Well it’s been a very busy month for me in terms of adding to the dividend portfolio so I thought I should write a post about my June 2017 Stock Purchases. A major goal for me this year is to reach 13k in passive dividend income. There’s no way I’m going to achieve that goal if I sit in cash on the sidelines. So I need to deploy some of it when the time is right.
Since January, I’ve hardly bought anything (other than making my usual automatic contributions discussed below) because the markets have been on a tear. Things seemed too expensive to buy so I sat back on a lot of cash. Well, things are starting to change as we enter summer. I find that this tends to be a good time to buy because the markets always seem to do poorly. When markets are down, that’s when I can scoop up some shares at a pretty good price with a decent 3.5%-5% yield.
So on to my investing moves. Well if you read my May 2017 Dividend Income Report, you’ll remember that I mentioned buying Kinder Morgan Pipeline Canada shares after the IPO. At the time I called this a speculative buy because of all the political wrangling over the twinning of the Trans Mountain Pipeline. I decided to sell my small stake (150 shares) for a very small profit.
June wasn’t a great a month for oil stocks and a lot of pipeline companies suffered along with the commodity. If you’re worried about investing in oil because it’s so volatile, then pipelines have been seen as a safer way to play the oil sector as they have relatively stable businesses that pay investors a nice dividend.
One particular pipeline company that I’ve owned for years was down quite a bit so I purchased 188 shares of Enbridge (ENB) in my brokerage account. This move adds $458.72 to my annual dividend income going forward. I also scooped up 50 shares of CIBC (CM) which will add another $254 to my annual income. Those were the 2 big moves this month.
I also made some additional stock purchases in my Dividend ReInvestment Account (DRIPs). Because the amounts I invest in these accounts are relatively small (ie. $100-$300), and because I have no control over the share prices when the transfer agent buys them (ie. at the end of the month), I’m less concerned about whether I’m buying high or low. The purpose of the DRIPs are simply to build my positions and incrementally grow my dividend income.
This month I’ve purchased more shares in Enbridge (ENB), Fortis (FTS), Bank of Montreal (BMO), Bank of Nova Scotia (BNS), Sun Life Financial (SLF), and Telus (T). Together, these purchases will add $44.60 to my annual dividend income. That’s not much money, I know, but these small stock purchases keep me in the habit of regularly buying solid dividend stocks and building my personal wealth and passive income. This kind of Automatic Investing has been a proven strategy for building long term wealth.
Thanks for reading my June 2017 Stock Purchases and have a great weekend!
Photo Credit: Photo by Stuart Miles / Freedigitalphotos.net