Monday, August 23, 2010

RRSP Purchase: Manulife

Right before going on vacation, I put in an order for 250 shares of Manulife (TSX: MFC) in my RRSP account. This was when the tough earnings news came out. Turns out I was a bit early, paying $13.80 per share (the shares now stand around $12.25 per share).

In such situation (what I see as a fire sale), I'm usually early to buy -- it's just the way it works for me. If I wait too long for the price to drop some more, I often end up not buying. So that $1 I paid over the current price is fine with me. I'm looking at holding the shares for 1 to 3 years, at which time I think the company will have recovered from its current difficulties. In the mean time, I'll collect the dividend (over 4% yield right now) and reinvest it (synthetic DRiP through my broker).

1 comment:

Anonymous said...

I also bought manulife and plan to start a DRIP directly with them. I bought at $15.57 though. But I'm not afraid...I think they'll recover in time.