Hello everyone and welcome to my newest post. In this post I will tell you about the recent stock purchases I have made. Last Monday I sold three stocks and I revealed them to you a couple days ago in the post titled Recent Sells. If we go back to last week I detailed my 2018 investing strategy, in that post I mentioned that I wanted to diversify as my portfolio was weighted too much in the Canadian market. Last Tuesday I took the first step towards fixing that.
On Tuesday January 23rd I purchased first US stock (4 to be exact). This is the first time I have owned a US stock since Nov 2016. Looking back on things I wish I hadn’t sold my stocks at that time. But we all make mistakes and learn from them. With these four purchases I not only improved my geographic diversification but also my sector diversification. Before last Tuesday I did not have any exposure to the tech and health care sectors, today I can tell you I have taken care of that.
Let’s get to the stocks shall we. Just to let you know all the new stocks are in my RRSP account so I don’t pay any taxes on the dividend income.
About Johnson & Johnson
Johnson & Johnson, together with its subsidiaries, researches and develops, manufactures, and sells various products in the health care field worldwide. It operates through three segments: Consumer, Pharmaceutical, and Medical Devices. The Consumer segment offers baby care products under the JOHNSON’S brand; oral care products under the LISTERINE brand; beauty products under the AVEENO, CLEAN & CLEAR, DABAO, JOHNSON’S Adult, LE PETITE MARSEILLAIS, NEUTROGENA, RoC, and OGX brands; over-the-counter medicines, including acetaminophen products under the TYLENOL brand; cold, flu, and allergy products under the SUDAFED brand; allergy products under the BENADRYL and ZYRTEC brands; ibuprofen products under the MOTRIN IB brand; and acid reflux products under the PEPCID brand. This segment also provides women’s health products, such as sanitary pads under the STAYFREE and CAREFREE brands, and tampons under the o.b. brand; wound care products comprising brand adhesive bandages under the BAND-AID brand and first aid products under the NEOSPORIN brand. The Pharmaceutical segment offers various products in the areas of immunology, infectious diseases and vaccines, neuroscience, oncology, and cardiovascular and metabolic diseases. The Medical Devices segment provides orthopaedic products; general surgery, biosurgical, endomechanical, and energy products; electrophysiology products to treat cardiovascular disease; sterilization and disinfection products to reduce surgical infection; diabetes care products that include blood glucose monitoring and insulin delivery products; and disposable contact lenses. The company markets its products to general public, retail outlets and distributors, wholesalers, hospitals, and health care professionals for prescription use, as well as for use in the professional fields by physicians, nurses, hospitals, eye care professionals, and clinics. Johnson & Johnson was founded in 1885 and is based in New Brunswick, New Jersey.
Source (Yahoo Finance)
Sorry about using the long description, Johnson & Johnson is such a big company I thought it best to use this description. Johnson & Johnson has been raising their dividends for decades, and when I decided to start buying US stocks this was at the top of the list. By buying this stock it takes care of the health care sector for me, allowing me to diversify my portfolio better.
On January 23rd I bought 8 shares at $147.02. It is a small buy but it’s all the money I had, and I figure it’s better to make the investment get your money working for you.
I thought I would provide a chart of the rising dividends, the company has been paying dividends a lot longer than 1997 just thought I would provide a brief history. Johnson and Johnson pays a quarterly dividend of $0.84. The payout ratio is currently 57.04% so there is really no worry of them deciding to stop raising the dividend.
With my purchase my annual dividends will rise $26.88US ($33.11 CDN at today’s exchange rate).
About Bank of America
Bank of America Corporation, through its subsidiaries, provides banking and financial products and services for individual consumers, small and middle-market businesses, institutional investors, large corporations, and governments worldwide. It operates through four segments: Consumer Banking, Global Wealth & Investment Management, Global Banking, and Global Markets. The Consumer Banking segment offers traditional and money market savings accounts, CDs and IRAs, noninterest- and interest-bearing checking accounts, and investment accounts and products, as well as credit and debit cards, residential mortgages and home equity loans, and direct and indirect loans. This segment provides its products and services through approximately 4,600 financial centers, 15,900 ATMs, call centers, and online and mobile platforms. The Global Wealth & Investment Management segment offers investment management, brokerage, banking, and retirement products, as well as wealth management and customized solutions. The Global Banking segment provides lending products and services, including commercial loans, leases, commitment facilities, trade finance, real estate lending, and asset-based lending; treasury solutions, such as treasury management, foreign exchange, and short-term investing options; working capital management solutions; and debt and equity underwriting and distribution, and merger-related and other advisory services. The Global Markets segment offers market-making, financing, securities clearing, settlement, and custody services, as well as risk management, foreign exchange, fixed-income, and mortgage-related products. Bank of America Corporation was founded in 1874 and is based in Charlotte, North Carolina.
Source: (Yahoo Finance)
With Bank of America I have added a US bank which I believe is going to do quite well over the long term. Bank of America struggled during the financial crisis but it is getting more efficient, profits are rising and as a dividend investor I should see the bank continue to raise the dividend as their payout ratio is very low.
I purchased 36 shares at $31.86 for a cost of $1,156.95 (trading fee included).
As you can see when the financial crisis hit the bank cut it’s dividend drastically only paying $0.01 per share quarterly. In 2014 the bank’s health started improving and dividends started rising again. Today the bank pays $0.12 quarterly and the dividend payout ratio is 19.71%.
With my purchase my annual dividends will be $17.28 US ($21.29 CDN).
About Realty Income Corp.
Realty Income, The Monthly Dividend Company, is an S&P 500 company dedicated to providing stockholders with dependable monthly income. The company is structured as a REIT, and its monthly dividends are supported by the cash flow from over 5,000 real estate properties owned under long-term lease agreements with regional and national commercial tenants. To date, the company has declared 568 consecutive common stock monthly dividends throughout its 48-year operating history and increased the dividend 93 times since Realty Income’s public listing in 1994 (NYSE: O). The company has in-house acquisition, portfolio management, asset management, credit research, real estate research, legal, finance and accounting, information technology, and capital markets capabilities.
Source: (Yahoo Finance)
Who doesn’t love a good REIT (Real Estate Investment Trust) am I right? What caught my eye was the 93 dividend increases since 1994. What also caught my eye was the number of fellow investors buying the stock, after reading about their purchases I decided to take a look at the company.
I purchased 22 shares at $54.02 per share. The cost was $1,198.43 (trading fee included).
Realty Income Corp currently pays a monthly dividend of $0.219.
With my purchase my annual dividends will increase by $57.84 US ($71.25 CDN).
Microsoft Corporation develops, licenses, and supports software products, services, and devices worldwide. The company’s Productivity and Business Processes segment offers Office 365 commercial products and services for businesses, including Office, Exchange, SharePoint, Skype for Business, and related Client Access Licenses (CALs); Office 365 consumer services, such as Skype, Outlook.com, and OneDrive; Dynamics business solutions, such as financial management, enterprise resource planning, customer relationship management, supply chain management, and analytics applications for small and mid-size businesses, large organizations, and divisions of enterprises; and LinkedIn online professional network. Its Intelligent Cloud segment licenses server products and cloud services, such as Microsoft SQL Server, Windows Server, Visual Studio, System Center, and related CALs, as well as Azure, a cloud platform with computing, networking, storage, database, and management services; and enterprise services, such as Premier Support and Microsoft Consulting that assist in developing, deploying, and managing Microsoft server and desktop solutions, as well as provide training and certification to developers and IT professionals on Microsoft products. The company’s More Personal Computing segment comprises Windows OEM, volume, and other non-volume licensing of the Windows operating system; patent licensing, Windows Internet of Things, MSN display advertising, and Windows Phone licensing system; devices, including Microsoft Surface, phones, and PC accessories; and search advertising, including Bing and Bing Ads. This segment also provides gaming platforms, including Xbox hardware, Xbox Live, video games, and third-party video games. The company markets and distributes its products through original equipment manufacturers, distributors, and resellers, as well as through online and Microsoft retail stores. The company was founded in 1975 and is headquartered in Redmond, Washington.
Source: (Yahoo Finance)
By buying Microsoft I gain exposure to the tech sector. Microsoft is a very profitable company and has been raising their dividends since 2011 so that caught my eye.
I purchased 11 shares at $91.90. The cost was $1,020.89 (including trading fee)
Microsoft currently pays a quarterly dividend of $0.42. Their payout ratio is 55.12% so they have room to continue to grow their dividends.
With my purchase my annual dividends will grow by $18.48 US ($22.76 CDN)
So everyone what do you think my purchases? I believe that these four stocks will help me grow my income over the long term. Now that I have purchased US stocks again I am going to take it slow, right now the plan is to try and build up my position in each company.
Please feel free to comment below I always enjoy your feedback.