Maxed out my TFSA, No Nore Monthly Contributions, and New Stock Purchases


Maxed out my TFSA
Hey guys! I would like to provide a few updates regarding my TFSA account and new stock purchases. If you follow my blog for a long time, you know that I make monthly contributions and stock purchases in my TFSA account. This time, I decided to make some changes and maxed out my TFSA right away. One of the main advantages is that I will boost my income and will collect higher payouts throughout the year.




No more monthly contributions
Since I maxed out my TFSA, I will not be contributing any new funds until the next year. I will let the dividend payments accumulate in my account. I will purchase new stocks by reinvesting the dividends. I will probably invest every second or third month or as soon as I accumulate a $1,000 threshold.


New stock purchases
Now let’s get to the fun part. I didn’t invest in anything new. I simply added to my existing positions. Here’s how I invested newly available $6,000:
  • Added 20 shares of Royal Bank (RY.TO) @ $104.68 per share
  • Added 20 shares of Bank of Montreal (BMO.TO) @ $101.55 per share
  • Added 39 shares of Fortis (FTS.TO) @ $54.42 per share
As you can see, all three investments are high-quality businesses. Two banks and one utility company. Stocks that you can buy and stack away for many years.


Increase to forward dividend income
New shares of RY will add $84 to dividend income
New shares of BMO will add $84.80 to dividend income
New shares of FTS will add $74.49 to dividend income
The total amount added to forward dividend income is $243.29


Commission fees lowered
I received great news from my stockbroker. My trading commission is lowered from $9.95 per trade to $6.95 per trade. That’s a 30% reduction to my trading commissions.

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That’s a wrap for today. If you have any questions, please leave a comment.
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7 comments:

  1. DGX CapitalJanuary 9, 2020 at 1:54 PM

    Gotta love those consistent Bank divi increases :)

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    Replies
    1. Dividend Income StocksJanuary 10, 2020 at 9:20 PM

      For sure! When companies grow, they can raise dividend payments.

      Delete
  2. Matthew - AllAboutTheDividendsJanuary 10, 2020 at 5:49 PM

    Congratulations German on both maxing out your TFSA and on those great buys. I own all three! I'm trying to max out my TFSA account this year wish me luck lol.

    ReplyDelete
    Replies
    1. Dividend Income StocksJanuary 10, 2020 at 9:23 PM

      Good luck, Matt! If you max out your TFSA this year, you will get a nice boost in dividend income tax-free.

      Delete
  3. PassivecanadianJanuary 13, 2020 at 9:39 PM

    Man I swore I commented on this. These google comment boxes don't like me.

    Absolutely awesome that you already maxed that tfsa and great companies to boot! Bmo is one im debating adding before ex dividend them or smart centers. Im kinda heavy on banks so may go the other way its "smarter" zing!

    Anyways keep it up man

    ReplyDelete
    Replies
    1. Dividend Income StocksJanuary 13, 2020 at 10:08 PM

      SmartCentres trades at a good price now. I bought 100 shares of SRU for my wife's TFSA. This is one of the REIT that will do incredibly well. They not only build shopping centers, but communities as a whole. I can't think of any other reit who can compete with them. They must have smart engineers on board. If I'm not mistaken, the biggest tenant of Smart is Walmart! It's a recession-proof store!

      Delete
  4. moneymaaster.comFebruary 3, 2020 at 4:50 PM

    Great work! I still have a lot of work to get our TFSA's maxed out:(

    Nice buys too...I expect you will continue to see divy increases from all 3 going forward.

    ReplyDelete

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