3 Stocks I Plan On Buying In 2021 At Current Prices

3 Stocks I Plan On Buying In 2021

3 Stocks I Plan On Buying In 2021 At Current Prices

This market continues to just amaze me. Throw a dart put some money into that growth stock and watch the profits. It really seems that simple these days. I got a buddy who has been doing basically that and it’s been working great for him. He’s even getting lucky with penny stocks.

Some people probably feel like the next Warren Buffett these days. Look at his portfolio, who would want to own that? There’s no growth, you can see people say on twitter. Musk mentions a stock or bitcoin on twitter and things fly, or to the moon some would say. haha

Right now it seems like you shouldn’t even be in traditional blue chip stocks, no one wants those. Get some game stop or amc and hodl.. (I hate seeing hodl, it so dumb – its spelt hold.)

I guess I’m old school but most of our portfolio is built on quality blue chip stocks. While the market continues to go green and some of the value quality blue chips have jumped in price there is still a couple bargains to be found. These are the 3 stocks I plan of buying more of in 2021 at their current prices.

Lockheed Martin – LMT

3 Stocks I Plan On Buying In 2021 At Current Prices

With tax time near and being able to file them as early as Feb 22nd, this will most likely be our buy for the month.

As usual I plan on figuring out how much taxes we will get get back and use a line of credit to invest more into our rrsp before the 2020 deadline. (March 1st 2021) Playing with numbers until they basically break even from the total tax return and amount we owe to line of credit. This is a great play to get more money working for you faster, but you need to be disciplined to pay that loan back as soon as you get that tax refund! If your interested in reading more about this approach you can read what we did a couple years ago here.

Lockheed Martin would be a new position for us, but I think its safe to say this stock is a great buy at the moment. They are a wide moat stock operating in a industry I don’t see changing for a very long time. LMT has a massive backlog of projects and while there are beliefs that the democrats will cut military spending I just don’t see it.

Wars while Trump was in office were basically non-existent and now we see tension with Taiwan and China. It sounds bad but I really think in the next 5 years we will see more missile’s being fired than the past 5 years. If I’m wrong – Great I would rather see no wars. Country’s will still be spending lots of money on defence.

I’ll be buying this stock because its a wide moat stock that isn’t going anywhere and is cheap at the moment. Based on yahoo finance we can see 7 analysts rank it a strong buy and the price is basically at the bottom of the analysts price targets. The stock price will gain 21.10% to get to the average analyst price target at current prices or 32.5% to get to the top of the range. Not much downside, lots of upside.

What about that dividend?

At current prices the starting yield is a solid 3.05% while they have a 5 yr avg yield of 2.54% and their payout ratio is 40%. All great numbers and with a starting yield quite a bit higher than their 5 year avg this implies they could be undervalued.

They have raised their dividend consistently for 18 years and sport a 5 year dividend growth rate of 9.8%. Very nice!

TC Energy – Trp.to

3 Stocks I Plan On Buying In 2021 At Current Prices

But Rob, why tc energy? They just cancelled the keystone pipeline..

That should show you how valuable existing pipelines are! Companies that have these pipelines in place are great investments. While everyone and their grandmothers think green energy is coming overnight. Its not. Demand for oil may go down in the future but natural gas will only pickup in my opinion. Nuclear power as well. We are going to need even more energy from power plants to power all these electric cars.

Tc energy checks off all these boxes. They have lots of existing pipelines, both oil and natural gas. They are increasing their renewable energy exposure, own or partially own 10 power plants (Nuclear & Natural Gas) and have 118 billion cubic feet of natural gas storage facility’s. I think they will be fine without keystone.

If anything the keystone news just offered us a great price to get some more shares!

Out of 15 analysts 13 of them recommend to buy or strong buy.. The current price is actually under the low range of their targets.. You got a 12.72% gain just to get to the low end of the range. 24.67% gain to get the average price and finally a 38.18% gain to get to the top of that range.

We know the oil and gas sector is beaten up but wow those numbers look good. They also have a very healthy dividend too.

Currently Tc Energy has a starting yield of 5.95% and will likely raise that dividend next week with earnings. Their 5 year avg yield is 4.46% so again that gives an idea that they could be undervalued. Tc Energy has a 20 year dividend growth streak with a great 9.3% 5 year dividend growth rate.

So you got a massive starting yield, great dividend history and a stock who’s price is actually under the analysts low end target price. It actually sounds to good to be true. I guess you got to ask yourself do you think oil and gas is dead? If not this is a bargain.

Algonquin Power & Utilities – AQN.TO

3 Stocks I Plan On Buying In 2021 At Current Prices

One thing we all know about the next 10 years – renewable’s will be massive. Every country wants to have more clean energy moving forward. This industry has all the tailwinds on its side. The problem is a lot of the green energy plays have ran up to overbought territory in my opinion.

As we can see above Algonquin is no different, but it has been very generous with its dividend growth and has a lot of projects in construction. You also get a 3.53% starting yield which is pretty nice considering how much the stock has ran up and compared to other renewable energy companies.

Now it should be noted Algonquin isn’t a pure green energy play. They also are in the natural gas, water distribution and the wastewater business. Great diversification in areas that will only be in more demand in the future.

The stock is not a steal at the moment like the other 2 above, but its in a industry you definitely want to be in for the future. You can see the price is actually higher than what analysts predict it should be and the yield is lower than their 5 year average of 4.33%.

They have a 10 year dividend growth streak and a 5 yr average dividend growth rate of 10%. Algonquin power also offers a 5% drip discount, which is incredible if you like to drip your stocks like I do.

This stock has been one of our best performers and while it may not be the cheapest today I think in 5-10 years I’ll be glad we just continued to add to our position as they continue their impressive growth. Algonquin tends to issue more stock once in awhile when it finds a great acquisition or for future projects. That has been a great time to buy them on the dip in our experience, keep an eye out for times like that.


Well there you have it 3 Stocks I Plan On Buying In 2021 At Current Prices. Tc Energy and Lockheed Martin are definitely on the top of the list, but Id love to get more Algonquin sometime in 2021 and I really wouldn’t mind paying current prices for it.

While the market keeps chugging there are still some values out there. Is there any stocks that you are really planning on adding at current prices?


22 Responses

  1. DividendsOn says:

    Hi Rob,

    Both TRP and AQN are on my list of possibilities to add more shares to. I’ll make a final decision after they announce what dividend increase percentage they plan to give to shareholders.

    I’ve already added to MRU and BCE this calendar year since they gave me an increase I was looking for.

    • Rob says:

      nice buys

      That mru raise was sweet. Bell was great too, but they are really in the publics eye now after taking all that grant money. I may add to our position some time as well though.

      I think tc energy will boost theirs 7% and algonquin another 10% guess time will tell.

  2. Jake Coady says:

    Renewables will be a big play this year for sure, as well as cryptocurrencies. NXE and FCEL are 2 great renewables I’ve been looking at. For cryptos I think Ethereum will continue to increase throughout the year.

    • Rob says:

      wow never heard of either of those fcel has had a great year. nxe as well!

      Cryptos have been interesting. I have even debated starting a position in bitcoin. Think that’s fomo though. I think its a matter of time before the govts put more restrictions on crypto and that will really hurt them. Obviously could be wrong though. If you have crypto, you have done very well this year!

      cheers Jake

  3. Hey Rob,

    Love the thought process on energy stocks and how valuable existing assets will continue to be.

    As far as blue chips, my strategy over the past decade has been to build a solid foundation before even considering venturing outside of them. I would recommend the same to anyone starting out; get a good base before trying to build a skyscraper.

    Take care,

    • Rob says:

      hey Ryan thanks

      I hear ya, gotta love big chunky payouts. LMT would be a new one but I may even consider selling 3m which I think has more downside risk than upside and came in with that weak .68% dividend raise. This would beef up lmt even more.

      cheers Ryan

  4. PCI –

    Good list, looking forward to seeing what you end up buying in the coming weeks!


  5. German says:

    I already jumped on AQN and TRP and plan to add more in the future. The markets are going higher and so are the valuations. It’s just a matter of time until we start calling everything overbought. I would love to see some kind of correction to put new money to work.

    • Rob says:

      nice German

      Yeah same here a 10% correction would feel like deals at these levels. Reits and Energy still haven’t felt the love, so we have been adding there at least.
      cheers man

  6. jimmbboe says:

    I 3 are excellent choices! The week before you posted this, I had some dividend cash laying around being lazy so I opened a small position in LMT and added to TRP. Have begun sorting out my tax return but TDAM is usually a laggard as far as t slips go so I probably won’t file until mid March.

    • Rob says:

      Nice Jim
      2 great buys

      Yeah I don’t think I have got our rrsp tax slips yet either. Simple enough to look up how much we contributed though. Guess next wkend I’ll sit down and try to figure it all out.

  7. May says:

    You have convinced me. I always wanted to add AQN. I am hoping a low price on Monday due to Texas storm. Now I also plan to initiate a position in LTM too. It’s impossible to drip on this one though. I have only enough money to buy 30 shares.

    TRP I am not sure. I think it’s undervalued right now. But ENB more undervalued? ENB has a wider moat than TRP, but TRP has a better balance sheet than ENB. Debating about these two. Why you chose TRP over ENB?

    • Rob says:

      hey May

      Nice, yeah wonder if it will drop more. Its dropped back a bit lately. Nice to see it under 22 again. Yeah lockheed martin is going to take a tonne of capital to drip. Hopefully they split the stock, but that will still take a lot of capital.

      TRP vs Enbridge is a hard one. I didn’t touch on it because we are overweight enbridge. The cancellation of keystone is great for enbridge though. Like you mentioned trp has a better balance sheet. I think based on yahoo analysts trp has more upside than enbridge but really I dont think you can go wrong wither way.
      TRP will probably continue to offer higher dividend growth the next couple years due to their balance sheet though.

      All the best may

  8. May says:

    LTM is running away from me. Crying……..

    • Rob says:

      haha I hear ya.

      Started my taxes this morning. was going to buy lmt tomorrow. Well still will be. only 2% gain but sucks to see

  9. fuscratch says:

    I’ve picked up BCE and FTS this week. Both telcos and utilities have underperformed in the last 12 months. BCE yielding 6% and Fortis yielding 4% are good entry points IMO.

    • Rob says:

      nice Fus

      fortis under 50 is tempting for sure. I have debated swapping my cu shares for them due to their weak raises.. Still debating it though. I will definitely be adding to bell sometime in the future, although their share price really hasn’t done much for a long time. Trying to get more growth in the mix as well.

      Keep it up

  10. May says:

    I have bought all three recently, and everyone of them went down after my purchase. LOL.

    Bought LMT at 332.60. Happy that I didn’t buy above $340 and waited a bit for it to be back.

    • Rob says:

      hey May
      sorry to hear. I bought lmt at 138$ So you got that one better than me. In general the market pulled back this week though. The way I look at it – cheaper drips!
      I do wonder if this will be the start of a market pullback, but I’m perfectly fine with that. If we are still accumulating we should welcome this.

      Cheers May

  11. May says:

    I have no worries at all. This year my investment goal is to get fully invested, no sideline cash now I realized that I will not be able to buy when the market is really at the bottom. All the purchases are for long term.

    You mean you bought LMT at $338? If you bought at $138, that cannot be now, has to be a few years back. LOL

Id love to Hear What You Think

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