TFSA Purchases

buy-keyboard

Hello everyone today I thought I would share with you some stock purchases I recently made in my Tax Free Savings Account. This year I’m turning about 98% of my attention to my TFSA account in order to boost the annual dividends I receive from the account and also max out the contribution room.

Poll & Mind Set

TFSA Poll

A couple of weeks ago I put a poll on Twitter asking fellow investors which stock would they invest their funds in to build up the position. I would like to thank everyone who voted I think that is the most participation I’ve ever had. The results were very close, and both stocks are very solid in my opinion.

A couple hours after I tweeted the poll and saw the comments I realized something I don’t need to have the same mind set that I previously had. What I mean by that is now that my TFSA account is with Wealthsimple Trade I don’t need to have a set amount of money available to buy a stock to save on trade commissions. Now that I’m with a platform that offers free commissions I can buy multiple stocks with little money. With this new mind set I have decided at times I might save my money and buy a large amount of shares of a certain stock, and other times buy small allotments of shares from a number of companies.

Purchases

So with that new mind set I made four purchases on February 7th.

#1 Inter Pipeline (IPL)

My first purchase was one of the stocks in the poll I created even though it loss it’s hard to avoid the pipeline stocks in Canada. They are insulated from the daily price of oil with long term contracts from producers.

I purchased an additional 10 shares @ $21.59 per share for a total cost of $215.90. Inter Pipeline pays a monthly dividend of $0.1425 with this purchase my monthly income increases by $1.42 and annually by $17.04.

#2 Transcontinental (TCL)

My next purchase was Transcontinental, I believe this stock is still pretty cheap even with it’s recent rise in price it is still trading closer to it’s 52 week low. The P/E ratio is just 8.57 with a yield of 5.41%

I purchased 10 shares  @ $16.21 for a total cost of $162.10. Transcontinental pays a quarterly dividend of $0.22. My quarterly income will increase by $2.20 and annually by $8.80.

#3 European Residential Reit (ERE-UN.V)

My third purchase was European Residential Reit, this company is focusing more on residential units as the name suggests, a couple of years ago they only held commercial property in Belgium and Germany. All of the residential units they own are in the Netherlands. The stock has a P/E ratio of 1.18 and yields 3.41% I believe the future is bright for the company, on the plus side they are currently working with Canadian Apartment Properties (CAR.UN) who has a strong management team.

I purchased 25 shares @ $4.94 per share at a total cost of $123.50. The reit currently pays €0.00875 monthly when that is converted to Canadian it is about $0.0127. My income will increase by $0.32 per month and $3.84 annually.

#4 BMO International Dividend ETF (ZDI)

My final purchase was the BMO International Dividend ETF which is an ETF that holds 100 international dividend stocks helping me to diversify my portfolio.

I bought an additional 5 shares @ $21.45 at a total cost of $107.25. ZDI currently pays it’s distributions monthly at $0.09. This purchase will add $0.45 monthly and $5.40 annually.

These four buys adds $35.08 to my forward dividend income, not much but with zero commissions I can make these type of purchases more often and that will boost my income significantly.

What do you think of my purchases? Do you own these stocks?

Thanks for reading!

Matthew

14 thoughts on “TFSA Purchases

  1. nice Matt.

    got to love those free trades. Pretty cool to be able to buy stocks whenever vs stockpiling money before a purchase.

    nice additions.
    keep it up
    cheers

    Liked by 1 person

  2. Really enjoy reading your site very informative! quick question for you- are there withholding taxes applied on your monthly ZDI dividends since you are holding them within your TFSA? If yes, what is the percentage that is withheld on every $0.09 cent monthly dividend?

    Liked by 1 person

    1. Hi Fay and thank you. I haven’t had to pay withholding tax on that ETF. To date I receive the appropriate dividend income nothing has been automatically taken off and I haven’t had any paperwork saying I need to pay anything.

      Like

  3. how is your experience traing with Wealth Simple . I have all my accounts with TD and Questrade. I am considering switching my TD TFSA with wealth Simple. Can you share your experience. I appreciate it much. Thank you!

    Liked by 1 person

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