Tuesday, July 28, 2015

Recent Buy

     On July 27, China's Shanghai Composite index shed 8.5% overnight. This market pessimism followed over into the North American markets. Lots of stocks fell in value including the some popular stocks in Canada.
      I decided to take action although I didn't have access to a lot of capital. I also wanted to purchase a dividend growth stock that had a good yield.  I had to use margin to help with this transaction.

What Did I Purchase?

     On July 27, I purchased 35 shares of Bank Of Montreal, ticker symbol BMO, on the Toronto Stock Exchange.

Total Cost  with commissions = $2532.07
Cash available = $991.83
Margin Used = $1540.24

Money borrowed = 1540.24/2532.07
                             =  60.83%

 The Canadian banks have been known to be some of the best banks in the world. Why would someone want to own shares in a Canadian bank? The reason is the amount of profit the banks make each quarter and for dividends. BMO has been paying a dividend non stop since 1829, which is 186 years.  This company has been paying dividends longer than any other Canadian company.

    Currently the annual dividend is $3.28per share. I purchased 35 shares on July 27 , representing a 4.53% yield,  which adds $114.80 to my annual dividend income. I now own 4 of the Canadian banks in my portfolio.  I own shares in Royal Bank (RY), TD Bank (TD) and Bank of Nova Scotia (BNS).

  Some Second Quarter Highlights
  • Net income of  $1 billion, down 7% from same quarter of 2014
  • EPS of $1.49 per share, down from 7% from the same quarter of 2014
  • ROE of 11.4%, compared to 14.3% from same quarter of 2014
    The stock  on the Toronto Stock Exchange is down 12.01% year to date. My purchase of the shares has come near the lowest price the stock has been trading in 2015.

Click to Enlarge

The stock trades ex-dividend on July 29 so I qualify for next dividend payment which will be paid August 26. 

Disclosure: Long BMO, RY, TD, 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 comment:

  1. Great purchase IP. At a 4.5 dividend yield, that's a crazy amount of dividends. Happy for your purchase and glad to be a fellow shareholder with you. Keep up the hustle and you'll be happy with this purchase for sure. No doubt about it. Keep hustling hard bud.