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!

4 comments:

  1. 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

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    1. Thank 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.

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  2. Nice buys, I have been looking at CT REIT myself.

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    1. CT reit is a very stable business. Canadian Tire is doing well!

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