I finally did it – I put the cash sitting in my RRSP & TFSA to work. I saw an opportunity to add to two positions I liked – and to initiate a new position in a company I have been eyeing for years. All in all, today I spent about $56,000 in the stock market – which was about $5500 fresh capital in my TFSA and mostly cash left over from previous sales in my RRSP. So…what did I buy today?
Stock Purchase # 1: XAW
I added to my (small) position in XAW. This is an ETF that holds over 8000+ stocks from all around the world (except Canada). I like this fund because it gives such great diversification, helps me diversify away from my home country bias, has a great track record, pays a semi annual distribution and has a very low MER 0.22%. I purchased 800 shares @ $34.00 in my RRSP. This purchase will add approximately $500-$600 to my annual dividend income (based on previous distribution amounts).
Stock Purchase # 2: GoEasy Financial
GoEasy is an alternative lender, which I have written about many times. It is also my all time best performing stock (up 155%). They have been an outstanding performer for years. Consistently growing revenues, earnings and their dividend. I already had a position of 276 shares- and decided I wanted to add based on the recent dip in stock price. They also recently released results which in my opinion looked great. A few highlights from the earnings release:
– Annual Dividend Increased to $3.64, up 38%
– Adjusted Annual Diluted Earnings per Share1 of $10.43, up 38%
– Adjusted Quarterly Diluted Earnings per Share1 of $2.76, up 23%
Once I saw the earnings report, I thought I may have missed my chance to get in on the dip, but to my (happy) surprise, the stock was actually DOWN. I scooped up an additional 150 shares @ $150 in my RRSP. This purchase adds an additional $546 to my annual dividend income, allows me to drip an additional share each quarter and gives plenty of room for future dividend increases and capital growth.
Stock Purchase # 3: Brookfield Asset Management
Finally initiated a NEW position! I’ve had Brookfield on my watchlist for quite some time- and finally had enough cash in my TFSA to make a respectable purchase, on a day when the price had dipped into my buy range. I picked up 78 shares @$70 each in my TFSA. Although this one won’t add a ton of dividend income as the current yield is under 1%, I am confident the dividend will continue to grow each year (as it has been)- and the stock price should continue to appreciate at a nice clip as well (the stock is up over 120% over the last 5 years). I plan to add more to this position in the future. This purchase adds an additional $52.00 to my annual dividend income.
These 3 purchases today add around $1200 to my annual dividend income, and bump my forward dividend income up to $14,360.00!
What do you think of these purchases? Do you own these stocks? Would you buy them? Let me know!