Good Morning and Happy New Year,
My New Year's Resolution is to buy more income producing assets.
That has been my new year's resolution for the past couple of decades.
I wanted to let you know that I am in the process of contributing to my Roth IRA for 2025, after which I would make a lump-sum investment. For some reason I forgot that Robinhood does not immediately make funds available for investment, which is pretty dissapointing. They claim it could take up to 4 - 5 days. On the other hand, I would receive a 3% match, so a $7,000 contribution is $7,210 contribution. I have a list of 41 companies that I would be investing, and would be sharing it when I make the investments based off my review on Dec 31, 2024.
That being said, I made my first investment for 2025. It's a position I have been slowly adding to for a third month in a row now.
I try to build positions slowly and over time, while checking if my original thesis is true. That way, I get to limit how much I invest in the accumulation phase, if it turns out I am buying a lemon.
The downside is that if the company turns out to be exceptional, and widely sought after, I may not build a full position because the valuation becomes excessive.
Life is all about trade-off's - yield versus growth, current versus present, etc. Isn't it fun?
The company I invested in is a dividend achiever with a 28 year track record of annual dividend increases under its belt. It has a 5 year annualized dividend growth rate of 9.80%. The stock sells for 20 times forward earnings and yields 2.30%. It operates under a duopoly/oligopoly (based on how you look at it).
This is a Canadian based company, which has operations in Canada and US. I am buying it in my retirement account, which means that I will not be assessed the witholding tax on Canadian dividends at source.
I view this stock as a long-term bet on the economic growth of North America.
Dividend Growth Investment for January 2nd, 2025
