Hi everyone, I hope everyone is doing great. I hope my fellow Canadians had a great long weekend. Today I wanted to share with you a purchase I made back on May 7th. I continued with my strategy of buying stocks in my TFSA account that I currently hold in my RRSP account, I do this to eventually sell my Canadian stocks in my RRSP and use the cash to my US stocks. I suppose I could just sell the stocks now and invest the money however I believe the stocks are solid company’s and would like to continue receiving the dividends while I wait for the share prices to rise again.
So back on May 7th, I made my first purchase of Power Corp (ticker: POW) for my Tax Free Savings Account (TFSA). At present time the stock has fallen 43% over the last three months. The yield currently sits at 10.63%, the board of directors gave shareholders a 10% in March so I would like to think they have no plans on cutting it. However in these uncertain times nothing is a given.
I bought 25 shares @ $20.80 per share. In my RRSP the average cost per share for what I hold currently sits at $28.40 so the stock has fallen quite a bit. Power Corp currently pays a quarterly dividend of $0.4475 per share. With these new 25 shares my income will increase $11.19 per quarter or $44.76 annually.
Thanks for reading!