annuity.  It’s new so I don’t have a lot of ideas about it, except that it would likely fit well with conservative investors who have larger RRIFs and don’t want or need the income yet.  Good for someone who works past age 71.  Click here for more information.

“We start beating the market with dividends alone after about a decade.” Tom Connolly

This is from Dixon Mitchell’s latest market update. I like how they worded it:
“The objective shouldn’t be maximize a series of short term returns, with the hope of stringing together to arrive at an optimal end result – it doesn’t take a great deal of consideration to realize that the odds of pulling this off over any length of time are next to zero.”

And from someone who calls themself ‘thinkingmindspage’ on Instagram,
“Money is a tool, not the goal.  Freedom is the goal. Money = freedom.”

Have an incredible 2024!
Derek Moran