This investor went from penny stocks to the big dividend payers

Debbie Patton, 57, Bancroft, Ont.

What’s the first stock you owned?

For my 16th birthday, my dad gave me some penny stocks. I can’t remember their names – it was back in the 1980s – but some were junior mining stocks. The account was in his name, but over the next two years, we followed the stocks together and decided whether to buy, hold or sell them. On my 18th birthday, my dad gave me the option to sell the stocks and take the cash, or transfer them into my name and let me manage them going forward. I’d like to say that I stayed invested and made a fortune. Instead, I took the cash – I think it was a few hundred dollars – and went on a shopping spree at the Eaton Centre in downtown Toronto.

Do you regret taking the cash?

I don’t have any regrets because that experience exposed me to investing at a relatively young age and taught me the power of time in the market. My 16-year-old self would tell you stocks aren’t an exciting birthday present. However, my 57-year-old self knows it was one of the greatest gifts I’ve ever received.

That stock market experience also inspired me to read The Wealthy Barber, which, in turn, piqued my interest in a career in the financial services industry. I got my certified financial planner designation and currently work as a consultant in the group retirement benefits space.

What kind of investor are you today?

I have worked as both an employee and a consultant throughout my career, earning pensions, contributing to group registered retirement savings plans, and contributing to an employee share purchase program. Three years ago, I opened up my own trading account and started investing some of my savings in dividends stocks. I started by looking at my bank account and saying, ‘What companies do I pay bills to? What products am I buying?’ Then, I started investigating some of those companies and their dividend histories. The stocks I own today include BCE Inc., Enbridge Inc., Fortis Inc., Manulife Financial, Loblaw Companies Ltd. and Royal Bank.

What advice would you give someone today buying their first stock?

Buy what you know: If you don’t understand the company’s product, you likely won’t understand how its stock price will fluctuate in different market cycles. Not having this understanding will likely increase your chances of making bad investment decisions based largely on emotion.

Also, don’t buy stocks based solely on trends you see in the headlines. By the time you’ve read about it, the event that led that stock to be in the news has already happened. You’re probably too late.

Also, buy stocks you’d be comfortable holding for a long time, through good times and bad.

This interview has been edited and condensed.

The Globe is looking for Canadians to share their first stock stories, including lessons learned and how that experience shaped how you invest today. If you’re interested in being interviewed for this feature please email us at: globemyfirststock@gmail.com