Wednesday, October 7, 2015

How I deployed 20K$ into the Market


It’s not because I wasn’t writing much on this blog that I wasn’t taking care of business. Monsieur Dividende is restless when it comes to investing. But with the relentless Bull Market that began on the backdrop of the last financial crisis (2008-2009) it was becoming difficult to find any good bargains.

If you’ve already visited my blog you have probably noticed that I’m not the kind of investor who picks up a whole bunch of stocks -- even if these stocks are from high quality companies. (Check out my 19 stocks portfolio here)

I’m from the school of thought that a handful of quality dividend companies from 4-5 different sectors of activities should do the tricks. Studies have showed that to be true. Personally, the main reason for this logic is this: time. I don’t have enough time to follow closely more than 20 companies. Heck, I barely had time to follow 8 at one point... But the context of the last two years has forced me to revisit this logic. The fact is: I couldn’t add up to my actual positions without paying the big price. I could either wait for a fallout of 10% of my stocks or try to find bargains elsewhere in other valuable companies.

I have to say that I have waited on the sidewalk for a while before making a few moves. But with Mr. Market slowing down these past couple of months, I started deploying some sleeping money into various quality dividend investing stocks. I didn’t keep track on a daily basis (maybe I should of) of all those latest buys nor did I took the time to write about my new positions (apart from Twitter).

I decided yesterday to look over my recent activities and let you know what I did over the course of the past seven months; that is from March to September 2015. Why March, mind you? Because it’s around this time that I’ve really started making substantial buys.

With the help of my calculator and some patience, I tracked down all of my buys over this period. 

Here a few facts I found out :

  •  I was surprised to see that I had made 20 buys.
  • My average buy amount is 1 027$. 

It shows that, although I started to deploy some money into the market after a long halt between 2012-2014, I still managed to do so with great caution.

I guess this also qualifies me now as a stock nibbler, a reference made by a fellow blogger Dividends in Hands in an interesting post entitled Nibbling vs Gorging onStocks. When I first started dividend investing, not so long ago in 2009, I was making big buys with roughly 4 or 5 K$. How time’s changed!

Back to the stats:

  • Over the period I have deployed 20 540$! That’s a pretty hefty sum.
  • This sum has enabled me to buy stocks in 9 companies. All of which are Canadians. I wish I could have bought some US companies but the currency gap made it impossible.
  • The 9 companies bought covered 5 different sector of activities: Financials, Energy, Consumer Staple, REIT and Industrial.
  • Not surprisingly, the energy sector represents 45% of the money spent. I’ve made the most of the recent fallout of the price of oil.
  • My stake in ATCO (ACO.X) represents 28% of all the money invested over the period. TransCanada Corporation (12%) and Fortis (5%) make up for the rest.
  • The financial sector is where 31% of my money was deployed.
  • Most of the money in the financial sector was spent on building up a new stake in Bank of Nova Scotia (22%). I also added a little bit of shares to my positions in Royal Bank (5%) and Power Financial (4%).
  • The REIT sector represented 7% of all money spent; the Industrial sector 14% and the Consumer Staple sector 3%.
  • Of these 9 companies, 4 were new positions: Bank of Nova Scotia (BNS), ATCO (ACO.X), TransCanada Corp. (TRP) and Canadian National Railway (CNR).
  • 5 were companies in which I have increased my stakes: Royal Bank (RY), Alimentation Couche-Tard (ATD.B), Fortis (FTS), Power Financial (PWF) and Cominar (CUF.UN).

I’m still sitting on money to deploy in the near future. I will have to wait for a fallout of the prices of my actual stocks. But I don’t rule out adding some new high quality stocks, even though I doubt I will add more than one or two to my present portfolio. 20, would be a great nice round and final number for my total holdings.

What do you think of my latest buys? Would you have deployed the money in a similar way? If not, how?

I’d like to hear from you dear readers. Let me know what you think.

Monsieur Dividende




2 comments:

  1. No small feat by any measure. That's a very hefty sum to add to your dividend portfolio. Those buys just gave you that much more future freedom as the dividend income will roll in. I'm still liking my BNS and RY as I see you have added to those names as well. Too bad I cannot buy any more till 2016 as I maxed out my ROTH for 2015. Thanks for sharing and congrats on this achievement.

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  2. Hey thanks Hutman! Well, yeah, it's a hefty sum but I have been waiting a long time since 2012-13... I still have some cash left but will wait out a bit until a new correction! Thanks for stopping by! ;)

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Thanks a lot for your comment.