It’s the sound of the Vancouver rainy season in full swing but also the sound of my first dividend purchase now being able to take care of itself. Brian posted a while back about our current investments and mentioned that I bought some SunLife stock. The stock is currently tanking (like everything else in this economy) so I took the opportunity to pick up some more shares and send in my dividend reinvestment plan (DRIP or DPP, in Questrade parlance) form. Now, every time SunLife pays out, Questrade will kindly use my dividend to pick up more shares.
Reinvesting your dividends is a great way to increase your portfolio painlessly. Do I really need the little bit of money that my stock pays me now? Nope. Far better to reinvest it so that I have even more shares making me more money. You can always cancel your DRIP and take the cash later on. As well, reinvesting through a DRIP plan means that you don’t have to pay the trading fees. Bonus!
Meanwhile, I can focus on using the cash that I have to diversify my holdings. Currently I only have Sun Life in my TFSA (I have other assets in my RRSP of course) and that is bad bad bad financial planning. I’m planning on adding some banks next, and possibly some retail.
One step closer to world domination…
