Recent Purchase

       As we go about our daily lives, most of us have to go to jobs to pay the bills.  Robert Kiyosaki often says a "J O B" stands for just over broke.  Our wages at work often do not increase after an initial raise such as passing a 3 month, 6 month or 1 year being continuous employment.  

Every year after that a person gets a "raise".  This "raise" is not the glorified type in which you are called into the manager's office and told what a great job you have been doing over the past year.  Instead this "raise" is giving to everybody employed over a year at the same percentage at the same time.  This raise is basically of cost of living increase as costs of everything goes up due to inflation.  This raise is usually between 1% and 3%.

Is there a way to have income that increases greater than the rate of inflation. A couple of ways I can think of are incoming generating real estate and dividend growth stocks.  For average Joe's like myself, it is often easier to invest in the dividend growth stocks as you do not need a lot of money to buy a stock.

What are dividend growth stocks?  Well dividend growth stocks represent companies that grow and increase their profits and pass a part of those growing profits onto their shareholders via increasing dividend payments.  Examples of dividend growth stocks are the big 5 banks in Canada, Canadian National Railway, and Bell Canada Enterprises. 

Recent Buy

On March 27, I decided to put my money to work inside my TFSA.  I purchased 20 shares of TD Bank (ticker symbol TD.TO) at $72.90 for a total cost $1463.02 including commissions. Therefore, my adjusted cost base per share is $73.15.

Last June, I did an analysis on TD Bank, which you can read about here.  Since that post was written, TD Bank has increased their dividend.  TD Bank announces dividend increases, if any, annually.  The other 4 big banks BMO, RY, BNS, CIBC have been raising their dividends semi-annually over the past several years.

Currently, TD pays a dividend of $0.74 per share quarterly, or $2.96 per share annually. So my yield on this purchase is 4.05%.  This purchase adds $59.20 to my annual dividend income.

On February 28,  TD announced a dividend payment date of April 30th to shareholders on record on April 10.  So, I will receive this dividend payment. 

Summary:

In the past, I have made some crappy investments. Investments like Cominar REIT (CUF.UN.TO), Dream Office REIT (D.UN.TO) , Enerplus (ERF), Cineplex (CGX.TO),  and High Liner Foods (HLF.TO).  All of these positions have fallen in price by large amounts and the first 3 have cut their distributions or dividends multiple times since I have owned them.  Dream Office REIT has rebounded over the last year or so, and the largest position of D.UN.TO for a profit.  I still maintain a position in D.UN.TO inside my TFSA in which the price is slightly down from my adjusted cost base of $26.72 per unit. 

I still hold these investments.

Along with the great investments I currently have in my portfolio, I am going to try to concentrate on the dividend growth stocks that have less noise and uncertainty going forward.

With the purchase of TD.TO, I now have positions in all the Big 5 Banks.

I will update my investment tab in early April with this position. 

Disclosure:  Long all mentioned stocks

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.