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Saturday, September 13, 2014

Investments in ExxonMobile (XOM), WSP Global (WSP) and Bank Of Nova Scotia (BNS)

Man, I was pretty aggressive this week. Maybe more than I should have been.

Exxon Mobil (XOM) Bought 10 shares at $96.57 on Thursday, September 11. My total position is now 18 shares at an Average Cost of $92.53.

(Click on image to enlarge)

WSP Global (WSP.TO) Bought 43 shares at $34.56 on Thursday, September 11.

This is how a $10 000  investment in WSP, with dividends reinvested, since April 2000 (when it went public) would look today:

Bank of Nova Scotia (BNS.TO) Bought 20 shares at $73.15 on Friday, September 12. This is my second purchase on BNS. I already had 25 shares from October 3, 2013 bought at $58.99.
(Click on image to enlarge)

And this is how a $10 000 investment in Bank of Nova Scotia 20 years ago would look today assuming all dividends were reinvested.

I like to show these charts reflecting the power of reinvested dividends in Canadian companies because those are the ones less known by people, except for Canadians. Notice the progress of the investments for all the companies I have invested in. And this is assuming you make no more contributions to your position other than your initial purchase. Pure and simple, buy once - reinvest dividends approach. Even in the so called "lost decade" from 2000 to 2011. Even going through two major crashes: the 2000 dot com bubble burst and the 2008 market melt down. Optimism is always much more powerful than pessimism, even though over time the financial media has made most people pessimistic about everything.

With these purchases, I have now invested almost $27 000 Canadian dollars in 13 Canadian companies and more than $9900 US Dollars in 7 American Companies. The expected yearly dividend income is now $1164.46 CAD plus $409.28 USD. That's a 4.26% yield on Cost for the overall portfolio. In other words, I can go through a -4.26% return in the market on a given year, and my portfolio will  mitigate that loss via dividend income, resulting in a flat year for me. Obviously, in positive years, the dividends will  bump up my returns and you bet they will be reinvested without hesitation.

For more details on the entire portfolio: Transactions history, Dividends received etc, go to the Investing section on the Results page.

This is part of my retirement plan. Investing $25000 every year for a decade or 15 years in dividend paying and dividend growth oriented companies. A $700 000 dollar portfolio, spitting out $30 000 in tax-efficient passive dividend income could be the ultimate goal. I think I'll get there. I like my odds.

Related Articles:
Closed WSP position for +27% return in May 2015
Invest and Retire before you die
ETF Rotation Systems to beat the Market

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