New Buy(s)! Doubling down on 2 favourites and started a new position.

Stock sell Stock Buy Dividends

Increased Dividends by $2700!

If you’ve been following my monthly updates, you will remember that I was in the process of transferring over a work RRSP into my direct investing RRSP account.  A portion of the funds finally made it over, and I wasted no time and put the money to work. The funds were previously invested in a mutual fund with a 2.2% MER, that was performing slightly below it’s benchmark.  So what did I buy?

Ishares All Country EX Canada:XAW

The first thing I purchased was 1100 shares of XAW.  This fund is not new to me, I already owned about 2600 shares.  I use this fund for US & global diversification.  It was an extremely low MER (0.22%) and is extremely diverse (over 8000 stocks across the world).  The fund covers everything except Canada, which is perfect for me, because I use my TFSA for individual Canadian stocks AND I own one other fund that is purely Canadian equity (more on that later).  XAW is a fairly new ETF, it was started in 2015 so there isn’t too much long term data on the performance.  That said since the fund’s inception it has returned 8.31%.  The fund also pays a distribution twice per year (June & December) and based on the last 2 payments this purchase should add $624.40 to my annual dividend income.

RBC Canadian Equity Income Fund Series D

Mutual Fund Performance

The next thing I did was add to my position in the RBC Canadian Equity Income fund.  I purchased 1000 additional shares, bringing my total share count to 3294.  Typically I am not a fan of mutual funds as they carry a higher MER, however this fund has performed exceptionally well for me, it is diversified, and pays a monthly distribution.  The fund holds 86 Canadian companies (mostly blue chip dividend payers) and RBC allows the fund to DRIP shares each month.  The fact that this is a “series D” fund*, means the MER is lower than the normal series A fund.  It is still higher than most ETF’s, but it’s much more reasonable (at 1.04%).  Over the last 10 years this fund has beat the benchmark and returned over 11% annually!  This purchase will add $1218.00 to my annual income, thus allowing me to drip an additional 3-4 shares each month.

*Series D funds are available to direct investors.  They offer all the same holdings as the series A fund, however you must purchase them yourself.

NFI Group – New Position!

NFI

Lastly I initiated a position in NFI Group by purchasing 500 shares.  The timing may have been a bit of a gamble, as they are expected to announce earnings today.  Last month the management team had come out and said they expect to miss on earnings.  The stock plummeted and I am hoping the downside is already priced in.  I still think long term this will be a great hold.  I wrote a bit more about NFI Group HERE.  I also kept some cash leftover in case the price comes down further after the earnings are released. The purchase of 500 shares will add $850 to my annual dividend income.

So although these purchases weren’t from any new capital being injected into my portfolio, I believe they will perform better than the fund they were previously invested in, the fees will be lower, and they will add an extra $2672 to my passive income!

 

 

5 Comments on “New Buy(s)! Doubling down on 2 favourites and started a new position.

  1. monster moves man!

    congrats on the transfer and all your success.

    keep it up

    Like

  2. Awesome news! Now you can control your money the way you want. I’m not a big fan of mutual funds, so I guess you bought them for safety. That NFI buy is HUGE!! WOW You went all in! Looking forward to your dividend increases 😉

    Like

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