Putting The Cash To Work – New Buy

Cash gives you more time to enjoy life

Photo by Vivek Chugh from FreeImages

Hey everyone.

I hope you have been enjoying the month of July. Time continues to fly by, but I feel we have been taking advantage of the summer this year. The weather has been hot and sticky to say the least, but this week should be a little cooler. (feels like 30 degrees)

It’s that point in the month yet again, when we decide which stock we want to purchase to continue that snowball of dividend income. (I try to buy around the same time every month, and resist the urge to “time” the market)

If you read our past post it stated that the top stocks we were interested in purchasing this month were, Brookfield Property Partners, Magna, Bell Canada and 3m. Bell had the advantage because its a position I am working on in our kids resp account and the government just matched our previous contribution 20%.

Idle Cash

Personally I’m not a fan of idle cash. This can be a big debate. Its good to have a cash stock pile for the recession etc etc. I’ve heard it a couple times now, Rob you need to be more patient with your cash. You could of taken advantage of that December dip. Sure I could of, but I could of also sat on the sidelines thinking it would drop even lower like so many people did do.

If I got a couple hundred sitting in one account, that account is where I’ll be targeting my new funds too. Ie.. tfsa 1, tfsa 2 , rrsp or our resp.

Of course if that account is maxed for the year, that cash will be sitting idle until it builds itself to a big enough position to justify the trading fees to invest it.

Remember this is personal finance, everyone is different. It’s personal for a reason.




The Buy

Well I guess it’s pretty obvious where I deployed our cash. (You would of known right away if you follow me on twitter as I tend to post my purchases there after they are made)

We kept it simple this month and used that government money with ours to increase our position in Bell Canada. On Friday we added 22 more shares to our portfolio at $59.79 per share.

This purchase adds $69.74 to our forward dividend income and gets us that much closer to maxing out their resp account yet again.

Why BCE?

Let’s be honest Bell isn’t exactly a value stock at the moment. All 3 of the other companies I was looking into seem to be a better value at the moment.

  • The communication sector continues to be one of my lowest sectors and I always like pumping up the lagging sectors.
  • I want to continue building a better blue chip portfolio. A lot of Canadian Investors, love holding Bell stock and I think I will as well.
  • MlSE – Maple Leafs sports and Entertainment. Both Rogers and bell own nice chunks of mlse. It’s pretty cool owning a part of my favourite team and the Leafs are built for a couple good years. Come on Stanley! Also the Raptors winning the championship should help the next earnings and their fanbase!
  • I personally use Virgin for my cellphone (A Bell subsidiary) 50 bucks a Month, bring your own phone, 4 gigs of data and 350 anytime minutes. A great deal for us Canadians.
  • 5.3% starting yield and a 5 yr dividend growth rate of 5.3%
  • I had 18 shares before, Gotta get that Drip!
  • The wife loves when we contribute to the resp account.




Einde – (End in Dutch)

Well there you have it, our newest purchase. While it wasn’t massive, hopefully in time it will grow. haha, Just needs a little more attention….

Summer tends to be a little harder with investing. There is so much camping and cottaging to do, steaks for the bbq, $1000 a month for daycare (which is actually really cheap. 25$ per kid per day vs 60 bucks at a daycare…… ) etc etc.

It’s all good, we got one life. Live it hard and save something for the future.

Until next time, cheers!

Rob

What are your thoughts on our recent purchase? Or what have you been buying?

Long Bce, and position has been added to our dividend portfolio page.

13 Responses

  1. Usually…The folks that argue you should have had more cash say so after a market downturn. Everyone is an expert after the fact. Good for you for sticking to your method.

    • Rob says:

      hey passive

      Lots of people seem to think they are experts…

      Ill be the first to admit im not. Try to learn something new everyday.

      cheers cash!

  2. PCI –

    Congrats on making a move. Now that you have 40+ shares, time to get that engine going!

    -Lanny

  3. July has been nice here in Northern Europe too 🙂 It’s nice to get the sun here finally after a long winter!

    I’m loading up my cash account, as I’m pretty sure that we are going to see some king of a correction in the markets pretty soon. That is just my 2 cents 🙂

    • Rob says:

      hey Nordic

      Yeah europe seems hotter than normal particularly Paris.

      Who knows what will happen. Eventially we will get one. Until then ill keep collecting my divs!

      cheers man

  4. KH Yee says:

    Hello Rob, too bad you are too impatient with cash. Without cash, you will not be able to take advantage of buying more when the stock is on sale after a crash (and yes it is going to come). I saw my portfolio drop by 50% in the 2008-09 crash and have no cash to take advantage of the low stock price. Not repeating that this time. Market is toppy, economy is not doing well, the amount of debt in the world is staggering. Gold/silver etf, gold/silver mining stock sky rocketted in the past 30 days. You should diversify/venture beyond dividend investing. Anyway, I like you site.

    • Rob says:

      hey kh

      welcome and thanks for the positive comment.

      I have been investing for 3 years now and keep hearing about the impending crash. It will come but stockpiling cash those last couple of years would of been a bad idea too.

      Im still learning and maybe that next major crash will change my ways.

      I plan on grinding harder the next crash and just averaging in like i normally do.

      cheers!

  5. German says:

    I’m also with Virgin mobile and I received a text from them saying my monthly bill will go up by $5. Is not much but they shouldn’t raise prices on active plans. So I’m guessing Bell earnings will get a nice boost. These subsidiaries… first they lure you on a deal and then they jack up the price.

  6. Hey Rob,

    BCE is one of the companies I won’t be buying anytime soon, but that’s because it’s one of my biggest positions (and comfortably my largest dividend payer) and has been for years now. A steady 5% dividend boost every year on top of the already-juicy dividend yield has me loving the company.

    And I’m with you… Go Leafs Go! We just gotta find a way to get past Boston in the playoffs and the rest is gravy.

    Take care,
    Ryan
    Get Rich Brothers recently posted…July 2019 Portfolio UpdateMy Profile

    • Rob says:

      hey Ryan

      dam you Boston! I don’t think we will resign Gardiner though this year, so that should help against them anyways. Hes always tossing them some gifts behind the net.

      Yeah i wish i bought more bce when it was cheaper, but had that shaw position. Bce seems like the better stock for sure.

      cheers man

  7. Great buy Rob! I am not very familiar with the company (or any Canadian company, to be honest) but that yield seems pretty sweet!
    I am also not a fan of holding cash. We keep hearing about the upcoming recession for at least 3 years now. I guess we wouldn’t be happy if we kept our savings in cash all this time 🙂
    BI
    BrokeInvestor recently posted…July 2019 SummaryMy Profile

    • Rob says:

      hey Broke

      thanks, i guess haha

      Yeah one day it will come and then they will say – i told ya to have cash. Until then Ill collect all those dividends.
      cheers broke

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