More January Purchases

Welcome back fellow investors! Today I am going to share with you more stock purchases I have made over the last couple of weeks. January has been a very busy month in this regard for me. Back on January 20th I published a post called Buying and Selling in January 2021 which detailed some moves I made this month. However after that post I have been on a spending spree buying up quality stocks (in my opinion). At the end of that post I mentioned that I had US$23,500 in cash sitting in my RRSP (Registered Retirement Savings Plan) account, now that balance is sitting at US$4,096.00.

All of my purchases were made in my RRSP except for one. I will share that first with you.

Tax Free Savings Account

January 28th

  • Bought 3 shares of Fortis @ $51.75 per share

This isn’t a big purchase, at the time I had about $207 sitting in the cash side of the account after receiving my Bank of Nova Scotia dividend I thought I would put some of that to good use. I will probably be making a lot of these small buys in my TFSA account from now on. With $0 trading fees I’m more willing to make these small purchases.

Fortis pays a quarterly dividend of $0.505 per share or $2.02 annually. These three shares add $6.06 to my forward dividends.

RRSP

January 20th

  • Bought 52 shares of Altria @ $42.15 per share

I decided to add to my position in Altria, I looked at this as an opportunity to lower my costs before this buy was around $49 and now it is $46.94 so I was able to lower it by quite a bit. Altria pays a quarterly dividend of $0.86 or $3.44 annually. These shares will add $178.88 in forward dividend income.

January 25th

  • Bought 20 shares of Merck Co & Inc @ $80.73 per share
  • Bought 10 shares of Visa @ $197.17 per share

I decided to add more shares of Merck, I had noticed the price dip a bit since my first purchase. Merck pays a dividend of $0.65 annually or $2.60 annually, these shares will add $52 in forward income. I decided to start a new position in Visa, I’ve been looking at the stock for a bit now and the price has fallen a bit and provided a good opportunity to get in. More and more people I find are turning away from cash and use credit cards to collect points or cash back. I am one of those people, I can’t remember the last time I carried cash. Visa is in a good position with this trend as they get paid every time a transaction is made. Visa pays a tiny dividend of $1.28 annually or $0.32 quarterly, it currently yields 0.63%. I expect to have a good overall return with this stock and I’m not worried about the low yield. I will receive $12.80 in forward income from these shares.

January 26th

  • Bought 5 shares of Lockheed Martin @ $335.72 per share
  • Bought 6 shares of Home Depot @ $283.39 per share
  • Bought 25 shares of Pinnacle West Capital @ $77.43 per share
  • Bought 41 shares of Algonquin Power & Utilities @ $17.53 per share

Lockheed Martin was down around 2.5% that day when I decided to add more shares to the portfolio. I think Lockheed has a bright future and I will add more shares when I can. I decided to add to Home Depot, this was my first purchase of additional shares of the company since I first bought it in 2018 which surprised me. I think Home Depot will continue to excel and grow in the future. I went ahead and bought another 25 shares of Pinnacle West Capital to boost my US utility holdings. Speaking of utilities I bought more shares of one of my favourite stocks in Algonquin Power & Utilities, I like their growth plans and their dividend growth. These four buys will add $196.42 in forward dividend income.

January 29th

  • Bought 5 shares of Texas Instruments @ $166.72 per share
  • Bought 7 shares of Apple @ $134.39 per share
  • Bought 6 shares of Johnson & Johnson @ $162.28 per share
  • Bought 5 shares of Lockheed Martin @ $324.32 per share
  • Bought 5 shares of Microsoft @ $232.13 per share
  • Bought 5 shares of Home Depot @ $271.12 per share
  • Bought 5 shares of Visa @ $194.28 per share

This was my busiest day of buying on the markets and also capped a very crazy week on Wall Street. Tech was a popular choice for me this day as three of my purchases were in the tech sector. I added to my position in Texas Instruments, I last bought shares last September in this company and will continue to look at opportunities to buy more. I added more to Apple of the slight downturn in their share price. With Apple’s earnings report I thought it was a good time to add. Johnson & Johnson continues to chug along and perform nicely, they had another very good earnings report. In their earnings report they announced the effectiveness of their Covid vaccine which was 72% effective in the United States and 66% worldwide. Another buy of Lockheed Martin, on Jan 26th I bought them at $335 per share so why not buy when the share price falls $9. When I started a position in Lockheed Martin I wanted to have 50 shares of the stock, with this buy I now have 30. Microsoft continues to crush it and so I decided to up my share count. The same logic applies to Home Depot as it did with Lockheed Martin for me, the last time I bought it it was $283 per share and the price fell to $271 so I took advantage and bought more. Visa fell below the price I bought it for earlier so I decided to add to my position. All of these purchases will add $149.98 in forward dividend income.

With all of these purchases my forward income now stands at $6,624.75. I’m not sure what February will bring to both the stock market or myself. I think initially I may sit on the sidelines for my main RRSP account. When it comes to my TFSA I will probably be more active, this week I will have some money deposited into the account. With my second RRSP I will continue to buy the XAW ETF on a bi-weekly basis.

Have you been buying any stocks lately?

Thanks for reading!

Matthew

14 thoughts on “More January Purchases

  1. nice Matt

    Putting a lot of capital to work. LMT is really interesting for sure, I hope it keeps dropping for when I do our taxes (mid month) and I will probably load up.

    The algonquin purchase kinda go’s against the plan doesn’t it? Thought you were gonna keep Canadian stocks in tfsa and US in rrsp. Its a great company and I will definitely getting more in 2021. Renewable’s will be booming in the 20’s.

    Love all those blue chips though
    cheers

    Liked by 1 person

  2. Hi Matthew,
    Great picks here.
    Here’s a quick question for you.
    a) why would one pick Algonquin US over CAD shares (considering one could buy either)?
    b) considering long term growth (5-10 years), what would you choose between Algonquin and Fortis…

    Liked by 1 person

    1. Hi Barry I choice to buy Algonquin (US stock) to receive the dividends in US dollars. I really like both Algonquin and Fortis, I think I would give the edge to Fortis as it has been consistently raising its dividend for close to 50 years. But I do like both long term. Thanks

      Like

      1. much appreciate your response.

        just last question, if I would buy Algonquin (US) under my US Cash account, would there be any withholding (i think its typically 30%), Unless i buy this US stock in my RRSP to avoid that.

        Liked by 2 people

      2. Not a problem Barry, thanks for reading my blog. There is a 15% withholding tax if you bought the US Algonquin in your TFSA and non registered accounts. I would recommend buying it in your RRSP as there is no tax in that account due to the tax treaty between Canada and the US.

        Liked by 2 people

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