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?
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.
Nice pick up. I plan to add more ABBV once we have more US cash available.
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.
Didn’t think that someone outside of Canada would have haerd of XTC before. 🙂
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.
Hi Jay,
Thanks. I suppose the other two stocks are not as well-known with US dividend investors.
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.
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. 🙂
Looks like some great buys. Congrats!
Thanks Mr. Tako.
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. 🙂
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.
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 😉
Ahhh that makes sense. 🙂
Thanks for the Exco Technologies (XTC) recommendation. Never noticed them till you mentioned them last week. Started a small position in my tfsa.
Hopefully they’ll do well in the future. 🙂
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!
Good to see I’m not the only one aware of XTC.TO. 🙂
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.
Hi MicroDividends,
I’m hoping to buy more AbbView in the future. 🙂
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?
Every bit definitely counts. A few dollars here and there and the snowball effect gets bigger and bigger.
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!
Thanks Dividend Income Stocks.
ABBV is aong my best dividend stocks picks for the year! Don’t think you will regret it!
Nice buys!
Cheers,
Mike
Nice purchases I have been thinking about adding XTC myself. Thanks for sharing.
XTC is certainly a stock that’s not too well-known. 🙂