I Spent All My Money on Bank Stock and now I'm Poor

Hey guys. A quick update on today’s purchase. The markets have been selling off lately so I decided to look for some deals, especially that I had over $1,200 accumulated from dividends in my TFSA account.

During the pandemic, it’s important to buy defensive stocks to be able to sustain any potential downturns. Generally, consumer staples, banks, utilities and tesla would be your best bet. Well, today I decided to beef up my banking sector.

I own most of Canadian bank stocks, but CIBC is my smallest holding compared to other banks. Therefore I decided to add to my CIBC position. I blew all of my cash ($1,200) on CIBC stocks. I bought 12 shares for $99.67 per share. My total position in CIBC jumped from 8 shares to 20 shares. How terrific is that. I feel like I can walk to any CIBC branch, tell them who I am, and ask for my dividend money.

And speaking of the dividends, since the stock price dipper under a $100, the bank is paying out a whooping 5.73%. This purchase will add $17.52 per quarter or $70.08 per year of passive income.

Portfolio Value Update - August 2020

Welcome back! It’s the time to report my August progress. Guys, this report will be super short and straight to the point. So, let’s get started.


Portfolio Value
In August, my stock portfolio value increased by $757 and closed at $88,130. The increase came from stocks appreciation. I did not add any new funds in August. I’m saving some cash for new purchases. The crazy stock market must cool down. If the market remains hot, I will simply save $6,000 for 2021 TFSA contribution to max it out in January.


Portfolio Value Update - July 2020

Welcome back, guys! Wow. It’s already August. Are you kidding me? July is gone and we’re heading towards the end of summer again. That’s nuts. We’re skipping out on a lot of activities this summer because of the pandemic. Montreal is the worst hit city in the country so we avoid all non-essential travels and activities for now. Anyway, let’s see how my stock portfolio performed in July and how much dividends I received.


Portfolio Value
In July, my stock portfolio value increased by $4,003 and closed at $87,373. I added $3,000 worth of new stocks, the rest of the increase came from capital gains. I’m only a few grand away from all-time high of $91,000 that I had in January 2020. The stock market gained some traction in July. Let’s see if it will continue to do well in August. The Q2 reports are coming out. They are ugly, but I don’t think that investors will negatively react to the bad quarter reports. We all understand that the economy will rebound as soon as A: we have a vaccine or B: we have an effective treatment or C: the spreading stops naturally, just like all other pandemics in the past. 



New Stock Purchase: Telus Telecommunications

Hey guys. Today, I would like to share my new stock purchase. I started a new position in Telus by purchasing 135 shares at $22.88 per share. This is the first telco stock in my portfolio and I gave my preference to Telus instead of Rogers or Bell. Eventually, I will buy the other two companies, but for now, I believe that Telus have better outlook given the current environment.

Telus pays a quarterly dividend of $0.2913 per share which translates into a 5.1% yield. It’s a high quality blue-chip stock so 5.1% is very nice! I’m happy that I was able to lock that in. The purchase of 135 shares will add $39.32 per quarter or $157.30 per year to my forward dividend income.

 

Company’s Profile:

Telus is one of the big three wireless service providers in Canada, with its 9 million mobile phone subscribers nationwide constituting almost 30% of the total market. It is also the ILEC (incumbent local exchange carrier; the legacy telephone provider) in the western Canadian provinces of British Columbia and Alberta, where it provides Internet, television, and landline phone services. It also has a small wireline presence in eastern Quebec. In recent years Telus has moved to bring fiber to the home over most of its wireline footprint as it upgrades its legacy copper network, leaving it able to compete on more equal footing with cable providers. Telus’ other businesses include international business services, health data records, and security.

Portfolio Value Update - June 2020

Portfolio Value
In June, my stock portfolio value increased by $11,398 and closed at $83,370. Most of the increase came from new stock purchases. I added $9,299 worth of new stocks. The rest of the growth came from stocks appreciation.