Today I went a little crazy. All transactions below were done in my Tax Free Savings Account (TFSA).
1. I decided to sell my 400 shares of Leon’s Furniture because Canadian consumers are maxed out on debt and I cannot see LNF growing substantially over the next decade. When bloated real-estate values come down, I think furniture sales will follow suit. Plus, it did not increase it’s dividend in January 2013.
Capital Loss = $314.03 over 1.5 years
Dividends Received = $254.85
Decrease in Annual Dividends = $160
2. I decided to sell my 25 shares of Caterpillar because I was paying a 15% dividend withholding tax. If CAT dips below $83 again, I will buy shares in my RSP, where I have added new funds (there is no withholding tax in an RSP).
Capital Gain = $79.35 over 3 months
Dividends Received = $11.05
Decrease in Annual Dividends = $51
3. I decided to sell 90 shares of TEVA because they just lost a very large patent case which might cost them a lot of money. The stock just ain’t going anywhere and there is a 15-20% dividend withholding tax.
Capital Gain = $21.55 over 2 years!
Dividends Received » $160
Decrease in Annual Dividends = $90
4. I bought 100 shares of BP. There is no dividend withholding tax on UK stocks held in a TFSA.
Total Cost = $4274.95 ($42.75 per share)
Increase in Annual Dividends = $216
5. I bought 200 shares of Reckitt Benckiser (RBGLY). Again, there is no withholding tax on UK stocks held in a TFSA. I don’t think shares are necessarily cheap, but I do like the potential growth of the company.
Total Cost = $2841.95 ($14.21 per share)
Increase in Annual Dividends = $81.40 (assuming USD to GPB = 1.52)
Before these transactions, my forward 12-month dividends were $5,081.83. They now stand at $5,078.23.