Purchase National bank of Canada stock

Recent Purchase: National Bank of Canada (NA)

Purchases

On February 24th, I added 30 shares of National Bank of Canada (TSE: NA) to The Dividend Beginner’s portfolio. I purchased the shares at $35.18, with a trading cost of $6.95 for a total cost basis of $1, 062.35.

NA pays an annual dividend of $2.16, so I scored the shares at a starting yield of 6.14%. Since I purchased 30 shares of the bank, NA adds $64.80 to my annual dividend income, or $5.40 per month on average. NA has increased their dividends consecutively for 6 years. My 12-month forward dividend income has increased from $1, 376.70 to $1, 441.50, an increase of 4.71%. This averages out to a monthly passive income of $120.13.

National Bank of Canada Logo

Before NA Net Increase After NA
Annual Dividend Income $1,376.70 $64.80 $1,441.50
Monthly Dividend Income $114.73 $5.40 $120.13
Percentage Increase 4.71%

To find out why I purchased shares in NA, you can read my Dividend Stock Analysis of National Bank of Canada, which goes into great detail about NA’s

  • Valuation
  • EPS & Revenue Growth
  • Recent Maple Financial Group write-down
  • Share dilution
  • Analyst recommendation
  • Risks
  • Dividend
  • Dividend Growth
  • Expected Yield on Cost
  • Stock Picking Strategy Check List

Dividend Beginner

A 22 year old Canadian dividend growth investor striving for early financial independence; building as many passive income streams as early as possible.
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    • Hey Tyler,

      Thanks man, I appreciate your support. It definitely feels good to be adding quality companies (especially with incredibly high yields) to my dividend fleet. Always feel rotten when investing in risky companies, but that’s not the case here and it’s good stuff. Take care yourself too dude.

      DB

  • Good buy DB. I think you cannot go wrong with any of the major Canadian banks right now. My only concern is oil exposure. This could hurt some banks if they are too heavy in this sector and the oil low continues. Long-term, though, its not a concern.

    • Hello IH,

      I agree with you that over the long-term, initiating or adding to Canadian bank positions right now is a good decision. The downfall of oil seems to have hit RY’s credit provisions area but I haven’t seen too much of a mention in many other banks – but I also haven’t looked extensively. I think we’re OK for now.

      DB

  • Nice buy Dividend Beginner. You’e been really busy on the buying front for sure. We’ve been looking at NA lately as well. Canadian banks are great bargains right now IMO.

    • Hi Tawcan,

      Definitely been doing my best to allocate the cash I have and turn it into passive income, that’s for sure. NA has flown up quite a bit from my purchase price. Best of luck in your decisions.

      DB

  • Good buy at that price. NA is one of the ones I have been looking at lately. The yield is great and longterm the SP should have solid growth upwards. The oil issues have made for great entry points lately.
    Speaking of that, I might be delaying picking up some NA since I have also been looking at PKI and was impressed with thier NR this afternoon/evening.

    • Hey Aj,

      I got in at a beautiful price. It’s now my highest return stock with an 11% gain in about a week. The 6%+ dividend would add up to a return of 17% after one year if it stays the same as today, but I still see good upside potential! Been a fantastic week.

      DB

  • Looks like another solid Canadian bank. For now my focus is on TD, BNS and RY but I have considered BMO, CM and NA as well. Perhaps when my portfolio will grow even larger I’ll look to diversify even more. Congrats on this addition and extra forward income.

    • Hey DivHut,

      I believe it is another solid Canadian bank. The smaller ones have pretty great prospects as do the large ones. BNS is probably my favourite. TD is the last one I’d like to pick up. Looking in other sectors now though. Thanks for commenting.

      DB

  • This is so cool DB. My husband and I are also going to use dividend investing as part of our long term retirement portfolio. You are doing amazing. Very inspirational!

  • Hey DB,

    Nice buy – a great time to be loading up on all of the banks. Short term there might be some problems, but I imagine a lot of that’s already been priced in. Long term, should be a sold performer for you 🙂

    One step closer to FI..

    Tristan

    • Hey there Tristan,

      I’d say last month was a really good time to pick up all kinds of bank stocks. They’ve really been rallying since then – I’m actually up 9% on NA – really wishing I didn’t play it so safe and had invested more. Walking up the steps to FI, for sure.

      DB

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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.