400 Shares!

400 Shares

Good evening!

We made a purchase of 400 shares the last 2 days. 100 more in RioCan and started a position of 300 Extendicare in TFSA-2.

RioCan

400 shares

Why Riocan? Retails done and interest rates are on the up and up. Your a idiot Rob. Well haters are gonna hate. To be honest this one of my worst performers in the last year down 6%. Adding 100 more shares will lower my dollar cost average and increase my yield on cost. Hmmm ok Rob your not so dumb after all. I like your moves…….

Alright so sears is now basically in bankruptcy protection and target was a wash here in Canada. Those are a nice amount of square footage Riocan needs to fill. But Riocan has basically filled the empty targets with new stores and is actually bringing in more money for the leases. I feel there will always be a demand for big retail, Walmart, Petsmart, Cineplex, first choice haircuts, lcbo’s, home depo’s etc. I think Riocan will be fine on the retail front.

400 shares

Did you ever play sim city 2000? Oh man that was one of my favorite games back then. What happened when you ran out of real estate? There was only so much room for commercial, residential and industrial properties. Do you remember the launch arcos? Well basically Riocan is seriously looking into creating residential units above their properties. This will bring in extra $ from the rental of those new units, as well as increase foot traffic to the stores underneath. (hopefully therefore increasing their rates)

So we purchased 100 riocan shares at 24.70 each including trading fee. This represents a 5.7% dividend and increases our yield on cost for riocan to 5.52% vs the 5.32 we used to have. We bought the shares 6 cents above their 52 week low and 19% off their 52 week high. This purchase will add $11.75 per month to our income.

Extendicare

400 shares

300 shares in extendicare. I feel like EXE has been mocking me for the last month. I wanted to make the purchase for under 10$ a share and a couple times it would dip to just over 10 bucks and then laugh in my face as it climbed back up. Yesterday it ended trading at 10.02 but I thought this morning it would go under 10. wrong again! Screw it I don’t wanna miss the ex dividend date. I pulled the trigger and bought 300 shares at 10.15 each. (including trading fee) This will bring in a constant monthly drip in a business that should do very well in the coming years.




Extendicare is in the retirement home business as well as senior care services. With all the baby boomer’s approaching their golden years there should be no shortage of demand. I really like EXE but don’t feel it was a bargain at the current price. This purchase will actually lower my cost on yield, as my original investment in them was at like 7 bucks per share. That being said I feel its a lot better value then chartwell or sienna senior and long term will do great!

Extendicare will bring in an additional $144 per year and Riocan adds $141. So these 2 additions should boost our yearly dividends $285. I think the month’s with a dividend income under $100 are now done and that puts a smile on my face!

Have a fantastic weekend everyone

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10 Responses

  1. PCI, I’m not familiar with those two stocks, but I like the total number of shares. The more shares you own, the better. In fact, one of my personal goals is to have enough shares in any one stock so that the dividends I get is enough to purchase at least one additional share of the same stock.
    Dividend Portfolio recently posted…I’m Getting A DivorceMy Profile

  2. Leo T. Ly says:

    I have owned Riocan for quite sometimes now. It’s a decent REIT with a decent yield. I have been a bit disappointed with the price drop, but it’s a good pull back for you to enter. It’s great to reach the three figure monthly dividend mark. Now aim for four figures. I am working on to reach five figures and hope to retire when I reach it. 25% there.
    Leo T. Ly recently posted…Who’s The Real Leo T. Ly?My Profile

  3. John R says:

    Well done on your latest purchases….slowly but surely, inch by inch you are growing that dividend income – well done.

    Have you looked at the US Mortgage REIT’s for comparison?

  4. PCI –

    Those are some MASSIVE positions, that’s for damn sure. Think retail will go smaller on the square footage going forward? Any big impacts up there in Canada from Amazon? Further – would Target dare come back? I’d love that, only this time – if they can get it right!

    -Lanny

    • Hey Lanny I don’t think target will come back. People were expecting us prices which target couldn’t supply north of the border. Interesting about the sq ftage I don’t think so. When these mom and pop stores go out of business these big stores just get bigger. Imo
      Thanks

  5. Still laughing at the picture. My friend quotes that all the time. With the baby boomers getting older, that is a smart play going with healthcare picks. And in the grand scheme of things, a few cents a share will will even itself out. As long as they keep growing and paying their dividend. These will add a nice bit of income to you as well. Nice buys.
    Dividend Daze recently posted…Recent Buy – General Mills (GIS)My Profile

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