Buying On The Dip Part One

bitcoin-roller-coaster

 

Hey everyone last week we seen some volatility on the stock market, a couple of days it was down then back up then down again. It was probably the most volatile week in a couple of years. I am in a three or four investing groups on Facebook and I noticed a few people deciding to sit and wait to see if the market would continue to fall which is a good strategy if you have patience. For me however I chose to buy, and that is what this post is about, I am going to share with you the purchases I made last week.

I made a total of 4 buys last week and all were stocks that I already own. With all of my purchases I was able to lower my average cost on each stock. I consider it a good buy whenever I can lower my costs.

On February 7th I made three buys and they are:

Buy #1 (In My TFSA Account)

3ec13-inter2bpipeline2blogo

About Inter Pipeline

 

Inter Pipeline is a major petroleum transportation, storage and natural gas liquids processing business based in Calgary, Alberta,Canada. We own and operate four business segments operating in western Canada and Europe. Our pipeline systems span over 7,700 kilometres in length and transport approximately 1.3 million barrels per day (b/d).

In Europe we operate 16 strategically located petroleum and petrochemical storage terminals that have a combined storage capacity of approximately 27 million barrels. Our NGL business is one of the largest in Canada, processing an average of 3 bcf/d in 2016, with the capacity to produce over 240,000 b/d of NGL.

Inter Pipeline’s extensive energy infrastructure base is strategically positioned to compete for future, accretive growth opportunities both locally and internationally. With a strong balance sheet and proven operational capability, Inter Pipeline is well positioned to continue to generate long-term positive results for our shareholders. Inter Pipeline is a member of the S&P/TSX 60 Index and common shares trade on the Toronto Stock Exchange under the symbol IPL.

Source: Company website

Back in 2016 when I first bought Inter Pipeline I purchased the shares at $22.78, well on Feb 7th the shares were trading at $22.50 which represented a good buying opportunity. The company has good management and continues to grow it’s earnings so I decided to buy.

The Buy

I purchased an additional 50 shares @$22.50 for a total cost of $1,134.99 including trading cost. With this buy I now have 181 shares. My new average cost is $22.70, my cost dropped $0.08 which isn’t much but it’s better then going up.

Dividend Income

Inter currently pays a monthly dividend of $0.14 so the additional 50 shares will pay me $7 per month and $84 annually. Also of note with this purchase I will now be able to drip 1 share of Inter in March if the stock remains at this price.

Buy #2 (In My RRSP Account)

Realty Income Corp

This is the second purchase of Realty Income Corp, the first buy was two weeks ago and you can read that here. When I purchased the stock the first time I paid $54 USD per share so when the price dipped to $50.57 I decided to buy once again.

The Buy

I purchased an additional 25 shares @$50.57 USD per share, the cost of the transaction was $1,613.89 trading fee included. The cost is high due to the exchange rate. I now own 47 shares and the cost drops from $54.02 to $52.18.

Dividend Income

The company currently pays a monthly dividend of $0.219 USD and the additional 25 shares will provide me $5.47 USD ($6.88 CDN) at current exchange rates. Annually I will receive $65.64 USD ($82.53 CDN).

Buy #3 (In My RRSP Account)

15-Johnson-Johnson-Logo-1024x182

With Johnson & Johnson it’s the same story as Realty Income Corp above. Two weeks ago I started a position in the company, then the shares dropped significantly so I decided to buy once again. Two weeks ago I purchased shares at $147 so when I seen the price drop to $132.43 I hit the buy button.

The Buy

I purchased an additional 8 shares @$132.43 per share, the total cost of the purchase was $1,364.05. Once again the cost is high due to the exchange rate. I now own 16 shares of JNJ at an average cost of $139.73.

Dividend Income

JNJ currently pays a quarterly dividend of $0.84 USD. So at current exchange rates my additional 8 shares will provide me $6.72 USD ($8.45 CDN) quarterly. Annually I will receive $26.88 USD ($33.80 CDN).

Buy #4 (In My TFSA Account)

3ec13-inter2bpipeline2blogo

On Feb 9th I once again decided to buy Inter Pipeline. After my first buy of the stock earlier in the week I continue to watch the stock price. On the 8th it rose a little bit but on the 9th it fell once again this time to $21.71. If I was willing to buy at $22.78 and $22.50 then I definitely was willing to buy at $21.71.

The Buy

I purchased an additional 50 shares @$21.71 per share, the total cost including trading fee was $1,134.99. I now own 231 shares and my average cost has dropped to $22.50. I knocked off $0.20 with this buy.

Dividend Income

This buy will provide me an additional $7 per month and $84 annually.

 

Well folks what do you think of my purchases? These buys will bring in an additional $284.33 in dividend income. This number will fluctuate somewhat due to the exchange rate and dividend increases (hopefully 🙂 ). Did you buy any stocks last week? Please feel free to let me know in the comment section.

Thanks for reading

Matthew

Buying On The Dip

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19 thoughts on “Buying On The Dip Part One

      1. Thanks I am putting my money to work for me instead of just sitting in a bank account collecting $4 per month in interest. Now I will be earning over $100 this year in dividends.

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  1. I only trade for ETFs so I can’t comment much on individual companies, but damn that’s a good dividend! This year I only got like $18 from my dividends so maybe I should start doing what you’re doing. How do you pick a company? Just research independently or?

    Liked by 1 person

    1. Hi Corinne thank you for the comment. I would only invest in individual stocks if your comfortable doing so. As for me I try to pick stocks that we as human’s need such as banks, telecoms and utility stocks they usually increase dividends year over year. I also if I’m interested in a company I will download several annual reports so I can review their earnings, are they excuting their plan etc…

      Liked by 1 person

  2. I really like JNJ at the current price. Unfortunately I am tapped out and I do not have capital at present. Ugh!

    Overall I think you were wise to buy at these prices. All of that dividend income can be reinvested in additional shares, and your yield will be higher given the low prices you paid. Excellent work!

    Liked by 1 person

  3. Hard at work Matt! Good to see such positive activity and increases in annual dividends. This is very motivating. I can’t wait to get my hands on my super juicy tax return and do some more buying myself! Cheers!

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