Friday, 7 October 2016

New Purchase - Fortis

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

Number of shares purchased
300
Price per share
$40.70
Commission
$9.95
Total cost per share
$40.74
Total cost
$12,219.95
Annual dividend per share
$1.60
Initial dividend yield
3.93%
Increase in forward 12-month dividends
$480.00


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.

2 comments:

  1. Nice large purchase of a high dividend yield er! Way to add another $480 to the forward dividends. $11.2K is impressive!

    Keep the pedal to the medal! AFFJ

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    Replies
    1. Thanks AFFJ. I hope to be at $12,000/year very soon.

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