Finally, I sold that crappy stock… 100 shares at 9,10$ less the 10$ commission. I should have sold it a while ago when the mess started. I lost a lot of capital over that stock and I won’t be able to offset it against any gains because I held it in my RRSP account but now I won’t have to care about it anymore.
With the proceeds and some extra cash I had in my brokerage account, I bought 25 shares of an excellent stock, Emerson Electric (EMR) at 60,50$ per share. I should have done that yesterday as I bought it after the ex-dividend date but… whatever. I’m happy to have been able to grab that stock as such an interesting price. It is not necessarily on sale but I thought that the price was fair and it’s far better to buy a great business at a fair price than a fair business at an excellent price!
This adds (1,88$ x 25) 47$ US per year to my passive source of income. I’m now at 1416,73$ in forward dividend income and I’ve set a goal to reach 2000$ by december 31st 2015. That will be tough but… I’ll do my best. I should soon have another 6,000$ CAN to invest mostly in Canadian dividend growth stocks. I guess I should be able to add at least another 200-250$ bucks to my dividend income stream.
I love it guys! This thing, dividend growth investing, is so addictive. It’s like playing Monopoly with real money!
At such price, my initial yield is at 3,11%. Not bad. Morningstar currently rates it 3 stars and its current p/e is well bellow its 5 years average while its current dividend is a lot higher than its 2,7% 5 years average dividend.
Based on David Fish’s list, Emerson electric has paid and raised its dividend every single year for 58 consecutive years. It’s amazing! What a track record! Its dividend growth record as been as impressive too. The dividend has been raised by 6% over the last year, 7% on average over the last 3 years, 5,8% on average over the last 5 years and 8,1% on average over the last 10 years.
It’s a dull company but a great addition to my portfolio for the long run and I’m pretty happy with that one.
keep investing my friends. We’ll soon get to the point where retirement will be reality!