Recent Purchase: Step Back To Move Forward

I recently sold my Horizon's Natural Gas Yield ETF units inside my TFSA as the HNY.TO has increased in value.  I was looking to put the cash to work if the market provided an opportunity.

Today, I felt one of the stocks I recently purchased had a dip.  This stock is Royal Bank of Canada (RY.TO).  Royal Bank of Canada is one of the big 5 banks in Canada that is often regarded as being the best banks in the entire world. 

This stock was on my watch list and was looking to add to it.  Today, I noticed the big dip in the stock price and decided to take action.  I purchased 17 shares of RY.TO at a cost of $94.14 for a total cost of  $1605.39 including commissions.

Royal Bank of Canada currently pays an annual dividend of $3.92 per share. This purchase adds $66.64 to my annual dividend income.  The yield on cost for this purchase is  4.15%.

Owning a dividend growth stock like RY.TO is a lot better than owning an ETF.  Although the yield is lower with this purchase, but over time the dividend will be raised semi-annually like it has for several years.  Sometimes you have to step backward to move forward. 

I will update my investing tab spreadsheet in early December to reflect these changes. 

Please Note:  The stock also trades on the New York Stock Exchange under the ticker symbol RY.

Disclosure:  Long RY.TO

DISCLAIMER:

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.