Recent Stock Purchase – March 2015

First, I’d like to thank everyone who commented on my post announcing the birth of my first child. I can honestly say I felt the love and well wishes from each comment written and feel truly blessed with our new addition. The comments left simply reaffirmed my admiration for our little online community and how much we continue to support and encourage one another through all financial and personal milestones achieved.

 

The last three weeks have been pretty busy with my new role as ‘dad’ and getting adjusted to the role of being a parent. Mrs. DivHut is continually improving after childbirth and our little one is growing by leaps and bounds. I am amazed at the rate at which he is gaining weight and inches. As you can imagine, caring for baby DivHut, has, and will continue to be my priority but I cannot forget my own personal goal of making monthly investments in my own passive income earning accounts.

 

Sticking to my affinity for the Canadian banks and my March stock consideration list, BNS, TD and RY were my top picks for the month. With that being said I’d like to share my recent March stock buy.

 

I have added to my ROTH account 32.1072 shares at $49.71 for a total investment of $1,596.05 in The Bank of Nova Scotia (BNS). With this recent purchase my ROTH account holdings in BNS now totals 85.3196 shares for a value of $4,285.60.

 

As many of you already know I have been gradually adding to my three Canadian banks for many months. While screening for new potential investments the financial names continue to pop up on my radar and looks like April will be no different. Of course, I’ll gladly add to my holdings and continue to average down my purchase price while collecting a generous current yield well over 4%.

 

What do you think about my most recent purchase? Is TD, BNS, RY or any other Canadian bank stock in your dividend income portfolio? Please let me know below.

 

Disclosure: Long TD, BNS, RY

46 thoughts on “Recent Stock Purchase – March 2015

  1. Congratulations! I didn’t know your wife had a baby. Our little one is now 19 months old, and it’s still going fast like it was when he was born. You must be so proud! I bet you atee over the moon 🙂

    Oh yes, all the of those banks look good! The Canadian banking sector is really well respected, for good reason. Conservatively run, solid, sound balance sheets, and reward customers and investors with excellent quality business all round. What’s not to like?
    M from theresvalue recently posted…Should I Invest in European Stocks?My Profile

    • Hi M,

      Thank you for your kind words regarding our new addition. The past three weeks have been very full and long but I can honestly say that this is one life experience like no other and I feel very blessed and fortunate to be able to have it.

      Regarding the Canadian banks, I’ll still be looking at them going into April with possible additions to my TD, BNS and/or RY. As you mentioned they are very conservatively run and operate as a pseudo-oligopoly in Canada. I just like how they fared during the financial crisis and going forward, though facing some headwinds, I like their long term prospects. Thank you for stopping by and commenting.

  2. Well since I added BNS to my portfolio during March around the same price I agree with this purchase. I’m looking into the other CDN banks because I’d like to add at least one more to my portfolio. There’s a lot of headwinds right now but they should eventually reverse. The FX issue is definitely hurting them for US investors but I doubt the exchange rate stays this low for too long. Although the USD relentless increase has been crazy to watch. Congrats again on the little one. Since we just had our first son in November I can appreciate what an amazing experience it is.
    JC recently posted…Weekly Roundup – March 29, 2015My Profile

    • Hi JC,

      To say the Canadian banks are facing headwinds these days is certainly an understatement. As you mentioned, a strong U.S. dollar, weaker Canadian dollar, low oil prices, chatter about a real estate bubble there as well as growing household debt has certainly fueled lower stock prices for these banks. The way I see it, we have a better opportunity to buy at more attractive valuations while collecting relatively high yield while waiting for the eventual turn around in currency and commodity prices. Not that long ago the U.S. dollar was left for dead. Today it’s high and mighty. The ebbs and flows of economic cycles. As long as we can collect our growing dividends I’m happy. Curious to see which other Canadian bank you are looking to pick up.

      Best wishes to your family and your new son too. I have been following his tough journey on his blog and can say that becoming a parent has definitely changed my perspective for my own son as well as others who have children. As you stated it is an amazing experience. I loved seeing his smile in the last post. Thanks for sharing his journey and for commenting.

    • Hi TMS,

      The Canadian banking system, especially the ‘big five’ have fared much better than the U.S. banks during the financial crisis. I think it was interesting to see how none of the Canadian banks reduced or eliminated dividend distributions, while U.S. banks all cut or eliminated dividends and some large ones even went bankrupt or were forced into buyout. Remember Wachovia and Washington Mutual? These were not small regional banks. Thanks for stopping by and commenting.

  3. DH,

    More Canadian banks, eh?! It’s definitely tough to beat the yields on them right now. +4% in this environment on quality names is a good starting point. I just wrote an article a few days ago covering the differences between the Big Five banks. You might be interested to take a look (most of the figures are based on the U.S. exchanges since Seeking Alpha is a U.S. publication).

    Also wanted to drop you a line to let you know Rick and I added a Blogroll component to our site and you’re featured on it.

    Take care,
    – Ryan from GRB
    GetRichBrothers recently posted…The Big 5 Canadian Banks: What’s The Difference?My Profile

    • Hi GRB,

      Yup… more Canadian banks. They have been my go to buys for many, many months now as their share prices have been hammered from the summertime highs. As you stated, it’s tough not to like these quality companies especially when yields are north of 4% and valuations are extremely low. There’s no question multiple headwinds are affecting share prices but I am confident that going forward in the next several years these headwinds will pass and share prices will recover. As long as those juicy dividends are continuing to be paid out I’ll be a happy camper and with low payout ratios among the big five Canadian banks I feel their dividends are quite safe.

      Thank you very much for adding DivHut to your blogroll. I’ll be sure to add your site as well. Thank you for commenting.

  4. Nice purchase DivHut! Canadian banks took a hit lately because of oil prices falling. I’d love to add to my canadian bank holdings as well. Scotiabank has been around over 170 years… I don’t think it’s going anywhere. Keep up the great work. Keep it up and congrats again for the little miracle. He’s probably given you a burst of energy and focus to succeed even more huh? Cheers my friend.
    Dividend Hustler recently posted…March 2015 Dividend ReportMy Profile

    • Hi DH,

      I think the large Canadian banks (TD, BNS, RY, BMO, CM) are becoming more popular among many of the dividend bloggers in recent months as their share prices have all come down quite a bit. Sure falling oil prices, currency depreciation and other headwinds are affecting current share prices but going forward these headwinds should subside. As you stated BNS has been around for quite some time all the while paying out a dividend too. Thanks again for the well wishes regarding our new addition. It has been nothing short of spectacular. Just watching the changes on a week to week basis has been amazing to witness. As always, I appreciate your comment.

  5. Looks like a good entry point, here, and the yield looks great! Solid dividend growth company with a long track record of paying dividends, but only about 5 years of consecutive dividend increases. Take care!

    • Hi FerdiS,

      I agree. I was waiting for a chance to buy at under $50 and it came this week. The current yield on BNS along with the chance to average down my cost was another influence in my decision making process. BNS held dividends steady during the financial crisis which is why it has a short five year history of dividend increases. BNS has fared much better than many U.S. banks which deeply cut or eliminated dividends altogether during that time. Thank you for stopping by and commenting.

  6. Hey Div Hut,

    I can’t agree with you more on this one. Great buy! I also added BNS to my portfolio recently and might add some more if the share drops some more.

    Well done and thanks for sharing.

    • Hi MD,

      Happy to be on board with you as a fellow BNS shareholder. I still think the large Canadian banks present pretty good buys relative to other stock picks and the current high yield can help offset some near term price swings. Under $50 is a fair price to pay for BNS. Thank you for stopping by.

    • Hi R2R,

      As all Canadian banks have been hammered since last summer there’s no question that current headwinds are creating better buying opportunities in the sector. I am still looking to add to my TD, BNS and/or RY going forward but would also like to add to other sectors as well. Thank you for sharing your thoughts.

  7. Hut,

    I hope you enjoy being a dad! I am probably 2 or 3 years out myself, but I have a whole gaggle of nieces and nephews, so I know the drill of uncle pretty well already…

    I like the Canadian banks a lot. BNS is a sweet pick up, and really all the big ones should be considered. I have CM, but really I want to collect them all.

    – Gremlin

    • Hi DG,

      Being a dad has been a great experience so far. It sounds very cliche at times but I can honestly say that until you have your own child you can never truly appreciate the feeling/experience of being a parent. I’m happy to continue to report that baby DivHut is growing nicely and Mrs. DivHut is continuing to heal as well. I’m sure having the role of uncle has trained you as well too.

      It seems that many in our community are fond of the large Canadian banks. Like you, I do want to own them all eventually but decided that three was more than enough. Perhaps, one day, when my portfolio is much larger and I’ll seek additional diversification I’ll add CM and BMO as well. As always, I appreciate you stopping by and commenting.

    • Hi MSF,

      Happy to be a fellow shareholder in BNS. Once it hit below $50 I decided it was time to buy into it. Seems like BNS has been making the rounds among a few dividend bloggers in recent weeks. That low valuation, high yield and pretty solid business takes some of the risk out of owing this stock. Of course, wild price swings can still occur but as long as those dividends are continuing to be paid out I’ll be happy. Thank you for stopping by and commenting.

    • Hi DM,

      Fatherhood, with the feedings and diaper changes every two or three hours, crying and more has been a great and fun experience. Of course, having Mrs. DivHut by my side really enforces our family unit and I feel more content than ever.

      As you know, the large Canadian banks have been on my radar for many months as I have been adding to my BNS, TD and RY. As you stated, that 4%+ yield certainly takes the sting out any price gyrations. I always like to say that as long as those dividends keep pouring in I’ll be happy and each of the large Canadian banks have relatively low payout ratios which ensures a sustainable distribution. Thank you for stopping by and commenting.

    • Hi Tawcan,

      In just a few short weeks I am continually amazed at the growth, progress and changes that an infant can experience. While I am enjoying every moment in the present I do look forward to the future and what those experiences will bring.

      Happy to be a fellow BNS shareholder with you. As you know I have been buying the Canadian banks monthly for the past several months and they continue to pop up on my radar this month as well. As always I appreciate your comment.

    • Hi ANHA,

      If BNS goes below $50 again it will be another potential buy for me in April. The current yield of many of the large Canadian banks are very tempting at current levels which is why they are on my radar. Thanks for commenting.

    • Hi MDG,

      Now that I have my own family unit, FI takes on a whole new meaning. I feel very blessed that everyone is doing well thus far and feel quite content where I am these days.

      Happy to be a fellow BNS shareholder with you as well. Seems like quite a few dividend bloggers have been adding to that one in recent weeks. With a yield over 4% and low payout ratio I can see why it’s popular. As always, I appreciate your comment.

    • Hi DGJ,

      As you know I have been buying Canadian banks every month for quite a few months now. Slowly adding to my BNS, TD and RY as prices, valuations and current yield makes this group of stocks very compelling. I’m sure you have noticed other dividend bloggers buying into the space as well. Regarding a raise in interest rates I do not think it will have a major impact on BNS nor any other stock to say the least. Of course, there will be the nonsensical overreaction as stock indexes and individual stocks drop, REITs come to mind, but when the smoke clears and having a longer term perspective it will be business as usual. Besides, an interest rate increase may be very, very small to start. In other words, an interest rate increase will not change my outlook on the banking sector especially if the increase is tiny. Just look at how ridiculous the stock market is when mere words from the Fed or other economist causes huge price gyrations. It seems that words have more of an impact than fundamentals. Thank you for stopping by and commenting.

  8. Congrats DH, I didn’t know. Our first is 1 and it’s been a great…..and wild year. One piece of unsolicited advice, remember to focus on your wife and have date nights. It’s easy to lose that connection with a little one in the house. Congrats again!
    -Bryan
    Income Surfer recently posted…Importing DeflationMy Profile

    • Hi IS,

      Thank you for the kind words and well wishes. The support from our little online investment community has been nothing short of amazing and I always appreciate reading these comments. Thanks for your tip from someone who is further down the path of parenthood than I am. Date nights are actually something my wife and I have discussed and it is certainly good advice. I know we’ll look forward to it. Thank you for stopping by and commenting.

    • Hi FTFF,

      Day and night are the same. With feedings, diaper changes, etc. every two or three hours I feel like I’m on a 24 hour clock. Something changes when your have your own kid and you gladly wash bottles at 3AM or take a nap with your kid sleeping on your chest at 10AM. A certain satisfaction arises. Thank you for your kind words and well wishes.

      The Canadian banks continue to be my go to stocks. As long as share price is down, valuations seem favorable and the yield remains around 4% or more I’ll be buying. As always, I appreciate your comment.

    • Hi DD,

      It’s the name of choice for many dividend bloggers these days. I can see why. High sustainable yield, low valuation and decent price creates a good buying opportunity. Thank you for stopping by and commenting.

    • Hi PIM,

      I like several financial companies that are not necessarily banks though Canadian banks are my first pick along with WFC in the U.S. Of course, financial exposure can come via AFL, CB, TRV, TROW, BEN and the like. I’m continuing to look at TD, BNS and RY in April as continued weakness is presenting some good buying opportunities. Fatherhood is moving along just fine. I had mentioned that I’m on a 24 hour clock these days with feedings, diaper changes, etc. occurring every three hours or so but Mrs. DivHut and I are adjusting just fine and we are enjoying every minute. Thank you for asking and for commenting.

  9. New addition to the family will change everything, but it’s all great! They grow up wayyy too fast.

    I, too, like Canadian banks and US banks for now. However, after I received my BMO dividend, I got charged with an international investment fee, although BMO just bought a US chain. So, I now reconsidering my Canadian or other international stock strategy, and might just focus on US companies for now.

    Banks now are very cheap, high dividend, and the interest rate hike is hanging around. If you wait until it’s said and done 10-20% upside will be missed. I’d rather collect my 4% dividend and average down if I have too.
    Vivianne recently posted…March dividendsMy Profile

    • Hi Vivianne,

      That’s what everyone keeps telling me… that kids grow up way too fast. That’s why my wife and I are enjoying every moment we can with him. The crying, diaper changes and peaceful sleeps and softness. We just want to take it all in.

      Not sure what an ‘international investment fee’ is but with my Canadian holdings, TD, BNS and RY I keep them all in my ROTH account and have no fees or taxes taken with each dividend distribution. I agree with you that now is a good time to get into the financial sector as banks are all trading at low valuations and earning a 4%+ yield in the meantime doesn’t hurt either. Thank you for stopping by and commenting.

    • Hi BSR,

      It seems that everyone who owns Canadian banks or is Canadian really love their banking system and say I won’t regret owning any of the large players. So far I happen to agree with that sentiment as I plan to keep the Canadian banks in my portfolio for a very long time. One thing’s for sure, that awesome 4%+ yield and great valuation will cushion any near term price swings. Thank you for stopping by and sharing your thoughts.

    • Hi DGJ,

      Well there’s certainly a lot to love with the Canadian banks. Their dividend distribution histories along with high current yield, great valuations and resilience throughout the financial meltdown shows the quality of these institutions. While I will most likely be adding to my Canadian banks in April I do want to add to other sectors as well. I still feel comfortable with my banking allocation for now but as I keep adding to the sector I’m sure I’ll be reevaluating my exposure. Thank you for stopping by and commenting.

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