2 stocks I'm buying every week
Hola Profit Zone Gang!
Welcome to the +78 subscribers who joined this past week.
My name is Alex and I love dividend stocks. More importantly, I love making money in my sleep. And in today’s issue of The Profit Zone, I’m going to be sharing with you 2 stocks I’m buying every single week no matter what.
This one’s going to be short and sweet.
But before we begin, if you have enjoyed this newsletter and have found value in it, please take the time to share it with your audience. It costs you nothing and helps me out a lot. I really appreciate it!
Stock #1 - RioCan (REI.UN)
Canada’s second-largest Real Estate Investment Trust. They boast a 96.4% occupancy rate, 85% of their revenue from stable tenants, 214 mixed-use/retail properties, and are located in Canada’s most in-demand and growing markets.
Unfortunately, this REIT cut its dividend from $0.12/share to $0.08/share in 2021. As seen by the distribution table below (note that 2021 doesn’t include december’s dividend of $0.08)
But as an investor, here’s what I see…
I see a REIT that has been able to pay $0.12/share in the past. I see a REIT that was hit hard during COVID (understandably) with tenants not being able to pay rent, less foot traffic, etc etc etc.
Because of this dividend cut, decreased revenues, and of course pandemic fears, RioCan saw a significant drop in its share price.
I think you can see for yourself when shit hit the fan.
But guess what? I’ve been buying it up ever since. All those shares that went from $27 to $15 have been accumulating in my account. As the share price continues to recover, I keep buying. Every single week I add more. Whether it’s 1 share, 5 shares or 50 shares, I’m adding to my position and as a result, I’m adding to my future passive income.
Because if (when) that dividend does get reinstated to $0.12/share, I will be getting a $0.04 raise on every share I own, and I own a lot of them.
Did I mention this REIT pays a monthly dividend? Ya, it’s pretty cool getting another paycheck every 4 weeks.
I’m also up 13.51% on my position so far.
Remember: passive income + capital gains = the best fucking combo ever
Stock #2 - Vanguard S&P 500 Index ETF (VFV/VOO)
Buying an S&P 500 index ETF lets you own 500 of the largest and most powerful companies in the U.S.
Here are some of the names you own when you buy into the S&P:
And about 493 other large brands that you use and interact with on a daily basis.
Here’s the thing, every portfolio needs a good foundation. And for me, that foundation has been the S&P 500. That’s why I buy at least 1 share every week. Right now, this fund makes up about 20% of my total portfolio and gives me a little cushion of safety and peace of mind knowing my money is relatively safe.
I truly believe that every beginner investor should start out buying shares in an S&P 500 ETF to get some skin in the game and then branch out from there. It’s just so simple. You’re 1 click away from owning all of these great companies all together in 1 fund.
And the cool part is that with a Vanguard fund like VFV (for Canadians) or VOO (for Americans) you can own the S&P for a crazy low fee of 0.03-0.08%.
Literally pennies. And if you’re wondering what this fee is, ETF's charge investors what’s called a management fee which covers fund valuation costs, audit and legal fees, and costs related to prospectuses and annual reports. It can also cover the rebalancing of the fund if need be. Since these are passively managed funds, the management fee is much lower than what you would pay on an actively managed fund.
Since its inception in 1926, the S&P has returned on average about 10-11%. Not too bad for “setting it and forgetting it”.
If you’re one of those people who think those returns are way too low, let me ask you this…
Would you rather build wealth slowly but surely or build wealth quickly but with uncertainty?
I’ll take the first option any day.
See you in the next one!
- Alex (The Dividend Dominator)