Dividend Growth Investment for January 2nd, 2025

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.