Recent Purchase: Alaris Royalty

New funds are now deposited to my investment account so it’s time to put that money to work. Today I purchased 55 shares of Alaris Royalty (AD.TO) for $16.53 per share. I’m a few days late on this purchase because last week they were just under $16, but I did not have the funds available. My total position in Alaris now consists of 195 shares with the market value of $3,159. With the recent purchase, my monthly dividend income will increase by $7.40.

About the company

Alaris provides capital to private businesses in return of royalty payments. The company currently has 15 income streams with $98 million in annual revenue. Alaris has approximately 80% of its fair value of investments in US based companies; 49% of invested dollars are exposed to business services, 40% to industrials, and 11% to consumer products and services.

Dividend History and Sustainability

• Current dividend per share of $0.135 per month ($1.62 annual)
• 10 consecutive dividend increases totalling 93% gross increase
• Current annualized payout ratio at ~90%
• Included in the Canadian Dividend Aristocrats Index

Recent Purchase: CT & RioCan REITs

My Student Transportation (STB.TO) shares got sold last week and I received about $3,200 for my 340 shares. I will certainly miss this holding in my portfolio. It was one of those recession proof stock with good monthly dividend. 

I decided to use the cash and add to my existing positions instead of buying new companies. So I bought two reliable REITs to strengthen my portfolio. 

CT REIT

My first buy was CT Reit (CRT.UN.TO). I doubled my holding by adding 110 shares at $13.26 per share. They mainly lease properties to Canadian Tire stores and I feel very comfortable about Canadian Tire business model and growth. The dividend yield is 5.5% and they pay every month. This purchase will add $6.67 to my monthly dividend income. 

RIOCAN REIT

My second buy was RioCan Reit (REI.UN.TO). I almost doubled my holding by adding 75 shares at $23.42 per share. RioCan is the largest reit in Canada which owes 289 properties. Riocan also pays out every month and their dividend yield is 6.15%. The yield is slightly higher to its historical average, but that’s because the share price is low. This purchase will add $9.00 to my monthly dividend income.

Well, here goes my capital rotation! Happy investing, guys!