Richie Bros Auctions
Richie Bros Auctions
On Friday we added to our position in Richie Bros Auctions. Their quarterly earnings came in lower then expected and the stock took a dive dropping 10.07 percent. At current levels they are at their 52 week low. In their quarterly statement they mentioned they had less equipment to sell this quarter. One of the big positives was how much sales came from online. They have been acquiring online auctions recently and clearly that has been a great move.
Someone mentioned on the dividend investing facebook page that Richie Bros are easy to predict and 2-3 years after a industry gets hurt they will have a lot of machines/equipment to sell and their numbers will improve. That’s why their sales numbers are decreasing. It makes sense but there is always someone buying and selling something.
Richie Bros Auctions has a 14 year dividend growth rate. Their 10 year dividend growth rate sits at 9.8, which is fantastic! At current prices it offers a yield of 2.68%. They pay its dividends in March,June,September and December and in U.S. dollars. (Which is the last months I wanted to add to currently.) After my recent sale of Aecon, We had a hole in the industrial sector and needed to prop that sector up a bit – 52 week lows help that =)
We bought an additional 50 shares. That will add $34.00 in yearly dividends and brings our total shares of Richie Bros Auctions to 150. While it currently won’t be able to drip the stock, it gets us closer to doing so. I will continue adding to our position on further dips. I think Richie Bros Auctions is a great buy with a wide moat. (They even have their own tv show)
This purchase certainly wont make us rich overnight, but a ripple is small at first and look how far it grows.
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.