Recent Buys: January 5th, 2015

scotiabankI started the year out right by making two purchases today.  First in my commision free Loyal3 account, I added another $250 to buy 6.3825 shares of Unilever (UL) at $39.17 a share.  This was a small average down that increased my yield on cost from 3.54% to 3.56%.  It also adds $9.15 in annual forward income.

My second purchase is a new company for me and my second financial company investment in a row after last week’s addition of Franklin Resources (BEN).  Today I bought 28 shares of Bank of Nova Scotia (BNS) in my Sharebuilder Roth IRA account for $54.51 a share and a $6.95 commision for a total transaction cost of $1,533.23.  BNS has a 5 year dividend growth rate of 5.86% and payout ratio of 51%.  The TTM P/E was about 11 and the forward P/E was just 8.7.  I barely missed the ex-dividend date, but my starting yield is 4.10% which is higher than the average 5 year yield of 4%.  The purchase adds $62.72 to my forward annual income and my new 12 month forward total is $1,448.02.  I’m now invested in 22 companies that pay growing dividends.

Bank of Nova Scotia is a diversified financial institution serving over 21 million customers in over 55 countries.  Products and services include personal and commercial banking, wealth management, and corporate and investment banking.  BNS has been paying dividends for almost 200 years and is still growing strong today as it’s been named “Soundest Bank in the World” for 7 straight years.  During the financial crisis of 2008-9, while US banks slashed those dividends, BNS strongly maintained theirs before growing them again.  I’ve wanted to own a Canadian bank in my IRA for a while and current short term noise about lending in the declining oil industry, the bubbly property sector, performance in the Caribbean, and declining foreign markets have presented a decent looking long term opportunity.

A few other blogs I read that have recently purchased BNS are:

Div Hut, who wrote: “Recent Stock Purchase – November 2014.

Write your Own Reality who penned: “Fluffing Pillow Refreshing Dividend Growth Portfolio.”

Tawcan posted – “Recent Buys

The Dividend Diplomats also put together a helpful post about three Candian banks: BNS, CM, and TD.  “Canadian Bank Stocks – Three Stock Analyses“.

Now to the fast graphs:

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2015_JAN_FG_BNS7How is the start of your year so far?  What do you think of BNS?

My Dividend Growth

http://www.mydividendgrowth.com

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24 thoughts on “Recent Buys: January 5th, 2015
  1. Dividend Diplomats

    MDG,

    Heck of a start to the year. As you know, we love our Canadian Banks. I was torn between adding BNS or CM, and ultimately selected CM for my investment. I am looking to add to my Canadian Bank position, so maybe I will diversify among these all-star banks and initiate a position in BNS to compliment my initial CM position. You gave an excellent sales pitch in your article. After all, 200 years of paying a dividend is a pretty impressive feat that very few companies (if any) can match.

    Again, great purchase and a very solid addition to your portfolio. Keep up the great work and keep on purchasing these great dividend growth stocks. Also, thanks for adding our link to your article, I’m glad Lanny’s analysis was able to help with your decision.

    Bert

     
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    1. My Dividend Growth

      Bert,

      Appreciate you guys posting excellent content. Prices are certainly attractive on some of these Canadian financial powerhouses with yet another down day for the market. How low can it go? I’m glad to hear your support on BNS, I agree that the history of this one speaks for itself. CM is a great looking bank as well, good job hopping aboard that one and I might join you one day. Congrats on all your successes of 2014 and I’m eager to see how the new year treats you.

      Best Wishes,
      Ryan

       
      Reply
  2. FrugalitytoFinancialFreedom

    Hey Ryan love the purchase! I am down almost 5% on my 10 shares of BNS, I was a little cautious coz I kinda felt that Canadian banks can go lower together with the energy sector. You know what this mean, lower prices means more room averaging down. Keep us updated!

     
    Reply
    1. My Dividend Growth

      FTFF,

      Hi there, I like the blog you have over there and it’s great to see another recent BNS purchase. Looks like this stock might move down even a bit lower, so hopefully we’ll get a chance to buy more 🙂 Thanks for commenting and I’m wishing you all the best successes this year!

      Take care,
      Ryan

       
      Reply
    1. My Dividend Growth

      Captain Dividend,

      The market provided another day of opportunity today, and we both could have gotten in even lower. That’s how it usually goes for me, hehe. I’m happy to be on the same page as you with this holding. Let’s hope it lingers on even lower for a good while so we can add as we like.

      My Best Regards,
      ~Ryan

       
      Reply
    1. My Dividend Growth

      DFD,

      Cool blog you have and I like the name. I’d love to see UL sink from here and pick up another big lot, and meanwhile I’m happy averaging in around current prices. Love the company and use a lot of their products. I see you’ve got some great names in your portfolio, and I can’t wait to see how you expand it. Wishing you lots of success this year and beyond!

      Take it easy,
      Ryan

       
      Reply
  3. Tawcan

    Great start to the year and what a great buy. I might add some more BNS later to average down my position. Also looking at TD and possibly CM too.

     
    Reply
    1. My Dividend Growth

      Tawcan,

      It’ll be interesting to see how low these Canadian banks drop in price from here. I’m really liking TD right now as well and hopefully we’ll get an opportunity to scoop them up even lower. Appreciate the support!

      Best Wishes,
      Ryan

       
      Reply
    1. My Dividend Growth

      DivHut,

      My pleasure, thank you for all the great content! A lot of those excellent names on your January stock consideration list went further on sale today, I’ll be curious to read if you made any purchases.

      All My Best,
      Ryan

       
      Reply
  4. roadmap2retire

    Nicely done, Ryan. BNS is the only Canadian bank I hold and its one of the best. Amongst the Canadian banking industry, its the most geographically diversified and most undervalued. Congrats on adding more dividend income to your stream. Your 2015 is off to a great start!

    R2R

     
    Reply
    1. My Dividend Growth

      R2R,

      Happy to finally join you in holding this business. The history of this bank is pretty incredible and it’s looking like a good time to load up with the recent sell off. I wonder if you’ll be using some of your dry powder if the market keeps heading downward from here. Let’s hope that’s the case because I’d love to see some deals. I appreciate the comment!

      Take care,
      Ryan

       
      Reply
  5. Dividend Gremlin

    MDG,

    BNS is a nice buy, I have CM myself. All those Canuck banks are excellent really. Also nice to continue growing the UL position, it is very nicely valued right now.

    Also, my blog is kind of new thanks for the add. I went to St. Kitts and Nevis for my honeymoon. If you are thinking Caribbean the advice I heard from a ton of people was this:
    1 – Avoid cruise ships, because you don’t get to experience an island.
    2 – Watch out for over developed islands and resorts because you well get hassled a ton by sellers, merchants, and beggars. Examples include Jamaica and the Bahamas, heard people felt trapped in their resorts.
    3 – I went with St. Kitts because they airfare was cheaper than most islands and its less developed. Smallest country in our hemisphere. I’d look for islands and deals like that. Either right at the beginning or end of hurricane season, so you still get stuff open, but little chance of a storm.

    Thanks,
    Gremlin

     
    Reply
    1. My Dividend Growth

      DG,

      I love these Canadian banks and would sleep well at night with CM, TD, RY, or BNS. I’m sure there are plenty more I haven’t heard of too. Congrats for loading up on UL, I hope it keeps sliding from here and I’ll keep chipping away at it as well.

      Thanks for the advice! I just googled pictures of St. Kitts and Nevis and it looks so peaceful and relaxing. We need something like that 🙂

      Take care!
      ~Ryan

       
      Reply
  6. writing2reality

    I added BNS to the fold in December, and continue to build my UL position through Loyal3 as well. Love the ability to DCA into dividend growth companies at no cost!

    Here’s to the first of many great purchases this year!

     
    Reply
    1. My Dividend Growth

      You’re killing it W2R. It’s great to be on the same page with you here. I keep sending chunks of $250 in L3, but I’m tempted to do to get a 3k or so position with UL as fast as possible for reinvestment sake. But now so many other names are coming down to earth. It’s way more fun when the market goes down, let’s hope for more!

      All my best,
      Ryan

       
      Reply
  7. DiviDude

    Hi Ryan. Three quick questions…
    Does Loyal3 provide with tax forms (1099, capital gains etc)?
    Can you invest in ANY stock or only in pre-selected securities?
    With both of your purchases above – are they subject to any foreign tax withholding for a US investor ?
    Thanks!

     
    Reply
    1. My Dividend Growth

      Hi DiviDude,

      Thanks for the questions.
      – I haven’t gone through a tax year with Loyal3, but yes, I am under the impression they provide the same tax information any brokerage has to.
      – Loyal3 only has a select number of investments available. Currently there are 64 stocks and many are excellent dividend growth investments. You can can read more at loyal3.com.
      – No foreign taxes withheld from UL in my taxable account. No taxes withheld from BNS because it is sheltered in my tax advantaged ROTH IRA.
      Cheers!
      ~Ryan

       
      Reply
    1. My Dividend Growth

      LTI,

      I appreciate your support and am glad to be on the same page with these names. Can’t argue with Unilever, love the company and picked up another small lot myself that I’ll be posting about soon. I’ll be watching what happens with the Canadian financial crisis right along with you. These banks have been through a lot, and hopefully they’ll come out unscathed.

      Wishing you well!
      ~Ryan

       
      Reply
  8. DivGuy

    Sure BNS is good… just like almost any of the Canadian banks! I’ve always cherished them 😉 With the energy sector moving, looks like a good timing too. TD is worth looking in to as well.

     
    Reply
    1. My Dividend Growth

      DivGuy,

      Gotta love the Canadian banks. I’m also a big fan of TD with less exposure to energy and the growing US presence. I liked the valuation of BNS slightly more at my time of purchase, but I really want to own both of these businesses sooner than later. Appreciate you stopping by, I’ve been enjoying your website for ages. 🙂

      Best Wishes,
      Ryan

       
      Reply

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