Recent Buys

On Monday, the Canadian markets were closed as the first Monday of August is a civic holiday pretty much across the whole country.  Our neighbors to the south did not fare to well on Monday.  The Dow Jones closed on Monday down over 700 points.  When the markets fall by a few hundred points, a lot of investors sell as their fears start to get the better of them.

Like most Canadian investors, I do not have US funds in my brokerage account on hand.

On Tuesday morning, when the markets opened there was a sell off.  At the end of the trading day on Tuesday, the Dow Jones Industrial Average closed up around 325 points from the close on the previous trading day.  

First Purchase

I decided to put the cash sitting in my TFSA to work.  I placed a limit order for shares of Royal Bank of Canada (RY.TO).

I purchased 9 shares of Royal Bank at $100.40 per share for a total cost of $908.58 including commissions.

Currently, Royal Bank pays a quarter dividend of $1.02 per share, or $4.08 per share annually.  This purchase adds $36.72 to my annual dividend income.  The yield on cost for this purchase is 4.04%. This purchase will not be eligible for the dividend paid out on August 23 as the record date has passed.

This purchase brings my total shares in Royal Bank to 29 shares.  

Second Purchase

Unlike the first purchase, the second purchase was to initiate a trade within my margin account.  As I do not have any trades going on within my trading account, I decided to "borrow" the balance of my trading account and use the cash in my margin account to purchase 300 shares of Telus Corporation (T.TO).  I had to borrow about $550.00 on margin to have a multiple of a hundred shares.

I purchased 300 shares of Telus at $47.10 per share for a total cost of $14134.95 including commissions.

Currently, Telus pays a $0.5625 per share quarterly dividend, or $2.25 per share annually.  This purchase adds $675.00 to my annual dividend income.  The yield on cost for this purchase is 4.76%.

I do not plan on holding on to these 300 shares.  The plan is to collect some profits in a reasonable amount of time.  In fact, I placed a limit order to sell these shares.  If I receive any dividends from this purchase they will be counted has dividend income for the reports.  The profits on the sale will go towards savings or paying down my debt.   

For full disclosure, I am long shares of Telus within my TFSA. 

I will update my portfolio spreadsheet in early August to reflect both of these transactions if the Telus one is not sold by the time of the portfolio update.

Did you put money to work over the last couple of days?

Disclosure:  Long T.TO, 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.