Are you a seller in May? As you probably know, I am looking at buying these days. I have in fact made one purchase and I have also learned quite a bit on Canadian REITs during my research process. I have not pulled the trigger on a REIT but I purchased BPY.UN TSE:BPY.UN Brookfield Property Partners. It’s a newly form subsidiary of Brookfield Asset ManagementTSE:BAM.A.
Related: 50K to Invest
I look at BPY the same way I look at Bell Alliant with Bell Canada TSE:BCE or Enbridge Income Fund TSE:ENF with Enbridge TSE:ENB. Brookfield Asset Management (TSE:BAM.A) is a large cap stock on the TSX and many of its properties are now managed by BPY and BPO. As it happens, BPO is larger than BPY but BPY has a 50% stake in BPO and just last month, BPY has an agreement with BPO to acquire the remaining 50% shares. BPO will be fully absorbed by BPY.
Interestingly enough, BPY doesn’t show up as a REIT on the TSX but I consider it a Real Estate investment for my portfolio.
In May, my monthly dividend income is $577.61. I managed to buy BPY early enough ahead of the ex-dividend date to see the income starting next month. I have no history of dividend increase with BPY but BPO has seen distribution increases prior to the 2009 market crash. My investment in BPY is a play on Brookfield Asset Management without investing directly in them. BAM is a the top companies in Canada in market capitalization operating in the financial sector.
So far, with my estimations, I expect to increase my annual dividend income by $1,500 this year. I have only added $10K to the portfolio so dividend increases played a major part along with the re-invested dividends over the years.
DISCLOSURE: Please note that I may have a position in one or many of the holdings listed. For a complete list of my holdings, please see my Dividend Portfolio.