Transcontinental Stock is my first buy of 2019!

I finally put my money where my mouth is.  I’ve been talking about Transcontinental’s stock a LOT!.  It started in the summer – It was one of the top stocks that screened in my Summer Stock Screen

I then wrote another article in October about how cheap it was.  You can read that post HERE

Lastly, TCL was the stock I chose in RoadMap2Retire’s stock picking contest as well earlier this year.  Needless to say – I’ve been thinking about this company for a while.

I actually had a buy order in for TCL on Friday, at a price of 21.03 but it never got filled, so when I saw the price had dipped again this morning, I put in another offer – this time at $20.93 – and it got filled right away!

I purchased 125 shares at a cost of 20.93 (plus commission).

I’ve already written a few times about the company, and why I thought it would be a great addition to my portfolio, so I won’t do a huge write up today.  You can click the links above if you want more info.  I WILL however, just point out a few things:

  • Trading at a 36% discount to it’s 52 week high,
  • Current P/E of 8.1
  • TTM EPS of 2.62
  • 4% dividend yield
  • Increased dividend every year since 2001
  • Low payout ratio

While this wouldn’t be considered a huge growth stock by any means, the value seemed too good to pass up.  I’ll happily sit and collect a 4% yield while waiting for the price to bounce back.

This purchase of 125 shares will add $105.00 to my annual dividend income, and more importantly, it allows me to DRIP 1 new share each quarter.

Do you own TCL?  Let me know what you think of this purchase.


P.S – I was really close to purchasing Andrew Peller instead – and if the price stays low, I expect ADW to be my next purchase.