Finally!! I was waiting for an 8000$ CAN transfer to buy stocks. It took forever but it’s finally been credited today in my brokerage account.
There’s a lot of volatility in the market right now and hence a lot of opportunities too. I’ve got many stocks on my mind but they did not react equally to the recent volatility.
Anyway I was craving to make a purchase and I couldn’t resist adding to my recent EMR purchase. They recently announced the spinoff of a lagging business they own to turn themselves to better growth opportunities. Uncertainty always brings opportunities to the believers.
I’m one of them. I believe Emerson is a strong company and I’ve decided to add 16 shares to my actual position, adding 30$ US to my dividend income along the way.
This brings my forward dividend income to 1503,73$ CAN per year (it fluctuates due to US/CAN exchange rate that I have decided to take into account recently). I’ve reached 10% of my goal in less than 2 years, not bad!
I still have 7000$ CAN to invest in US dividend stocks and I’ll probably save another 2-5k from now till the end of 2015 but I’ll probably invest most of my future savings in the Canadian economy for a while as I see a lot more value there with current market conditions and with the prohibitive exchange rate, plus I also want to take advantage of my TFSA account who can compound tax free forever. Unfortunately I can’t hold any US equity in that account as IRS doesn’t recognize it in the tax treaty we have with them and it would be stupid to hold US dividend growth stocks in it because or that.
What do you think about the Network Power spinoff? Do you see value in Emerson at such a price?