Recent Stock Purchase March 2016

With just a few days left in the month of March, I’m happy to announce my latest dividend purchase. This has to be one of the longest stretches of time between my buys as my last buy post was published on February 8 announcing the addition of 73 shares of ADM to my taxable account. Of course, since early February the market has been on a tear with many beaten down stocks climbing quite dramatically which, no doubt, put the brakes on many new purchases among our fellow dividend bloggers, myself included as values became less compelling. Names that I have considered in my March 2016 Stock Considerations post have all gone up as the rebound in oil prices seemed to have lifted many of the beaten down industrial names like Dover Corporation (DOV) and Caterpillar Inc. (CAT) as well as the large Canadian banks, The Toronto-Dominion Bank (TD), The Bank of Nova Scotia (BNS) and Royal Bank of Canada (RY) for example. Even the health REITs staged an amazing rebound after the HCP, Inc. (HCP) earnings debacle. What’s a dividend investor to do in times like these? Of course, I pride myself in not attempting to time the markets and since becoming a dedicated dividend growth investor I made a conscious effort to invest every single month no matter the market conditions. After all, who really knows how long the market will remain relatively strong. It may take a dive next month or continue its “melt up” for several more months. Fully admitting that I am not a market timer with no crystal ball I will continue to nibble on positions already in my portfolio and continue to average down where I can. With that being said, let’s take a look at my recent stock purchase.

 

I have added to my ROTH account 14.7506 shares at $56.27 for a total investment of $830.00 in Royal Bank of Canada (RY). With this recent purchase my ROTH account holdings in RY now totals 84.2777 shares for a value of $4,754.11.

 

The Canadian banks still offer very good value and safe, relatively high yield despite their recent climb from their February lows and the remaining economic headwinds that persist with low and unstable oil prices as well as a weak local currency.

 

What do you think about my recent stock purchase? Have you been putting on the brakes with your new purchases in recent days because of a “more expensive” market or are you remaining consistent with your buys making purchases at least once a month? Please let me know below.

 

Disclosure: Long ADM, DOV, CAT, TD, BNS, RY, HCP

35 thoughts on “Recent Stock Purchase March 2016

  1. Hey DivHut,
    I think many investors have been taken back by the market rise in Feb-March. Many stocks which were decently valued then now once again appear overvalued. It’s a shame I was not able to get my March paycheck in advance as I would have loved to buy more stocks during the lows of early February :).
    But its great to see you are not just buying stocks for the sake of increasing your dividend income. By being patient, you can load up on cash and buy stocks once they become attractively valued again.
    Money Grower UK recently posted…March dividends – The weak pound is great for Shell (RDSB) and BP investorsMy Profile

    • Hi MGUK,

      I have seen the slower buying activity among our fellow dividend bloggers in recent weeks as well. It’s totally understandable as prices have really shot up in such a short time frame and values are not as compelling as before. Still, there are always good opportunities somewhere in the market if you just know where to look. As you saw with my recent RY buy, I still see the large Canadian banks trading at decent values and very juicy yields despite their run up. I never buy simply for increasing my dividend income which is why I never chase unusually high yield nor make very large trades just to enhance my future dividend income tally. The RY buy also allowed me to average down my overall cost in a stock I plan to hold for many, many years. Thank you for stopping by and commenting.

  2. DH,

    I think that is a great buy, being long 2 out of the big 5 myself (BNS and CM). I am looking to make a move next month in my Roth and am looking at a few of the same names though a few others are on my radar. Specifically: DOV, PRU, WLK, HCP, and ADM are all intriguing to me for different reasons. Of those, PRU and WLK are off the radar for the most part. Both look like they have vast room to grow, and PRU already has an excellent dividend to start with. Just a few names for you to check out too, DH.

    – Gremlin
    Dividend Gremlin recently posted…Loyal3 Buys, March 2016My Profile

    • Hi DG,

      I also have CM and BMO on my watch list but do not plan to add those names to my portfolio just yet. Perhaps, if I feel my exposure to the banks needs a little more diversification I’ll add additional names at that time. I do like some of those names on your radar including DOV and ADM. Last month I added to my ADM and was able to average down my cost during the February lows of the market. I’m not familiar with WLK at all but will take a look at that name. HCP is still down quite a bit after its massive sell off recently. I did consider that name as well for my March buy. As always, I appreciate your comment.

  3. Hi Divhut,

    It seems like a solid buy, I quickly looked it up. Currently I don’t own any Canadian ( or American banks) but I own some shares in a holding company that has a large stake in a big private bank.

    Keep on purchasing high quality stocks!

    Mrs Moneypenny

    • Hi MM,

      The Canadian banks are probably the most solid financial institutions in the world, until they aren’t 🙂 I only like two American banks, WFC and USB and the large Canadian banks, TD, BNS, RY, BMO and CM. I think every portfolio needs some financial exposure but not too much if you want to sleep well at night which is why my largest sector holdings among all my portfolios are the consumer staples space. For now, I’ll continue to nibble on the Canadian banks as they allow and average down my purchase price. Thank you for your comment.

  4. Nice purchase. I have just set my Five Canadian Banks to reinvest dividends in the Roth IRA. I love that there is no tax witholdings on Canadian Dividends. This is why I hold Canadian Equities there.

    Canada has been in a housing bubble for years – selling would have been a mistake. Noone knows when it would pop – and how severe things will be. The issues in the energy sector could affect those banks too. But I have learned that buy and hold is the way to go. So while I think we would see short-term pain, these banks will be around and investors should do fine.
    Dividend Growth Investor recently posted…Focus on Dividend Growth In conjunction with Dividend YieldMy Profile

    • Hi DGI,

      I have done the same with my Canadian banks as you, reinvest all my dividends automatically and have them in my ROTH to avoid withholding taxes. Your comment highlights some of the continued headwinds that Canada is facing which, no doubt, will impact the banks adversely in some capacity. Housing may come home to roost and drag the banks down as can continued low energy prices though I have seen that overall the exposure the large Canadian banks have to oil is a relatively small part of their portfolio holdings. Of course, no one knows what the future will bring. All we can do is invest with information we currently have and for now it points to Canadian banks still trading at decent values and juicy yields which is why I nibbled on some more RY. Thank you for stopping by and sharing your thoughts.

    • Hi IS,

      Continuing to buy or building cash are both credible tactics for investing. I just learned a long time ago that I cannot time the markets ever and making consistent buys every month like clockwork is the best path for me to take. I started dividend investing in 2007. A bad year to start on the journey as the financial meltdown was less than a year away. Sticking to my guns, I continued to buy as all my holdings were deep in the red. Sure, it wasn’t fun buying and watching my holdings go down month after month, but years later I’m happy I did not put the brakes on my investing as I was able to average down my costs dramatically all the while collecting those dividends. As always, I appreciate your comment.

    • Hi IH,

      Of course, I’m happy to be a fellow shareholder with you in RY. The resilience and dividend histories of the large Canadian banks go back well over one hundred years which is a testament to how they are managed as a lot of boom and bust cycles have occurred during that time. As long as those dividends continue to remain safe and value and yields look attractive, I’ll continue to add to my Canadian bank holdings. Thank you for stopping by and commenting.

  5. I’ve been kind of surprised to see how much the CDN bank share prices have recovered, well BNS and TD at least since I own and follow them.

    We already had the brakes on for investment capital but I can’t really blame anyone for not putting too much to work over the last month. The quick fall and quick rebound has me a bit confused on what in the world is going on. Especially when you factor in that nothing really changed other than the days just marched on. Whenever we do get back to investing regularly I want to build up a larger cash position and then once we are over our cap, likely $10-15k, then we’ll do regular monthly investments in whatever looks to be the best value at the time. Having a larger cash position will allow us to really take advantage of big moves in the market at better pricing. Too often I’ve found myself without capital just when the markets are getting juicy.
    JC @ Passive-Income-Pursuit recently posted…Is Johnson & Johnson Overvalued?My Profile

    • Hi JC,

      Whether it makes sense or not, the Canadian banks all recovered as the price of oil climbed from the high $20s to around $40 between the early February lows to the late March highs. The industrials followed suit too as DOV, EMR and CAT all climbed substantially as well. It’s amazing to see the strong correlation between oil prices and the overall market, as you stated nothing really material changed during those few weeks of market rallies. You are not alone in shoring up your cash position as many other DGI bloggers are saving their money or making small purchases as of late. Who knows when the market will stumble again. It may be another month or two or three even. Once we start guessing we become market timers and as we all know that’s an impossible game to figure out with any degree of long term certainty. Thank you for stopping by and commenting.

  6. Thanks for sharing Keith. My biggest position in the Canadian banks is now Royal with 23k and Td at 21k. Those are the 2 big players and then I like Scotia. I have a lot of faith in them and will hold them forever. I believe their dividends are super reliable and hope it stays that way.
    Keep it up bud and lets keep collecting awesome assets. Cheers bud.

    • Hi DH,

      Always happy to read about other DGI bloggers holding a Canadian bank or two or three even 🙂 I fully agree with you in the belief that their dividends continue to remain very safe despite all the headwinds Canada is currently facing. RY is my smallest holding among the big three you mention but I would like to change and mimic an allocation similar to yours with RY and TD being the largest holdings of the three mentioned. Bottom line, as you stated, lets keep collecting awesome assets. Well, not just assets, income producing assets. Thank you for commenting.

  7. And what about Well Fargo ? I know you like Canadian Banks but don´t you consider WFC the “most canadian-style” american bank ?

    • Hi SEOTXE5,

      I always say that out of all the American banks that exist I would only consider two for my portfolio, WFC and USB. I already own WFC and agree with you regarding their conservative nature of doing business. My focus with this recent buy was the compelling yield of RY along with decent value and the opportunity to average down my cost but make no mistake, I do like WFC as well. I appreciate your comment.

    • Hi DG,

      I think RY and TD are the two strongest Canadian banks these days though BNS, BMO and CM also sport some strength. Of course, I always love to read when another DGI blogger buys into the Canadian banks. Seems like a good long term investment based on history and current values and safe yield. Of the American banks I only like two, WFC, which I own, and USB. I wouldn’t consider another name for my portfolio in that sector. As always, I appreciate your comment.

    • Hi Charlie,

      Thank you for your continued support. I wish I would have bought some RY earlier in the month but at least I squeezed in my goal of making a buy every month before March was over. Thanks for commenting.

    • Hi HHaWG,

      We own the same three Canadian banks! Happy to be a fellow shareholder with you in that resilient finance sector. Regarding the American banks I only like WFC and USB that I’d consider for my portfolio. I already have WFC with USB on my watch list. As always, I appreciate your comment.

    • Hi Dividendsdownunder,

      The Canadian banks really showed their mettle during the financial crisis of 2008/09. None of the large Canadian banks cut their dividends during those tough times rather they maintained their payouts and continued with their distribution each quarter as they have for decades and decades. Being a long term investor I can accept the fact that at times an investment may fail, but as you said, in the long run everything should be OK especially if I continue to remain diversified among different stocks and different sectors. I always say, that if my portfolio holdings should fail me en mass, then the world as we know it will cease to exist and everyone will have the same serious issues as well. Thank you for stopping by and commenting.

    • Hi Vivianne,

      Many like the Canadian banks because of their ability to produce a reliable income stream for many years to come. Of course, being able to buy them and pretty good value and yield is even better. Thank you for stopping by and commenting.

    • Hi EL,

      You are not alone in slowing down your buying activity. Looks like many of the dividend bloggers have stopped totally or just bought less in recent weeks. For now, I continue to like the Canadian banks going into April and will consider adding to them. Thank you for commenting.

    • Hi BSR,

      It’s tough to find negative comments about the large Canadian banks from anyone. I realize that no company, no matter its history, is completely safe and without any fault, but when looking at these institutions they are as solid as they come. Like you, I wouldn’t mind some better pricing but even at current levels RY and others still look attractive. It’s all relative. Thank you for stopping by and commenting.

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