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
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.
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!