52.88, 47.36, 41.39, 34.88 – SOLD
Good evening. Today we added another new position to our portfolio. After looking through our current portfolio, I couldn’t find a bargain. Industrial’s are currently our lowest sector and I can’t just keep adding to Aecon. I needed another great industrial stock to add to the mix and wanted to get a solid dividend growth stock. Luck would have it one is on sale!
Ritchie Bros Auctioneers RBA.TO
Ritchie Bros Auctioneers Inc is a Canada-based holding company. The Company is an industrial auctioneer and used equipment distributor, selling used equipment and other assets. Its segments include Core Auction, which is a network of auction locations that conduct live, unreserved auctions with both on-site and online bidding, and Other, which includes its EquipmentOne and Mascus International Holding B.V. (Mascus) online services. (source – rbc direct investing) They also have that t.v show which documents the auction.
Well this is one of Canada’s best dividend Growth stocks having increased its dividend for the past 14 years. At $34.88 per share it’s just 43 cents off its 52 week low. Or 18 dollars off its 52 week high of $52.88 (set in November 2016) Cant find too many of the best dividend stocks close to their 52 week low can ya?
I have went to a Richie bros auction but didn’t purchase anything as the equipment went for too much that day. Well today they sold me. $3521.95 (including trading fee) for 100 shares. The current yield is 2.66% and equates to 17 cents per share per quarter (us) this will add 68$ per year in forward dividends.
A month ago the stock traded for $42.03 and I feel the pullback is a little unjustified. While the bear’s are beating on the stock Morningstar gives Ritchie Bros a fair value of $42.00 per share. Representing a potential increase of 16.95% to get to fair value. Add in the dividend’s and your sitting pretty!
Well that’s it for now. I’m currently shopping round for a great consumer cyclical stock. Restuarant brands International and Corus are my only holdings at the moment but I’m skeptic of Chorus’s dividend and RBI is overvalued. Do you know one? Prefer a Canadian stock.
I also keep debating Algonquin power after its dip or adding either fortis or Canadian Utilities for the dividend security. Got any good picks I should look into? What you watching?