First Tech Stock
First Tech Stock
This morning I was analyzing what deals are out there and our current diversification. Our tech sector has been under 1% of our portfolio for awhile and honestly it’s been driving me crazy! haha While most of our cash is sitting in the TFSA for Canadian stocks we have a bunch of cash sitting in our chequing account for the future solar panels. Rather then having that sit idle for a couple months we decided to put $5500 to work in basically a loan to ourselves.
We generally add $1000-2000 per month to the rrsp account per month but after the conversion I don’t want to make a us stock purchase cause I prefer all trades to be 1500$ plus to minimize the trading fee cost on investment. So rather than add the 1000-2000 per month, I’ll keep it in our chequing account until the $5500 is paid back in full.
Our US exposure is about 10% of our account and as mentioned earlier our tech sector is lower then 1%. So we decided to get 2 birds stoned at once and pump up those numbers.
We started a postion in Cisco. No not Sisqo the hit singer of Thong Song ……. let me see that thonnnggg!
We started a position in Cisco adding 132 shares to the portfolio. This should ensure a drip which I love. The stock is currently 10.78% off its 52 week high and gives a 3.75% dividend yield. This investment should bring in $153.12 in forward dividend income which pushes us over the 3k a year mark! Sweet! It’s past dividend raises have been pretty healthy too. I have watched some of you making the purchase and it got my attention. Thanks again!
I feel Cisco is in great position for the future as the internet of things will just promote more networks. The Canadian dollar has strengthened lately in relation to the US dollar and this really increases our tech sector position. All in all I feel its a fantastic buy. I just wish I made the move before the x dividend date but hey I’ll get the next one!