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.

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