Saturday, 25 January 2014

New Purchases - Ensco, Rogers & Target


While just about every stock was being beaten down on Friday, I took the opportunity to lower my cost basis for Target and Ensco. I also added shares of Rogers Communications, which is due for a dividend increase in February; I’m hoping for a cool 10%.

I wanted to add to my HCP position around the $36 mark, but shares shot up past $38 before I got the chance.

My transactions were as follows:

Ensco (ESV)
50 @ $51.33 +9.95 commission ($51.53)
Initial yield 5.8%
Increase in forward 12-month dividends: $150

Rogers (RCI.b)
65 @ $46.75 +9.95 commission ($46.90)
Initial yield 3.71%
Increase in forward 12-month dividends: $113.10

Target (TGT)
50 @ 58.30 +9.95 commission ($58.50)
Initial yield 2.94%
Increase in forward 12-month dividends: $86

My total dividends now stand at $5,821.30.

I was somewhat hesitant when it came to increasing my position in Target.  What convinced me was looking at the timing of some of my past purchases, which in the end turned out all right:

1. Buying shares in 2009 when the world as we know it was about to end.
2. Buying WAG when shares were hammered on news of the Alliance Boots deal.
3. Buying Tesco shortly after shares plunged 20%. 
4. Buying SNC Lavalin after the scandal broke.
5. Buying JPM during the London Whale incident.
6. Buying NSC and CSX when shares were hit hard due to lower coal volumes.
7. Buying Telus and Rogers when shares nose-dived on news of Verizon coming to Canada.

Needless to say, Target fits the bill. 

For our benefit, I hope there are more days like last Friday ahead of us. Happy hunting.

Tuesday, 21 January 2014

New Purchase - Occidental Petroleum Corp

In December, I posted my analysis of OXY. At the time, shares were trading in the $93 - $94 range.

Since then, shares have come down a few dollars and today, I purchased 25 shares @ $90.70 ($90.30 before commission). My initial dividend yield is 2.82%.

My forward 12-month dividends dropped by $90 as I had 100 shares on INTC called away last week. With today's purchase, my forward 12-month dividends are up by $64 and now sit at $5,472.20.



In other news, NSC increased its dividend from $0.52 to $0.54 per year, or 3.85%. While NSC shares currently yield 2.43%, my YOC is 3.72%.

As of today, my dividend increases for 2014 are:

Company
2014 Div. Increase
$$$ Increase
CVS Caremark
22.2%
$20.00 USD
Enbridge
11.1%
$36.82 CAD
Norfolk Southern
3.85%
$4.00 USD
Telus
5.9%
$12.00 CAD
Vodafone*
8%
$34.00 USD
Total

$106.82
* Based on GBP to USD = 1.54
            I no longer own shares of companies highlighted red.




Thursday, 16 January 2014

New Purchase - Target

Earlier this week, I set 4 limit orders that expire at end of day tomorrow:

Canadian Utilities (CU): 100 @ $36.20
Chevron (CVX): 20 @ $117.40
Rogers Communications (RCI.b): 75 @ $46.25
Target (TGT): 50 @ $60.85

My limit order for TGT went through this morning, which brings my total to 150 shares.

December 2012 purchase: 50 @ $60.65 ($60.45 before commission)

August 2013 purchase: 50 @ $66.20 ($66.00 before commission) - A little premature!

Today's purchase: 50 @ $61.05 ($60.85 before commission)

My average cost per share, including commission, was reduced from $63.42 to $62.63 and my forward 12-month dividends now stand at $5,494.20 (+$86).

TGT:US
Year
High Price
Low Price
1Q
div.
2Q
div.
3Q
div.
4Q
div.
Annual Dividend
High Yield
Low Yield
2001
$41.74
$26.00
$0.06
$0.06
$0.06
$0.06
$0.24
0.92%
0.57%
2002
$46.15
$24.90
$0.06
$0.06
$0.06
$0.06
$0.24
0.96%
0.52%
2003
$41.80
$25.60
$0.06
$0.06
$0.07
$0.07
$0.26
1.02%
0.62%
2004
$54.14
$36.63
$0.07
$0.07
$0.08
$0.08
$0.30
0.82%
0.55%
2005
$60.00
$45.55
$0.08
$0.08
$0.10
$0.10
$0.36
0.79%
0.60%
2006
$60.34
$44.70
$0.10
$0.10
$0.12
$0.12
$0.44
0.98%
0.73%
2007
$70.75
$48.85
$0.12
$0.12
$0.14
$0.14
$0.52
1.06%
0.73%
2008
$59.55
$25.60
$0.14
$0.14
$0.16
$0.16
$0.60
2.34%
1.01%
2009
$51.77
$25.00
$0.16
$0.16
$0.17
$0.17
$0.66
2.64%
1.27%
2010
$60.65
$48.23
$0.17
$0.17
$0.25
$0.25
$0.84
1.74%
1.38%
2011
$60.97
$45.28
$0.25
$0.25
$0.30
$0.30
$1.10
2.43%
1.80%
2012
$65.80
$47.25
$0.30
$0.30
$0.36
$0.36
$1.32
2.79%
2.01%
2013
$73.50
$58.01
$0.36
$0.36
$0.43
$0.43
$1.58
2.72%
2.15%
2014


$0.43
$0.43
$0.43
$0.43
$1.72









13y ave
1.63%
1.07%







5y ave
2.47%
1.72%







3y ave
2.65%
1.99%







5y
$69.76
$99.77







3y
$64.93
$86.58






Super Cheap
$61.57