Wednesday, 23 December 2015

New Purchase - Scotiabank

On December 23, 2015, I purchased shares of Scotia Bank.

Number of shares purchased
200
Price per share
$56.70
Commission
$9.95
Total cost per share
$56.75
Total cost
$11,349.95
Annual dividend per share
$2.80
Initial dividend yield
4.93%
Increase in forward 12-month dividends
$560.00

The book value is $41 CAD, the PE is 9.90, using EPS from the last three years I get a Graham price of almost $70 CAD and the 10 year CAPE is 14.

My 12-month forward dividend income stands at $10,283 per year.

Tuesday, 8 December 2015

New Purchase - Cummins

As the sell off continues, I was hesitating between CMI and UNP. I also wanted to buy more ACO.X and CU. In the end, I settled for 50 shares of CMI, which brings my total holdings to 90 shares at an average cost of $9,875.85, or $109.73 per share.

Number of shares purchased
50
Price per share
$89.80
Commission
$9.95
Total cost per share
$90.00
Total cost
$4,499.95
Annual dividend per share
$3.90
Initial dividend yield
4.33%
Increase in forward 12-month dividends
$195.00


My 12-month forward dividend income stands at $9,853 per year.

I think there is indiscriminant selling for very high quality companies at the moment and I'm in buying mode.

Saturday, 5 December 2015

New Purchase - CU, ENB and BBL

This past week, I purchased shares of Canadian Utilities (CU), Enbridge (ENB) and HBP Billiton (BBL).

CU:

Number of shares purchased
50
Price per share
$32.54
Commission
$9.95
Total cost per share
$32.74
Total cost
$1,636.95
Annual dividend per share
$1.18
Initial dividend yield
3.60%
Increase in forward 12-month dividends
$59.00

I continue to take advantage of CU’s weak share price. I now hold 200 shares.

ENB:

Number of shares purchased
50
Price per share
$47.30
Commission
$9.95
Total cost per share
$47.50
Total cost
$2,374.95
Annual dividend per share
$2.12
Initial dividend yield
4.46%
Increase in forward 12-month dividends
$106.00

The last time I bought ENB was in 2009. The dividend yield is once again attractive. And like Telus, ENB has provided guidance on dividend increases over the next several years.

On Dec 3, 2015, Mr. Monaco, CEO of ENB said, "We are entering 2016 well positioned to execute on our five-year strategic plan. Our plan includes a $38 billion growth program, $25 billion of which is commercially secured and in execution. It is expected to generate compound average annual ACFFO per share growth of 15 to18 percent through 2019 and annual average dividend per share growth of 14 to 16 percent."

BBL:

Number of shares purchased
50
Price per share
$23.85
Commission
$9.95
Total cost per share
$24.05
Total cost
$1,202.45
Annual dividend per share
$2.48
Initial dividend yield
10.31%
Increase in forward 12-month dividends
$124

Falling knife anyone? With the dam disaster, BHP’s dividend has been called into question. This purchase feels like a lotto ticket.


I also did some portfolio cleaning and sold my shares in Accenture (ACN), AGCO (AGCO), Baxter (BAX), Pason Systems (PSI) and Tesco (TSCDY) and closed puts in NOV and BBL. The combined capital gain on these transactions basically amounts to ZERO.

With these latest transactions, I’m sitting on $38,000 in cash and my 12-month forward dividend income stands at $9,640 per year.

Friday, 13 November 2015

New Purchase - HCP and WMT

On Nov 9, I added to my position in HCP.

Number of shares purchased
30
Price per share
$33.40
Commission
$9.95
Total cost per share
$33.75
Total cost
$1,012.55
Annual dividend per share
$2.26
Initial dividend yield
6.70%
Increase in forward 12-month dividends
$67.80


On Nov 13, I initiated a position in Walmart.

Number of shares purchased
50
Price per share
$56.40
Commission
$9.95
Total cost per share
$56.60
Total cost
$2,829.95
Annual dividend per share
$1.96
Initial dividend yield
3.46%
Increase in forward 12-month dividends
$98.00

Walmart's dividend growth is not very attractive, but the share price sure is.

My dividend income is now $9,491 per year.

On another note, I'm not doing so well with my put options. My timing on BBL, BTE and NOV really really sucked. On the bright side, it's called EXPERIENCE.