Recent Buys: January 5th, 2015
I 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:
Now to the fast graphs: