Richie Bros Auctions

Richie Bros

Richie Bros Auctions

On Friday we added to our position in Richie Bros Auctions. Their quarterly earnings came in lower then expected and the stock took a dive dropping 10.07 percent. At current levels they are at their 52 week low. In their quarterly statement they mentioned they had less equipment to sell this quarter. One of the big positives was how much sales came from online. They have been acquiring online auctions recently and clearly that has been a great move.

Someone mentioned on the dividend investing facebook page that Richie Bros are easy to predict and 2-3 years after a industry gets hurt they will have a lot of machines/equipment to sell and their numbers will improve. That’s why their sales numbers are decreasing. It makes sense but there is always someone buying and selling something.



Dividends

Richie Bros Auctions has a 14 year dividend growth rate. Their 10 year dividend growth rate sits at 9.8, which is fantastic! At current prices it offers a yield of 2.68%.  They pay its dividends in March,June,September and December and in U.S. dollars. (Which is the last months I wanted to add to currently.) After my recent sale of Aecon, We had a hole in the industrial sector and needed to prop that sector up a bit – 52 week lows help that =)

We bought an additional 50 shares. That will add $34.00 in yearly dividends and brings our total shares of Richie Bros Auctions to 150. While it currently won’t be able to drip the stock, it gets us closer to doing so. I will continue adding to our position on further dips. I think Richie Bros Auctions is a great buy with a wide moat. (They even have their own tv show)
richie bros

This purchase certainly wont make us rich overnight, but a ripple is small at first and look how far it grows.

Cheers!

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12 Responses

  1. Congrats it’s always good to buy on a dip. Very good dividend growth from this company. Good job looking forward to hearing how you make out with this investment in the future.

  2. May says:

    RBA does not have a drip plan. So you can not drip it.

    • Haha oh my god. I didnt even know. That sucks. Thanks May!

      • Good buy. Since, you bought it through a broker you would be able to drip it as the brokerage should buy the whole shares on the open market and not through the transfer agent. That is what Questrade does. In other words, you are buying shares with dividends automatically and the brokerage doesn’t charge a commission.

        With Questrade, they drip discount that some companies have with their DRIP programs, is not passed on to the investor. Most brokerages pass on the drip discount to the investor such as TD Waterhouse.

  3. PCI –

    Very interesting and may I ask – how the heck did you stumble into this company???

    -Lanny

    • Hey Lanny being in the landscape business I have been to 1-2 of their auctions. I watch the tv show from time to time. They are a massive auction company. When i look at canadian dividend aristocrats they are not to far from the top since we dont have companies with as long dividend history as the u.s.

  4. Grats on the purchase PCI. It’s always good when you can purchase a stock at a discount price. Plus, I love the quote at the end about how are a ripple goes. Classic.
    Dividend Portfolio recently posted…Inspirational Quotes Of The Month – November 2017My Profile

  5. Pellrider says:

    Good for everybody that you stumbled on to this company. I was not going to know about this if it wasn’t for your article. Good job in making small ripples and hope, it will be larger soon.

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