Tuesday, December 31, 2013

Recent Purchase

I recently made a purchase in the investing account with the direct purchase right from the transfer agent.   I purchased $200 worth of Bank of Nova Scotia (BNS) for 3.070188 new shares. I was filled at $65.14. The yield on these shares is 3.81%.  This purchase adds $7.61 to my annual dividend income.

Currently, Bank of Nova Scotia has a 2% discount of shares purchased with reinvested dividends which means the yield will be a little higher. This allows my money to work harder for me. My broker that I use for my main investing does not pass this discount onto me. There are some brokers in Canada that do honor the discount.

Note: As this transaction is through the transfer agent directly, I have to send a check to the transfer agent within there deadline and then wait to the day they advertise (which I know in advance) for new shares to be purchased.  I have no control over the price these new shares will be purchased at. There is no commission doing it this way. The downside is that the stock could go way up in price prior to purchase date and after I already sent the check. Is is also harder to sell the stock using the transfer agent directly.  A person can transfer amount of shares they own over to a broker for a fee.

Disclosure : Long BNS


     I am not a financial planner, financial advisor, accountant or tax attorney. The information on this blog represents my own thoughts and opinions and should NOT be taken as investment or business advice.  Every individual should do their due diligence to make their own financial decisions based on their financial situation and tolerance for risk


  1. When I read Canada, I think first of "Ice Road Truckers" and not big companies.
    And for large companies (DGI-business), I think immediately: "USA".

    But I think, everybody have to invest in Canada.
    BNS is a great company!

    Best regards!

    1. Dividenden-Sammler,

      I watch all the Ice Road Truckers episodes from seasons 1 to 7.

      The Canadians banks are close to being the best financial institutions in the world. Toronto Dominion, Royal Bank, CIBC, Bank of Montreal and Scotia Bank all pay a good dividend. They also have some international operations and I believe all of them are also listed on the NYSE as well.