After appearing on my October, November, and December stock watch lists, I was finally able to add shares of Royal Bank in my unregistered account for under $70. Buying the second largest bank in Canada at a trailing P/E of about 10X and with a 4.5% dividend yield was a no-brainer for me. The purchase also allowed me to complete my position in Royal Bank in my unregistered account, so that I can now sell the offsetting position in my RRSP (after waiting a month to avoid tax implications).
I used some of my monthly cash contribution to my portfolio to add to my position in National Bank in my TFSA. With a trailing P/E of less than 9X, a dividend yield of 5.5%, and an 8% dividend growth rate in 2015, I was happy to close out my position in this Quebec-based bank. There are still likely to be two additions to my TFSA holdings in 2016, hopefully in February if this lovely bear market continues.
After publicly acknowledging how much I regretted not owning Suncor for the long-term, I initiated a small position in the company in my RRSP. Despite the continued decline of oil prices, I see Suncor as the best in class integrated oil company in Canada. My assertion is based on the company's ability to generate free cash flow, their aggressive management (i.e. trying to pick-up Canadian Oil Sands at a cheap price), and the ever high price of gasoline ($0.969 per litre today at the station near my house) that helps protect the company's profit margins.
My Investment Holdings page has been updated to reflect these three recent purchases. As a long-term investor, I sincerely hope that this bear market continues for years, as it allows me to purchase shares in strong companies at lower valuations than I had imagined possible.
Have you made any recent stock purchases or are you waiting for further market declines?