Wednesday, 13 January 2016

New Purchase - GM

This market is just plain nuts. It feels like late 2008 when I first started investing. Truth be told, the total value of my portfolio is not down all that much. Maybe 10% at most. That’s because over the years, I converted $162,458 CAD to $153,212 USD (average rate of 0.9431). The current rate is 0.6965, so the $153,212 USD is now worth $220,974 CAD.

To sum it up, my total capital invested since 2008 is $229,500 CAD and my portfolio is currently worth 373,000 CAD. This includes dividends received.

My consumer staples are holding up quite well but everything else is taking a serious beating. I was looking at buying more CSX as it has come down 40% from its 52 week high and now has a reasonable dividend yield of and a trailing PE of only 11. In contrast, CNR (CNI in the US) has a trailing PE of 17.

Anyway, today I initiated a position in GM.

Number of shares purchased
100
Price per share
$31.00
Commission
$9.95
Total cost per share
$31.10
Total cost
$3,109.95
Annual dividend per share
$1.52
Initial dividend yield
4.89%
Increase in forward 12-month dividends
$152

I never thought I would buy into GM. Growing up, I was bombarded by family, friends and the media about how North American cars were junk.

However, I turn 37 tomorrow and have owned three cars to date, all of which were purchased brand new. A 2001 Mazda Protege which had a major rust problem (sold it after 2 years), a 2004 Subaru Impreza which cost me a small fortune in maintenance and repairs (sold it after 11 years), and a 2008 GMC Acadia which has cost me a minor fortune in maintenance and repairs (still own it). In my personal experience, Subaru and Mazda were no better than GM.


My 12-month forward dividend income stands at $10,329 per year.

2 comments:

  1. This market certainly is NUTS... My portfolio is also down ~10%. Hopefully we are about done. From the all-time high, even more down.

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  2. If things keep up, I think we'll soon be down more than 10%. But it's a good buying opportunity - several blue chips are down 30 and 40% from their 52 weeks highs.

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