Monday, 15 April 2013

New Purchase - Caterpillar and Deere


Today I nibbled at Caterpillar and Deere. 

CAT: 25 shares @ $82.68 + $9.95 commission

DE: 25 shares @ $83.75 + $9.95 commission

Deere is held in my RSP and will add $51.00 to my forward 12-month dividends.

Because I have very little cash left in my RSP, Caterpillar is held in my TFSA which means I’ll be paying a 15% withholding tax on the dividend. This purchase will add $44.20 to my forward 12-month dividends: ($52 – 15% = $44.20)

My forward 12-month dividends now stand at $4,213.18.

I’ll be away for two weeks starting Sunday and hope to have posted my analysis of these two stocks by then.

Lately, my time has been devoted to Tapout XT instead of my blog. I just completed my 4th week and if you’re wondering, it really does work!


6 comments:

  1. Both of these companies look attractive at current prices. I've been adding to CAT a little at a time.

    I look forward to your analysis.

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    1. I've been following your blog closely and noticed you are adding CAT and APD, two companies I like. Seems like now is a good time to grow my exposure to industrials. I went in lightly due to recent volatility in the market and look forward to adding to my positions at the right price.

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  2. I like CAT as well in the mid 80's and below. Nice pickup and I am also adding.

    I am starting to think about selling some of my consumer staples and buying these cyclicals that are selling at half the valuation.

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    1. Thanks AA. I could not decide between CAT and DE so I went both ways.

      I've been tempted to sell my EMP.A (grocery store) because of the low yield and low dividend growth, but I chicken out every time; I want a good chunk of my portfolio in consumer staples. So far, I've been able to add new capital instead of selling - case in point, I added $2,500 in fresh cash to fund these purchases.

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  3. I picked up some more shares of CAT as well this week. I made a smaller purchase than I normally would, but I wanted to add to my position and got it at pretty much the same price as you.

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    1. Hey PIP. Just read your post on your CAT purchase. I haven't had time to do research, but was wondering if CAT's price drop had anything to do with gold & silver prices getting hammered - demand for mining equipment could be affected. Anyway, like you said, think long term.

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