Recent Trades - June 2014

by: Dividend Earner

[Originally published on 6/21/2014]

As I mentioned a couple of months back, I was transferring $50K from my indexed RRSP account to my dividend portfolio. I started my research by looking into REITs and offered the Best Canadian REITs. One of the important factors in making my purchase was to take into consideration my sector allocations.

I was not going to simply buy $50K in the financial sector as that would make my account very overweight and susceptible to any corrections in that sector. Not that I mind a correction, but what you want to do in a correction is add more money to your solid investments. The more you are exposed, the more money you would want to add and that becomes a challenge.

Recent Trades

With my sector restrictions outlined, let me share my transactions.

RRSP Account

My first purchase was to buy Brookfield Property Partners (NYSE:BPY) in the amount of $10K. BPY is part of the Brookfield Asset Management (NYSE:BAM) group and also absorbed Brookfield Office Properties (NYSE:BPO). I don’t usually invest in new companies without a history but it’s BAM’s history that comes into account here for me.

I also added to my Enbridge (NYSE:ENB) holding to bring it up to $10K. ENB is a solid dividend grower with a 10% average and fits my goal of investing in companies that fit the 10/10 rule. My energy exposure is ENB, ConocoPhillips (NYSE:COP), TransCanada Corporation (NYSE:TRP) and HSE so far.

My next course of action was to increase my position to both General Mills (NYSE:GIS) and Johnson & Johnson (NYSE:JNJ). Again, both of those holdings were increased to my $10K target.

Although I had a small holding in Sun Life Financial (NYSE:SLF) and Manulife Financial (NYSE:MFC), I had somewhat been on the sidelines since 2009. I decided it was time to get back in and after looking into my options, I decided to go with Manulife. Aflac (NYSE:AFL) was a contender being that it’s a dividend aristocrat but I could not justify buying a company whose earnings are 70% exposed to the Japanese market with that cash mostly staying in Japan.

My most recent addition was Procter & Gamble (NYSE:PG). It’s a no brainer company just like Kimberly-Clark (NYSE:KMB) and Johnson & Johnson. Their products are used daily and needed around the world.

TFSA Account

Due to my purchase of MFC, I needed to adjust my allocation to the financial sector. As such, I liquidated Power Financial and added Telus (NYSE:TU) to my TFSA.

Overall, those are pretty boring investments but I find them very effective for my portfolio. Most of my purchases are large cap stocks with a long history of dividends and for the most part, it also includes dividend growth.

I still have a little bit of cash in the account but no plans for it at the moment. I am not a big fan of staying on the sidelines with a lot of cash. I don’t see it as beneficial as you never know where the markets will go and new highs are always expected. Just look at the historical trend of the stock markets in general.

Disclosure: The author is long BPY, ENB, COP, TRP, GIS, JNJ, MFC, PG, TU.