I was looking to average down on my Canadian National Railway position inside my TFSA. I initiated a position on May 4, 2015 which you can read about here. For this new purchase, I placed a limit order for $72.64 which was lower the the current snap quote of the CNR share price by about $0.20 per share. The order was filled immediately as there was a lot of transactions at the market opening.
The stock is down approximately 20% ytd. The share priced reached at high of $88.89 on February 19. This purchase was at $72.64. That is an 18.28 percent decrease from the high back in February. Why the fall in price so much? The governments of Canada and the United States have brought in tougher rules for railways in which they will have to meet such as safer railway cars. There have been a lot of railway derailments over the last few years which involved hazardous chemicals and crude oil. The price of barrel of crude oil has also dropped a lot since last September, when it was around $92.00 a barrel. Canadian National Railway serves 3 coasts in North America. These coasts are west coast of Canada, East Coast of Canada, and Gulf of Mexico.
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I purchased 13 shares at $72.64 for a total cost of $949.32 including commissions. The yield on this transaction is 1.712%. This recent purchase adds $16.25 to my annual dividend income.
I liked the stock at $79.75, which is my initial purchase price, and like it even more at what is currently trading at. The stock has fallen trading lower than my purchase price earlier this morning, but I can not time the market and know for sure what is going to happen on the right side of the chart.
I will update my investment tab in earlier July with this purchase.
Disclosure: Long CNR
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.