Stock Sale: Morneau Shepell (MSI.TO)

Hey guys, just a quick update on the recent stock sale. This is my first sale of 2019. Those who follow me, know that I usually don’t sell stocks. I’m a buy-and-hold kind of guy. Anyway, today I sold my shares of Morneau Shepell, ticker MSI.TO. Morneau Shepell is an HR services company. They mainly provide consulting and employee well-being services. I sold the stock for the numerous of reasons that I will list below. 

Reasons for sale:
  • The stock trades at historically high P/E Ratio and P/B Ratio
  • They did not raise a dividend in a very long time
  • The dividend yield became too low to hold the stock
  • Profit margins are dropping from year to year
  • I have better investment opportunities in mind

I had a small position of 60 shares that I bought in March 2016. Back then I paid $14.85 per share and the dividend yield was about 5.4%. It was a pretty sweet deal. Since then the stock almost doubled in price and the yield have collapsed. Right now the dividend yield is under 2.8% which is too low for me. I can invest in any Canadian bank and get around 4% and have a stronger name in my portfolio. I sold the stock for $28.49 per share and booked $800 net profit. The profit is tax-free of course because I’m invested inside my TFSA. With this sale I raised about $1,700 in cash and with new contribution and monthly dividends, I should have about $2,700 of new capital to invest.

Portfolio Value Update - April 2019

Portfolio Value 
In April my portfolio value decreased by $25 to $72,246. It’s still pretty high considering that my portfolio value was about $60,000 in the end of 2018. Since the beginning of this year, I added $2,300 of new money through contributions and $1,300 through dividends. The rest of the value increase came from stocks appreciation.

Dividends received in April 2019: $333.64
Dividends received in March 2018: $255.89
Year-Over-Year Dividend Growth: $77.75 or 30%
Year-To-Date Dividend Income: $1,305.16

Dividends received in 2019 was $333.64. Still a solid year-over-year growth of 30%, so no complaints here. New monthly stock purchases and dividend increases helped me achieve the 30% growth. Year-to-date dividend income surpassed $1,300 which is enough to cover one month of my condo expenses.

New Stock Purchase: Morguard REIT (MRT.UN.TO)

Bonjour! Welcome back to the blog! This post will be short. Just a follow up on my monthly stock purchase. Today I bought Morguard REIT; the most discounted REIT in Canada. If you recall, last month I wrote a post about the cheapest REIT in Canada. Since I have a small position in that stock, I thought it would be the perfect opportunity to add more shares while the price is still depressed.

Stock Purchase
Today I bought 70 shares of MRT.UN.TO for $12.40 per share. Now I have 210 shares of Morguard at an average cost of $13.50. The company pays 8 cents per share so the new purchase will boost my monthly dividend income by $5.60. Let me know what you think about Morguard.