Recent Buys/Sell

Buys/Sell

Good Morning everyone, Time to Shake and Bake our portfolio!
Our Recent Buys/Sell

You won’t see me post to many sale posts. As I always state I am not a professional investor and am still learning. We had a position Boardwalk Reit in both our Tfsa as well as our sons RESP. Well in mid November they stated they are going to cut their dividend by 50% next year to start funding more diversification into other provinces. After Matt mentioned it, I was debating what I was going to do before market opens. My sons RESP  was basically in break even (maybe a little up with dividends) while my small position in my tfsa was way down.



I think the move by Boardwalk is a smart one long term, but decided to sell off our position in my sons RESP. I’ll hold onto the position in my tfsa, so I don’t actually realize a lose.  (It’s also only 28 stocks, which is a small position) To be honest I’m surprised how little the stock has pulled back after the announcement, maybe the market likes the decision as well. I will be keeping an eye on this stock and maybe will even add to our position in the future, if the stock pulls back enough.

I learned something from this, Buy great companies with long track records of dividends. A great moat around the business helps as well.

Buys/Sell

Canadian National Rail

There has been one stock I have had my eye on for awhile. It has slowly been pulling back on NAFTA fears. Maybe its the Christmas theme to but I decided to buy a Railroad. CNR or Canadian National Railway. Yesterday the stock dipped to $99.46, I was waiting for it to go under 100. I guess this counts? Anyways with the proceeds from the sale of Boardwalk we purchased 36 shares. CNR has a wide moat and their rails go to 3 different coasts. They have a dividend growth streak of 21 years and raised their dividend 20% this year. Their 10 year dividend growth rate is a whooping 16.5%. Its current yield is only 1.65% though adding 59.40 in yearly forward dividends.

While this stock may be volatile on NAFTA fears, its a great stock long term. Rails are one of the most efficient modes of transportation and I don’t see that changing for a long time. Yes I know about the tesla Semi’s, but they drive on road’s and traffic is only getting worse and worse.

Buys/Sell

TD Bank

We also added to our position in TD Bank, adding 13 more shares @ 74.50. After missing the last drip because the stock has rose so much, we needed to add. Adding these additional 13 shares brings our td dividend up to 78.60 per quarter. The banks have been on a tear lately, and will probably post better results next quarter as interest rates have rised. Here’s hoping that this 78.60 payment can continue to drip this stock for awhile. =) This purchase adds $31.20 in forward yearly dividend’s.

The End

Well that’s the stock moves we have been up to lately, CNR seems to be getting hammered this morning already…. Arg. That’s investing though. Long Term we will be alright. Have a great day!

Cheers

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19 Responses

  1. I like the purchases. Canadian National Railway is one of the stocks I would like to have in my portfolio as well. Didn’t really know it was going down, as I haven’t been looking at it recently. The yield of 1.65% is a bit low, but the dividend growth is fantastic. Maybe I’ll initiate a position if it drops a little further. Below $90 or a yield of 2%+ would be a great, haha :).

    • Hey Dutch, its true the yield is low. This one and restaurants brands are my 2 stocks under 2% but i think their growth and stability will make it worth it. Like you I hope it go’s under 90$ as well, I will keep adding to my position then. I always remember reading on motley fool this – A $10,000 investment in CN two decades ago would be worth about $230,000 with the dividends reinvested today. That always helps me ignore the low yield at the moment.

  2. Leo T. Ly says:

    I have been eyeing CNR for a while and sold a few put options at $90 per share. If CNR does indeed drop to $90 per share, I will be delighted to buy them.

    I have boardwalk too, but I am not selling it. Having my dividends being cut by 50% sucks, but I would rather have this option than to have them pay dividends with money they did not earn.
    Leo T. Ly recently posted…Are You Aware Of These Money Scams?My Profile

  3. Cris says:

    I think that was wise from your side to reduce the exposure to Boardwalk.

    TD might be lower today as it missed the expectations and CNR is a good position for the long run.

    Today Enbridge and Enbridge Income fund will open lower maybe around $2 lower… this might be another good entry point.

    • Thx cris always enjoy your insight. Thats great to hear about td to be honest. Some stocks keep rising so fast (which is good short term) but i cant keep up with their drips. Ill see about adding more enbridge or the income fund. Think i read yesterday the income fund is raising dividend 10% next yr.
      Cheers!

  4. Shake and Bake! Love the reference haha. Nice move. Want to get in on the Canadian banks as well sometime but haven’t made the plunge yet. Hard to find a good entry price.

  5. Thanks for linking me in your post. I am a big fan of CNR congrats on that purchase I will be looking to add to my position in CNR. Thanks have a great day.

  6. May says:

    I have some CNR in my RRSP. Recently I got some new fund in my taxable account so I am thinking to buy more CNR there and switch CNR in RRSP to some stocks with higher yield. I missed the dip and waiting for CNR to pull back again.

    The market is crazy and I am very hesitating to buy anything. I bought some TD in summer and wanted to add to my position. But at current price the yield is far below the historical level and I thought it’s overpriced. But maybe long term wise buying Canadian banks is always OK no matter when you buy it.

    I bought some CM before the revenue call. Some nice gain there.

    • Hey May. Personally i dont get the switch of accounts. The yield on cnr is way lower so i would rather have that in a rrsp. (Taxes in the future vs tfsa no tax) Although cnrs growth may be higher then a high dividend stock. I dunno your marital status but being married grants us access to 2 tfsas. Which currently give us 104,000 contribution room to tax free canadian stocks. Everyone should be diversified globally as well, so i try not to keep any canadian stocks in the rrsp at the moment. Rrsp is a great way to hold u.s stocks without the tax on the dividends.

      The market is crazy but enbridge has pulled back lately and i think the u.s stock market still has some good deals. (Healthcare stocks and consumer defensive atleast)

      As for the banks yeah they are getting high last quarter i wantws to add to td before the dividend to get the drip. I decided to wait for a pullback but banks continue to roar. I added to ensure the drip. Long term its all good.
      Hope that helped May.

      • Opps just re read your comment. Your taxable account. Yes that would probably would be a good move. I havent maxed our tfsas or rrsp’s yet so I dont know all the tax rules on a taxable account. Sounds like your doing great though! Cheers

  7. Looks like a great swap. TD and CNR are bluechip stocks. You will do well with them!

  8. I own TD and love it. But I don’t like the valuation at the moment. Bit high for buying more. I regret not buying more when the price was 30% lower. 🙂

    I would love to own CNR. But I didn’t pull the trigger yet. Same valuation problem. On the other hand, it keeps going up in the long term, it’s a great company and the price under 100 was not bad at all.

    I guess you have 2 nice buys there. Good luck to you!
    Pursuit 2 Freedom recently posted…Dividend income of NovemberMy Profile

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