Hi everyone I decided to do a Labour Day weekend post on a trade I did Friday. Over the past week I was looking at my portfolio specifically at my Tax Free Savings Account and wondered if I had too many stocks at this present time. I came to the conclusion that I only needed to have one bank stock in this account for the time being. Before Friday I held Laurentian Bank and Bank of Nova Scotia.
Over the past couple of weeks the Canadian Banks announced their recent quarterly earnings and Bank of Nova Scotia had a decent quarter whereas Laurentian had a somewhat so so quarter with earnings down. The earnings reports didn’t influence my decision to sell, but they did I guess help reinforce that you will have better opportunities with Canada’s big six banks over the regional ones. I feel at this present time that Bank of Nova Scotia has the better growth opportunities and business model.
I sold all of my shares (95) of Laurentian Bank at $43.64 I made a small profit of 3.47% on capital appreciation.
With the money from the Laurentian Bank shares I was able to purchase another 59 shares of Bank of Nova Scotia at @70.93 per share. With these new shares my share count now stands at 104. I will now be able to drip one additional share in October when the bank pays their dividend on Oct 29th.
By making this decision in the short term my dividend income will actually fall by $38.40 per year. But I figure that I can quickly close this shortfall by dripping new shares and the dividend increases the bank announces every year.
So what do you think of my decision? Do you have thoughts on both banks? I would love to hear them so please feel free to leave a comment bottom.
Thanks for reading