Hey everyone I would like to share a recent purchase I made with you. Way back on May 11th I decided to buy more shares of one of my favourite stocks Canadian Utilities. This stock as well as others have seen a decline in their share prices as interest rates rise. Before we get into the details let me share with you some information about Canadian Utilities in case you are unfamiliar with the company.
About Canadian Utilities
Alberta-based Canadian Utilities Limited, with approximately 5,400 employees and assets of $21 billion, is an ATCO Company. ATCO is a diversified global corporation delivering service excellence and innovative business solutions in Structures & Logistics (workforce housing, innovative modular facilities, construction, site support services, and logistics and operations management); Electricity (electricity generation, transmission, and distribution); Pipelines & Liquids (natural gas transmission, distribution and infrastructure development, energy storage, and industrial water solutions); and Retail Energy (electricity and natural gas retail sales).
Source: Company website.
Why Different Account
What makes this purchase interesting for me besides growth my forward dividends, is that I purchased it in my Tax Free Savings Account (TFSA). I currently hold 156 shares of the stock in my Registered Retirement Savings Plan (RRSP) account. I purchased these new shares in my TFSA because over time I would like to only hold the stock in my TFSA and remove it from my RRSP. Why is this? Well I am doing this to free up cash in my RRSP to buy US stocks or potentially a ETF that focuses on international stocks. So the plan will take time as I will sell the shares in my RRSP once the share price starts rising.
On May 11th I purchased 39 shares at $32.15 per share. The cost of the purchase including the trading fee was $1,263.84. The shares that I hold in my RRSP account have an average cost of $38.87 so I was able to acquire these new shares much cheaper.
Canadian Utilities currently pays a quarterly dividend of $0.3933 so these new shares will boost my quarterly income by $15.34. Annually my income will rise by $61.36.
Well folks what do you think of my new purchase? What do you think of my plan to move the stock into my TFSA? Please feel free to comment in the comment section.
Thanks for reading