5 Stocks on my Watch List

5 stocks on my Watch List
5 Stocks on my Watch List

Its the middle of the month and time to start looking at some more stocks to buy this month. I already purchased more brookfield renewable at the start of November when it dipped. But with some cash in hand, it burns. I like to put the money to work right off the bat.

October knocked the market down a bit and there are still some deals to be had. Utilities have recovered pretty nicely, so far this month though.

Here in Canada Energy stocks seem to be the talk of the town lately. Essentially there isn’t enough pipelines around to distribute/ refine all the oil we are starting to produce. That should be a pretty good sign for existing pipelines. Let’s get to the list.

Inter Pipeline Ltd

Inter Pipeline Ltd. is a petroleum transportation, storage and natural gas liquids processing business. The Company’s segments include oil sands transportation business, conventional oil pipelines business, natural gas liquids (NGL) processing business and bulk liquid storage business.

This stock has been on my radar for awhile. It sports a nice yield of 7.54%, that they just raised again a couple days ago by 2%. Its a monthly dividend stock and has raised its dividend for the last, well 10 years now. Their 10 year dividend growth rate is at 6.9. Not bad, but look at that original yield you get. The oil sands need more pipelines to move their product, so business should be pretty busy.

Inter pipeline currently has a p/e ratio of 14.8x at its current price of $22.62. Its 5 year average yield is 4.26% so its current yield is insane! But is that payout ratio sustainable? I calculate a current payout ratio of 111%(dividends/eps) It seems high but after reporting their last quarter earnings beat, seems to be turning around. If we use funds from operations (ffo) though their payout ratio is 54.5%. Really good!

Ipl is currently 18.98% off its 52 week high and 8.5% above its 52 week low.

Analysts at Yahoo Finance Currently give Ipl a buy rating with a target price of $28.14. Representing a potential gain of 24.4%

Ex dividend Date – November 21st.

TransCanada Corporation

TransCanada Corporation operates as an energy infrastructure company in North America. It operates through Canadian Natural Gas Pipelines, U.S. Natural Gas Pipelines, Mexico Natural Gas Pipelines, Liquids Pipelines, and Energy segments. The company transports natural gas to local distribution companies, power generation and individual facilities, interconnecting pipelines, and other businesses.

Considering I already own a tonne of Enbridge, it’s not on the list. Existing pipelines seem like they are set for a long time. We are seeing so much political issues all across the board for creating or updating new or existing pipelines.

TransCanada currently has a p/e ratio of 13.79 and offers a yield of 5.38% at its current price of $50.99. They have been raising their dividend the last 17 years. The 10 year dividend growth rate sits at 6.3. TransCanada’s average yield is 3.82%, so again another one sitting above its historical average. The pipeline giant has a payout ratio of 74.59% of its trailing 12 month earnings.

Currently its 21.77% off its 52 week high and 4.23% above its 52 week low.

Analysts at Yahoo Finance give TransCanada a buy rating and a target of $64.50. A potential 26.49% gain.

Ex Dividend Date – December 28, 2018

Suncor

Suncor Energy Inc is a Canada-based integrated energy company. The Company is focused on developing Canada’s petroleum resource basin, Athabasca oil sands. The Company operates in three business segments: Oil Sands, Exploration and Production (E&P), and Refining and Marketing.

I love owning stocks that I do business with, they own Petro Canada and I do my best to buy all my gas from them (3 cent discount per litre) So got to love that factor, I always hate buying gas.

Last quarter Suncor Energy Inc. reported third-quarter operating income of $1.56 billion, an 80 per cent increase over $867 million in the same period of 2017. Seems like business is good!

Suncor currently has a p/e ratio of 14.7 at $43.09 a share and yields 3.25%. They have raised their dividend the last 15 years and their history is quite nice. Its 10 year dividend growth rate sits at 21. Its 5 year average yield is 2.67%, so its quite above its average price.(suggesting its undervalued) Suncor’s Payout ratio is currently 54% of its earnings

Its currently 22.38% below its 52 week high and 6.03% above its 52 week low.

Analysts at Yahoo Finance give Suncor a buy rating and a target of $61.01. A potential 41.58% gain! Sweet!

Ex dividend Date November 30th(approximately, hasn’t been said)




Wheaton Precious Metals Corp

Wheaton Precious Metals Corp. operates as a silver and gold streaming company in Canada and internationally. It has streaming agreements for 20 operating mines and 9 development stage projects.

A stock I just keep debating, but haven’t committed yet. I have been trying to make my portfolio a better dividend growth portfolio and this one doesn’t fit in this category. It does pay a dividend but its more of a hedge on the markets. If the market dives normally gold and silver rebound, hence gold and silver have been dragged through the dirt the last couple years.

WPM currently has a p/e ratio of 29.28 and sports a current dividend yield of 2.24%. The quarterly dividend per common share is set at 30% of the average cash generated by Wheaton’s operating activities over the previous four quarters (divided by the number of shares outstanding). So like I mentioned before it is not a dgi stock, and the dividend will bounce up and down consistently.

Its currently 30.43% below its 52 week high and 4.78% above its 52 week low.

Analysts at Yahoo Finance give Wheaton Precious Metals a buy rating and a target of $26.36. Representing a decent 26.6% gain!

Ex dividend date – End of November sometime 28th?

Savaria Corporation

Savaria Corporation designs, engineers, and manufactures products for personal mobility in Canada, the United States, and internationally. The company operates in three segments: Accessibility, Adapted Vehicles, and the Span

This one just got added to my radar after a over 18% drop today… and Dividend Investor posted something on twitter. What happened? I think the market over reacted. Maybe the increase of Ebitda? A big earnings miss?

Seems like short term noise to me. Savaria has been growing like crazy and with the baby boomers coming to that age. Their business should do very well.

Savaria has a p/e of 24.94 and carries a 2.48% yield. They unfortunately dont offer drip though..

The potential is in this massive dip though. Analysts give them a buy rating with a target price of $22.67. That would be 70.19% gain. Absolutely huge, and it seems like it could be possible if they keep setting new records and produce a great quarter next time.

Ex dividend date -Nov 30th

Well that is the 5 current stocks on my watch list at the moment.

I should note this will be a new holding in our resp account. We currently have CNR, Enbridge and Canadian Utilities and feel they are pretty full holdings. (unless they pull back significantly)

After this purchase our kids resp will be fully funded and I would top the holding up in the new year, to enable the drip.

What are your thoughts? Which one would you buy? Are you watching any other stocks at the moment?

Cheers!

14 Responses

  1. Cntrysky says:

    I’m looking into Trans-Canada myself. It is on my list. My son’s resp has Micron Technology, Oracle, Dollarama, and Switch. Switch was a mistake. Dollarama is hurting but I’m okay with holding onto it. My watch list consists of: Trans-Canada, BMO or TD, Fortis, Emera, and BCE.

    As for my own portfolio I’m on purchase hold mode. I do have about 5k to move around. I’m leaning more towards Fortis again. I used to have a nice dividend based portfolio of my own with Fortis, Emera, and Canadian Utilities but sold it to help in a down payment towards the house. Now I’m hyper-hyper paying off the house by shelling out 1700 bi-weekly. That is the only debt with an interest attached to it. I’m hoping to get that paid off by the next 5-6 years. I’m still wondering if this is the right approach – or save towards further stock purchasing. I’ve been researching heavily lately though.

    • Rob says:

      hey country

      thanks for swinging by. Love seeing new face.

      As for the paying off the house thats your call. I used to do that with our previous house. I ended up switching up my style and used some of those funds to grow our passive income. how we increased our forward income by 12k

      I missed the boat on fortis a week or 2 ago. was debating it at 41 since then it shot right up.

      I like your watchlist as well. bns may be a good bank to look into as well.

      Good luck with whatever you decide to do. 5-6 years until a paid off mortgage aint bad either!

      cheers

  2. Hey Rob,

    Interesting picks. I’ve stayed away from oil generally speaking over the years.
    I share CU with you and, while I feel I have a full position, I would still take a closer look on a significant pullback as you mentioned. The yield is great and the dividend growth is legendary as well.

    Take care,
    Ryan
    Get Rich Brothers recently posted…The Best Thing to Ever Happen to Canadian InvestorsMy Profile

    • Rob says:

      hey Ryan

      cu is definately a stock i love owning. got to love dividend history like that!

      Interesting about staying away from oil. I hear ya, some.people hate that industry.

      cheers mate!

  3. I’m not familiar with Weathon and Savaria, but you can’t go wrong with SU, IPL, and TRP. IPL is becoming very popular stock pick amongst the bloggers. Especially at $22 and change and 7.5% yield. Looking forward to your buy post!

    • Rob says:

      hey German.

      Thats part of my problem with wpm and savara. They arent exactly blue chips. I dunno if ipl would fall in that category either though.

      It definitely has been a favorite amongst bloggers recently.

      Cheers
      German

  4. Cody says:

    Hey Rob,

    I’ve been eyeing IPL over the last month myself for my tfsa. Also been watching ADW.A but don’t have enough cash to pull the trigger on both. ADW.A is a small cap wine producer. They’ve been growing their dividend over the past few years and wine is becoming quite popular. I was also hoping fortis was going to stay around 42 as I had some money in my rrsp account so I could have bought more to DRIP but sadly it shot up. So now I’m hoping for a pull back. However for a long term hold it probably still isn’t a bad price

    • Rob says:

      hey Cody

      Didnt even notice the pull back on Andrew peller wines. That stock has been doing really well in the past.

      Fortis kinda sucked but its a long term game, it will be back to those levels eventually.

      Cheers Cody

  5. GYM says:

    I have heard of Savaria but thought it was like either a big pharma company or a weed stock company, lol!
    GYM recently posted…The 7 Stages of Investing: Which Stage Are You At?My Profile

  6. May says:

    I have IPL and TRP, both under water. 🙁

    Want to buy more TD and BPY.UN.

    I have bought 200 FTS @$42. I still had tons of utilities underwater so no more utilities for me any more.

    I stay away from energy stocks as they are too cyclical. I stay away from resources too as I feel there is no growth there.

    I was very unlucky with small cap companies, so I generally stay away from business that is under 1B assets.

    LOL, looks like not much left to invest.

    • Rob says:

      haha Hey May

      Ipl and Trp may signal a buy if your underwater. I was really considering bpy.un but i think I may let it play out at least another quarter. I like what they want to do with the malls though. That will be good for both the retail and residential side of things.

      Yeah you did eliminate a lot of sectors…. Guess just banks and telco’s?

      cheers May!

  7. May says:

    Another one I am looking to buy is SJ. Its price right now is almost 52 weeks low, and I am hesitating to pull the trigger due to the market trend.

    • Rob says:

      stella jones is a interesting pick. We use them all the time on wood landscape projects. Great product. I would be worried about new home construction though. I hear from some people its slowing for them in the trades. Now that could be just seasonal or maybe the tides are changing a bit with higher interest rates.

      Rails and teleco’s will keep replacing those ties and poles though. 52 week low buys are nice.

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