Sunday, 30 November 2014

Recent Buy! November 2014

     So this month, with a combination of adding some fresh capital to my Questrade Account, redeploying dividends and selling my iShares Canadian bond ETF(CLF) I was able to buy a decent position in Rio-Can REIT, which was on my last Watchlist. I bought 28 shares @ $26.99. Also with some left over cash and an additional dividend payment I purchased 1 share of ZDV @ $17.84.
    I went with adding RioCan(REI.UN) as my latest position since I have been watching it for quite some time, its been performing well recently and I am leaning towards more income focused investments since my past few additions were focusing on the long term; AQN, SU, and TD. With the addition of REI to my portfolio I have filled my 'second' slot of real-estate investment trusts(REIT) that I want to have within my tax free savings account(TFSA). I am limiting myself to two due to the contribution cap of the account. I have a post I am currently working on that goes in-depth into the uses and benefits of the TFSA and how I am using mine.

Why I sold CLF
    In order to buy more shares of REI I decided to close my position in CLF for two main reasons:
- Its general poor performance in the form of a slowly declining price and generally lower distribution yield than ZDV. The position did break about even, but down once the trading cost to sell the position is included.
- Initially I had intended to have CLF be my extra money/dividend outlet. So for those months where I cannot add more money to the account, I would deploy my dividends into CLF since Questrade has commission free ETF buying. But, since I started adding to ZDV for additional market diversification I have favoured it instead. ZDV has a higher distribution yield, and being based on stocks instead of bonds has the potential for capital growth as well.
    REI now represents 6% of my total portfolio value, and in combination REITs total 19% of my portfolio, so I probably won't be adding to either REI.UN or D.UN for awhile as my general target % is closer to 15%. With the addition of REI, my dividend income has grown by $32.4, since CLF had a yearly total of $7.08, I had to detract it from REI's $39.48. Since REI.UN is a REIT, it pays its dividends monthly and so starting in December I should see $3.29 added to my monthly income :)

   This is most likely the last stock purchase of the year for me, as I have a large expense coming up in December, going on a trip in the new year! So in December I will be using my dividends to purchase additional shares of ZDV, or perhaps save them up for a purchase in January. My current total dividend income per year is estimated at $608.63, or $50.72 per month! And I am pretty excited at those numbers seeing as this would be my first full year of investing and having my money work for me!

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