Friday, 21 October 2016

New Purchase - Algonquin Power and Utilities

On October 20th, I bought more shares of AQN.

Number of shares purchased
Price per share
Total cost per share
Total cost
Annual dividend per share
$0.556 CAD
Initial dividend yield
Increase in forward 12-month dividends

The $2,000 used for this purchase was grant money received in my kids' RESP.

My 12-month forward dividends now stand at $11,256.

Wednesday, 19 October 2016

New Purchases - GILD and TEVA

Yesterday, I sold my 100 shares of DE which I held for 3 years and broke even. I used some of the money to buy:

70 shares of GILD @ $73.66

45 shares of TEVA @ $42.74

As you probably noticed, the pharma sector has taken a hit and some stocks are providing a great entry point.

Wednesday, 12 October 2016

Future Dividend Increases

Four companies I own stock in have provided guidance on future dividend growth; AQN, ENB, FTS and T.

Using their guidance, I calculated what your future YOC would be if you were to purchase shares at today's closing price.

Annual Div Increase 6% $41.34  Today's Price
Q4 2016 $1.60 3.87%  Initial Yield
Q4 2017 $1.70  
Q4 2018 $1.80  
Q4 2019 $1.91  
Q4 2020 $2.02  
Q4 2021 $2.14 5.18%     YOC
Annual Div Increase 10% $11.40  Today's Price
Q3 2016 USD 0.4236 4.90%  Initial Yield - Converted USD to CAD @ 1.3200
Q3 2017 USD 0.4660  
Q3 2018 USD 0.5126  
Q3 2019 USD 0.5638 6.53%  YOC - Converted USD to CAN @ 1.3200
T (Telus)      
Annual Div Increase 8% $42.82  Today's Price
2016 $1.80 4.20%     Initial Yield
2017 $1.94  
2018 $2.10  
2019 $2.27 5.30%  YOC
Annual Div Increase 11% $57.94  Today's Price
2016 $2.12 3.66%     Initial Yield
2017 $2.35  
2018 $2.61  
2019 $2.90  
2020 $3.22  
2021 $3.57  
2022 $3.97  
2023 $4.40  
2024 $4.89 8.43%  YOC

Friday, 7 October 2016

New Purchase - Fortis

On October 7th, I bought 300 shares of FTS.

Number of shares purchased
Price per share
Total cost per share
Total cost
Annual dividend per share
Initial dividend yield
Increase in forward 12-month dividends

Like Telus, Enbridge and Algonquin Power & Utilities, Fortis has provided guidance on its dividend growth. The forecast is an average increase of 6% per year through 2021. This translates to $2.14 per share in Q4 of 2021, for a YOC of 5.25%.

From the Sep 27, 2016 press release:

"The continuation of our 6% dividend growth guidance takes into account many factors, including the successful close and integration of the ITC transaction, the expectation of reasonable outcomes for regulatory proceedings at our utilities, and the successful execution of the Corporation's five-year capital plan of over $9.0 billion, excluding ITC Holdings Corp.," says Barry Perry, President and Chief Executive Officer, Fortis Inc. "We also remain optimistic about securing additional growth opportunities in our franchise areas."

I used $7,000 on margin to make this purchase, which I will most likely reimburse through future savings.

Because of the unfavorable CAD to USD exchange rate, I'm looking for Canadian companies with significant international exposure. And Fortis' purchase of ITC for $11.3 billion will provide just that.

My 12-month forward dividends now stand at $11,227.

Saturday, 1 October 2016

Some Transactions

Here are yesterday's transactions:

Sold 100 of my 230 shares of HCP for $38.44/share

I paid $37.20 in June 2014. I'm not sure about the quality of this company anymore so I trimmed my holdings.

Sold 100 of my 200 shares of ATCO for $46.90/share

I paid $40.60 in June 2015. I never planned on keeping it forever because of the low dividend yield.

Sold my 150 shares of Highliner Foods for $26.17/share

I paid $12.97 in February 2016. A double in 7 I decided to take the money and run.

I bought 125 shares of Power Corp for $27.88/share

This is my way of betting that interest rates will increase soon. This brings me to 350 shares of POW.

I bought 100 shares of Canadian Utilities for $37.19/share

I took some of the money from the sale of ATCO and put it back into CU. I now have 300 shares of CU that I plan on keeping a very long time.

I bought 450 shares of Algonquin Power & Utilities for $11.86/share

AQN is new to my portfolio. Althought these shares trade on the TSX, the dividend is paid in USD. Next week I'll probably opt for the dividend reinvestment plan because it offers a 5% discount on the share price. And like Telus and Enbridge, AQN has provided guidance on it's dividend growth over the next several years: +10% per year.

I bought 50 shares of Vodafone  for $29.25/share

Why not? It's cheap. I'll have to cash in on this one when the share price increases because the dividend is stagnant.

I bought 50 shares of Wells Fargo for $44.60/share

I hope Warren is doing the same. Surprisingly, WFC's share price was quite resiliant this week.

With these transactions, my 12-month forward dividends increase to $10,836 from $10,641.