Tuesday, 16 August 2016

A series of sells and two buys

I recently sold 220 shares of BNS @ $66.29 for a capital gain of $2,179.75 + $456.80 in dividends. That's $2,636.55 / $12,393.90 = 21.3% in 7 months. I like BNS and plan on getting back in if the price drops. I'll be using some of the proceeds to fund my kids' RESP.

I also decided to limit my exposure to oil and gas. I got burned with dividend cuts from ESV and BBL and now there is chat about the safety of CVX’s and RDS.B’s dividend. And their recent results were not reassuring.

I sold 100 shares of BBL @ $25.72 for a capital loss of -$790.40 + $156 in dividends = -$634.40. That’s -$634.40 / $3,352.40 = -18.9% over roughly 2 years.

I sold 48 shares of CVX @ $103.15 for a capital gain of $31.14 + $309.59 in dividends = $340.73. That’s $340.73 / $4,910.00 = 6.9% over roughly 2 years.

I sold 70 shares of RDS.B @ $54.45 for a capital loss of -$231.74 + $291.40 in dividends. That’s $59.66 / $4,033.20 = 1.5% over about 1.5 years.

For over a month now, I've been looking for solid deals and I think I found two. On Monday, August 15, I initiated positions in Flowers Foods and Power Corp. 

FLO:

Number of shares purchased
300
Price per share
$14.9693
Commission
$9.95
Total cost per share
$15.00
Total cost
$4,500.74
Annual dividend per share
$0.64
Initial dividend yield
4.27%
Increase in forward 12-month dividends
$192.00

POW.TO:

Number of shares purchased
125
Price per share
$27.16
Commission
$9.95
Total cost per share
$27.24
Total cost
$3,404.95
Annual dividend per share
$1.34
Initial dividend yield
4.92%
Increase in forward 12-month dividends
$167.50

My 12-month forward dividends have been reduced from $11,139 to $10,258 and my cash position stands at $44,000.

6 comments:

  1. I just purchased Pow.TO this week. 50 shares at $27.20. Very attractive entry point. Great yield and i wouldn't be surprised to see Pow.to at $35 in a year's time.

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    Replies
    1. Hey EP,

      I think you're right. But in the short term, POW and PWF have suffered because the Canadian mutual fund business is undergoing change. CRM2 is coming which means mutual fund companies will have to provide investors with more details on investment fees. This may hurt PWF and in ricochet, POW. At any rate, i'm confident the Demarais' will figure it out.

      Good luck and take care.

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  2. I hope the price is not 149K :)
    "Price per share $149693"

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    Replies
    1. Good catch. I put in a limit order @ $14.97 and it went through a little lower.

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  3. Thanks for sharing. I like your average dividend yield metric -- I'm taking another look at this method to see how my holdings are stacking up. Do you ever sell based on it? Like you, I've exited many of my energy positions. I also sold CVX recently... I'm not convinced the streak of dividend increases is going to last much longer!

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    Replies
    1. Hey FrediS,

      I have used the ADY metric to sell stocks, just not very often. The reason is when a stock gets into over valued territory, I have usually had several dividend increases and my YOC is awesome (Saputo and Kraft are good examples). Another reason is that when my stocks are overvalued, the market is usually high which makes finding a replacement stock nearly impossible.

      I do have missed opportunities where I could have sold an overvalued stock and bought the same one for much much less. ENB and WBA are two very good examples. ENB made its way up to $66 and then tumbled to $42. WBA made its way to $95 and then fell to $73. The one good thing is that both these companies continue to give me raises, which is why I bought them in the first place. And all this is in hindsight.

      Cheers

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