Recent Purchase: Medical Facilities (DR.TO)

Today I doubled my position in Medicial Faciliaties. I started to buy this stock last month and was looking to add more this month. Now it’s trading a few bucks cheaper so I picked up another 80 shares of DR.TO for $12.83 per share. 

My plan is to hold them until they reach $20 again and then I will trim my position in half. While I wait I will collect 7.5% dividend. Usually this stock yields 5% when it trades at $20, but because the stock price is low, the dividend yield looks high. The current payout ratio is 70% so the dividend looks safe.



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4 comments:

  1. PassivecanadianNovember 23, 2017 at 9:07 PM

    Nice buy. Think ive heard of them before but really looks interesting if i got the right company in my head. Thanks. Hope it hits 20 for ya!

    ReplyDelete
  2. Dividend DiplomatsNovember 26, 2017 at 9:35 AM

    I'm not familiar with the company; however, I liked some of your discussion points in the article. With such a high yield, how do you feel about the safety of the dividend?

    Bert

    ReplyDelete
    Replies
    1. Dividend Income StocksNovember 27, 2017 at 12:07 AM

      I think the yield is safe for now. The payout ratio is 70% so I'm not worried about that. When the stock price goes up to $20 again, the yield will go down to 5% which is not that high. Also, I only bought the stock on the low range, so my downside is limited. It looks like it found the floor. But again, December is around the corner and tax-loss selloff could have a negative impact on such stock. But I'm cool with that :)

      Delete

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