Looking back – RioCan purchase was a good move

Earlier this year I told you I made my RioCan purchase (REI.UN) close to $19/share. At the time, I was a little disappointed with my initial purchase price since immediately after I bought the stock, RioCan dipped to $18/share. Ouch – that stung a bit. Waiting and buying closer to $18/share would have saved me almost $200 or 5% of my overall purchase – but that means I would have known it was near bottom. I can’t time the market, can you?

Well, my RioCan purchase price is somewhat irrelevant now.Why do I say that?

1) Even if I saved that $200 back in February (and not used it to purchase RioCan), I can bet I would have spent that money on something else. That’s just being realistic.

2) In the big picture, it doesn’t matter. I am pleased with the fact that as of today RioCan is now trading at about $22.38 which represents about a 17% gain on this holding.Another plus, since February, I’ve accumulated 6 free shares thanks to my DRIP. This means I’ve got my RioCan dividend compounding machine running; REI.UN pays me $0.115 per share every month, enough to buy one share. On the horizon, there’s even more good news – RioCan hinted dividend increases will follow after new acquisitions are completed later this year and early in 2011.All the above equates to good news for RioCan investors like me, buyers and holders of companies that pay. I’d rather be invested than trying to time the market. If I didn’t invest in February, I might still be sitting on the sidelines, waiting for that illogical perfect buying opportunity. My dividend investing philosophy includes getting investing and staying invested and the results are proving it works for me.

How about you?

Looking back this year, any purchases you’ve made that have turned out to your liking?

My name is Mark Seed and I'm the founder, editor and owner of My Own Advisor. As my own DIY financial advisor, I've grown our portfolio to over $700,000 now - but there's more work to do! Our next big goal is to own a $1 million investment portfolio for an early retirement. Subscribe and join the journey!

Post Comment