Enbridge and a new position.

Good Morning.

enbridge

Enbridge, Enbridge, Enbridge

I was really debating adding to our Enbridge position since it is our largest holding. 11% of our portfolio to be exact. I am currently down on our original investment but really think they are a solid company with a tonne of growth.

Enbridge missed the analysts sales target by a small amount and people have been selling out. I feel this created a great buying opportunity and jumped on it. Natural gas numbers should go up now based on the season, and the synergies between the spectra merger still need to be all sorted out.

Less than a month ago Enbridge was trading around the 52 dollar a share mark, Currently it trades at $46.80 and offers a fantastic 5.21% yield. We added another 28 shares of the company on the dip. This will add $68.32 a year in forward dividends. It lowers our average cost and increases our yield on cost.

Facebook

I joined the Canadian Dividend Investing group on facebook recently after Helen (A reader) told me to check it out. Thanks to the people in the group, I have started a new position. One that I have been waiting to start a position in.

Algonquin Power & Utilities Corp

enbridge

Last week someone mentioned that algonquin power and utilities corp, fell in price. After researching and learning they entered into a deal under which underwriters were to buy 37.8 million common shares of APUC at a price of $13.25 per common shareโ€‹. The proceeds of the offering to be used, partly,to finance co’s acquisition of Abengoa’s 25% ownership stake in Atlantica yield.

Basically I was able to buy shares just over the bought value. $13.28 per share. We started with 200 shares which I will gladly add to in the future. It pays its dividend in U.S. dollars so I think after the conversion we will generate roughly $112 a year from them. One of my favorite things about this position is their drip. They offer a 5% discount on drips! That’s one of the highest I’ve seen. I hope we can drip 2 stocks per quarter. It also Pays it’s dividend in January, April, July and October which is great since my recent sale created a nice dividend hole in those months.




Well that’s my 2 new purchases. The potential forward dividend’s keeps increasing. Algonquin wasn’t a huge value play but a position I wanted to hold and will continue to add too. Enbridge was too hard to pass up at it’s current price. It’s a big player in my portfolio and I have been trying to knock that percentage down but when life throws you a curve ball in the strike zone, it’s better to swing then just take the strike. What do you think of my recent buys? What you buying?

Cheers!

 

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23 Responses

  1. Both excellent companies in my opinion I own both myself. Keep up the good work. Also glad to have you in the Facebook group ๐Ÿ™‚

  2. Pellrider says:

    You got a great deal PCI! Great buy. I also joined the Facebook group. It is an active group.

  3. Good purchases, PCI. I don’t own ENB but own AQN and have seen some good returns over the past couple of years.

    Cheers
    R2R

  4. dividendgeek says:

    Enbridge Inc looks good. Solid business and nice yield \ payout ratio.

    https://goo.gl/ZHuwgu
    dividendgeek recently posted…Vanguard Dividend Appreciation Index (VDAIX, VDADX, VIG, VGH, VGG)My Profile

  5. Leo T. Ly says:

    I also have a sizeable position in Enbridge. With the recent pull back, I am looking to add to my position too. Just need to decide on when to pull the trigger.
    Leo T. Ly recently posted…10 Money-Saving DIY Home Renovation ProjectsMy Profile

  6. Sarah De Diego says:

    I have a bit of money sitting in a few accounts and you’ve got me thinking that I should increase my position in Enbridge.

    Thank you so much for mentioning the “Canadian Dividend Investing” FB Group. I’ve asked to join and look forward to learning a lot.

    Besos Sarah.

  7. John R says:

    It is said somewhere ‘that its not possible to time the market’!

    Yet, look at what is trending, look at the big US listed ETF’s UGAZ & UNG

    Then take look at HNU on the TSX

  8. ENB is getting very attractive at these levels. I don’t own it, but I’m considering getting some shares.

  9. May says:

    I had added some ENB yesterday and looks like it was a little bit too early.

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