211 More Shares
As many of you probably already know I love dripping stocks. Sure sometimes you can buy them when they are a little overvalued and also when they are cheap. But the principle is you just keep buying them! Some stocks even offer discounts if you enroll in drip since they don’t actually have to pay you and your keeping your money in their company.
Every month when I look over all the dividends received I wish they would all drip. I know certain brokerages offer partial shares, unfortunately RBC currently doesn’t offer this. I think soon enough it will change though, just like when they didn’t deposit cheques over their app. (They now do since every major bank offers it ) Personally I like having all our finances in one account so wont be changing brokerages for the partial drips.
Anyways the last couple months I have had in my head to get Extendicare, Riocan and Shaw Dripping. It would be fantastic to get these monthly payments increasing every month. Extendicare offers a 3% discount of drips, Shaw 2% and sadly Riocan no discount.
2 months ago I purchased enough shares of Extendicare to drip every month. Late August I took advantage of the dip and added a tonne of Riocan. This month we received our first Riocan Drip. What do you think happened this month?
Well of course I added more shaw communications. While the price is down from when I bought a while back I don’t feel it was a steal. I have been watching this stock go sideways forever now! We added 200 shares for $5529.95 at a 4.3% dividend yield. This will add a additional $237 in forward dividends. It also brings our total holdings of shaw to 300 shares. 300 shares should bring in $29.64 per month enabling a monthly drip! Shaw communications currently has a 14 year streak of increasing and paying their dividends.
I feel Shaw is going to be a massive game changer in the Canadian telecom space. I’m sure all of us can agree we need more competition here. While its early in the game for them and they are spending tonnes to upgrade their cellphone service they are finally beginning to advertise more. Currently they are offering bring your own phone, 40 bucks a month 6 gigs unlimited calls and txt! I know virgin currently bends me over for a extra gig of data. Clearly the added advertising is going to help their number’s next quarter.
Bank of Montreal
My Tfsa also had some money sitting idle from non drips and I have wanted to add to one of my original stock purchases for awhile now. The bank of Montreal has been falling lately as investors flock to the other big Canadian banks. When it broke below 90$ a share I was interested, under 89 and I made the move. We added another 11 shares of Bmo for a total cost of 993.02. 1000 is generally my minimum I want to spend per trade but whats 7 bucks! haha. This purchase will add $40.79 in yearly dividend’s and brings our BMO holding to 17 shares now. I think the recent interest rate hike from the bank of Canada should boost all Canadian banks profit numbers. I’ll gladly buy on this dip.
Well that’s all the purchases for now and in total it brings our dividends up by $277. It also brings our projected yearly dividend’s over the 4k mark. Woot! Woot! A year ago they all were saying the markets gonna crash, get out etc etc here we are still going, collecting dividends. Who says cash is king?
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.
A couple of nice purchases there. I have been watching BMO as well. Keep up the good work. 🙂
Thanks Matt Im definally happy about that bmo pull back
Like yourself I enjoy trying to get stocks over the Dividend- DRIP line. Monthly payers are always fun to watch. Does RBC offer the discount on purchased DRIP shares or is it the market price on day of?
Hey ted yes rbc does give the discount and 5 day average after dividend payment.
Nice work! Thanks for the update. I love the set-it-and-forget-it nature of the DRIP approach. It’s so nice to have those dividends come in on autopilot! Have a great weekend.
Thanks alot Jay you as well
I’m a huge fan of DRIPs PCI and it’s great when you can even purchase stock at a discount. That was a huge purchase you made, and those 211 shares will compound in their growth to produce not just dividends, but even more shares as the months and years go by.
Hey port thanks. I love me a good drip.
So much added income.. my stomach can barely take it! Congrats, two great companies, no doubt!
Thanks Lanny. Maybe pepto bismal will help?
I currently own 200 shares of SJR.B. The stock has gone sideways as their dividend was last raised in February or March of 2015. They acquired Wind Mobile which they now call Freedom Mobile. So this will help their bottom line in the coming quarters. Shaw and Roger’s had Shomi as a joint venture trying to compete with Netflix. Shomi never took off, so Shaw and Roger’s ended the service in Nov 2016 and took writedowns . Rogers, own 200 shares, has not increased their dividend in over 2 years either.
So hopefully Rogers and Shaw will give dividend increases in the coming months.
Great info. I tend to follow http://www.dividendgrowthinvestingandretirement.com/canadian-dividend-all-star-list/ for dividend aristocrats. Guess i got to look into it more. Yeah i remember showmi had eastbound and down and letterkenny! Cheers
I like DRIPs . Right now i have only AQN to DRIP. Working on other ones too.
Hey pell. Algonquin is a great stock. One i want to add on a dip
I did give the DRIP some consideration when I first started investing. However, as my portfolio grew, I prefer to pool all my dividends that I collected to purchase new stocks. This is sort of my way of timing the market with additional money that I have. It also allowed me to invest regularly too.
hey Leo true. Our portfolio is 4 different accounts, if it was all one account it might be different as their would be bigger sums of money sitting there. Right now our portfolio is too small.
Shaw is one of my fav telecom stocks on my radar. It pays to be different than the market..
If I am not mistaken, its huge in the West Coast.
I haven’t bought enough stocks to realize the DRIP, this is one aspect that I would be looking to work on.
Westside! Yeah theres alot of potential in shaw. Slowly but surely woork on that drip!