Putting The Cash To Work – New Buy

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.

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.