Hi everyone on Friday December 23rd I decided to make one final stock purchase of 2019 for my Tax Free Savings Account. For a couple weeks I had some money sitting in my account and I didn’t know what to do with it. My one thought was to hang onto it and build up a cash reserve for the moment the stock market crashes then I could go on a buying spree. The problem with that idea was that I have no clue when that day will come, so I put the money to work for me instead of collecting dust in my account.
The stock that I purchased you guessed it European Residential REIT (ERE.UN) this is the second purchase of this REIT for me. I am really starting to embrace dripping my dividends to acquire new shares of stocks and with this purchase I will now be able to drip this stock.
Who Is European Residential REIT?
You wouldn’t be alone in asking who is European Residential REIT? Before 2019 I hadn’t heard of them. The company use to be known as European Commercial REIT, they changed their name this year when they decided to invest and purchase residential properties. The transformation began earlier this year. The company working alongside Canadian Apartment Properties (CAR.UN) has purchased a total of 72 properties with 2,887 units this year. The company still owns three commercial properties in Belgium and Germany.
Why Did I Buy?
I purchased more of this stock because I believe in their future. Canadian Apartment Properties management is working alongside European Residential Reit I think their management is very good. Also I made the purchase because the stock is solely focused on the European market which helps me diversify away from the Canadian stock market.
The company currently pays a monthly dividend of $0.0128 and has a yield of 3.32%
I purchased an additional 242 shares of the stock @$4.65 per share. Earlier in the year I purchased 310 shares @$4.50 per share so my average cost will increase to $4.57. The buy will boost my income per month by $3.10 and annually by $37.20. As I mentioned above although this income isn’t big it will allow be to drip a new share per month.
So what do you think of my purchase? Do you own the stock? Please feel free to leave a comment.