Friday, 10 June 2016

Bolt-on Purchases - GM and Telus

Today, I took the opportunity to increase my holdings in two companies.

GM (I averaged down):


Number of shares purchased
60
Price per share
$29.19
Commission
$9.95
Total cost per share
$29.36
Total cost
$1,761.35
Annual dividend per share
$1.52
Initial dividend yield
5.18%
Increase in forward 12-month dividends
$91.20

Telus (I averaged up):


Number of shares purchased
125
Price per share
$40.42
Commission
$9.95
Total cost per share
$40.50
Total cost
$5,062.45
Annual dividend per share
$1.84
Initial dividend yield
4.54%
Increase in forward 12-month dividends
$230

My 353 shares of Telus are throwing off $650/year and the company has stated that it will increase its dividend by 7 to 10% per year up till the end of 2019. So $650*1.07^3 = $796. That's a little closer to the $980/year Telus is charging me for my cell phone service.

With these purchases, my 12-month forward dividend income is $11,090.

2 comments:

  1. Thanks for the info on Telus - haven't heard of the company until I read about it here. Will have to do some DD on it in the near term.

    I've also thought about GM or F as their valuation is attractive but both companies haven't been shown much love from the market lately.

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  2. I've been a customer of Telus for about 13 years and they have always offered excellent service. The stock price is not cheap but i like their written commitment on dividend raises. As for GM, I don't view them as a forever stock but just couldn't resist the low valuation.

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