Okay, so I’m on a mission to erase our debt and increase our net worth, in order to secure our family’s future (as much as I am able to anyway). I’ve been buying *very* small lots of dividend stocks when I save up a few hundred dollars to do so.
The markets have been the big news in the past week, with the TSX losing all the ground it gained in 2007. While everyone else was panicking, I thought it would be a good time to buy. I put in a purchase order over the weekend to buy 3 shares (yes, count ’em 3 whole shares!). Okay, if I’m buying for capital gains, three shares and a $29.00 commission would not be wise. But, since I am investing for dividend income, I’m more concerned about holding the stock for a long time. Buying low is a bonus.
Here’s how the numbers played out:
Close High Low
Yesterday $44.42 $45.50 $42.51
Today, the stock is currently trading at $45.08. $42.51 is the 52-week low for CNR. I paid $42.83 per share.
Yeah baby! Buy low is good! Now, I just wait for the dividends to arrive.
N.B. — Why buy Canadian National Railway? 1. It’s a dividend producer. Dividends are taxed at a much lower rate than any other kind of income. 2. With oil doing what it’s doing, non-trucking transport, that is railroads, will become more important in the economy. Therefor, it’s likely that the dividends will go up.