Month: July 2016

Magna International

Brexit Wrecked Magna International Stock, so I Bought Some

Purchases

On June 24th,  I added 30 shares of Magna International (NYSE: MGA) to The Dividend Beginner’s portfolio. Brexit managed to completely cave the stock as the corporation had just recently announced plans to build a 225,000-square-foot aluminum casting facility in Telford, U.K., that it said would create up to 295 jobs.

I purchased the shares at a $48.63, with a trading cost of $6.95 for a total cost basis of $1,465.85. The stock has pushed lower since then but I believe it’s a fantastic opening for a long-term position in this high-quality company which has been one of the top stocks in our monthly stock lists for a few months in a row.

Portfolio Diversification

My position in MG accounts for 3.08% of my portfolio value, and increases my exposure to the Industrials sector to 11.4%, which is about where I’m satisfied with it being as opposed to a few months ago where it was a pittance. If I were to increase my Industrial exposure at this point, I’d probably add to EIF.TO for the high yield in monthly payments and incredible metrics.

I still have no positions in Basic Materials, Consumer Staples, Healthcare, or Technology. This needs to be remedied soon as I’ve missed a humongous run up in precious metals (basic materials) for the year, after dropping Goldcorp Inc. after their latest dividend cut – I was fed up with their lack of shareholder appreciation.

My exposure to the Financial sector has finally fallen below 30%, as I continue to try my best to find stocks outside of this sector (it is one of the largest proponents of the TSX).

Investment Diversification

Keep reading

Archives




Finance Blogs

Disclaimer

My publishings on dividendbeginner.com references an opinion and is for information or entertainment purposes only. It is not intended to be investment advice. Seek a duly licensed professional for investment advice. I am not responsible for any decisions you make concerning finances, taxes, or investments. You must perform your own research and always take caution when extending capital.