Recent Buy

 The expectation of a coming recession in the near future has been talked about in the financial media for the past several months. Some analysts are staying North America is actually in a recession right now.  This usually means investors start to fear they will lose money and start selling their holdings. This has happened in some sectors while others have been immune to the fears of investors.
 
 A example of a stock falling in price is TFI International (TFII.TO), that is headquartered in Canada. This is a trucking and logistics company that has operations in Canada, United States and Mexico. With the fears of the recession, investors have been selling this stock, as transportation companies have reduced earnings has there will be less freight.
 
During the month of June, my covered call in WestJet Airlines was assigned at $24.00 per share. During the first few weeks of May, Onex Corporation announced it is buying WestJet Airlines at $31.00 per share subject to approval of shareholders. The price of WestJet Airlines (WJA.TO) immediately increased from below $19.00 to around $30.00 a share.
 
 So, I was looking for an opportunity to put some of my money to work.
 
Purchase:
 
 I purchase 25 shares of Canadian Imperial Bank of Commerce "C.I.B.C" (CM.TO) on the Toronto Stock Exchange. C.I.B.C. is one of the big 5 banks and is part of the reputation of Canada having one of the best run financial institutions in the world.
 
 The other 4 banks are Bank of Montreal (BMO.TO), Royal Bank Of Canada (RY.TO), Bank of Nova Scotia (BNS.TO) and TD Bank (TD.TO). These banks are headquartered in Canada, but have operations in the United States and other countries. All 5 of the banks trade on both the Toronto Stock Exchange and New York Stock Exchange.
 
 On July 16, I added to my position in C.I.B.C by purchasing 25 shares at $102.40 per share for a total cost of $2565.04 including commissions.

 C.I.B.C pays an quarterly dividend of $1.40 per share, or $5.60 per share annually. This purchase adds $140.00 to my annual dividend income. The yield on cost for this purchase is 5.46%.
 
 C.I.B.C trades ex-dividend on June 27 2019, so this purchase is not eligible for the dividend payment on July 29 2019.
 
  I will update my investment tab spreadsheet in early August to reflect this purchase.
 
Conclusion:
 
I decided to add to my position in C.I.B.C as the stock has fallen from it's 52 week high of $125.21. The purchase price of $102.40 represents an 18.2% decrease in price from the 52 week high.
 
The P/E ratio at the time of this writing is 9.04, which is 158 bps below the stock 5 year average.
 
The stock is currently trading with a 5.45% dividend yield, which is 94bps above the 5 year average.
 
I would also like to note, that I purchased 12 shares of C.I.B.C on May 22 at $107.90 for a total cost of $1299.79.
 
With these 2 purchases, I now own 65 shares of C.I.B.C. I have owned the stock for several years.
 
What are you buying? Do you own any of the big 5 Canadian banks in your portfolio?
Disclosure: Long CM.TO, BMO.TO, RY.TO, BNS.TO, TD.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.