2 Recent Buys – JNJ, GOOGL

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A quick update on two purchases in my portfolio. As with the last iteration, this one also includes a new position in the portfolio.

  • First purchase: I added 20 shares of Johnson & Johnson @ $127.50. During the mayhem of Aug 23, thanks to Trump’s tweets and escalation of trade war, I was able to pick up a few shares of JNJ. JNJ has been undergoing a bit of a weak performance due to ongoing litigation (which later turned into a $572M fine), and some expected revenue drop this fiscal year. However, top line growth should return back to normal starting next year, so I have been adding to my shares in this position over the past few months. The stock yields 2.96% and adds $76.00 in annual dividends.
  • Second purchase: I initiated a new position in one of the largest companies in the world; with 3 shares of Alphabet Inc (GOOGL) @ $1,184.00. There are a lot of reasons to own GOOGL – one of the most forward looking companies, founder-operated, arguably best tech talent in the world, largest online ad platform, wide moat (can you imagine life without Google…not just as consumers, but also as a business?), good capital allocation and reinvestment in business, optionality play on unmonetized segments that will sooner or later get commercialized (Alphabet’s subsidiaries include Calico, CapitalIG, DeepMind, Google, Google Fiber, GV, Jigsaw, Loon, Makani, Sidewalk Labs, Verily, Waymo, Wing, and X). This is a starter position in what I expect to be a core holding for years to come, and will continue adding shares in coming months.

What are your thoughts on these purchases. Share a comment below.

Full Disclosure: Long JNJ, GOOGL. Our full list of holdings is available here.

Passive Income Update – Aug 2019

Welcome to our monthly passive income update for August 2019. This is part of the scorecard series where we track our dividends and other sources of passive income. We also include changes and updates related to our investments during the month – showing the overall progress.

Passive Income  Update

Passive income for the month of August 2019 was CAD$762.48, which comprised of US$190.64 and CAD$507.02 (exchange rate is US$1 = CAD$1.34).

The change for the month is 32.8% QoQ and 36.59% YoY. This brings our passive income to $6,002.02 YTD and achieves 75% of our annual goal of $8K in passive income.

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Outlook for September 2019

August turned into a disaster for a lot of investors as the markets are roiling in trade war updates, resurgence in negative yielding debt, and other political issues. The flight to safety seems to be name of the game, as bond interest rates fall further and investors load up on gold.

The rate cuts are abound from central bankers around the world. The one central bank that is outlier, Bank of Canada, is also expected to turn dovish in coming days.

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3 High Quality Dividend Stocks With 5%+ Yields

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When it comes to dividend stocks, there is often a trade-off between yield and safety. In many cases, the higher the yield, the less secure that payment tends to be, and vice-versa. Intuitively, this makes sense. If a company is only paying out 10% of its earnings in the form a dividend, a whole lot has to go wrong in order for that payment to be in jeopardy.

On the other end of the spectrum, if a high-yield stock is paying out 100% of its earnings as dividends, even a small hiccup in the business can put the dividend in danger of being reduced.

Occasionally, investors can find high dividend stocks that offer both high income today, and a strong underlying business model. The three stocks highlighted here have 5%+ yields along with sustainable payouts.

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