March 2019 – Stock Buys
March 2019 – Stock Buys
Hey, how its going?
Recently I decided to continue switching the portfolio up after creating a excel sheet and really seeing the power of dividend growth investing. As I pointed out last week, it was a big eye opener. The power of compounding combined with the raises from dividend’s is huge.
There was a couple stocks in my portfolio that didn’t meet the criteria and 2 stood out to me. One has gotten beat down and I feel a dividend cut is coming, and the other was such a small position that I don’t see myself adding to anytime soon.
Let’s start this off with the sale’s….. Yeah I know more sales, my portfolio has been going over a shuffle lately and while the trading fees add up long term this shouldn’t be a issue. I started investing as just a dividend investor and now id like to switch over to a dividend growth investor. Typing that out, your like dam why didn’t you go for dividend growth first?
Well as I’ve mentioned numerous times I’m not a investing pro, and don’t think I am. I’m doing good with our finances, but there’s always room for improvement.
Sienna Senior (SIA)
Alright so first off was our sale of Sienna Senior (SIA). This is a company I like, they own a bunch of retirement home’s and with the baby boomer’s getting older and older this is a great place to be in the future. I picked them and extendicare up based on Canada’s lack of healthcare dividend stocks and the aging trend.
I now would rather get our healthcare exposure on the us side of things in the form of Abbvie, JNJ, Pfizer and maybe others. They have a better dividend growth background.
The sale of Sienna was easy. It was one of my original holding’s when I first start investing in $500 blocks. I had only 32 shares bringing in $2.40 a month. I didn’t see myself adding to this position. So I sold it all. This brought in $574.37. I was up about 8% and all the dividend’s I got the past 2-3 years.
Ewww highliner… This has been one of my worst holdings. I originally bought them in Sept 2017 for 13.62 a share. I thought they were a steal at this price and a 4% yield on a food stock. It’s a great buy… Well I thought that.. It has left a fishy taste in my mouth and not even a tonne of tarter sauce can rid of it.
It had a 9 year dividend growth history but I really see a dividend cut coming for the company this quarter. They currently have a yield of 7.48%. That is crazy for a food stock. The fishing industry is getting harder and harder with more regulations and a declining fish population…. Even when I go to walmart I see less products of theirs on the shelves.
For some reason the stock crept up to 8$ a share a week or 2 ago.. I didn’t see any reason for it, but took it as a exit sign. So I sold my 150 shares for 7.78 a share. (Unfortunately I was hoping it would keep going up, but it started going down so I sold)
So I got about 125 bucks in dividends when I held it and sold for 1,157.00 so I lost $770.90 on this one. Yeah it sucked, losses happen, but I was glad to see the stock price pop up a buck over the last month. It could of worse… Let’s stick to those dividend growth stocks now =)
Well there’s the sales, while it sucks to take a loss learning lessons were made. Total dividend loss from these sales were $112.80
March 2019 – Stock Buys
I finally did it. I have been going on about BNS for awhile now. It’s a solid bank, and Canada’s most international banking operation. Last Friday we added 43 shares to our portfolio. There was yet another short seller announcement on the Canadian banks and they dropped in price. I was happy to pick them up for 71.52 a share. This now brings our total shares of BNS to 94.
Each quarter we will now bring in $81.78 and enable the drip! Oh man do I love drips. Unless the stock really pops up and passes that number this will be a full position for us. I think we got a decent buffer though.
At the time of purchase BNS had a yield of 4.8% and a p/e of 10.7. These are some solid numbers from our banks.
I won’t really get into BNS too much as I have talked about them quite a bit. I feel their moves into latin America will be a great growth driver in the coming years. If Canada’s economy does slow down, the diversification will be huge.
This buy adds 149.64 to our forward income.
Shorts, Yield Curves, Housing Crisis
The banks have been surrounded by bad news for a long time now. People have been shorting them for years, only to be disappointed that they didn’t crash. Our housing is expensive but we are now basically going sideways with interest rates and there has even been rumor’s the Bank of Canada may lower the rate this year.
The liberal’s introduced new rules helping first time home buyers get their first house. This should help pop up or stabilize real estate a bit again. (I’m not a huge fan of this, but its another story)
With a stagnant or even lower interest rate housing will continue to climb and there should be less defaults. (At least in the short term)
I think the real issue is Canadian citizen’s overall debt level’s, this will be a issue for a long time to come. We got to stop living like the Jone’s!
Yield curve’s are a concern, but we have seen this in December right?
Well that’s our March 2019 – Stock Buys, it feels good to finally get BNS to a large enough position to enable the drip. I have always said I think banks run the world. Back in high school, I remember doing this business project and rbc basically offering to loan me money to do it. I was like 17-18!
BNS stock is currently 70.79 so yeah I could of gotten it at a better price, but its hard to time the market. Remember its time in the market, not market timing.
I broke Warren Buffett’s rule of not losing money on the highliner sale, but I think its a smart move long term. Overall from the 2 sales and new buy I added $36.84 to our forward dividend income. Not bad, but now BNS is a set it and forget it stock!
The financial sector of our portfolio is now in our top 3 sector’s, so I don’t see myself adding to the banks unless they really drop.
What are your thoughts? Good buy? Should I of held highliner/ Sienna? Is a cut coming?
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 by clicking the Social Media links below or subscribing to get notified of new posts on the sidebar.