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