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!
Hey German, Looks like your holdings are getting heavy with REITs. Any concerns about a Canadian real estate bust like we experienced in the US in 2007? Tom
ReplyDeleteThank you for your comment, Tom! Yes, I'm heavily exposed to Canadian real estate. But I'm being very selective here. Generally, I try to avoid offices and industrial buildings because of the economical shifts. I like shopping centers, shopping malls and residential properties.
DeleteNice buys, I have been looking at CT REIT myself.
ReplyDeleteCT reit is a very stable business. Canadian Tire is doing well!
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