Recent Buys – ABBV, XTC.TO, SRU.UN

Having not purchased any dividend stocks since September, I have been feeling a bit itchy. It has been tough not to pull the buy trigger. With our cash reserve piling up due to monthly dividend income and the 2017 TFSA contributions, over the last few weeks I purchased several stocks to add to our dividend portfolio.

We recently purchased the following stocks

  • 22 shares of AbbVie (ABBV)
  • 110 shares of Smart REIT (SRU.UN)
  • 200 shares of Exco Technologies (XT.CO)

In total a bit shy of $7,500 was deployed.

Reasons for Purchasing

Below are my reasons for purchasing these dividend paying stocks.

AbbVie

AbbVie is a research-based biopharmaceutical company. The company develops and markets therapies that address a range of diseases.  The company was created at the beginning of 2013 when Abbott Labs (ABT) spun-off its biopharmaceutical business. Recently AbbVie hiked its dividend by 12.3% and managed to grow dividend payout every year since the spin-off in 2013. At a PE ratio of 17.2, an estimated 5 year PEG ratio of 0.87, and a return on equity of 107.29%, I think the stock is reasonably priced. The dividend matrix looks pretty good too as the stock currently has a dividend yield of 4% and a payout ratio of 68.8%.

The main reason for purchasing AbbVie is to increase our exposure to the health care sector. While Johnson & Johnson is a strong player in the health care sector, adding AbbVie will strengthen our health care positions.

Smart REIT

I wanted to increase our exposure to REIT slightly this year. Given that we already own RioCan (REI.UN), Smart REIT gives us even more exposure to the retail REIT space. I like Smart REIT because it has managed to increase its dividend payout the past 3 years with a healthy payout ratio and increasing AFFO.

Exco Technologies

The more I look into Exco’s fundamentals, the more I like this stock. Exco Technologies has managed to grow its dividend for 10 straight years at a 10 year growth rate of 17% and a 5 year growth rate of 23.1. At a low payout ratio of 25%, Exco Technologies should be able to continue its impressive dividend growth for many years to come.

Conclusion

These purchases added $305.96 to our annual dividend income.

Dear readers, what do you think about our purchases?

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27 Comments

  • Reply
    Dividends 4 Future
    January 26, 2017 at 7:51 am

    I just picked up ABBV recently on the big drop and have 28 shares, will keep adding as new capital is available. Excellent Company. The other ones I’m not familiar with.

    • Reply
      Tawcan
      January 26, 2017 at 12:22 pm

      Nice pick up. I plan to add more ABBV once we have more US cash available.

  • Reply
    Team CF
    January 26, 2017 at 8:16 am

    Nice buy on the XTC, we bought too soon at too high of a price (albeit that is easily said after the fact). Still considering adding some shares to the position, seems to be a solid dividend growth stock.

    • Reply
      Tawcan
      January 26, 2017 at 12:23 pm

      Didn’t think that someone outside of Canada would have haerd of XTC before. 🙂

  • Reply
    Jay @ the expat investor
    January 26, 2017 at 2:03 pm

    Nice buy, ABBV is on my radar also, but right now I’m trying to max out my ROTH IRA. Then I will look into buying ABBV. Never heard of the other two.

    • Reply
      Tawcan
      January 26, 2017 at 6:19 pm

      Hi Jay,

      Thanks. I suppose the other two stocks are not as well-known with US dividend investors.

  • Reply
    DivHut
    January 26, 2017 at 3:17 pm

    Nice to see you hit the ‘buy’ button. I’m most familiar with ABBV and picked some up a while back. This month my focus has been on consumer stocks. I added to my GIS and KMB earlier this year and most recently to my VFC. Congrats on adding some pretty serious passive income with these recent buys.

    • Reply
      Tawcan
      January 26, 2017 at 6:19 pm

      I wish we have more US cash to deploy, would love to add more GIS and add the likes of KMB and VFC to our portfolio. 🙂

  • Reply
    Mr. Tako @ Mr. Tako Escapes
    January 26, 2017 at 8:05 pm

    Looks like some great buys. Congrats!

    • Reply
      Tawcan
      January 27, 2017 at 11:37 am

      Thanks Mr. Tako.

  • Reply
    jd
    January 26, 2017 at 10:51 pm

    I bought some XTC in late 2016. A bit early, but I also expect it to do well in the long-term. I bought some SJ, MRU, and BPY more recently. Already got a nice 16% dividend increase from MRU. 🙂

    • Reply
      Tawcan
      January 27, 2017 at 11:39 am

      Good to know a fellow XTC share owner. I have been looking at MRU for a while now but never pulled the trigger b/c I am not quite sure about the grocery space in Canada. It’s such a competitive space.

  • Reply
    Team CF
    January 27, 2017 at 4:41 am

    We got Canadian RRSP accounts because we lived in Canada for many years. We know a lot more about Canada and Canadian stocks that most 😉

    • Reply
      Tawcan
      January 27, 2017 at 11:41 am

      Ahhh that makes sense. 🙂

  • Reply
    SamtheMan
    January 27, 2017 at 8:25 am

    Thanks for the Exco Technologies (XTC) recommendation. Never noticed them till you mentioned them last week. Started a small position in my tfsa.

    • Reply
      Tawcan
      January 27, 2017 at 11:41 am

      Hopefully they’ll do well in the future. 🙂

  • Reply
    tendim
    January 27, 2017 at 2:09 pm

    Great call on the XTC.TO! I did my own analysis recently (http://wp.me/p7MHEL-cD), and doubled down in December on a dip. Capital appreciation may be lower than others, but its year-over-year dividend growth is spectacular!

    • Reply
      Tawcan
      January 30, 2017 at 11:38 am

      Good to see I’m not the only one aware of XTC.TO. 🙂

  • Reply
    MicroDividends
    January 28, 2017 at 9:32 am

    Love your choice on AbbVie. I added a few shares myself, although in smaller chunks than you did. It definitely is one of those stocks that’s really not well known, and pays a pretty health dividends yield. Although it’s my strategy this year to increase my position in the healthcare sector.

    Love your blog posts btw. One of the few great ones out there after Dividend Mantra and Dividend Hustler retired from the community. It’s nice to see large monthly returns to show what a great strategy this is.

    • Reply
      Tawcan
      January 30, 2017 at 11:41 am

      Hi MicroDividends,

      I’m hoping to buy more AbbView in the future. 🙂

  • Reply
    Mrs. Picky Pincher
    January 28, 2017 at 6:09 pm

    Good choices! I like that you did your research on the companies. I think an extra $300 or so will be fantastic; every bit counts right?

    • Reply
      Tawcan
      January 30, 2017 at 11:43 am

      Every bit definitely counts. A few dollars here and there and the snowball effect gets bigger and bigger.

  • Reply
    Dividend Income Stocks
    February 7, 2017 at 6:21 am

    Great buy list, Bob. I also picked up Smart Reit two times in a row. A recent price drop is a great entry point. I also like their exposure to Wal-Mart. Great tenant.

    Take care!

    • Reply
      Tawcan
      February 7, 2017 at 10:04 am

      Thanks Dividend Income Stocks.

  • Reply
    DivGuy
    February 9, 2017 at 7:24 am

    ABBV is aong my best dividend stocks picks for the year! Don’t think you will regret it!

    Nice buys!

    Cheers,

    Mike

  • Reply
    Matthew
    February 15, 2017 at 6:46 pm

    Nice purchases I have been thinking about adding XTC myself. Thanks for sharing.

    • Reply
      Tawcan
      February 15, 2017 at 7:17 pm

      XTC is certainly a stock that’s not too well-known. 🙂

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