Thursday, August 29, 2019

Recent Purchase

A few weeks ago, I wrote about some activity in both my margin account and tfsa. With the ongoing trade wars mostly between China and the US along with other global issues, the markets have been going up and down by large amounts over the last several weeks.

After my trade of Dream Office REIT (D.UN) inside my TFSA, I wanted to put the proceeds of the sale to work. I wrote about purchasing TD Bank stock inside my TFSA, which you can read about by clicking on the link in the paragraph immediately above.


I have been adding to my bank stocks or starting new positions in a bank over the past several transactions.

I went back and forth between 2 positions looking to put the money to work that was left over from the Dream Office REIT sale. The 2 stocks I was considering were Telus Corporation (T.TO) and Royal Bank (RY.TO). I already own shares in these 2 companies. Telus Corporation is telecommunications company. Telus offered a higher yield than Royal Bank.

I decided to purchase more shares of Royal Bank. The reason for this is I believe in the future the price of Royal Bank will grow more than Telus over the next couple of years.

On August 27, I purchased 27 shares of Royal Bank at $97.50 per share for a total cost of $2637.54 including commissions. This purchase brings my total share count to 56 shares.

Royal Bank currently pays a dividend of $1.05 per share quarterly, or $4.20 per share annually. This purchase adds $113.40 to my annual dividend income. The yield on cost of this purchase is 4.30%.

Royal Bank paid a dividend last week, so this purchase will be eligible for the next dividend in 3 months.

There is no cash available to make anymore purchases inside my TFSA in the near future. I will be looking to increase my position in Telus when funds are available and if the stock is trading at a good valuation. 

I will update my spreadsheet in early September with this transaction.
Disclosure: Long T.TO, TD.TO, RY.TO


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. nice pursuit.

    royal is a solid bank.

    great buy.

    1. Canadianpassiveincome,

      I have owned Royal Bank years ago and it got called away with a covered call assignment at around $45.00.

      So, I do not plan on selling it this time around. It is definitely a safe investment with a great reputation worldwide.