Then and Now – CIBC
Welcome to another Then and Now post, a continuation of my series where I revisit some older blogposts and either rip them to shreds (because my thinking has changed on such subjects) or I’ll confirm my position on various personal finance topics or specific investments.
You can check out my previous posts in this series below:
Today’s post is about a Canadian dividend paying stud I’ve owned for many years now: CIBC (CM).
- I started writing about this stock some eight years ago. Hard to believe I’ve been running this blog that long!
- I figured CIBC (CM) was a cash machine back then. I should probably own it then.
- It has paid dividends for literally, generations. I felt pretty confident back then that based on the dividend history of CIBC, they would continue to reward shareholders. Only time would tell…
- In 2009, I was transitioning out of big bank mutual funds and I started looking at various Canadian dividend paying stocks to buy and hold. CIBC was one of them. I found the dividend history of CIBC like other big bank stocks, very appealing. I still do!
- When I started my DRIP with CIBC I remember buying shares at $65.
- My first quarterly dividend from CIBC was $0.87 per share.
- In 2011 I stopped by full DRIP with CIBC and transferred my shares to my discount brokerage – my “how to” process you can read about here.
- At the time of this post, CIBC stock is now worth close to $115 per share.
- At the time of this post, CIBC pays a quarterly dividend of $1.36 per share.
- We’re fortunate to earn enough dividend income, just from CIBC stock in one year, to cover our entire hydro bill expenses (if we wanted it to) and never spend the capital. We of course, do not spend our dividends now. We reinvest all dividends paid to buy more CIBC shares every quarter. We’ve learned money that makes money, will make more money over time if we don’t get in the way.
Image courtesy of CIBC dividends page.
Will we hold CIBC long-term? Hard to tell but I can say I’m optimistic that our collective basket of Canadian and U.S. stocks, along with some low-cost ETFs, will continue to grow over time as long as we stick to our plan.
Thanks for reading and stay tuned for another Then and Now post in the weeks and months to come.