April 2021: Buyout and New Stock Purchase

Hey guys welcome back to my blog. I got a few things to share regarding my stock portfolio. One of my stocks was recently bought out and I used the money to invest in another stock.

Genworth MI Canada
Let’s start with the stock that was bought out. About 18 months ago I bought 40 shares of Genworth MI Canada (MIC.TO) for $52.30 per share. This company provides mortgage insurance in Canada. It was partially owned by Brookfield Business Partners and this year Brookfield decided to buy all of outstanding shares. When the Covid happened the stock price dropped way below my purchase price and the deal was finalized at $43.50 per share. Not a bad deal for Brookfield to pick up good companies at depressed prices. For my 40 shares of MIC I received $1740 in cash. That’s a capital loss of $360, but I received $466 in dividends for holding the stock for about 18 months. Thankfully the dividends helped offset the loss and the investment yielded a small gain.

Dream Industrial REIT
I decided to invest in Dream Industrial REIT because I like the industrial space. Dream Industrial owns and operates a diversified portfolio of high-quality industrial real estate in Canada, the U.S. and Europe. Industrial REITs are not as risky as retail or office reits. Regardless of how consumers will shop and work, the industrial REITs will always be in demand. The goods need to be shipped, stored and distributed. I had about $3000 in cash available to invest and I decided to go all in! I bought 215 shares at $13.53 per share for a total amount of $2,908.95. The yield is about 5% and this purchase should add $12.53 per month in dividend income.

1 comment:

  1. Hope Dream behaves. I keep adding monthly to my portfolio as I am too scared to just put so much money buying at once in one stock. With Wealthsimple it is a blessing to do it this way.