Tuesday, 16 June 2015

New Purchase - ATCO Group

On May 11, I initiated a position in ATCO Group (ACO.X). The share price has since declined by about 10% so today I bought an additional 100 shares.

Number of shares purchased
100
Price per share
$40.50
Commission
$9.95
Total cost per share
$40.60
Total cost
$4,059.95
Annual dividend per share
$0.99
Initial dividend yield
2.44%
Increase in forward 12-month dividends
$99.00

It looks like Canadian Utilities and ATCO Group are hitting new lows because of concerns that the new Alberta government will implement a new tax regime. I believe both companies are well positioned to grow and my dividend yield analysis indicates that I'm getting good value for my money.


My annual dividend income now stands at $9,138 per year.

4 comments:

  1. Nice purchase, ADY. Ive been reading up and from what I understand, CU might be a better buy - a higher yield for most of the same company. The corporate structure gives some higher exposure to building and logistics with Atco than CU.

    Still a great company to own overall....congrats on the purchase
    R2R

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    Replies
    1. It was difficult to chose between CU and ATCO so I went with both. CU is my preferred holding, but I see the opportunity in making some good returns on both stocks.

      I'll probably double my position in CU if shares reach $32-33. I'm thinking of going overweight on both stocks and selling a call option or two when shares rebound. That may take a few years, but I'm only 36 so I've got plenty of time.

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  2. Wow, you're so close to the $10,000 mark for annual dividends -- great job! I'm not familiar with this stock, so I'll need to look into it. Thanks for sharing.

    ReplyDelete
    Replies
    1. Thanks for the kind words. I'd like to get to $10,000 before the end of 2015 but that will depend what the market has to offer me.

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