Hi everyone I’m back with a another new post about my weekly TFSA purchases, this seems to becoming a weekly segment on the blog. I know we are still in the early days of the pandemic and things are more likely to get worse on the stock market once jobless reports are published and stocks report quarterly earnings. However in my opinion I believe some stocks are being over sold and I have been making buys each week to capitalize on this. Last week I made five purchases on stocks that are already in the portfolio.
SmartCentres REIT (Ticker: SRU.UN)
This is the third purchase of the month for me of SmartCentres I believe this stock has been oversold. SmartCentres tenants primarily consist of Loblaw, Sobey’s, Metro, Shoppers Drug Mart, Canadian Tire, Lowe’s, Home Depot, Walmart plus major banks and wireless companies all companies that aren’t going anywhere anytime soon.
With this purchase I bought 30 additional shares @ $16 per share. With the new shares I was able to lower my average cost to $22.45. I currently hold 70 shares and if the prices remain low I may add to my position. This purchase will boost my monthly income by $4.62 and annually by $55.44.
Aecon Group (Ticker: ARE)
This is my second purchase of Aecon Group. This stock has dipped a bit. With Canada’s plans to spend over $100B in infrastructure over the next 12-15 years I believe Aecon is well positioned to win quite a few contracts. Also a positive for Aecon is that SNC Lavalin is no longer going to be bidding on fixed bidding contracts so that may help them earn more deals in the future.
With this purchase I bought another 50 shares bringing my total now to 90. I paid $12.64 per share, and this helped lower my average cost to $14.15. Aecon pays a quarterly dividend of $0.16 and so these 50 shares will boost my income by $8 per quarter and $32 annually.
Plaza Retail REIT (Ticker: PLZ.UN)
Here I believe is another stock being oversold. Plaza is an open-ended real estate investment trust and is a leading retail property owner and developer, focused on Ontario, Quebec and Atlantic Canada. Plaza’s portfolio at December 31, 2019 includes interests in 274 properties totaling approximately 8.4 million square feet across Canada and additional lands held for development. Plaza’s portfolio largely consists of open-air centres and stand-alone small box retail outlets and is predominantly occupied by national tenants.
Plaza like SmartCentres have large national tenants such as Shopper’s Drug Mart, No Frills, Dollarama, Canadian Tire and Sobeys. These store remain busy and aren’t going anywhere. Sure some of Plaza’s tenants are small stores and may need to defer rent but they are a small part of Plaza’s revenues. I was reading in The Globe and Mail on Friday that the CEO has been continuing to buy shares, to take advantage of these lower prices.
I purchased an additional 100 shares @ $3.00 per share. I now currently hold 1,190 shares. Plaza pays a monthly dividend of $0.02333 and with the new shares my income increases by $2.33 monthly and $27.96 annually.
Inter Pipeline (Ticker: IPL)
This buy might be a controversial one with the price of oil where it is trading for these days. Inter Pipeline has been beat up this year having lost over 50% of its value. Reasons for this I believe is their big Heartland project that they are building in Alberta it is sucking up a lot of cash, another reason why I think the shares are down significantly is because some of their customers are small and mid size and there are questions whether they will survive this. I think the company can whether this storm and survive this oil crisis, they are currently trying to sell their European oil storage business and we may know something in the next few weeks.
Even though Inter’s yield is currently 26.68% that’s right it isn’t a typo I thought at these prices the company was worth investing in. I bought an additional 50 shares @ $6.55 per share. I know hold a total of 309 shares with an average cost of $19.84. Inter pays a monthly dividend of $0.1425 these 50 shares will provide me an additional $7.12 per month and $85.44.
Sun Life Financial (Ticker: SLF)
I made my second purchase of Sun Life Financial I am adding to this position slowly as in these environments insurance stocks usually don’t do so well. My first buy of Sun Life it was trading at $59 and when I seen it trading for $39 I took an opportunity to lower my costs and made the decision to buy.
I bought 10 shares this time, same as the first buy. The price of the shares where $39.02. I now hold 20 shares with an average cost of $49.13, I was able to lower my costs by $10. Sun Life pays a quarterly dividend of $0.55 and with these new shares my income will increase by $5.50 per quarter and $22 annually.
That’s all the purchases for this week. With these buys my forward income increases by $222.84. I’m not sure what the markets will do next week, I will keep watching and see if anything looks to good to pass up.
What are you guys buying? Or are you sitting on the sidelines waiting to see if prices fall further?
Thanks for reading!