Purchases | August 2018

Holy smokes! Did I go crazy this month? I had money for June, July and August just sitting there waiting to buy stocks. And boy, did I spend it.

I made 4 purchases in my TFSA. Three of which I am happy with and one I am not 100% sure about in terms of dividends and growth.

So, this August I bought…

10 BCE (top up)

10 Laurentian Bank (top up)

43 Riocan REIT

31 Canadian Utilities

Canadian Utilities is by far my best purchase. It has a good track record of dividend increases and the share price growth is nice and steady.

The one purchase I think I could have done a bit more research on, is Riocan. After looking through it’s dividend history and growth, I think I could have made a better choice. The last dividend increase was in 2013. I only realized later it is not even a Canadian dividend aristocrat. Oops.

Lesson learned.

Do any of you own Riocan REIT? Am I doomed in terms of growth?

Happy Investing!

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4 Replies to “Purchases | August 2018”

  1. Buy, buy, buy! That is great that you were able to deploy new capital to the portfolio!

    I’m not familiar with Riocan, and if the Canadian REITs are like those here in the US that are required to payout 90%, then this might indicate that they have been stagnant without any growth for the last few years. I’d definitely dig into that one a little more and evaluate the fundamentals more closely, as well as their earnings transcripts, to see if there is a plausible explanation.

    1. It’s thrilling to buy dividend stocks because I know that next month or quarter I’ll see a nice pay raise 🙂

      Riocan is the second largest REIT in Canada. I should look into the payout and earnings. They’ve had it rough the last couple years, ex. Target pulling out of Canada.

  2. Always exciting to deploy some capital, especially when it leads to more dividends in the future!
    I didn’t look up the shares prices for the stocks you bought… was your capital split fairly evenly among the purchases? Or did you go heavier on certain ones?
    I don’t own Riocan REIT, so I took a quick peek… looks like it has traded sideways for about 7 years, so the return would have to come from the yield (5.67%). Unfortunately, the dividend growth has only been about a nickel over the past decade, and as you said, nothing in the past few years. Definitely seems like there should be better REIT candidates out there.
    Don’t fret too much… keep researching and investing!

    1. My capital was split about 1/3 Riocan, 1/3 Canadian Utilities, and the rest between BCE and Laurentian Bank. Riocan was a big star prior to 2008 and is still the second largest REIT in Canada. They had a tough time the last few years, particularly with Target’s unsuccessful Canadian rollout. I’m going to hold it and see what happens. But, I’m very pleased with Plaza Retail REIT. There are a few others at the bottom on DGI&R’s list that I’ve been checking out. https://www.dividendgrowthinvestingandretirement.com/canadian-dividend-all-star-list/.

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