Buys, Sell and Raises

Buys, Sell and Raises

Buys, Sell and Raises

My oh my, what a week…. Up and down up and down, now we are down again….. Good times! Its nice to not see this constant upward motion. It creates better buying opportunity’s and higher yields. Let the buying commence.

Sell

I’ll start with our sale. As you may know my main goal for the year is to strengthen our portfolio by focusing on dividend growth stocks. Certain stocks carried nice yields but were not a household name. Automotive Property Reit was one of them. It had a yield around 7% but really wasn’t doing much since I bought it. It produced $43.44 a year in dividends or 3.62 a month.. The sale added $554.89 bucks to my account, and eliminated one of my original holdings…

When I look at all our dividend stocks nothing really stands out to sell anymore.



Non Core Holdings
  • Altagas – is a small holding but I’m curious what will happen to the stock after the acquisition.
  • Cineplex – continues to pay its dividend, and owns the entertainment space. Top golf and rec rooms should help the stock in the long run.
  • Corus Entertainment –Is a Canadian Media Powerhouse. They have taken punches left right and center. While I think they might cut their dividend in the summer. I have heard this for 2 years now and continue cashing in on their 10+% dividend yield. After their last earning report the stock plummeted 30%, making it a great value buy.
  • Extendicare and Sienna Senior – Are both retirement home stocks, and Extendicare does home care as well. While they are not growth stocks, the trend is baby boomers aging. These 2 should do good and keep paying me.
  • Highliner – I bought cheap, I think it will go up in price and I will sell, until then I’ll collect the over 4% yield on cost.
  • Boardwalk Reit – I sold off the majority of Boardwalk when they announced the dividend cut. The 22 shares I still have were underwater, I like the company just hate the yield for a reit. No point selling at a loss, when they pump that yield back up I will probably be buying more.
  • Russell Metals – I bought this stock at like 16 bucks… Its up 75%. Its yield on cost was over 7%… Massive company here, Id love to add more to drip the stock but feel its too expensive. The Basic Materials sector is also one that is hard to find decent yields. I just collect my dividends and smile!

All my other holdings seem solid. Set it and forget it stocks! That’s what I wanted to do this year. I have no problems with my portfolio other than highliner not being able to drip. What do you think? Would you sell any of my remaining holdings?

Buys, Sell and Raises

Buys

We decided to take a loan out to pump up our rrsp contributions before the deadline. It seems like a great idea and if the market really wants to pull back before than I might be tempted to add to the loan. I plan on paying the loan back instantly when we get our refund. (Read More Here)

There are certain stocks I love to buy. While the yield may be lower, I use the products constantly. Yup defensive stocks. General Mills is one of my favorite stocks. I eat cheerios basically everyday and I love buying products of companies that we own. If shit hits the fan, we still need to eat. Highliner, yup eat their seafood too!

But what about products you can’t eat, but use constantly.

Well in this case, people are eating them. Whats the saying…… Any publicity is good publicity? We all know the new craze tide pods. What about the superbowl? Its a tide ad, another tide ad.

Proctor & Gamble

We bought 24 shares of Proctor of Gamble. The company has some serious products. We personally use Dawn, Bounce sheets, Gain Laundry soap, Febreeze, Vicks, Head and Shoulders or Pantene, Gillette or old spice, their tampons or pads (always and tampax) and now with the new baby pamper’s. Btw Pampers are way better than huggies.

Some analysts say people will use cheaper products instead of the branded ones. Some things yeah, some no. While they don’t own Qtip’s have you ever tried no name Qtip’s? Its horrible, really really horrible. Id spend the extra buck or 2 any day. My wife will never use no name tampon’s and for deodorant for me its Gillette, old spice or dove.

Anyways I tried to time the dip but the next day it popped right back up, we got them for $82.90 a piece. It had a yield of %3.35 and adds $66.20 in forward dividends. They pay their dividend in February, May, August and November. Which is fantastic as these are my lowest months currently. Oh that dividend? Its been raised for the last 61 years. Its a dividend king… set it and forget it. The stock is currently cheaper and I might add to this position very soon!




Enbridge

You have probably heard it from me so many times now. We added to our position in Enbridge. This stock has gotten hammered. I wanted to lower my yield on cost and it offered over a 6% yield. It made the sale of Auto property’s a lot easier. This is a huge position of mine, but thought I would add to it to get another drip next month. Again this stock is toooo cheap, I might sell these 22 stocks once the stock hits 50 bucks. With one of the coldest winters in awhile and barrels of oil going for over 60 dollars, it should be good for them. We bought these for $43.82 each and added $59.04 in forward dividends. This is North America’s largest infrastructure company now. Another stock we need daily, to heat our house etc. They have raised their dividend the last 22 years and plan to keep raising it 10% a year until 2024…

Raises

We were fortunate enough to get 2 dividend raises this week.

  • Brookfield Renewable Partners – Raised their dividend by 5% and since we own 105 shares this will add $9.45 in forward dividends.
  • Manulife Financial – Decided to hook us up with a 7% raise. All these interest rate hikes will serious help the insurance companies in the future. We only own 30 shares but this adds $1.80 to our yearly total.. Man why didn’t I scoop up more when manulife was 17 bucks!
Conclusion

Anyways lets tabulate these moves. In total the buys, sale and dividend raises increases our forward passive income by $93.05 It safe to say, that this week I did something that in the future I’ll be happy about. Whats your thoughts? Did you buy anything? Or expect the market to keep going lower?

Cheers

Hey I’m Rob, creator of Passive Canadian Income.

In 2011 me and my wife had almost $60,000 in debt and a negative $7,000 Net Worth. Through hard work and financial education we paid all that off. Now we are focusing on increasing our Passive Income Streams to make the money work for us. Feel Free to Follow along the Journey!

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22 Responses

  1. Those are some nice buys Rob solid stocks. I had never heard of Automotive Property REIT before. I wish you all the best and keep collecting those dividends 🙂

  2. Leo T. Ly says:

    With the market so volatile, I am definitely eyeing a few stocks that I want to buy. For the companies that are continuing to raise it dividends will be a great buying opportunity. I am looking at Fortis and was trying to buy more today, but I didn’t pull the trigger. There will probably be more chances to buy next week.
    Leo T. Ly recently posted…My $263K DIY Investment LessonsMy Profile

    • Rob says:

      So true. Midway through the day my account was wayyyyyy down i logged on later and it rebounded nicely.

      I hope we see more big dips!
      Cheers Leo. Good luck with fortis.

  3. dividendgeek says:

    I am going crazy trying to understand market movements. It’s a computer somewhere with a faulty algorithm … that is my opinion. In the mean time it looks like a good sale. I loaded up on XOM. But, I left a little bit of cash out. I am not sure if this is the bottom. If needed I would like to average down 🙂

    I have two stocks with sizable losses that I need to dump.
    dividendgeek recently posted…Dividend Increases This Week (Feb 5 – Feb 9)My Profile

  4. Cris says:

    In December and January I sold a few positions and I added more money in our RRSP contribution.
    I was waiting for a while for this moment. Every single day I added new positions to my portfolio: FTS, BMO, CNR, ENB, CVE, APPL, CSV, P&G & some ETFs.
    If the sell-of will continue I will buy more… too good to miss the moment. One of my rule, I don’t buy anything if is not at least 10-15% less then the last year high.

    One suggestion, if you have any loss in TFSA just transfer it in RRSP and sell it there. You will get some return which will offset the loss and still won’t be so bad.

    Good luck to everyone.

    • Rob says:

      Haha nice Cris thats awesome great companies. I think next week will be the same as this week. I hope to keep adding on the dips. Cnr is one I really have my eye on.

      Man that tfsa move is crazy! I never knew that. And i can write off the capital loss of when i purchased it originally in the tfsa?

      Thanks again Cris!

      • Cris says:

        Not really write off when you do your taxes (only non-registered account will qualify for that) but the RRSP return will give you more money to invest (plus the selling commission will be taken from RRSP not TFSA).
        If you put everything into an calculator will show the difference.

  5. Hi Rob, I bought Southern Company on Friday. I like both your purchases of ENB and PF. ENB is one of the few Canadian stocks I own mainly due to the the 15% tax I pay on CDN dividends as a US resident. Tom
    Tom @ Dividends Diversify recently posted…My Only Regret In Life: Speed To A MillionMy Profile

  6. Hey Rob,

    like your purchases. You can’t go wrong with P&G and after last week the valuation is a lot better. They’ll end up in my portfolio someday too, maybe sooner than later;-).
    Enbridge stock price suffered the last months and the yield is very tempting. I have them on my radar too. The only thing what keeps my trigger finger calm are the Canadian taxes on dividends for foreign investors. But a dividend growth perspective of 10% per year through 2024 is hard to ignore…

    I just purchased some more share of the oil giant Royal Dutch Shell.

    https://dividendsolutions.wordpress.com/2018/02/10/recent-buy-aktueller-kauf-8/

    Greets
    DividendSolutions

    • Rob says:

      Hey solutions

      Thanks. Yeah the tax implecations are always a big concern and i try to not buy anything thats gonna get taxed at the moment.

      Congrats on your purchase!
      Cheers

  7. Hi Rob
    Good move to take advantage of the stock market turmoil and add P&G and Enbridge. Good for your future passive income and you keep diversifying.
    Each time, markets go down or remain lower for a certain time period, dividend growth investors get a nice boost, as our (rei-) investment process gets more efficient.
    Keep the ball rolling and all the best!
    Cheers
    Financial Shaper recently posted…January dividends and recent stock buyMy Profile

  8. Derek says:

    Hey there, love your blog. I’ve recently bought into a position of highliner. I love their potential based on my research. What gives you reservations?

    • Rob says:

      Hey Derek

      Thanks alot and welcome. Always love seeing a new face leave a message.

      I like them and think they are severely undervalued but unforetunately the stock doesnt drip. Im a huge fan of the drip program and would love to make a buck and put that money towards a stoxk that offers a drip program.

  9. p2035 says:

    Hi, Rob. Nice to see identical PG buy. Ive also jumped in at 82.5$ mark. Sad it then went bellow 80$ would be nice to catch that dip as I did with T back in November for 33$, but you cant catch them all I guess 🙂 As you said PG is a great brand. Managed to find 5 items we use 🙂 and pampers is a synonim of diper in our country. You dont say go and buy dipers you say go and buy pampers 😀 Like PG strong balance, tough lack of growth both in top and bottom lines in the past few years is a bit worrying. Hope all ends out well for PG.
    p2035 recently posted…Health improvement – meditationMy Profile

    • Rob says:

      Hey P

      Just like you said was crazy that it went under 80. Cant time the market though!

      Some times these slips in sales give us a good time to get in. I think they are making some good moves. Hopefully i can add to them before they take off!

      Cheers

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