New Purchases: CU and ZDI

Hey everybody I hope you are well, and thanks for stopping by. In today’s post I am going to share with you a couple of purchases I made back on September 4th.

The first purchase I made was in my Tax Free Savings Account (TFSA) and it’s another purchase of Canadian Utilities.

Canadian-Utilities-Limited

Over the course of the summer I have been buying Canadian Utilities in my TFSA and selling the stock in my Registered Retirement Savings Plan account (RRSP) I have been doing this to free up money in my RRSP account so I can buy US stocks or an international ETF.

Here is a brief description of Canadian Utilities in case you are unfamiliar with the company.

Canadian Utilities Limited engages in the electricity, and pipelines and liquids businesses. It operates through Electricity, Pipelines & Liquids, and Corporate & Other segments. The Electricity segment engages in the generation, transmission, and distribution of electricity using coal, natural gas, hydroelectric, and wind resources, as well as related infrastructure development in Western Canada, Ontario, the Yukon, the Northwest Territories, Australia, and Mexico. The Pipelines & Liquids segment is involved in the integrated natural gas transmission, distribution, and storage activities; and related infrastructure development activities, as well as provision of industrial water solutions throughout Alberta, the Lloydminster area of Saskatchewan, Western Australia, and Mexico. It owns and operates approximately 9,400 kilometers of natural gas pipelines, 30 compressor sites, and approximately 4,000 receipt and delivery points. The Corporate & Other segment engages in retail electricity and natural gas businesses; and commercial real estate holding activities. The company was incorporated in 1927 and is headquartered in Calgary, Canada. Canadian Utilities Limited is a subsidiary of ATCO Ltd.

Source: Yahoo Finance

The Purchase

On September 4th I purchased 49 shares @ $31.85. With this purchase I now hold 132 shares of the stock in my TFSA. I still need to buy 26 shares to hold the exact amount I held in my other account.

Income

Canadian Utilities currently pays a quarterly dividend of $0.3933 and with this purchase my income will temporarily increase $19.27 quarterly and $77.08 annually. I say temporarily because I still hold 75 shares in my RRSP account I will hang onto them until the stock price goes up.

 

My second purchase of the day was for my RRSP account, and this is the money from selling my pizza pizza shares. I used those proceeds to buy more shares of BMO International Dividend ETF.

International ETF pic

Going into 2018 I wanted to make this year more about diversifying my portfolio. Looking back on a post I wrote back on October 16, 2017 Here’s My Portfolio. How Does It Look? My geographic diversification was 85% Canada, 11.7% US and 3% cash, that is not a very diversified portfolio. This is my second purchase of this ETF so I am making an attempt to improve my portfolio.

The Purchase

On September 4th I purchased 139 shares @ $21.47. I now own 247 shares.

Income

The BMO International Dividend ETF (ZDI) currently pays a monthly dividend of $0.09. With this purchase my income will increase $12.51 monthly and $150.12 annually.

After this purchase my dividend income is slightly lower if I compare Pizza Pizza vs ZDI ETF but my portfolio is in a much better position now and that is more important.

 

Thanks for reading and sharing I appreciate it. Do you own Canadian Utilities or the BMO International Dividend ETF? Please feel free to let me know what you think of my purchases.

Thanks

Matthew

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7 thoughts on “New Purchases: CU and ZDI

  1. great purchases, Matt! It feels good when you free up some cash and able to make big purchases! I think utilities stocks will rebound to their previous highs. The interest rate is not increasing as fast as it was anticipated. By the way, you can still buy pizza at pizza pizza because I’m still a shareholder of it.

    Liked by 1 person

  2. Nice increase in dividend income on CU. That’s a stock that’s been on my radar for a few years. I don’t currently own any shares though. It’s also good that you were able to offset the loss in dividend income to a position you’re more comfortable with. Thanks for sharing!

    Liked by 1 person

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