Recent Stock Purchase II – July 2015

As July marches on and uncertainty in the markets reign, all I can think about is where to deploy my fresh capital all the while ignoring the market headlines which always seem to result in knee jerk reactions in stock prices. It seems that every week or two a new crisis dominates the headlines. We are all familiar with the Greece and China economic meltdowns in recent weeks. Of course, there is the nagging question of when the Fed will raise interest rates and now commodities are in play once again as prices for just about every commodity have been tumbling. Gold, silver, copper, oil, steel, wheat, corn and more oh my. Talk of deflation once again is rearing its ugly head. I’m not trying to downplay any of these very real issues that can affect us all in some fashion. I am trying to maintain a cool head and take advantage of falling stock prices, higher yield and better value where it pops up. As long term dividend growth investors we all know that volatility can be our friend as stock price swoons often present better buying opportunities for us all. That being said, I’m happy to share with you my second nibble on stocks for the month of July. Still sticking with my July stock considerations I have decided to buy into the Canadian banks once more.

 

I have added to my ROTH account 19.6093 shares at $40.70 for a total investment of $798.00 in The Toronto-Dominion Bank (TD). With this recent purchase my ROTH account holdings in TD now totals 145.0235 shares for a value of $5,873.45.

 

It’s no secret that I am a fan of the Canadian banks and have been slowly building up my positions in The Toronto-Dominion Bank (TD), The Bank of Nova Scotia (BNS) and Royal Bank of Canada (RY) over the past year. Looking at the rest of July the beaten Canadian banks are still in play for me along with the three large health REITs and maybe even Dover Corporation (DOV) once again.

 

What do you think about my recent buy? The Canadian banks are pretty beat up as of late and offering some pretty attractive, safe, current yields with much better values than in the past. Of course, REITs are getting banged up a bit as well. What are you buying in July? Please let me know below.

 

Disclosure: Long TD, BNS, RY, DOV

43 thoughts on “Recent Stock Purchase II – July 2015

  1. Looking good DH,

    TD and BNS are on my shopping listing but there are just too many deals going on right now! I might wait for the next Canadian GDP report. I’m expecting lower than average and more spooks to come. I bought VTR and NSC recently. I’m going bullish on hospitals and RRs are looking cheap.
    The Broke Dividend Investor recently posted…Recent Buy: VentasMy Profile

    • Hi TBDI,

      As you stated, “…there are just too many deals going on right now!” I couldn’t agree with you more. REITs, commodity plays, finance, rails, energy and more seem to be offering some pretty compelling reasons to buy. Like you, I’m a fan of the Canadian banks as well as the health REIT space. Nice pick up on VTR by the way. One of my three health REITs in my IRA. I have a feeling that we’ll be seeing many future buying opportunities in the REIT space as Fed interest rate hike chatter comes to the forefront. Thank you for stopping by and sharing your buys.

  2. Div Hut,

    Im interested in the Canadian banks as well! The only issue is due to my investment account being with Robinhood they restrict my investments in popular Canadian banks to BNS. Citing possible unforeseen fees associated with the purchase of shares in companies such as TD and RY.

    Recently (early July) I started some new positions in; V, DIS, QCOM, NOV, SBUX, and KO. Great timing during the Greek meltdown as well!

    Best,

    DK
    Div Kid recently posted…Personal Post #2: Why Do We Invest?My Profile

    • Hi DK,

      That’s an annoying quirk of Robinhood not being able to buy shares in TD nor RY. At least BNS is not restricted. That’s another great Canadian bank to potentially get your feet wet in the sector. I see you have been busy taking advantage of all the headline volatility as well. Nice buys on your end. I like KO and SBUX a lot too though both still seem a bit pricey for me at this point. I used this recent buy to average down my purchase price. Thank you for sharing your recent buys with us.

    • Hi AP,

      There’s little doubt that the Canadian economy is facing some serious near term headwinds in the form of depressed oil prices, lower currency value and a potential real estate bubble that many are calling for a pop. Of course, this just means many high quality names such as the large Canadian banks, are giving us better buying opportunities. I like CAT as well after its recent drop. The yield and value, even though it’s a cyclical play, seem pretty compelling at current levels. Thank you for stopping by and commenting.

    • Hi DD,

      I just commented to Active Passive, “that there’s little doubt that the Canadian economy is facing some serious near term headwinds in the form of depressed oil prices, lower currency value and a potential real estate bubble that many are calling for a pop.” Of course, this just means we are getting some pretty solid financial institutions going on sale at present. TD, BNS, RY, CM and BMO have all been beaten down and are offering some pretty attractive current yields and value as well. Congrats on the CM buy too. I have that name on my watch list. Thank you for sharing your buy.

  3. Looks good DH! I’m thinking of adding to my TD position as well and the current prices are looking good. Youve built up a nice position in TD. Any thoughts on how much more you would take the position up to? I still need to take a look at DOV. Theres still a few companies ahead of it but DOV is up there.
    JC recently posted…Building an Empire with PepsiCo Inc.My Profile

    • Hi JC,

      I think the Canadian banks will be quite popular in July among the dividend bloggers. So far I have been reading about other TD, RY and CM buys. While I don’t have a definitive number for what many call “full positions” I am spreading my risk among the Canadian banks by equalizing my positions. Right now BNS is a little large relative to TD and very large relative to RY. In other words, I will most likely add to my TD and RY before buying more BNS. I do not set specific dollar amounts for any stock that I own, rather I look at my position sizes relative to others in my portfolio. Thank you for stopping by and commenting.

  4. Good buy DivHut. Those Canadian banks seem to be your current go-to and with good reason it would seem. As for me, I have already made 3 buys this month with the last being an addition of more KMI to my portfolio. Going forward, I’m not sure what I’ll buy as it depends on what the market offers up that aligns with my focus on value. Thanks for sharing.

    – HMB
    HMB recently posted…July Recent Buy #3My Profile

    • Hi HMB,

      I can’t ignore the dividend histories, high current yield, good value and safe dividends of the large Canadian banks which is why I continue to dip into that well. The Canadian economy is facing some rough weather with low oil, currency and commodity prices. Of course, this is impacting the Canadian banks negatively which is giving us better buying opportunities. Nice pick up with KMI. No doubt taking advantage of low energy prices too. Thank you for stopping by and sharing your buy.

    • Hi DH,

      I have been reading a lot of Canadian bank buys among the dividend bloggers in recent days. It’s for good reason. Hard to ignore those juicy yields, value and extensive dividend histories in the sector. Happy to be a fellow shareholder with you in a solid name like TD. Let’s see what the tail end of July has in store for us. As always, I appreciate your comment.

    • Hi R2R,

      Well you know how much I like the large Canadian banks. Slowly but surely I’m nibbling on the Canadian banks on the way down. The markets seem extra shaky these days looking for any excuse to drop a few thousand points. Remember last October? No matter, I’ll continue to make my monthly buys in quality companies, diversify and collect those distributions in the meantime. Thank you for stopping by and commenting.

    • Hi Tawcan,

      Glad you like my recent buy. I have been reading a lot of Canadian bank buys among the dividend bloggers and if things continue like this I’m sure I’ll be reading more. As always, I appreciate your comment.

  5. Nice buy. My portfolio currently has enough Financials. However, I’m only invested in US companies.

    This means, diversifying to another country would be a good idea.
    That’s where the Canadian banks are starting to look interesting to me 🙂

    Best wishes, DfS
    Dividend for Starters recently posted…Recent buy – July 2015My Profile

    • Hi DfS,

      I too own other financial names including CB, AFL, WFC along with three Canadian banks though the sector weighting is light relative to my consumer and industrial names which is why I feel comfortable averaging down on some of these solid long term dividend payers. It can’t hurt to look into the Canadian banks and see if they are an appropriate investment for you. Thank you for stopping by and commenting.

  6. I find it ironical that I’m so excited about the long term prospects of the Canadian banks yet my mortgage, due to be renewed in less than a year, will highly likely never go to one of the big 5 here.

    I don’t mind taking my cut of the profits, just don’t want to be a big part of it. They already have my bank account and line of credit, that’s enough.

    • Hi Ashley,

      I always find it interesting that once I became a dividend investor in multiple companies I became more aware of what products or services I use. Whether it’s a mortgage from a specific bank such as you mention or that tube of toothpaste I am buying. As you stated, “They already have my bank account and line of credit, that’s enough.” Still, looking beyond the near term pain the Canadian banks are going through they do look appealing longer term and I have a feeling that in five or ten years from now I’ll be happy owning this sector. Of course, it doesn’t hurt getting paid to wait either. Thank you for your comment.

  7. I have yet to venture into the Canadian banks but perhaps one day I will. Overall, TD seems like a good bank and I’m not sure what the effect of raising rates in the US will do to the Canadian banks, but US banks should see an increase in income in the future. I missed out on WFC about 2 weeks ago during the market drop but that is who I am currently looking to buy with any fresh capital I happen to get.

    Nice purchase!

    ADD
    American Dividend Dream recently posted…Dividend Income – June 2015 UpdateMy Profile

    • Hi ADD,

      My only U.S. bank is WFC and I would only consider USB for my portfolio on the American side. No doubt rising rates should help the American banks and falling rates in Canada, along with low oil prices and a weakened currency are all putting pressure on the Canadian banks which is why they are all pretty beat up. TD seems to have the most U.S. exposure currently so if you are looking for a Canadian bank with a strong foothold in the U.S., TD might be the way to go. Of course, RY just bought City National Bank in the U.S. which will give them great exposure to the American market. Thank you for stopping by and sharing your thoughts.

    • Hi R2R,

      Awesome to be a fellow shareholder with you in both BNS and TD. Both great long term dividend plays that are currently hurting which is giving us some great buying opportunities. Thank you for stopping by and commenting.

    • Hi EL,

      The market is definitely giving us some better buying opportunities these days. Energy continues to be a drag, REITs are down and the Canadian banks and many industrial plays like EMR and CAT are getting rocked. To answer your question, I do own and like many U.S. health names. I like JNJ, ABT, ABBV and BDX. I also own BCR and HYH but am not interested in adding to those positions at this time. As always, I appreciate your comment.

    • Hi RF,

      Glad to hear you have a positive experience with TD services. As shareholders of various dividend paying companies I think we are more sensitive to the products and services they provide as we can examine first hand the quality of what they sell. Let’s see how much further these Canadian banks get rocked. Thank you for stopping by and commenting.

  8. Great buy DivHut! Similar to Lanny, I have CM on my watch list and I would love to continue to build my position in the Canadian Bank sector. I saw you respond to several other comments that the Canadian economy is facing some serious headwinds, which presents a PERFECT buying opportunity for long-term investors like ourselves. Congrats on the purchase and adding some serious dividend income.

    Bert
    Dividend Diplomats recently posted…Recent Buy – Emerson Electric (EMR)My Profile

    • Hi DD,

      As long as those dividends are safe I’ll continue to add to my position. If you notice, many of my recent buys are more nibbles at around $800 a pop instead of a gorge. I think we will see many more great buying opportunities in the near future. Just look at many industrial plays such as CAT and EMR along with many energy names and the Canadian finance sector. We seem to have a lot more choices these days than in the recent past in terms of finding better buys. Thank you for stopping by and sharing your thoughts.

  9. DH,

    Picking up some more Canadian banks, eh?

    I bought two shares earlier this week as gifts. One will go to my nephew (Rick’s son) and the other to my girlfriend’s son. They’ll be set directly up on the DRiP and SPP from the start, allowing for additional purchases over time. When it’s all settled, I intend to make a post about that as well. It’s never too early to start children on the path of dividend righteousness!

    Take care,
    – Ryan from GRB
    Get Rich Brothers recently posted…2015 Mid-Year Review: Part IMy Profile

    • Hi GRB,

      The Canadian banks have been my go to sector for about a year now slowly adding to my positions each month. The current beat down we are seeing in many stocks and sectors is a welcome treat as better buying opportunities are being found. Great gifts by the way for those kids. In many years they’ll appreciate what you have done for them. I agree that it’s never too early to start children on the dividend growth path. After all, they have the single best commodity, time. It’s for that reason that I already started baby DivHut on his path a couple months after he was born and plan to add to his portfolio any chance I get. As always, I appreciate your comment.

    • Hi ARB,

      The Canadian banks are looking extra attractive these days along with some other names in different sectors such as CAT and EMR. We’ll see where else I can continue to find value and attractive yield but for now it seems like the Canadian banks are it. Thank you for stopping by and commenting.

  10. DH,

    Another nice move. As you say above, industrial and financial stocks are taking a beating across the broader market – especially Canadian Banks. The fundamentals are still there, nice move to seize the moment. I have also now started watching MMM for my next Roth move… I just hope Mr. Market can continue to send them lower for no reason.

    – Gremlin
    Dividend Gremlin recently posted…Career Growth!My Profile

    • Hi DG,

      I know that we have been waiting a long time for other names to go on sale besides the energy sector. Looks like Mr. Market is giving us some great buying opportunities now. I love MMM and it’s been years since I added to my position. Let’s see how much lower the industrial names can go. In the meantime, if things stay the same, I’ll be adding to my Canadian banks but you never know as Mr. Market always has the final word. Thank you for stopping by and commenting.

  11. DivHut,
    TD is a great stock to invest in right now because its a solid company at its yearly low. I personally like the healthy dividend yield, low PE ratio, and it pays in July. Its currently on my watch list. Thanks for sharing your purchase . Keep in touch.
    LOMD
    liveoffmydividends recently posted…New Purchases: BAX and ETPMy Profile

    • Hi liveoffmydividends,

      All the large Canadian banks are sporting some healthy dividend yields. The beat down they are receiving in recent weeks is pretty severe with no end in sight. But, as we know, the business itself has not changed and still remains sound which is why I continue to nibble on the banks. I appreciate you stopping by and commenting.

    • Hi DD,

      Glad you think my recent pick up is a good one. Simply trying to average down on a pretty beaten up sector that has a very long term dividend history. A lot of people share the same sentiment as you regarding TD’s operations. Curious to see how the July finishes up this final week. We may be seeing a lot more volatility and even better buying opportunities. Thank you for stopping by and commenting.

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