the moneygardener

Need Cash for Your Business? Consider a Merchant Cash Advance

noreply@blogger.com (MG (moneygardener)) — Tue, 03 Jan 2012 21:41:00 +0000

Whether your small business is a start-up or fairly well established there will come a time when an infusion of cash is necessary. Maybe you want to do a big marketing push, or maybe equipment needs to be upgraded. Whatever the reason, as a small business owner, you're probably counting pennies at the same time you're considering options.

While loans may be a good idea, unless you can pay them back fairly quickly you may end up paying a significant amount of interest. Then, too, if your business is very new, you might not have the necessary credit or collateral to even qualify for a loan.

Fortunately, banks are not your only option. Nor are credit unions, or even the SBA. Instead, you should look into merchant cash advances. These are businesses that give you money based on your existing (or projected, with supporting evidence) credit card receipts. Advance amounts are available up to $750,000, although most are much smaller, and there are no credit checks, and no note to sign.

How is a merchant cash advance secured if there's no note? Most of these companies are affiliated with one or more credit card processing companies. In order to obtain an advance, you'll be required to have one of those companies (most of the time you get to pick which one) handle your credit card transactions. The company giving you the advance will be repaid by receiving a small percentage from every credit card sale you make until the advance has been repaid.

Funds from such an advance are generally released to you within 72 hours of approval, and the paperwork is pretty simple. Most cash advance providers require six or so months of your credit card sales, and a simple application form. Once your initial advance has been repaid, you can even request another, which will usually be approved more quickly.

If a merchant cash advance sounds too good to be true, remember this: the amount of money you can get is based on existing credit card sales, so if your business doesn't take plastic, you won't qualify. As well, you are agreeing to switch credit card processing firms.

Running a small business, whether it's established or not, comes with many challenges, but with a merchant cash advance those challenges can be met with ease.

Who Are the most Profitable Customers?

noreply@blogger.com (MG (moneygardener)) — Tue, 20 Dec 2011 16:01:00 +0000

Who Are the Most Profitable Customers?

If you are looking to grow and sustain your business, it will help you to know who your most profitable customers are. Identifying which customers are worth the most to your business is important, as it allows you to better identify your priorities and subsequently develop strategies to meet those priorities.

One thing to bear in mind is that the most profitable customers aren’t necessarily the obvious ones. For instance, if you have a client that is a major business in their own right, you might be tempted on first glance to assume that they’re a fantastic customer to have. Of course, they may well be a great customer – if only because of the prestige they bring – but it doesn’t mean they’re the most profitable. They might only provide you with occasional work.

This means you need to look a little deeper at your customer data to work out where your profit comes from. CRM software can help you with this. It makes good sense to keep a good CRM system no matter what, as it keeps all your customer information in one place and makes communication with clients much easier than it would otherwise be. CRM systems, though, can also help you to identify trends and things of note in your data.

This includes which customers are the most profitable. For example, you might find that even though one customer bought in a large amount of money when they first started working with you, the revenue has since tailed off. However, a company that was initially a small customer might now provide you with a good, regular income that adds up over time. They all have their worth and their place in your business, but knowing how much customers bring in and how often they use your business helps you with your planning.

For instance, you will be able to tell where it would be more worthwhile for you to target your marketing, or which customers might respond better to special deals. This is all information that you can use to enhance the sustainability of your business and, with any luck, make your profitable customers even more profitable.

Overall, the most profitable customers will vary from business to business; no company or customer is the same. However, having good CRM solutions in place will help you to identify where the best of your revenue comes from and, once you have determined this, you’ll be able to put the information to good use.

views expressed herein don't necessarily represent the views of themoneygardener.com

starting / growing a very young business

noreply@blogger.com (MG (moneygardener)) — Wed, 02 Nov 2011 22:23:00 +0000

Wow! I have just completed the largest challenge that I have ever faced in life and it has been exhilarating!

Planning a business venture and then actually starting and operating the business for 6 months is quite a ride. Ups and downs have been the order of the day for many of my last 365 days. I have put my capital, heart, and soul into this venture and breaking even has been elusive at the best of times. Marketing wisely, controlling costs, dealing with operational issues, and keeping customers happy has been a daily challenge.

The business that I have embarked upon is a 24/7 fitness club called Anytime Fitness. It is actually the world's largest 24hr, co-ed fitness franchise and a very impressive franchise indeed.

More details to come.....

Cheap Insurance Coverage & the Importance for your Family in Saving Money

noreply@blogger.com (MG (moneygardener)) — Sat, 25 Jun 2011 18:50:00 +0000

Today, with the rising costs of food, fuel, and other of life's necessities, families are struggling to maintain their household budgets. For this reason, saving money on insurance coverage you need has become essential. When families find ways to cut down on their necessary expenses, they can put the savings towards important things. For instance, savings can be put towards such things as: children's education, paying off outstanding bills such as credit card bills, paying the mortgage, establishing an emergency fund, establishing a retirement savings plan, and much more. One necessary expense that families can reduce their costs is when they buy insurance.

Just about every family has some type of insurance, whether it is health, life, auto, or homeowners insurance. Buying cheap insurance is one way a family can cut down on a necessary expense. Fortunately, families have resources available to them to locate cheap insurance. The internet is a great resource to finding cheap insurance. Buying cheap car insurance online allows you to avoid paying high premiums so you can put the savings toward other important expenses. Cheap insurance quotes are available with just a click of the mouse.

When searching for cheap insurance online, you will find a free insurance quote tool which can be found on most insurance websites. All that you have to do is fill out a simple online form and click submit. An extensive search of an insurance policy database is performed to locate insurance policy quotes from different insurance carriers that match your needs. It will take about a minute or less to find and return a list of insurance quotes matching the criteria that you submitted in the online form. These quotes will be the cheapest quotes. You can then read through each quote to determine the best policy for you.

When looking to find ways to manage the household budget, saving money on insurance is one way you can reduce the costs of one essential expense. During these difficult economic times, we could all use a bit of extra money in our wallets. Buying cheap insurance online is one way people can save some of their hard earned money.

Busy, busy...

noreply@blogger.com (MG (moneygardener)) — Mon, 13 Jun 2011 13:56:00 +0000

Sometimes life gets in the way of a great blog like the monegyardener. I have of course been very buy launching a new franchise, buying a new home, and raising our two boys. I will be back to the moneygardener at some point soon; I just can't say when yet.

I hope everyone is enjoying their summer!

can a cash advance loan be paid back quickly?

noreply@blogger.com (MG (moneygardener)) — Tue, 01 Feb 2011 18:41:00 +0000

A cash advance loan – money you borrow from a payday loan provider, based on your next paycheck – can be either a very useful or potentially destructive tool. Millions of people who work hard at their jobs use cash advances in order to cover unplanned, emergency costs that exceed their current checking account balances. Done right, a cash advance can be a lifesaver.

So where can a cash advance loan be a bad idea? Simply, if the borrower fails to pay it back quickly. These are designed for emergencies, and once the emergency is past the loan should be paid off. There are three ways in which the borrower can make sure they effectively pay off the cash advance in a timely fashion:

If you budget for reducing costs in the next month. In other words, you are getting the money you would use two or three weeks from now. That means you have to reduce your expenses then. Ask yourself, what expenses can be cut out next week and next month?

If your loan amount is manageable within your payscale. Your cash loan should be an amount that is reasonably within your ability to repay it. Most lenders restrict the loan to an amount less than what one paycheck would be, so in effect this is done for you. For good reason.

If you reduce expenses by a commensurate amount. One cash advance loan is not going to solve all current and future economic challenges. If you run consistently behind in expenses relative to your payscale, there is but one solution: cut back. (You could also get a second job, but in the current economic conditions that may not be an option.)

So if you decide to proceed with getting a cash advance loan – which may be the most responsible thing you could do – you are wise to plan a quick payoff. It will reduce the overall costs of the loan in fees, interest and penalties.

this has been a sponsor post and does not represent the views of themoneygardener.com

3 ways to save on your car insurance

noreply@blogger.com (MG (moneygardener)) — Fri, 14 Jan 2011 20:23:00 +0000

Car insurance is mandatory for anyone who wants to legally drive on our roads and highways. Because car insurance is compulsory, most of us would love to find the cheapest car insurance policy possible without sacrificing essential coverage. Fortunately, with so many insurance providers competing for our business, there are ways that we can locate and purchase affordable car insurance. Below are 3 key ways to save on your car insurance:

1. Online Comparison: Today, the internet has become a vital tool to locating cheap products and services. When it comes to locating cheap auto insurance, consumers now have access to online search tools located on insurance sites that allow them to compare a number of car insurance policies from various insurance providers. It is an easy and fast way to receive several cheap insurance quotes. Consumers can then review each quote and the policy coverage and pick the best policy that fits their budget and coverage needs. You can save hundreds of dollars using this free search tool.

2. Cost-Cutting Measures: There are a number of things you can due to lower your insurance costs. For instance, if you pay a higher a deductible, you will pay a lower monthly premium. Sometimes you can get a discount if you pay the premium for the full year instead of monthly. You can also lower your costs by getting rid of unnecessary coverage such as collision coverage if you have a low valued car. As well, combining you car insurance policy with another policy such as your homeowners insurance policy will result in a discount.

3. Take Advantage of Discount Offers: Insurance providers will offer a number of discounts to secure your business. You can save on your car insurance by taking advantage of as many discount incentives as possible. You can get discounts for such features as: adding anti-theft devices and safety features, maintaining low-mileage, driving a fuel efficient vehicle such as a Hybrid, completing a driver safety program, maintaining a clean driving record, maintaining a good credit history, and more. As well, there are also age discounts and discounts for maintaining a certain school grade-point average.

Although you need car insurance to be able to legally drive, you do not have to pay high premiums. It is easy to locate and purchase cheap car insurance when you know all of the key ways to reducing your insurance costs.

been a while..

noreply@blogger.com (MG (moneygardener)) — Wed, 12 Jan 2011 20:01:00 +0000

Wow, it really has been a long time since my last post on themoneygardener. I've been extremely busy looking after our two kids and getting our business off the ground. The market has been rolling right along pleasantly actually. Seems like unemployment and housing is taking very long to come back in the US, but I believe that it will be back and that's what the market is anticipating. I haven't made any trades lately, just collecting dividends and paying less attention to daily fluctuations.

utilities increasing dividends

noreply@blogger.com (MG (moneygardener)) — Fri, 05 Nov 2010 23:27:00 +0000

Energy distributor, Inter Pipeline Fund (IPL.UN) and telecommunications firm Telus (T.A) have both hiked their dividends. Telus by 5% and Inter Pipeline by about 7%. These two companies are both considered utilities. It is very nice to receive every increasing cash dividends from these two stable firms.

free money from my online broker

noreply@blogger.com (MG (moneygardener)) — Sat, 23 Oct 2010 00:06:00 +0000

I have used BMO InvestorLine to trade equities for about six years now. Over the time that I have held my account I have seen vast improvements in their site interface, research, and functionality. I would highly recommend InvestorLine to anyone considering opening a an investment account or switching from another broker.

If you open a minimum $10,000 account right now and use my referral code 978804481, you can receive $50 or even $100 bonus cash after you open your account!

how rich people think

noreply@blogger.com (MG (moneygardener)) — Thu, 21 Oct 2010 16:27:00 +0000

How Rich People Think is a 205 page book by Steve Siebold that I enjoyed very much. The book basically puts forth 100 ideas on how rich people (the World Class) differ from the middle class in their way of thinking and actions. For example:

Middle Class waits for their ship to come in...World Class builds their own ship.

Each of these comparisons are then explained in a one to two page summary after the comparision, making up a chapter. The book is nothing if not motivating, inspiring, and forces one to begin to think outside of the box that many of us find ourselves in while enduring the rat race. The ideas are based on a quarter century of interviews with millionaires. If you feel that you are stuck in a rut, and are looking for some motivation whether you want to take your career in another direction, start a business, grow your business, or simply make a large investment this book might help you get into the proper mind set to do so. You only live once so don't settle; strive for your dreams!

sold two names to raise cash

noreply@blogger.com (MG (moneygardener)) — Fri, 01 Oct 2010 14:18:00 +0000

To raise some cash for a business venture I sold my entire stakes in the following stocks this week.

Saputo (SAP) - The Canadian Food producer had run up so far from my adjusted cost base that it seemed like an obvious choice to take a nice profit. The stock is now trading at a P/E of over 18x, which strikes me as a little rich.

Scotts Miracle Gro (SMG) - This stock never really fit into my dividend growth model and the stock has run up very nicely in recent months. The stock likely has more room to run however it seemed like an ideal time to take a profit and exit the name for the time being.

Posting on the moneygardener should pick up over the next little while as I realize I have been nowhere to be found lately.

Leon's hikes dividend / Scotts doubles dividend

noreply@blogger.com (MG (moneygardener)) — Mon, 16 Aug 2010 16:56:00 +0000

Canadian furniture and electronics retailer Leons (LNF) has raised it's dividend by 29% to $0.09 per share. The raise came on a nice earnings announcement where Leon's beat expectations quite handily growing their earnings per share 42% from last year.

US Lawn & Garden manufacturer Scotts Miracle Gro (SMG) doubled it's dividend on the back of a very solid earnings report. Scotts reported an earnings increase of 12.5% versus the same quarter last year. This news beat expectations and propelled the share price higher.

Owning both stocks, I've been having good luck with dividends lately...

The Instant Millionaire

noreply@blogger.com (MG (moneygardener)) — Tue, 10 Aug 2010 01:56:00 +0000

Do the very wealthy think differently than the rest of us?

The Instant Millionaire by Mark Fisher is a fable which has been re-released in this new second edition by the New World Library. The book describes an amateur / mentor confrontation over a few days and conveys the lessons that the mentor teaches in an interesting way. The old wise millionaire mentor attempts to teach the young ambitious, yet naive amateur how to get into the mindset of a millionaire in training.

If you are looking for strategy on getting rich including specifics on wealth building, this book is not for you. This is one of those books that you will be tempted to read multiple times and I must admit that I plan to read it again. It is an easy read at about 120 pages, however the book will leave you thinking for days after you turn the last page. Several of the principles, habits and, life approaches that the mentor describes are thought provoking and had me wondering how I could adapt them in whole or in part in my own life. The book is nothing if not inspiring but yet it remains so abstract that it will leave most readers wanting more like a good movie with a short ending.

Overall I recommend this fable and it makes me want to read others like it including The Richest Man in Babylon and Think And Grow Rich.

The Instant Millionaire by Mark Fisher

Saputo grows dividend

noreply@blogger.com (MG (moneygardener)) — Wed, 04 Aug 2010 13:15:00 +0000

Dairy and grocery products producer Saputo Inc. (SAP) has increased it's quarterly dividend by 10.3% to $0.16 per share. This increase came on the heels of a 32% increase in basic earnings per share for the quarter.

What I really like about Saputo is that their product lines represent products which are very resilient to consumer discretion but yet they seem intent on growth and are not afraid to make acquisitions to get there. Here is how my investment in Saputo looks at the moment:

Adjusted Cost Base (average cost) = $21.34 (2 purchases made)
Yield on Cost = 3.0%
Stock's Current Yield = 2.0%
Stock's Current Price = $31.30
Total Appreciation Including Dividends = +51%

budgeting sustainably for real life

noreply@blogger.com (MG (moneygardener)) — Mon, 02 Aug 2010 18:07:00 +0000

Drawing up a useful, sustainable monthly budget for your family does not have to be a complicated, or difficult exercise. The primary goal for putting a budget to paper in our case is saving money and living well within our means. This will enable us to save enough money so that we can maximize investment growth, capital stability, and be financially secure for years down the road. You can tailor your budget to serve as a tool for meeting your financial goals.

If you have some basic Microsoft Excel skills you can draw up a useful budget that can serve your tracking needs for years. I'm not referring to an advanced budget that they might teach you in an online MBA program; just a simple budget. First you should check your pay stub and your partner's pay stub to determine exactly what your net income is.

(I use the net amount that we bring home in employment income after RRSP contributions, taxes, etc. The reason that I do it this way is that our RRSP contributions are fixed and they are deducted automatically so that we never really see this money. I know what our RRSP contributions are and if I wanted to I could calculate these savings as extra to our budget later on. For now I just choose to exclude them and know that we are setting aside at least 10% of our income before we even get started here.)

This will be your INCOME section. Use your net employment income and any other income you receive along with any government child care benefits. Enter the monthly values in Excel and get to a total income number.

(I choose not to include investment income here because I save 100% of these funds and they get reinvested. I don't consider this as flexible, liquid funds such as employment income as the money really never leaves our portfolios)

Next you need to create your EXPENSES section. This involves categorizing and filling in all of your monthly expenses from mortgage payments to gym fees. Try to think of everything and try to be conservative for fuzzy ones. For some fixed costs such as property tax you will be able to enter an exact amount and for some categories such as entertainment you will need to ballpark what you spend in this area in an average month. Total up this area as well.

Then take your total from your INCOME section and subtract your EXPENSES section. Hopefully you get a positive value. Your will arrive at a figure which I call my "TOTAL NON-REGISTERED SAVINGS PER MONTH".

How To Use Your Budget
Creating your budget is only one third of the battle. How you are going to use it is the second piece of the puzzle. Instead of holding us to only spend $40 per month on haircuts I don't pay particular attention to these small details once they are part of my budget calculator. The way I use the budget tool is that I key in on our TOTAL NON-REGISTERED SAVINGS PER MONTH. This is our pass or fail mark. If this guide number is $1,000 and a month goes by where we saved only $500, I usually know why this has occurred. Could have been that the dishwasher needed replacing, or it perhaps we went on a small vacation. If I don't know why, I better re-visit the budget.

Obviously the third piece of the puzzle is actually matching your life to what you you have entered on this Excel calculator. If you are regularly spending $500 per month on clothes then don't enter $50 per month in your clothes category. You will certainly need your partner to be a team player throughout this entire process

I find this to be a pretty useful way to budget. You don't have to watch your nickels and dimes and track every penny. Just pay attention to how much money you are actually saving versus what your budget says that you should be and you will be well on your way to achieving your financial goals.

would you like to purchase a warranty?

noreply@blogger.com (MG (moneygardener)) — Thu, 29 Jul 2010 15:28:00 +0000

I am always interested in the innovative ways that companies try to grow their bottom line in dealing with consumers. The promotions, warranties, freebies, bogos, and 'don't pay' sales often have me scratching my head at the stupidity of retailers or their naive customers.

I happened to come across an interesting one last night at Sears when I was purchasing a major appliance. As is typical the sales associate wound up with the usual warranty offering, usually as this is occurring I am glazed over and getting ready to politely refuse. However the Sears warranty threw in an interesting twist this time, which I have to admit, is clever and likely works well for them. If you purchase the warranty for $110 and nothing goes wrong with the item within the 3 year time frame of coverage you receive a $110 gift card for Sears. I still refused the offer as I want my precious $110 for myself for the next 3 years for obvious reasons to anyone who reads this blog. Also who's to say that I'll happen to want to buy something at Sears in 3 years time. That being said, I would imagine that many customers who typically waiver about warranties usually come over to join the protected now that this offer is presented.

quadrupled Bank of America position

noreply@blogger.com (MG (moneygardener)) — Tue, 27 Jul 2010 15:53:00 +0000

It was nice to see my adjusted cost base plummet today as I quadrupled my stake in US Bank, Bank of America (BAC). The stock is trading around $14.25 per share. The dividend was all but wiped out during the financial crisis but I believe that it will come back with a vengeance over time. Bank of America is very well positioned to reap the benefits of a slow US economic recovery, which is probably in the works. The risk/reward on Bank of America trading at these levels seems very attractive as they own several valuable franchises, have great market share in US deposits, and have paid back their TARP funds. The bank is currently trading at a multiple on around $1.00/share of earnings which I believe has the potential to expand to $2 without much trouble. This would put the stock price easily into the $20s which is a signficant jump from here.

The dividend will come back as they years go on as inventors will want income from their investment in this large bank and the bank will no longer be tied down with the lingering issues of 2008. This stock is rated a strong buy by 70% of analysts that cover it. Earnings will come back as well albeit slowly and probably won't get to 2006-2007 levels anytime soon.

This is one of those trades where I felt like I needed to do the Warren Buffet thing and buy when others are selling; when the stock does not look attractive. This industry is still in the toilet, their balance sheet is still recovering, and the economy is still pretty bad. This is a good time to lower my cost base from my purchase years ago. One of those 'close your eyes and click submit' trades.

GE - party like it's 1999

noreply@blogger.com (MG (moneygardener)) — Sat, 24 Jul 2010 03:03:00 +0000

Well General Electric (GE) who cut their dividend from $0.31 per share to $0.10 per share in early 2009 has now boosted their pay out to $0.12 per share. This 20% increase brings their dividend back to levels last visited in before the turn of the century. Yes, GE shareholders including myself are partying like it's 1999.

This increase came earlier than expected as GE had mentioned that they were looking to a dividend hike in 2011. They also announced an extension of their share repurchase program as they are sitting on loads of cash. I'll take a dividend increase any way that I can get one and I remain confident in GE's future. I especially like their involvement with alternative energy and developing market infrastructure. Their high weighting in financial services really hurt them during the financial crisis.

market snapshot

noreply@blogger.com (MG (moneygardener)) — Fri, 23 Jul 2010 00:29:00 +0000

Economically sensitive seems to be a good thing this earnings season as the following companies blew through earnings expectations and dwarfed last year's results:

CN Rail: EPS = $1.13 versus $0.76 last year
UPS: EPS = $0.84 versus $0.44 last year
CAT: EPS = $1.09 versus $0.72 last year
3M: EPS = $1.54 versus $1.20 last year

These stocks are about as dependant on the economy as it gets. There is a strange feeling in the markets lately. There seems to be a large divide between how main street is looking and how corporations are performing. Earnings are looking quite good but yet unemployment remains high, housing is still in the toilet, and consumer confidence is weak. Costs that companies cut during the financial crisis are probably really paying off now as revenues come back to levels above 2009 but below prior years. The fact that most analysts and onlookers are worried and bearish is probably a sign that markets will rise from here. Typically in times like this the market climbs the wall of worry as expectations are low and upside surprise is more common. As usual it is hard to say where the market will go from here but stocks usually trade in line with earnings and for the time being earnings seem fine.

I will obviously continue to pick away at stocks that are already part of my portfolio but seem to be trading very cheap. I've noticed the following opportunities lately:

Walgreen (WAG) - I added on June 29 at $26.50. The stock has since recovered to $29.41.

Sun Life Financial (SLF) - Dividend investors have taken note recently as the shares traded down to under $26 yesterday resulting in a yield of about 5.5%.

saving money is simple & fun

noreply@blogger.com (MG (moneygardener)) — Tue, 20 Jul 2010 01:02:00 +0000

I like saving money. No, I mean I really love saving money. You know that feeling that you get when you get something accomplished that you've been working at for days; or the rush that you get after a good run or workout at the gym? Saving money gives me that feeling. I don't mean to sound corny at all but I consider it fun when I electronically move money into investment portfolios from our chequing account.

We recently refinanced our residential mortgage in order to lump in our home equity line of credit, which was the result of borrowing money to invest during the financial crisis in late 2008, early 2009. At the same time we increased our amortization to 35 years and changed our payment frequency to monthly instead of accelerated bi-weekly. My plan with this strategy is to do what I love to do and save more money. Since interest rates are currently low, we will be lowering the priority on paying our mortgage off while socking the extra funds in dividend paying investments. Our mortgage rate of prime less 0.60% (currently 1.90%) will enable us to save more capital and invest it. At any time we have the freedom to switch gears and make larger payments toward our mortgage if the circumstances change. For now though saving is the priority and I plan to ramp it up!

One of the main reasons why I like saving money now is that it really pays off years down the road. I am 31 years old; I want to put dollars to work now so that they can pay us in spades later in life. I don't need too much stuff right now to be happy in life, and coincidentally I have big plans for any extra funds that don't contribute to that happiness. A $500,000 portfolio of dividend paying stocks can easily pay out $25,000 per year in income. Wouldn't it be nice to make an extra $25,000 a year before dividend taxation?

Having saving on my mind every time I log in to my banking site is something that lends itself to my saving prowess. Moving money around is easy and it gets it out of the way, and out of my sight which inhibits wasteful spending. I don't like seeing money just laying around, I like putting it to work.

net worth July, 10

noreply@blogger.com (MG (moneygardener)) — Thu, 15 Jul 2010 20:00:00 +0000

It's time to report my bimonthly net worth. It's been a pretty stagnant two months.

Net worth results for the 2 Months Ended July 15, 2010:

Debt/Asset ratio stayed at a record low of 0.44
Net Worth rose 0.6% (to a record high)
Total Assets rose 0.7% (to a record high)
Total Liabilities increased by 0.8%
House Value/Total Assets fell to 58.5% (a record low)
Non-Registered Portfolio grew 0.4% (to a record high)

2010 Calendar Year to Date Gain/Loss: +9.4%

It's been a fairly flat to down two months on the stock markets. Personally we have refinanced our mortgage by lumping in our home equity line of credit, legal fees, and a little bit more which caused our liabilities to rise slightly. This mortgage adjustment should enable us to ramp up our asset growth going forward as we have extended our amortization to 35 years. We saved a decent amount of money over the last 60 days and most accounts experienced slight increases in value.

Walgreen doubling dividend every 3 years

noreply@blogger.com (MG (moneygardener)) — Wed, 14 Jul 2010 16:47:00 +0000

U.S. drugstore chain, and a stock that I have recently added to, Walgreen (WAG) has just raised their quarterly dividend 27.3% to $0.175 / share.

"This increase reinforces our commitment to provide meaningful returns to our shareholders and extends our track record of annual dividend growth" said CEO Greg Wasson

He was not joking about their track record. Walgreen has increased their quarterly dividend for 35 consecutive years. The company has also growth their dividend at a compound rate of 24.3% over the past six years.

Last year I blogged about how they nearly doubled their dividend since 2006. While in 2008 they raised it by 18%.

Walgreen shares are still pretty cheap trading at $29.30 (a P/E of 14x). I picked up some shares recently for about $26.50 (P/E of 12.7x). Interestingly enough Walgreen has not historically been known as a good dividend payer to hold as the yield on the stock was always well south of 2%. Given this latest increase the stock is now yielding about 2.4%, on my purchase the stock was yielding 2.6%, and on the financial crisis lows of March 6, 2009 the stock yielded a whopping 3.2% considering today's increase.

Haagen-Dazs maker sweetens payout

noreply@blogger.com (MG (moneygardener)) — Fri, 02 Jul 2010 02:22:00 +0000

The maker of Cheerios, Yoplait Yogurt, & Green Giant Corn among several other popular food brands has raised their dividend an impressive 17%. General Mills (GIS) is now paying $0.28 per share and the stock currently yields 3.2%. The company also laid out a 5 year growth plan that includes growing their earnings by 45% from current levels. They are counting on sales in emerging markets such as Russia, China, and India for some of that growth.

Considered a defensive stock, the company generates returns on equity of 28% and has grown their dividend and earnings very consistently over the past ten years. Their net profit margins have also held up fairly well over the years. A reduction in debt levels might make the company even more attractive going forward. Needless to say General Mills is definitely my type of stock.

happy Canada Day!

noreply@blogger.com (MG (moneygardener)) — Thu, 01 Jul 2010 13:15:00 +0000

I'd like to wish all of my Canadian readers a Happy Canada Day!

Not only does Canada Day mark a time to celebrate living in a wonderful country it also marks the halfway point in the year. This makes it a good time to look at our investment portfolios.

So far this year:

S&P 500 Index ($USD) = DOWN 7.6%
S&P/TSX Index ($CAD) = DOWN 3.9%
Our Non Registered Portfolio in $CAD including dividends = UP 0.1%