New Purchase – First U.S Stock

First U.S Stock

Good morning.

After the long wait we have finally finalized our rrsp transfer. No more mutual funds! It is not too much since we basically used both our rrsp’s to help purchase our first house awhile back and haven’t focused on replenishing them. For awhile now I have been debating if it is even worth the current conversion rate between Canadian dollars to U.S Dollars. Ultimately though if I stay mostly Canadian equities we will be very limited in sectors.

I bit the bullet and made the conversion. I feel there are a lot of  factors that could possibly lower the Canadian dollar more, of course that’s just speculation though. Also it would be great to start receiving some U.S dollars. I keep seeing other bloggers debating or making this purchase, which I fully support.

So what did I buy?

Yesterday I added a new position in General Mills – GIS. We bought 125 shares, enough to drip one per quarter if it stays at the current level. This trade benefits our portfolio in a couple ways. Before this purchase we had a 0.27 % position in the consumer defensive position. (yeah it needed work) It also diversifies us way more. One step closer to the goal of better global diversification.

At just over $57 US General Mills is basically at its 52 week low and also just over 21% off its 52 week high. I have been eating honey nut cheerios for as long as I can remember, Ok sometimes I get cinnamon toast crunch (also General Mills) but mostly my honey nut! There really is no better buys then companies you use on the regular. Its 3.3% dividend for a defensive stock is also really impressive. It has raised it dividend every year for the last 13 years and had paid dividends without interruption for 117 years. Can’t get much safer than that.

From what I understand the stock is down because people want less prepared food and they fell behind on their yogurt not jumping on the Greek yogurt trend. meh I prefer my fruit on the bottom cups =) This is a huge company and something like this pullback probably will fix itself up. I’m a long term investor and I feel its a great buy. It also adds 240$ in forward dividend income.

A Couple of their Brands…..

What do you think? Do you like the stock? Should I have not done the conversion currently 1$ Canadian = 74 cents US

Rob

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.