Recent Buy – Baby R2R’s New Portfolio

At the beginning of January, I set the following goal for the financial well being of our baby daughter. I am happy to report that I have started putting this plan into motion.

> New portfolio for our daughter – In 2016, my wife and I welcomed our daughter. Time to set things in motion for the financial well being of our baby daughter.

  • We have opened up a new RESP (Registered Education Savings Plan) account, which allows us to save and invest for her post-secondary education. The plan allows us to get education grant money from the government and is tax-deferred on the income generated. We intend to start investing this money soon and will post an update on which stocks/ETFs we chose.
  • In addition to the RESP plan, we intend to start a DRIP plan to put away a small amount of money each month (starting off with $100/month for now) that will be her nest egg when she is an adult. Time is one of the most powerful weapons in an investor’s arsenal and starting off a DRIP plan allows us to let the investment compound over the course of 20-ish years. I’ll post an update soon on which stock I am picking for this plan.

The Education Plan

A quick background on the Registered Education Savings Plan (RESP). RESP is an account type available to Canadians to save, invest and grow funds for post-secondary education. While not only limited to kids, it is generally targeted to help parents save for their kids’ education. The best part of this plan is that the government matches the contributions via the Canada Education Savings Grant (CESG). The grant amount is 20% of contributions to a max of $500 per year. So, to maximize the benefits, we would contribute $2,500 per year into this account.

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2 Recent Buys – CU, NGD

Some quick updates for the recent moves in my portfolio. I made a few purchases in January that I never got around to documenting, so here it is.

I made the following purchases in January 2017

  • 100 shares of Canadian Utilities Ltd (CU.TO) + 1 STO covered call
  • 1,000 shares of New Gold Inc (NGD.TO) *New position*
  • + New portfolio for my daughter – details coming soon in a separate post

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Recent Buy – Silver Wheaton Corp

This will be another quick update on my recent purchase. As most are aware, its been a bloodbath in the precious metals space after the interest rate raise. The raise was almost 100% guaranteed, and continued strength in the US$ was also guaranteed. So I was waiting for this event to unfold before I made the next purchase in the precious metals space.

Thanks to a more hawkish note from the Fed — that they will raise interest rates 3 times next year (we’ll see if there is any weight to that…since they also promised us 4 raises this year); there was increased volatility and we saw a mini-correction in bond substitutes such as REITs and precious metals as the US$ surged. The DXY reached a high of 103 post-announcement.

Watching the bloodbath all day, it was too hard to pass up on the opportunity and I decided to buy and add to my Silver Wheaton Corp (SLW) position after it fell 9% on the day.

I bought 100 shares of Silver Wheaton Corp (SLW) at US$17.00. This purchase adds US$24 to my forward dividend income.

However, I decided to use my US$ in the investment account instead of the CAD$, so I have both SLW and SLW.TO currently — but for the most post, I will treat them as the same on this blog going forward.

Silver continues to languish and is currently hovering at the $15-16 handle, which I believe is an extremely attractive price for this chameleon metal — which acts both as a precious metal and as an industrial metal. To read more about the company itself, I will simply link to my original post where I profiled Silver Wheaton.

Recent Buy – Silver Wheaton Corp

Have you made any moves post-rate raise? Share your thoughts below.

Recent Buy – Algonquin Power & Utilities Corp

AQN

A quick update on a recent purchase in my portfolio this week. I had a GTC order sitting on this company for a little while which got executed and I managed to pick up a nice chunk of shares at a decent valuation.

I bought 200 shares of Algonquin Power & Utilities Corp (AQN.TO) @ C$11.00. The company currently yields 5% adding US$84.70 (the company pays dividends in US$) to my forward dividend income.

Only new developed since last purchase earlier this year is that the company is now cross-listed on the NYSE (symbol: AQN). Other than that, its business as well. The company is well run, provides great exposure to US utilities in all three subsectors — electric, natural gas and water, has arguably the most impressive revenue growth and earnings growth story in the sector, and offers lucrative dividends, which are expected to rise by 8-10% over the next few years.

To read a more detailed description, check out my last post where I profiled this company.

Recent Buy – Algonquin Power & Utilities Corp

Full Disclosure: Long AQN.TO. My full list of holdings can be found here.

 

2 Recent Buys – SLW, VWOB

A quick update on a couple of recent purchases in my portfolio. Things have been busy, so this post is a couple of weeks late…but better late than never.

Silver Wheaton Corp (SLW.TO) – added 50 shares @ C$28.50…which it turns out I was too early to pull the trigger. I still see tremendous value and will continue nibbling although I am getting close to a full position on this stock. Not much has changed…the business is sound and the fundamentals are fantastic. In addition, the company announced a great quarter earlier this month followed by a dividend increase of 20% (forward yield is just a shade under 1%). You can read about my original SLW purchase here.

Vanguard Emerging Markets Govt Bond ETF (VWOB) – Ive been interested in emerging market bonds for a while (see this post from May 2015) and finally decided to initiate a position. The fund gives me an exposure to emerging market sovereign bond market and pays approx 4.4% in fixed income going forward. This is only a very tiny position of a few hundred dollars for now as I dip my toes and think more about this position before committing more capital.

Disclosure: Full list of holdings can be found here.