Friday, 21 October 2016

New Purchase - Algonquin Power and Utilities

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

Number of shares purchased
175
Price per share
$11.66
Commission
$9.95
Total cost per share
$11.72
Total cost
$2,050.45
Annual dividend per share
$0.556 CAD
Initial dividend yield
4.75%
Increase in forward 12-month dividends
$97.30


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.

4 comments:

  1. Hello ADY, glad to see you're getting grant money! AQN has been on my watchlist for some time, but the payout ratio worries me (close to 100%). I've glanced at the annual reports and saw a 10% forecast in dividend growth. I'm wondering whether or not it is sustainable given such a high payout. Could you share your vision or the company?

    Cheers,

    Max

    ReplyDelete
  2. This is a comment I copy pasted from the globe and mail's website:

    This is a misconception many investors have. John Heinzl (globe and mail) have discussed it numerous times. For clarification, try Googling:

    "Dividends Come Out of Cash Flow, Not Earnings Reuben Gregg Brewer | July 10, 2012"

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  3. ADY,

    I love seeing you rolling strong like you are! $12k is in your palm. Close it!!

    MDP

    ReplyDelete
    Replies
    1. Thx for the kind words. Due to foreseen (a $10,000 stereo) and unforseen circumstances ($2,500 on the dog), I won't be able to hit $12,000 this year. But I do feel it's in the palm of my hand.

      Good luck with the election on Tuesday.

      Delete