I have several transactions to report on.
1. Purchased more GreenStar Agriculture
December 19: I bought 1,500 more shares of GRE @ $0.8666/share including commission (6.92% dividend yield). It is unlikely that I will add to this position as it is quite risky and accounts for 2.2% of my portfolio.
+$90.00 to my forward 12-month dividends
2. Sold some SNC-Lavalin
December 23: I sold 100 of my 350 shares of SNC @ $47.68 ($47.58 after commission), for a profit of about 33% ($1,200 CAD including dividends) over 15 months. Shares are held in a TFSA so there is no tax to be paid.
Some of the reasons I reduced my position are:
a. SNC seems to be on the track to recovery, but uncertainty remains;
b. It looks like it will take a while before EPS start to increase at a reasonable pace;
c. Because the lack in growth of EPS, the dividend is unlikely to increase much, which I deem unacceptable for a stock that yields less than 2%; and
d. SNC accounted for over 10% of my portfolio. It now accounts for 5.75%.
-$92.00 to my forward 12-month dividends
3. Sold Vodafone
December 24: I sold my 300 shares of VOD @ $38.81 ($38.78 after commission), for a profit of 51.6% ($4,185 including dividends) over an average period of 17 months. Shares are held in TFSA so there is no tax to be paid.
Some of the reasons I sold VOD are:
a. I’m uncertain as to the direction the new company is heading;
b. I’d have to pay a dividend withholding tax on my new VZ shares; and
c. VOD appears to be fully valued and I replaced it with a stock that I believe to be undervalued (Ensco).
-$499.20 to my forward 12-month dividends
4. Bought Ensco
December 24: I bought 200 shares of ESV @ $56.32/share including commission. ESV is a global provider of offshore drilling services to the petroleum industry.
The reasons I bought Ensco are:
a. Graham price = $69.98;
b. Cyclically Adjusted Price to Earnings Ratio (CAPE) = 13.8;
c. EPS are forecasted to grow at 20% per year over the next two years;
d. P/E = 10;
e. 54% payout ratio;
f. 5.33% dividend yield;
g. It is a British company, so no dividend withholding tax in my TFSA; and
h. I wanted to increase my exposure to the energy sector.
Before purchasing ESV, I had a hard look at OXY and CVX but decided on ESV due to its compelling valuation. It should be noted that only recently has ESV started to increase its dividend.
+$600.00 to my forward 12-month dividends.
With the above transactions, my forward 12-month dividends stand at $5,408.20.
I am now sitting on $28,000 in cash and will be looking to make some wise buys. Cannot wait for Mister Market to come on down to The Price Is Right.
Merry Christmas Everyone!