Money and Finance
Hi Everyone,
- Recent Buy - Reynolds American Inc. (rai)
Hi Everyone, Another purchase is in the books. After my sell of O, I had a decent amount of funds. RAI has pulled back just a tad off its 52 week high and the quarter looked really good. Not to mention is that they just raised the dividend...
- Selling One Of The Best Companies Of All Time...
Hi Everyone, The time has come to sell off my stake in Realty Income Corp (O). This is the first sell in my portfolio and of all the investments I have, I never would have guessed this would have been my first sell. A staple of consistency...
- Recent Buy - 3m Company (mmm)
Hi Everyone, My wife and I continue to be blessed with the way this year has shaped up. Personally, these buy posts make me hungrier than ever to keep saving, keep making money and keep investing. The income that we are starting to make every...
- Recent Buy - Parker-hannifin Corp.
Hi Everyone, I fell behind a little bit with getting this post out, but its been a busy couple weeks. This purchase actually occurred on June 6th. It looks as if I'll make another purchase here pretty quickly because of the RAI/LO merger....
- Recent Buy - W. P. Carey Inc. (wpc)
Hi Everyone, Well, the year has slowed down a bit with regards to buys, but the savings account has been built back up after I used them all up to pay off the student loans so hopefully I can get back to putting more money to work. With this...
Money and Finance
Recent Buys - Bank of Nova Scotia (BNS), Amgen (AMGN), St Jude (STJ)
Well, after our sell of Realty Income (O) we have put an additional $3K to work or a total of about $6K. First we went and bought RAI and now we have purchased BNS, AMGN and STJ! Reasoning behind all the purchases:
Bank of Nova Scotia: Well, I didn't want to directly invest in the Oil and Gas sector as I am quite overweight in that area already. From what I have read, most Canadian banks have fallen quite a bit due to their relationship with oil. The yield of BNS was quite enticing and after quite a significant drop I thought it was a prudent time to make our first investment with the country up north. BNS is also quite diversified throughout many other countries in the world so I thought their big pullback was unwarranted. Finally, I bought right after there last earnings statement and I liked what I saw. In total:
I purchased 33 shares of Bank of Nova Scotia (BNS) at $43.62. This purchase adds $71.28 of annual dividends to our account at the current .54 quarterly dividend.
This is my first purchase of a company outside of the US so it will be interesting to see the taxes/exchange rate but we shall see. If you readers out there have a better understanding, please comment below!
Amgen (AMGN) & St Jude (STJ): I felt our portfolio needed some more healthcare related stocks and AMGN and STJ fit that bill for us right now. I'd really like to get some medical device stocks such at Stryker or Becton Dickinson but they have rallied hard since the market drop of a couple months ago. Either way, I think there might be some other good healthcare stocks available so please, comment below!
We purchased 10 shares of AMGN at $146.65 and 18 shares of STJ at $55.44. These purchases add $40.00 and $22.32 for a total of $62.32 to our annual dividends.
All in all, that $4,000 of investments added $133.60. Which gives us a 3.35% dividend yield. I am hopeful that these purchases will give us a tad bit more dividend growth than buying a REIT stock. It is looking more and more like in 10 years time we will be close to retirement at our current pace. I have been playing around with dividend calculators a lot recently and the 10 year mark seems like a good crossover point where lower yielding stocks with higher dividend growth rates take over the stocks that have a higher initial yield but lower growth rates. For example, a stock with 3.5% dividend yield with average 8% increases over 10 years will roughly be the same as a stock yielding 5% now with a 3% growth rate. However, after the 10 year mark the lower initial yield stock really starts taking off. Just another one of the reasons I've been wanting to add some medical device companies to our portfolio. Their business model is great because they build consumable items so once they are used, they are gone. Their dividend growth has been amazing as well over the years which makes them really interesting to me.
So there you have it, the next building block on the path to the American Dividend Dream! What do you think, good purchase, bad purchase? What are you looking to buy next?
Bank of Nova Scotia: Well, I didn't want to directly invest in the Oil and Gas sector as I am quite overweight in that area already. From what I have read, most Canadian banks have fallen quite a bit due to their relationship with oil. The yield of BNS was quite enticing and after quite a significant drop I thought it was a prudent time to make our first investment with the country up north. BNS is also quite diversified throughout many other countries in the world so I thought their big pullback was unwarranted. Finally, I bought right after there last earnings statement and I liked what I saw. In total:
I purchased 33 shares of Bank of Nova Scotia (BNS) at $43.62. This purchase adds $71.28 of annual dividends to our account at the current .54 quarterly dividend.
This is my first purchase of a company outside of the US so it will be interesting to see the taxes/exchange rate but we shall see. If you readers out there have a better understanding, please comment below!
Amgen (AMGN) & St Jude (STJ): I felt our portfolio needed some more healthcare related stocks and AMGN and STJ fit that bill for us right now. I'd really like to get some medical device stocks such at Stryker or Becton Dickinson but they have rallied hard since the market drop of a couple months ago. Either way, I think there might be some other good healthcare stocks available so please, comment below!
We purchased 10 shares of AMGN at $146.65 and 18 shares of STJ at $55.44. These purchases add $40.00 and $22.32 for a total of $62.32 to our annual dividends.
All in all, that $4,000 of investments added $133.60. Which gives us a 3.35% dividend yield. I am hopeful that these purchases will give us a tad bit more dividend growth than buying a REIT stock. It is looking more and more like in 10 years time we will be close to retirement at our current pace. I have been playing around with dividend calculators a lot recently and the 10 year mark seems like a good crossover point where lower yielding stocks with higher dividend growth rates take over the stocks that have a higher initial yield but lower growth rates. For example, a stock with 3.5% dividend yield with average 8% increases over 10 years will roughly be the same as a stock yielding 5% now with a 3% growth rate. However, after the 10 year mark the lower initial yield stock really starts taking off. Just another one of the reasons I've been wanting to add some medical device companies to our portfolio. Their business model is great because they build consumable items so once they are used, they are gone. Their dividend growth has been amazing as well over the years which makes them really interesting to me.
So there you have it, the next building block on the path to the American Dividend Dream! What do you think, good purchase, bad purchase? What are you looking to buy next?
ADD
- Recent Buy - Reynolds American Inc. (rai)
Hi Everyone, Another purchase is in the books. After my sell of O, I had a decent amount of funds. RAI has pulled back just a tad off its 52 week high and the quarter looked really good. Not to mention is that they just raised the dividend...
- Selling One Of The Best Companies Of All Time...
Hi Everyone, The time has come to sell off my stake in Realty Income Corp (O). This is the first sell in my portfolio and of all the investments I have, I never would have guessed this would have been my first sell. A staple of consistency...
- Recent Buy - 3m Company (mmm)
Hi Everyone, My wife and I continue to be blessed with the way this year has shaped up. Personally, these buy posts make me hungrier than ever to keep saving, keep making money and keep investing. The income that we are starting to make every...
- Recent Buy - Parker-hannifin Corp.
Hi Everyone, I fell behind a little bit with getting this post out, but its been a busy couple weeks. This purchase actually occurred on June 6th. It looks as if I'll make another purchase here pretty quickly because of the RAI/LO merger....
- Recent Buy - W. P. Carey Inc. (wpc)
Hi Everyone, Well, the year has slowed down a bit with regards to buys, but the savings account has been built back up after I used them all up to pay off the student loans so hopefully I can get back to putting more money to work. With this...