One New Sell, Three New Buys

Hey everyone, today I would like to share with you another four moves I made to my portfolio, all of which were in my RRSP account. About three blog posts ago I shared with you my revamped portfolio and many of you are probably thinking what the heck is Matthew doing now lol. Don’t worry these were planned moves. Part of my strategy going forward is to sell the Canadian stocks I own in my RRSP account once I accumulate all of the shares or most of them in my TFSA account. Why do this? Well I want to grow my US exposure and grow the income I receive from US stocks.

Stock I Sold

Telus is one of the big three telecoms here in Canada and is one of my favourite stocks. After making all of the adjustments to my portfolio in early September I had accumulated 175 shares of Telus in my TFSA account, sitting in my RRSP was 216 shares so I thought it was a good time to sell and put my money to work elsewhere.

I sold 175 shares @ $23.97 per share, leaving 41 shares in my RRSP. I waited until after the ex dividend date and record date so in October I will receive a dividend from all 216 shares. Telus pays a quarterly dividend of $0.29125 or $1.16 annually, with this move I will lose $203 in forward dividend income.

Stocks I Purchased

#1

I first bought Walgreens Boots Alliance last August when the stock was trading at $50, since then the stock has fallen quite a bit. I believe the company will do well over the long term and I’m not too worried about what has happened in the short term. On September 21st I decided to buy more shares and average down my costs. I purchased another 25 shares @ $36.39 per share. With this purchase my average cost per share fell from $50.74 to $42.77.

Walgreens has increased its dividend for 45 consecutive years, they currently pay a quarterly dividend of $0.4675 and yield 5.34% with this purchase I will receive $11.69 quarterly and $46.76 in annual dividends.

#2

I knew I wanted to invest in healthcare but didn’t know whether to go with either Johnson & Johnson or AbbVie. I love both stocks and ultimately chose to go with AbbVie. This is the fourth time I have invested in the company since 2018. Earlier this year AbbVie completed it’s huge $63 billion acquisition of Allergan which is having a positive impact in the company’s financial results.

On September 21st, I purchased another 11 shares @ $88.53 per share bringing my share count to a total of 78. AbbVie pays a quarterly dividend of $1.18 and has a yield of 5.49%. With this purchase my dividend income will increase quarterly by $12.98 and annually by $51.92.

#3

With my third purchase I decided to go with the tech sector and chose Texas Instruments. This is my third investment in the company since last August. The company recently announced a 13% increase to their dividend which is encouraging as an investor. I was able to purchase an additional 11 shares @ $135.35 per share bringing my share count to 34 in the stock.

Texas Instruments with it’s recent dividend increase now pays a quarterly dividend of $1.02 per share and has a yield of 2.98%. With the 11 new shares my quarterly income will increase by $11.22 and annually by $44.88.

Not sure when I will make more transactions like this but these moves will continue into the future. Sure my making the move to sell Telus I am losing some dividends, but I believe these three stocks can continue to raise their dividends for years to come.

Thanks for reading!

Matthew

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