Recent Purchase

For the past several weeks, I was building up cash in my margin account.  I have been putting money into this account as my main savings account was built up to $2000.00.  

After the purchase I am about to mention, I will be putting money into my TFSA to make a future purchase.  I have not taken money out of my TFSA in a real long time.

During the past week, the stock market dropped a lot in one day.

Purchase

I was looking to purchase more shares of a stock I already owned in the margin account.  The three positions I was considering adding to were Bank of Montreal (BMO), Emera (EMA) and Intertape Polymer Group (ITP).

I decided to purchase Intertape Polymer Group.

Intertape Polymer Group Inc manufactures and sells a variety of packaging products. The firm's primary product categories include tapes, films, and woven coated fabrics. The company's tapes include pressure-sensitive and water-activated carton sealing tapes, and flatback, duct, double coated, foil, electrical, and filament tapes. Intertape's film products include stretch wrap, shrink film, air pillows used for protective packaging, and packaging machines. The woven coated fabrics include building and construction products and specialty fabrics. The majority of revenue comes from the United States. (Source : www.tmxmoney.com)

I purchased 70 shares of Intertape Polymer Group on June 11 for $12.05 per share.  The total cost of this purchase came to 848.70 including commissions. 

Intertape Polymer Group pays a quarterly dividend of $0.1475 USD per share, or $0.59 USD per share annually.  The company is headquartered in Montreal, Quebec, Canada.  The company makes most of its revenue in the United States. 

This purchases adds $41.30 USD to my annual dividend income. At the time of this writing, the exchange rate is  $1 USD: $1.36039 CAD.  I receive the Canadian equivalent in my brokerage account, which equates to $56.18 in annual dividend income.

The yield on cost, in terms of Canadian dollars, on this purchase 6.62%.

Conclusion

I believe this company will do well over time as the demand for their products will increase with a growing population.  A growing population along with e-commerce should mean a large increase in Intertape's products to meet the demand.  A lot of people have ordered more stuff online recently due to the COVID19 pandemic as a lot of businesses were forced to close their doors to the public.   Other businesses had to shutdown completely due to orders by their respective governments or chief medical officers of health.  

I was not planning on adding to this position, but the opportunity came up.  The company traded ex-dividend the following day of this purchase.  The purchase also diversifed my portfolio via sector diversification.  

I will update my investment tab spreadsheet in early July with this purchase.

Disclosure: Long ITP.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.