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Dividend Investing: My no fee DRIP list of dividend stock is complete

Dividend Investing: My no fee DRIP list of dividend stocks is completeImage by alancleaver_2000 via FlickrLast year around May I started building my DRIP portfolio with Computershare and CIBC Mellon to slowly grow my dividend investment portfolio with no fees while leveraging the benefits of fractional shares. I have been sharing my process along the way and I recently completed the list of stocks I wanted to hold for now.

With many making new year’s resolutions around money and investment, I thought it would be a good time to share my list and why I picked them. I have to admit that reading The Lazy InvestorDividend Investing: My no fee DRIP list of dividend stocks is complete from Derek Foster kick started my official dividend investment journey. I already had dividend investments and was aware of it, but I did not know I could do it cheaply! So cheaply with so little money!

Selection Strategy

My strategy around my slow DRIP investing is simple. It’s built around services that are required and demanded. The services the companies provide usually have monthly payments that are fixed or based on usage. Here are the sectors I prefer for my slow DRIP.

  • Utilities
  • Real Estate
  • Banks
  • Insurance
  • Telecommunications

I have been referring to slow DRIP because I grow my nest egg very slowly. I tend to invest 50$ every month or so per stock depending on the cadence of the share purchase plan (SPP). I use the Canadian DRIP & SPP list as a resource to know the stocks available to DRIP with small amounts. Some companies require 1000$ minimum for SPP and that’s a little high for me. I would hold those in my other trading accounts instead.

Computershare

Here is my list of dividend stocks under Computershare.

CompanyTickerQuoteSharesMarket ValuePurchased Yield
Bank of MontrealBMO.TO$59.684.634705$276.604.66%
Bell CanadaBCE.TO$35.273.867149$136.396.02%
TransCanada Corp.TRP.TO$37.403.776646$141.254.46%
TelusT.A$45.003.867149$174.025.51%
FortisFTS.TO$34.252.115283$72.453.31%

CIBC Mellon

Here is my list of dividend stocks under CIBC Mellon.

CompanyTickerQuoteSharesMarket ValuePurchased Yield
EnbridgeENB.TO$55.861.016$56.754.15%
RioCanREI.UN$23.0312.034$277.146.13%
SunLifeSLF.TO$31.241.324$41.364.71%
TransAlta CorpTA.TO$21.951.652$36.265.15%

Compound Growth

As you can see, there is a bunch of decimals for the number of shares I have. They are fractional shares from my contributions and dividends. All my dividends are reinvested and generating fractions month after month and quarter after quarter. It’s a slow process and I only have $1212.22 after 9 months but over time, it will grow. The slow process is the reason why I picked the companies I have. Out of 9 companies, 4 are utilities with a certain monopoly in their provinces and expending their business where they can.

I am going to stick with those 9 investments for now and build up a position before adding to the list otherwise I will be spread to thin.

Readers: Do you DRIP with Transfer Agents? Any particular investment you prefer for DRIPing or sector?
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11 Responses to "Dividend Investing: My no fee DRIP list of dividend stock is complete"

  1. youngandthrifty says:

    I personally don't have much experience with DRIPing, I tend to just buy more shares. I should really look into it.

    I also should look into Derek Foster's book- would you recommend it? Is it only sold on his website?

    I do have BMO, BCE, Telus, Fortis (I just love them). I sold TA because I thought I needed the money for renos :(

    • Wonder says:

      Derek Foster has 3 books out and I must say i was very impressed with them from the get go.He makes investing seem so much easier and simpler for someone starting out in the investing world. I would definitely recommend them and they are sold in book stores, i bought all 3 at a local Cole’s book store.

  2. My Own Advisor says:

    Awesome list! I'm biased though:

    http://myownadvisor.blogspot.com/p/portfolio-considerations.html

    Kidding aside, once you're DRIPping at least one share of each, each quarter, you'll really be running!! Great work.

    Cheers,
    Mark

  3. The Passive Income Earner says:

    @YoungAndThrifty
    What the DRIP with Transfer Agents allow me to do is to slowly build up a position in companies I like. No where can you invest 50$ in a stock than with Transfer Agents. Otherwise, you have to invest in mutual funds and I was getting sick of mutual funds and their lackluster performances.

    As for the book, the libraries have it :)

  4. The Passive Income Earner says:

    @MyOwnAdvisor
    We have a similar list :) There are about 25 companies easily DRIPed so we are bound to have some of the same… It will take some time before I DRIP a share per quarter but at least the fractional shares accumulate in the background.

  5. BeatingTheIndex says:

    Bank stocks are what I am missing from my portfolio! Maybe this will be the year I finally add one of them.

    Your solid companies certainly help you ignore all the market noise out there, nice picks!

  6. Job says:

    This is amazing list like the previous one..
    Thank you for this post..

  7. youngandthrifty says:

    Oh okay thanks for the tip passive income investor.

    I'll be sure to look for the Derek Foster book.

    Did you hear that there is apparently this app for the iPhone/iPad for Vancouver Public Library's E-books? I haven't downloaded it yet but it's on my to-do list. It's on Red Flag Deals if you want to have a gander.

  8. Myrtle says:

    I’d like to sell my stock held in my TFSA by a financial advisor and purchase DRIP stock instead. How would the CRA view this arrangement
    I would then, like to self direct my TFSA by placing the account with a discount broker.

    • The Passive Income Earner says:

      @Myrtle
      You don’t have to sell, you can just execute a transfer in kind. Get the forms from the company where you want to have your TFSA and they will help you transfer your investments.

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