Dripping The Pipes – Oh Yeah!

22 Responses

  1. George Yeung says:

    If you have some cash you like to put to use, why not consider TOO.PR.A cumulative preferred units @ 7.25 pc, redeemable at US dollar 25? Since it is now trading at below the redemption price, the yield is above 9 pc. If you bought some today, you pretty much lock in a capital gain and collect a handsome income in the meantime. What down side risks do you see that I missed?

    • Rob says:

      hey George. I seriously have no clue how these things work. I read that they can be turned in after april 2018…. So couldnt you buy them now at 19 and change and sell for 25 instantly?

      I dont know much about this kinda stuff so tend to stay away. People talk about ftn too and it offers a 18% yield….. Seems really high risk.

  2. George Yeung says:

    Actually I bought some last week at $19 and change. The redemption is at the option of the issuer any time after Apr 2018. If you sold it today it would be at the market price, not the redemption price. Of course, you should hold it if the market price is lower than $25. The preferred units would seem to work like bonds: fixed rate based on redemption price rather than face value; you know exactly how much you get back on redemption (as opposed to maturity); you get paid before the common shareholders; if the issuer missed one quarterly distribution, it is carried forward and added to the next pay date. I think the General Partner of this LP units is Brookfield. That should give investors some faith.

    • Rob says:

      hey George

      Thats interesting, I would have to read more about it. I saw something about brookfield being part of it.

      Interesting pick though.

      cheers

  3. JamesB says:

    I love IPL – keep in mind, they are well into construction on the Heartland Project, whereas Pembina is only getting started. I like to think IPL will be the first producer, and will therefore have first shot at the Canadian customers. I have 813 shares of IPL currently…and am aiming for 1000. By far my largest holding – but I believe it will payoff longterm especially when/if oil recovers.

    • Rob says:

      hey James

      wow thats a nice position. Congrats. Do you drip all that?

      You are right about them being first. Its nice to see the construction on schedule too. I think being first definately has its advantages but the added competition in the future kinda sucks… lol

      You make some great points.
      cheers!

      • JamesB says:

        I don’t drip – I prefer to collect the cash and then use it to buy new positions or add to previous positions. I just don’t like the fact that I can’t control when you are buying in. I also enjoy the $~110/month to buy other things if they are cheap. I have my eyes on FUN, SIX and HOT.UN at the moment.

        • George Yeung says:

          JamesB

          It is interesting to note that you are considering HOT.UN. Do you think their price will recover when they eventually have completed renovating all their properties?

        • Rob says:

          hey James

          Good Point, especially with large positions.
          Nice list. I have heard others speak about FUN at the moment as well. Im definitely a fan of Canada’s Wonderland and next year they will be doing stuff for christmas, so that will help with the seasonal factor.
          cheers

  4. I’m not a big fan of holding much cash either. Although I try to maintain a certain percent in comparison to my portfolio, I am coming up short on that target. And nice buy! This buy adds a nice chunk of extra dividend income, and pipelines could get a nice rise depending on the election and favourable pipeline news. Thanks for sharing, Rob!
    Reverse The Crush recently posted…What to do if you won the lottery so that you never have to work again – $1,000,000My Profile

    • Rob says:

      hey Graham

      Thanks man, we will see what happens to the pipes. We definitely could use more when they are pumping out so much. I prefer them compared to shipping via rail carts less chances of severe damage.

      Holding cash is hard, id rather be pumping up my income. But wish I had more on these dips haha.
      cheers man!

  5. German says:

    I hate to hold cash as well. I rather put it to work asap! Great buy once again. That IPL dividend is very juicy! I’m yet to finish adding to my smaller positions before investing in IPL. The BPY really took off. I wanted to add about 300 shares to my wife’s TFSA when it was around $22. No rush! I’m pretty sure more dips are coming. Usually the markets are soft in the summer.

    • Rob says:

      hey German

      Well heres hoping the markets become a little softer in the coming months, id like another pullback.

      bpy has done a great job and now want to buy back alot of their shares up to 5% at current prices. That will only improve the stock.

      No rush with ipl its been sideways for awhile now.

      cheers man!

  6. George Yeung says:

    Rob:
    BPY has been in the dumps for quite some time. Their buy back at between US$19 and $21 is what is keeping their current price at around US$20. The average cost of my position is around $22. Given its juicy payout and the fact that its unit price is about 30% below the fair value of its underlying assets, I am holding it for the long haul.
    Cheers.

  7. Divs4Jesus says:

    I dont know IPL at all but it does sound interesting with a nice div yield. I’m going to add it to my watch list and see where it falls when I run my personal screens. Cheers, D4J

    • Rob says:

      hey Jesus

      sounds like a good idea. If you dont have a position in Enbridge id maybe go that route first. Its my biggest holding.

      cheers

  8. DivvyDad says:

    Nice buy, and it’s got to feel great to have turned on that drip! I’ve never considered s one, but you make a compelling case. Nd it’s hard not to like that increase to the forward income!

    • Rob says:

      hey dd

      thanks man, yeah got to love getting that drip going. itp seems great at these levels just hope that 3 billion dollar project runs smoothly.

      cheers

  9. Jo says:

    Nice portfolio. I’m looking to add IPL to my RRSP.

    • Rob says:

      hey Jo

      Thanks, ipl at these levels looks good. Curious why in your rrsp though and not your tfsa?

      I try to keep our canadian investments in our tfsas or resps and anything outside canada in our rrsp. Its a great way to stay diversified.

      cheers!

      • Jo says:

        Hey Rob, I’m looking for the dividends from IPL to ‘fund’ acquisition of other stocks in my RRSP. Between contributing to TFSA, RRSP, investment account, work’s defined contribution plan and ESPP…got to figure out a way with what’s left from the pay cheque! My TFSA is already maxed.

        • Rob says:

          hey Jo

          Winning! congrats. Sounds like a great plan. I cant wait until my accounts are maxed, gotta grind harder.

          keep it up

          cheers!

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