Gotta Get That Drip – New Buy

Drip

Gotta Get That Drip – New Buy

Hey, Hey, Hey.

The market really seems to be getting interesting this year with some pretty big daily movements happening. One day I’m down a grand and kinda happy hoping it will drop more and then next day I check it out and I’m up a thousand. Dammm… Clearly the market works in weird ways, when all these trade tariff’s keep getting thrown around left right and center but the market really doesn’t care.

As some of you know, I love dripping my stocks. Sure there is advantages and disadvantages of Drips. But ultimately they make it super simple. You like the company and its in your portfolio so why not keep adding to it? The stock is high id never buy at this price, you say. Meanwhile the stock just keeps running up and every time you get that dividend Bam! more shares.

Drips make me want a market drop. Look at Corus Entertainment for example. This stock has dropped almost 50% since the start of the year. The dividend yield was sitting round 19%. That dividend got to get cut everyone says. Radio and Tv are dead….. ( I like the stock for the record, I don’t think radio and tv are dead) Anyways I used to drip one share a month before but since the pullback I was dripping 3 shares! Today they destroyed analysts expectations and the stock popped up 21%. The drips eliminated the mental part of investing. It just bought them!




Ewww does that stock even drip?

Now some stocks don’t even offer drips. Its a shame but it is what it is. Some of the stocks I hold do offer drips but my position in them is too low. Inside it drives me a little crazy. I want that drip, give me that drip. I will be working at beefing up these positions this year to get it. Right now with the wife on mat leave, it doesn’t make sense for rrsp contributions. I plan on making a lot more than I currently do in the next 5 years, so I will keep that contribution room for then. So the focus will be on Canadian stocks and trying to top off our remaining tfsa room.

drip

The Purchase

Yesterday I purchased 29 additional shares of Emera at a couple cents over 41 bucks. This was 2% cheaper than my previous buy of Emera on February 20th. I wont get into the details to much about Emera, click the link to learn about the company. Our yield on cost this time was 5.52% and will bring an additional $65.54 in yearly dividends for us. The ex dividend is at the end of the month and we will receive our dividends next month. We now have a total of 90 shares of Emera and will easily drip the stock at the current price. Emera offers a 5% discount on drips, which I will gladly take!

Conclusion

I wanted to buy Emera before the end of this month. Today I was reading Motley Fool, it mentioned how insiders of Emera have been scooping up shares between the 40-42 dollar range. You got to love hearing that, so naturally I had to buy. This creates another stock in the portfolio that will now drip and boosts my income on my worst dividend months. I’m looking forward to seeing Mays results since I have started a position in Proctor & Gamble and Emera since February. I have a feeling these may not be my worst months anymore!

Have a fantastic weekend everyone.

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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20 Responses

  1. Hey Rob. I’m not familiar with the company. But I hope it rewards you with many years of dividend payments. Tom
    Tom @ Dividends Diversify recently posted…You Gotta EatMy Profile

  2. Congrats dude. I don’t own Emera – but looks like a solid buy.
    Gotta love those Drips!
    Jordan @ MoneyMaaster.com recently posted…March Passive Income Update.My Profile

  3. Caroline says:

    Congrats on the purchase and DRIP!:) No additional Corus? lol
    Caroline recently posted…Win, Win, Lose! March 2018 – Income, Expenses And GoalsMy Profile

  4. PCI –

    Congrats on the purchase, love a good utility that pays a fairly safe dividend : ) Enjoy that DRIP!

    -Lanny

  5. Not all brokerages pass on the DRIP discount. I know Questrade does not pass the discount on.

    I assumed an investor could DRIP any stock inside a brokerage account when having enough dividends to buy one share.

    Emera is a solid stock has people need electricity to live their lives. I have owned EMA.TO for about 6 years now.

    • Rob says:

      Hey pursuit you are definitely correct. Just saw that debate on a facebook group! Rbc does pass that discount though. Makes those higher trading costs worth it in the long run.

      Glad you like the buy and are a fellow owner.
      Cheers man!

  6. Mr. Robot says:

    Unfortunately my broker does not do partial shares or drop. So none of my shares drip. It’s a shame since it also takes out the emotion out part of your buying which is always good.

  7. May says:

    Nice. I have bought EMA at quite high price and they are in deep water now. I might buy more if it went under $40 again.

  8. May says:

    Talking about drip, it is crazy what you can get with drip when stock price went down. I have 500 enb, and I got 8 shares last time it’s dripped. Hopefully enb will not cut their dividend.

    • Rob says:

      Yeah exactly! Thats a sweet drip. I got 4. Im not worried about that dividend. In fact i think they will boost it again later but maybe at 7-8% vs the 10 guidance. See how much assets they sell by then..

      Cheers May!

  9. GYM says:

    I like DRIP too but I only have it for Husky and Sunlife. Both of them DRIP’d this month after a few months of inactivity. I like to have a bit more control over where my dividend money goes, so that’s why I don’t DRIP more (maybe I am a control freak haha).
    GYM recently posted…The Ultimate List of Canadian Dividend Investing BlogsMy Profile

    • Rob says:

      Hey Gym

      Thats true, sometimes by enabling drip you end up adding to the company when they are overvalued.

      Theres no problem with wanting to be in control of your money. Keep it up
      Cheers

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