Buying Corus Entertainment, Yield of 9%

Corus Entertainment

On April 7th, I added 55 shares of Corus Entertainment (TSE: CJR.B) to The Dividend Beginner’s portfolio. I purchased the shares at $12.67, with a trading cost of $6.95 for a total investment of $703.80.

As you may notice this is a very small investment compared to my usual purchases of $1,500-$2,000. This is because I consider CJR.B to be a bit of a risk due to it’s industry of media content and with the rise in cable cutting. Since I already own a position of 105 shares, I just added a small bit to increase the position to a total cost basis of $2,007.50.

Yield on cost lowered to 9.09%

With the latest 55 shares I’ve purchased at a cost basis of $703.80, my yield on cost was 8.9%

In my first purchase of 105 shares for a cost basis of $1,303.70, my yield on cost was 9.18%.

Now with 160 shares, my average cost basis is $2,007.50, or $12.55 per share. With an annual dividend of $1.14, my final yield on cost is still a grand 9.09%.

Consumer Discretionary increased to 6.75%

Portfolio exposure to the consumer discretionary sector has increased from 5.59% to 6.75%.

I have only two positions which contribute to my exposure in this sector, which are Corus Entertainment and Wal-Mart.

Portfolio diversification

Dividend Income increased 2.36%

My new shares in Corus Entertainment adds $62.70 to my annual dividend income, or $5.225 averaged per month.

Previously I earned $119.70 per year due to my 105 shares of CJR.B. This accounted for 4.50% of my overall dividend income.

Combining my new annual dividend income with my previous, I now earn $182.40 per year from CJR.B, accounting for 6.70% of overall dividend income. This averages out to $15.20 per month, up from $9.98.

Before Net Increase After
Annual Dividend Income $2,661.71 $62.70 $2,724.41
Monthly Dividend Income $221.81 $5.225
$227.03
Percentage Increase +2.36%

Leave a Reply

Your email address will not be published.