Recent Stock Purchase – November 2014

With the stock market on a tear, closing up five straight weeks in a row, many dividend bloggers have begun to echo the sentiment about finding relative bargains again. To be certain, despite these fantastic runs we have experienced in the Dow and S&P, there are still a lot of high quality names in the energy sector that remain good bargains for those willing to wait. Besides the energy sector many financial names are also continuing to present relative good buying opportunities when compared to many other sectors such as consumer staples and industrial names. Some of those names include, Wells Fargo & Company (WFC)U.S. Bancorp (USB)The Toronto-Dominion Bank (TD)Royal Bank of Canada (RY)The Travelers Companies, Inc. (TRV)The Chubb Corporation (CB)and AFLAC Inc. (AFL).

Of course, exceptions lay even within those categories but as a whole energy and financial stocks continue to offer seemingly better buys.

Looking at my November stock considerations, I mentioned how I was still partial to the Canadian banking sector and several other high quality dividend names such as V.F. Corporation (VFC)W.W. Grainger, Inc. (GWW)Bemis Company, Inc. (BMS)CR Bard Inc. (BCR) (I’d like the yield to be a bit higher on that one) and Becton, Dickinson and Company (BDX). Of course, many of those names have continued to run up in recent weeks and I’m not willing to add to those positions at current prices/valuations. With that being said, and owning a position that is slightly down from my original cost I decided to average down my position in The Bank of Nova Scotia (BNS).

I have added to my ROTH account 25.4919 shares at $62.61 for a total investment of $1,596.05 in The Bank of Nova Scotia (BNS).

Between the relatively high yield of 3.80% and relatively low PE of 11.99, which is slightly lower than its five year average, coupled with the fact that I wanted a stock to average down my current holding all factored in to my decision to buy BNS. With this recent purchase my holdings in BNS now totals 52.6699 shares for a value of $3,298.72.

What do you think about my most recent purchase? Is BNS or any other Canadian bank stock in your dividend income portfolio? Please let me know below.

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