I find the last couple days going on like a yo-yo. But the past few days had been good for the stock market and despite my worries, I decided to invest in TransCana Corporation (TRP). Yesterday, or should I say earlier last night, I said I was going to invest in TRP if the TSX opens on a happy note...
Actually, I was still in bed for the market opening and I continue my beauty sleep until... 12:30pm... I wake up looking gorgeous (ah!), wondering what the TSX was going to be like... To my surprise, the TSX has exceeding the 12 300 points so this was the time. Time has come to invest in the very precious TransCana Corporation (TRP). GO FOR IT!
I kept in mind the advice of Rob Carrick to continue to invest even in a quasi-depression state of the market (and of myself on the same time)... So I just did what I needed to do, I invest in some stocks of TransCana Corporation (TRP) at 40.27$... For now, I have used my margin money, but I will, if not this afternoon, proceed with a 1 000$ deposit on my margin.
While keeping Rob Carrick good advice on mind, I decided to stick to the plan I describe previously before: to invest in blue chips once every month when possible using my very own money. My next investment will probably in Canadian National Railway Co (CNR).
My portfolio is doing fine. Including my newest investment made in TransCana Corporation (TRP), my non-registered portfolio is now at 108 210.20$. Getting closer to the original 113k of BEFORE the market crash of August 2011. I find it very important to continue to invest at this time to bring in more value to my portfolio. Investing in blue chips won’t significantly increase my dividend earning. Anyhow, it’s not anytime soon I will be able to live form my dividend. So having all that in perspective, better to continue to invest in some blue chips really not that generous on dividend BUT who will be able to bring in extra value for the long run.
No worries, it won’t be done on margin. Blue chips paying so little in dividend, they don’t even worth the buy on margin lol. At least just for dividendly thinking. Got the idea? Real cash, blue chips, small extra dividend earnings. That’s the plan for now.
Welcome aboard TransCana Corporation (TRP)! May you have a long and happy existence inside my non-registered portfolio. You’ll see, it’s going to be fun.
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12 comments:
You've been planning to buy TRP for a while, why didn't you pick it up at 37$ and change at the beginning of the week, you would be up almost 10% already. I bought 1,000 MFC at 12.40 and it's up 6% already. TRP is not a high growth stock so buying it on the cheap is a must to get a better return.
I have this stock (TSX-TRP) and it has been a good investment.
You are right, but in those difficult market time, I could not purchase this investment on margin only. I was waiting for my paycheck. What I want from TRP is a stability in the value to add something strong for my margin. I had been waiting for real cash to make the investment. And now it's done and completed, finally!
Thanks Susan, I am happy to add TRP to my portfolio. Just on time for their next dividend.
Good move DG, but as "Anonymous" said.. you should have bought at low. I'm holding the TRP for long term inverstment; however, I bought some portion at $38 and sold it at 41.50 and made some quick profit. As as I advise often, diversify your portfolio and stick with some high quality stocks.
Sunny,where can iI find info on dates of payable dividends by can / us stocks?
Thanx for your help!
Hi Arunan,
I bough TRP when I was able to do so. I am not under pressure to buy under a specific price. I buy when I can. I always proceed that way, and the portfolio had been built nicely over time.
I did not have the money available to buy before yesterday. This being said, buying stocks from time to time is always the way I did, without caring too much of the market condition or the price. It's strange no one ever notice that before and that suddenly some complaints are coming in about the price I pay for TRP.
When it come to blue chips, they can be purchase at anytime. I wouldn't have purchase this one under margin. The market could loss again at anytime. I cannot be too high on my margin for that specific reason. So I patiently wait to have some fresh cash coming deep from my pockets to invest once I have a chance. Just like it started in the old days of 2005.
And by the way, TRP is now at 41.02$. So as far as I am concern, I already made a profit out of this investment. Of course, I would have make more if I would have purchase at 37$. Money is great but is not everything. I am playing safe now and looking to invest once in a while in blue chips to add more value to my portfolio. And that from as it started yesterday, by using fresh real cash only, not monopoly margin money.
Hi Everywhere...
I don't knoe exactly a place but the best way is to visit TMX.com web site, check on all of your tickets, go under the news to see if a dividend had been declared. That's how I do. It's allow me to read news about my stocks as well.
Like another poster said, Sunny doesn't take advice really well. When market where down as in 2008 and 2009, you can buy without worrying about price too much and still have a decent return, but when the market are pretty well valued, the price you
pay for a stock is really important, especially when you have a margin account.
Now I have noticed before that you would buy at the top (Ex. SII, silver, dgi.un, nfi.un, and countless more; I call that chasing hot stocks. You say you live frugally, but don't seem to care to pay 10%, 20% and even 30% more for stocks. Now I know you can't control what the stock does after you buy it, but you do control the timing of your purchase. You say you follow Derek Foster, but one of the main thing that Derek would say is when he finds a stock he wants to buy, he waits for the appropriate price. He may not get all the stocks he wants all the time, but that sure prevents him from paying too much and reducing is returns. I know myself I wouldn't have bought TRP at over 40$ when it was trading at $37 just 3 days before. I would have put the money on the margin that seems to worry you so much and wait for a better opportunity to buy it.
Another advise from most adviser is if your investments keeps you up at night (2:00 in the morning to see your available margin) or stress you out, than you're not invested properly. You propably dodged a bullet this time, but what about the next time, it could be worse.
Now you say blue chip company can be bought anytime, well again I disagree, if you bought Coke stock in 1997 at $69, you still wouldn't have made any money except a small dividend that wouldn't even cover your margin interest and this despite Coke having increased their earnings ever since 1997. The same can be said for lots of other blue chip company. The easiest way to improve your return is to buy stock cheaply.
Hi,
<< where can I find info on dates of payable dividends by can / us stocks?>>
May I suggest the free portion of this site DIVIDENDINVESTOR
CLic on Dividends Paid Since:
for historical info for any symbol
TRP
http://dividendinvestor.ca/historical.php?no=120
Others good links for dividend
www.thepassiveincomeearner.com/dividend-stock-analysis
www.ndir.com/SI/strategy/tse60.d.shtml
http://www.dividendgrowth.ca/dividendgrowth/evidence_it_works
FOR investing EDUCATION forum
http://www.financialwebring.org/forum/index.php
Hope it's will help
I doubt if anyone can consistently pick low stock prices. That is why I go for reasonable stock prices. As far as I can see, Sunny paid a reasonable price for her stock.
For this stock, I have a 5 year median Dividend yield of 4.03% and she got it at 4.17%. The 10 year median Price/Book Value is 1.96 and she got it as 1.68 which is 85% lower. I get a Graham Price for 2011 of $35.03 and her stock price is 15% high. However, the median difference between Graham Price and stock price is 14%. These all show that she got the stock at a relatively better than median price or close to a median price.
The only place where the current stock price might seem to be a bit high is her Price/Earnings ratio, which would have been 17.74. The 5 year median high is 18.07. The 5 year median is 16.29 and the 5 year low is 13.99. These P/E ranges are pretty tight.
The other thing is that when you go to buy a stock, you can only deal with it as it is currently. Yes, it was lower 3 days previous, but this doesn’t help. And, it may or may not go back there again.
I like your blog, Sunny, because you talk about what you are experiencing as an investor in a variety of products. This is real life, not hypothetically how one should invest. I am sure that you have learned a lot since you started to invest. This is what is important.
Hi, it's not that Sunny's a bad investor, she's just an idiot!
I doubt if anyone can consistently pick low stock prices. That is why I go for reasonable stock prices. As far as I can see, Sunny paid a reasonable price for her stock.
For this stock, I have a 5 year median Dividend yield of 4.03% and she got it at 4.17%. The 10 year median Price/Book Value is 1.96 and she got it as 1.68 which is 85% lower. I get a Graham Price for 2011 of $35.03 and her stock price is 15% high. However, the median difference between Graham Price and stock price is 14%. These all show that she got the stock at a relatively better than median price or close to a median price.
The only place where the current stock price might seem to be a bit high is her Price/Earnings ratio, which would have been 17.74. The 5 year median high is 18.07. The 5 year median is 16.29 and the 5 year low is 13.99. These P/E ranges are pretty tight.
The other thing is that when you go to buy a stock, you can only deal with it as it is currently. Yes, it was lower 3 days previous, but this doesn’t help. And, it may or may not go back there again.
I like your blog, Sunny, because you talk about what you are experiencing as an investor in a variety of products. This is real life, not hypothetically how one should invest. I am sure that you have learned a lot since you started to invest. This is what is important.
Thanks Susan!
I would just like to add that for how it went so far, I invested whenever I can, whenever I had money available. I had reached my limit when it comes to margin investing. I wanted to invest in TRP for quite sometime now, but I needed to wait until the cash come from my pockets. Timing the market is something I am not good like but I am not exactly willing to time the market anyway.
I am the impatient type, I won't wait to see if the stock price will go lower to invest. When I have money available to invest, I want to invest in the real time. No way I am going to wait because I simply cannot wait.
TRP was a good pick because it's a blue chip, stable return, and it bring value to my margin. That I purchased the stock at 40$ and something instead of 37$ is not that a big deal for me. Buying at 37$ would have been great, but I could not at that time. That was the problem.
Next month when I invest in CNR, the stock will be probably higher than it is now. Will it stop me to invest in CNR when I will be ready for a few stocks? No, it would not.
At this time, I need to add blue chips in my portfolio, cross my fingers and hope for a big return in value. That's the plan.
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