I want to retire early over my passive dividend income and (not so passive) online income. As such, I invest mostly in dividend growth stocks.
Today, I have added 95,04$ to my annual dividend income by purchasing 88 additional shares of Liquor Store (LIQ.to) at 13,50$ per share. Since my goal is to reach 65$ per day, 365 days per year in passive income, I also like to track how much money my purchase adds to my daily dividend income. Today, this purchase adds 0,26$ CAN to my daily income. Not bad! I am now at 2,11$ US per day and 0,94$ CAN per day and have crossed 3$ per day in dividend income. This mean that I have reached 4,69% of my goal in less than a year.
Liquor store stocks is currently trading at a price/book, price/sales, price/cash flow and even dividend yield pretty in line with its 5 years (or 3 years) averages. Only the price/earning is out of ordinary at 56,2 but with a forward p/e of 17, it sounds better. At 0,52, its current debt/equity ratio is solid. Over the last 5 years, the annual income has also increased by 6,48%.
I admit this is a risky buy and it is not a traditional dividend growth stock either but I can afford some risk given the fact that I also have a defined benefits pension plan and also public pension plans to which I contribute.
Today, I more than doubled my current position with this stock and hold it in my tax free saving account.
On a sidenote, my broker offers models portfolio and one of them is called “Canadian High income stocks”. It is currently composed of REITs, utilities, banks, ETF and trusts. Liquor store is one of their recommendations. They track their portfolio in real-time and advise me by email of any change in the portfolio (sales, buys etc…). I often look at this portfolio to find interesting picks like this one.
This should normally be my only risky buy this month. Next week, I’ll add new contributions to my RRSP account and I should buy a regular US dividend growth stock before the end of the month. The yield will be a lot lower, but the risk and dividend growth prospect will be better!
What are your thoughts about that buy?
Image courtesy of vectorolie/ FreeDigitalPhotos.net