Recent market declines helped me to purchase 5 dividend growth Canadian stocks from my watch list with a little cash.
This year(2014), my focus was saving for down payment to our first home, and am aiming to put at least 20% down payment to avoid the CMHC mortgage insurance fee. Thus, I did not make a major stocks purchase until September and paying down some debts instead.
With dividend income from September 2014 and the cash I received from the sale of my Tim Hortons shares, I had more than $5000 in my brokerage accounts, and also I received a special low interest rate for one year from a credit card for $10 000. Also, my favourite dividend stocks were on sale from the recent high.
All these events triggered my stock addiction and forced me to buy five high quality dividend stocks at discount price.
The stock prices may go further down OR up next week or next month. I really don’t know about the short term movement.
But, I am sure for long term, I mean 10 years from now, the value of my stocks will be much higher than now, and I will be getting more dividends as well.
Enbridge Inc. (TSX: ENB)
This is a pipeline and utilities stocks which transports and distributes energy across North America. It has fantastic track records of dividend growth and capital appreciation. I added 50 stocks in my non-registered account. I already have 100 shares and this is an addition to an existing investment. The P/E ratio is very high due to the recent project expenses; however, the company long term view is very solid. This purchase adds $70.00 to my passive dividend income, based on the current yearly dividend of $1.40.Telus Cor. (TSX: T)
This is a Canadian telecommunications company, provides a range of telecommunications products and services including wireless, data, Internet protocol, voice and television. Telus is one of the most well run companies in Canada and its growth, and has a shareholder friendly management team. The management committed to reward its shareholders with the dividend growth and share buy back. I initiated 50 stocks in my non-registered account. This solid long term stocks adds $76.00 to my passive dividend income, based on the current yearly dividend of $1.52.Toronto-Dominion Bank (TSX:TD)
This Canadian bank giant offers a range of financial products and services through its subsidiaries to more than 25 million customers worldwide. I added 50 shares of this financial dividend growth machine in my non-registered account. I already have 50 shares and this is an addition to an existing investment. This purchase adds $94.00 to my passive dividend income, based on the current yearly dividend of $1.88.Canadian National Railway Company (TSX:CNR)
This one of the largest rail and related transportation company in North America and using its 20 100 miles of rail track, it can transport oil and materials nearly every major U.S. and Canada cities. I added 30 shares of this rail road dividend growth stock in my non-registered account. I already have 20 shares and this new purchase sum up with the existing to 50. This buy adds $30 to my passive dividend income, based on the current yearly dividend of $1.00.Suncor Energy Inc.(TSX:SU)
Suncor is Canada’s largest integrated energy company with a portfolio of first-class assets in production, refining, and retail. This dividend growth energy stock recently increased its dividend by 22% to $1.12 per share while maintaining its payout ration below 35%. Also, it plans to buyback as much as $1.1 billion in stock in the next 12 months. Due to the dip in the energy stocks, I was fortune to buy this stock at 20% discount from its recent high. I added 30 stocks with the existing and sum up to 50. This purchase adds $33.60 to my passive dividend income, based on the current yearly dividend of $1.12.These new purchases cost me around $10 500. For this, I used money from the sale from Tim Hortons shares and the recent dividend income - $5000, and I borrowed another $5000 from low interest rate credit card with the interest rate of 2.49% for one year. I made this aggressive move because I didn’t want to miss this discount opportunities. Also, I can get a tax refund for the interest I pay for the loan as I bought income generating asserts using the loan.
Summing up all the projected yearly dividend income, I came up to $3754.78. Which means I will get more than $3750 every year in my bank accounts by doing nothing 😀 . The amount will grow year-over year when the companies hike their dividend payment.
Again, the market may go further south OR swing back to north. Nobody knows and I am not a market guru to predict it. But, I am sure I can collect growing stream of dividends income for long time from these blue chip companies. If market goes further down, for sure, I will add more high quality stocks to average down my purchase price.
The information posted on this website are the opinion of my own and should not be considered professional financial advice. I am not a financial professional, and I can buy, sell, or hold any investment at anytime. Please consult with your financial professional before even considering using the information obtained from this website.
Hi there, I really enjoy your site. Appreciate what you share. What are your thoughts on TFII (TFI international) and Laurentian Bank?
Hello Chris,
Thank you for stopping by,
I heard about this stock (TFI international), but to be honest I don’t really follow this stocks. Thus, I can’t comment about it.
I like the big Canadian banks, and I have enough exposure in financial sector, so I don’t follow the bank stock you mentioned.
Best Regards,
Hi, what do you actually think of Cgx.to ?
Hello Sam,
Thank you for stopping by,
To be honest, I almost lost my confident with CGX.TO. It is relatively very small position in my portfolio and paying a nice dividend. So, I am going to leave it in my portfolio for a while as the company is working hard to diversify its business from movie theater.
It was a solid company a few years ago, but the world is changing rapidly.
Best Regards,
Hi, what are you looking at now ? There are some deals in oil /utility related names but the market feels like it wants to keep heading lower. What are your thoughts on Vermillion, Whitecap at these levels and are you still confident in your Alta holding after the massive sell off. Thanks
Hello Nolan,
Thank you for stopping by,
I stopped buying oil producers, but I participate the energy sectors by owning pipeline stocks such as TRP and ENB. I had Suncor (TSE:SU) stocks before, but I sold all of them around $45 a few months ago.
I like utility sectors, but they were much cheaper a couple of months ago. I added a few positions in FTS and EMA a couple of months ago when there were trading below $40.
Regarding AltaGas (TSE:ALA) – I still have confident in the company management team. I may consider adding a few more shares if its price drop below $12.
Disclaimer:
I am not a licensed financial adviser. In this website, I have been documenting my financial journey for fun and entertainment purpose only. My financial goals, risk tolerances, and financial situations will be much different than yours. We all are unique by nature. Therefore, as I always say, please do your own due diligence or discuss with a qualified financial professional before making any financial decisions.
Strong buys and very solid forward dividend income. It’s interesting you leveraged a low interest credit card for the purchase as well. I’ve never really seen that but it makes sense in this crazy market we are in. Deals are out there! Best of luck!
Thank you SAD for stopping by,
I am so glad that I was able to pick up these great companies at bargain price during the recent market correction. Market is started to recover from the recent sell off.
I usually borrow money to invest when I find great opportunities.
Happy investing!
Cheers,
All solid buys from our neighbor to the north. I too added to my TD position this month as well as to my BNS. I’m a fan of the large Canadian banks as you can see. Thanks for sharing your recent buys.
Thank you DivHut for your comments,
Canadian banks are very solid for long term. I am looking to buy if the prices drop further from here…
Cheers,
Great buys!
Looking for good entry point for CNR
Thank you Dave for stopping by,
I guess CNR started to move up from the recent correction. I would suggest you to add a small position now and average down if its price drop. It is a solid pick.
Best Regards,