January marked the beginning of the portfolio, with $2,000 invested, and an additional $250 added for the month.
New investments included a $1,500 investment in a non-redeemable GIC with RBC, yielding 5% for 5 years, yowza! Who knows how long we'll get GIC rates like that for? Lock. Them. In.
The other $750 was invested into Intact Financial's Series A 5.2% Non-Cumulative Preferred Shares (TSX:IFC.PR.E), which were purchased at an average cost of $21.47 per share. Each preferred share pays a quarterly dividend of $0.325 per share, for an annual dividend of $1.30. This means that, at the purchase price of $21.47, my dividend yield on the position is 6.05%, with a 16.44% discount to par value ($25 par value - $21.47 purchase price ÷ $21.47 purchase price x 100 = 16.44%)
The average yield on the portfolio as of January 3rd was 5.35%, which puts us a whole 1.35% of the fund's benchmark of 4%! Very excited to keep contributing and to grow this baby.
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