Fiscal Update Mar 2014 – Tim Hortons

Remember last year when I explained how investing in coffee businesses was an awesome idea? Well good news, because it looks like the daily grind is paying off 😉 One of those companies, Tim Hortons (THI), recently increased its dividends from $0.26 to $0.32 per share!

That’s a 23% dividend increase! Holy hamburgers! That’s amazing eh (゜∀゜) I only bought 20 shares of Tim Hortons at $50 per share, so all it took was just $1K of my personal savings to make this happen. Ain’t it great that we don’t need a ton of money to start investing 🙂 The first payment under the new increased rate was distributed last month. Here’s a look at what that dividend payment looked like for me.

Capturetim Tim Hortons

If you buy your doughnuts or coffee from Timmy’s I would like to say thank you on behalf of all Tim Hortons shareholders 😀 Without loyal customers like you, this company would not exist today. I look forward to receiving another $6.40 in June, and so on and so forth until the dividend is raised again! Aw yiss 😀 Collecting passive income is so exciting \(^_^)/

Dividend returns are one thing, but what about capital appreciation? Tim Hortons is trading at roughly $60 per share these days so that’s a nice 20% return on capital 😀 At least on paper anyway. My investment in Starbucks (SBUX) is doing even better because its stock price today is over 30% higher than when I blogged about buying it last year 😉 #winning

For anyone who followed me into the world of coffee investment in 2013 I trust you are satisfied with the results so far 🙂 But is it too late to get into these stocks now? I’m not a qualified financial expert or anything, so I can’t give any advice on that. But what I will say is if I personally didn’t own THI or SBUX today, I would probably buy them on pull backs. And now, onto my financial numbers for March.

*Side Income:

  • Part-Time Work = $400
  • Dividends = $400
*Discretionary Spending:
  • Eating Out = $100
  • Others = $800 (computer upgrade)

*Net Worth: (MoM)

  • Assets: = $757,100 total (+2,100)
  • Cash = $500 (+300)
  • Stocks CDN =$87,000 (+900)
  • Stocks US = $49,400 (+600)
  • RRSP = $41,200 (+300)
  • Home = $254,000 (same)
  • Farms = $325,000 (same)
  • Debts: = $528,600 total (-1,700)
  • Mortgage = $199,200 (-400)
  • Farm Loans = $207,400 (-400)
  • Margin Loan CDN = $28,000 (+100)
  • Margin Loan US = $24,500 (-200)
  • TD Line of Credit = $34,000  (-200)
  • CIBC Line of Credit = $13,700 (-100)
  • HELOC = $17,800 (same)
  • RRSP Loan = $4,000 (-500)

*Total Net Worth = $228,500 (+1.7%)
All numbers above are in CAD. Conversion rate used: 1.00 USD = 1.10 CAD

$3,800 net worth gain last month. About half of that came from savings, and the other half from capital appreciation or dividends. Stock portfolios were up slightly.  Notable gains in Intel Corp, and Suncor. Both up 5% month over month 🙂 No new investment was made in March. Slowly paying down some debts.

————————————————————————
Random Useless Fact: There’s a pun in the following joke. See if you can find it 😉

Three guys are on a boat and they have four cigarettes, but no matches or cigarette lighters to light them with.
So what do they do?
They throw one cigarette overboard and the whole boat becomes a cigarette lighter.

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Gareth @ Investment Road To Freedom
Gareth @ Investment Road To Freedom
04/05/2014 8:25 am

Great stuff on the Tim Horton’s stock. In 8 years the dividend has gone from 0.062 to 0.288 🙂 Very impressive

S Arun
04/05/2014 11:36 am

Great stuff, I bought 100 shares of THI when it was trading around $46, but sold 50 of them at $52 to take some profit. It was a bad move :(; however, I still have 50 units and am planning to buy on pull back.

The Asian Pear
The Asian Pear
04/05/2014 2:02 pm

You have Tim’s & Starbucks stock? I’m a major client for both. XD

Investing Pursuits
04/05/2014 3:07 pm

I recently bought Tim Horton’s a few months ago…Nice to get paid buy Tim Horton’s for a change since I spent a lot of month there over the years..

The Loonie Bin
The Loonie Bin
04/07/2014 8:01 am

I held off from buying THI when it was $30 because of such a low dividend yield and it wasn’t doing so hot at the time. Rookie mistake, but I plan on buying in the upcoming “Sell in May and walk away” fiasco. I like to call it “Sell in May and sure, I’ll take those great company stocks off your hands for less money, Bud.”