Wednesday, December 31, 2014

Recent Buy

     In early December I decided to take money I received from Christmas and the distributions that I received so far from Dream REIT trade in my margin account and put it in a dividend growth stock.  This stock that I have chosen is very safe to own and has paid dividend for a very long time.

     On December 31, I purchased 18.090543 shares of BNS at a cost of $66.33 per share.  This purchase is directly through their transfer agent, so for there is no commissions.   This is the old way to buy stocks. I have no control over the price I will pay for these shares. I had to have my funds in early in the month. I currently have full drip on this stock. There was a discount of 2% of shares purchased with reinvested dividends, but was cancelled during the last year.

     During the recent financial crisis, Bank of Nova Scotia did not reduce its dividend and kept it the same during 2009 and 2010.  This company has paid dividends since its inception in 1832.  In 2005, Bank of Nova Scotia annual dividend rate was $1.32 and has increased to $2.56 per share in 2014. That is a CAGR of 7.637 % over the last 10 years.

    The dividend was raised twice over the last year.  So the current annual dividend rate is $2.64 per share. This recent purchase adds $47.76 to my annual dividend income.

Note: My shares of BNS were purchased in Canada.

Do you own shares in Bank of Nova Scotia?

  I will update my investing account tab spreadsheet in a few days to reflect this recent purchase.

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. I just bought a few shares last month on BNS, the price is attractive at this level together with the other top Canadian banks. Happy new year!

    1. The Canadian banks are good, stable companies to own. The difficult choice is to pick which one when you choose to make an investing in the banks.

      The company will do well over time and looking forwards to the dividend increases and the compounding of my shares through the full drip over time.

      Happy New Year

  2. Love the BNS buy. I own it along with TD and RY. I'm still considering it as we start 2015. Curious to see how low oil prices will affect the Canadian banks as many are tied to oil patch loans. I may nibble on the Canadian banking sector as oil remains depressed.

    1. DivHut,

      I own TD also. I have owned RY in the past before I started this blog. My ACB was $43ish and wrote a covered call at $44.00. It got called away. The price as gone up and up since then on RBC.

      If oil prices stay low like this, it will have definitely lower the price on these the banking stocks. A lot of trades people fly back and forth to Alberta for work from all over the country. So the oilpatch is starting to slow down a bit. So this will affect the economy in every province.