New Purchase – First U.S Stock

18 Responses

  1. Kitstownie says:

    I like your plan. I have many U$ stocks (no GIS…yet) that I accumulated during my working phase. I’m happy I did as I’m now retired and spend winters in PSP. I couldn’t buy them in my RRSP, as RBC d/s would convert to C$…so unfortunately I pay w/h tax and the divis are treated as int but the plan has won in other ways. I’m very well diversified, the divis pay my winter exps and the stocks have grown nicely over the years and even provided several successful spin-offs:)

  2. I like GIS, the products and its brands. The stock price came down over the last months and looks interesting. Not cheap but reasonable. Last month I bought some stocks of J.M. Smucker and will certainly keep an eye on GIS.
    Cheers

  3. PCI –

    PHENOMENAL Move! Love their brands, their dividend and history. Congrats on the MASSIVE purchase.

    -Lanny

  4. Nice buy. I am not entirely sure of the tax implications. I heard US would withhold 30% of the dividends & capital gains? You might have to file taxes in US to get it back? Is that a problem?

    You might want to check out: http://home.personalcapital.com
    dividendgeek recently posted…Vanguard believes in active managementMy Profile

  5. John R says:

    Well done, nice pick, after all, look at the number of folks that eat cereal day in-day out, it’s like buying a gasoline stock or a toilet paper stock – these are regular consumables.

    In 2010 the stock split 2:1. Your thoughts of what are you expecting from GIS say 12 months to five years from now?

  6. Leo T. Ly says:

    I like defensive stocks that have a history of continuous dividend payments. It’s even better if you can buy it on sale. Gotta be greedy when people are fearful.
    Leo T. Ly recently posted…What’s The Financial Benefit Of Growing Your Own Food?My Profile

  7. I more of a Frosted Flakes kinda guy but my son loves his Cheerios so GIS future looks bright lol.. Great buy the currency exchange is a bit of a downer but when the stock appreciates along with dividend payments you will be fine in the medium to long term.

  8. cris says:

    It is great that you started to look to the USA market.
    By the way, do you have a strategy when you buy a stock? Usually, before I buy a stock, I am looking into the fundamentals, calculate the intrinsic value and I do not listen to the analysts opinions unless the stock will pass my requirements.
    My two cents, I analyze a bit GIS stock and I found it overpriced, the intrinsic value is around $30, book value is over 8 and quick ratio is 0.5 which is too risky… also, the bussiness is flat almost no increase in earnings and the sugar products are seeing a decline.
    Anyway I might be wrong in my assumptions…
    Keep up with the good work.

    • Hey Cris

      I tend to look at their past stock price, dividend history, payout history, dividend increases. I read a lot but don’t analyze all their numbers. Obviously could be a mistake. Yeah things aren’t to good at the moment for processed foods but right now money is cheap. That will change and processed will be the way to go again in my opinion. 30$ dam that seems really low, ahhh well this is a solid company if it hits 30$ you will see my next post about me buying more. haha! No name honey nut cheerios just don’t cut it.

  9. Muki says:

    Hi,

    What is the most efficient way to buy US stocks with CAD? Did you just buy it from your trading account without caring much about the exchange rate?

    Good luck with your journey!

    • Hey muki. Norbert gambit tends to be the best way. Buy a stock in Canadian dollars and sell it in your us account for us dollars. This limits the banks commissions. But you still pay 2 different trading fees. While the conversion is a big factor im a long term investor so it was worth it imo

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