Enbridge and a new position.
Good Morning.
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.
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
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 share​. 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!
Hey I’m Rob, creator of Passive Canadian Income.
In 2011 me and my wife had almost $60,000 in debt and a negative $7,000 Net Worth. Through hard work and financial education we paid all that off. Now we are focusing on increasing our Passive Income Streams to make the money work for us. Feel Free to Follow along the Journey by clicking the Social Media links below or subscribing to get notified of new posts on the sidebar.
Both excellent companies in my opinion I own both myself. Keep up the good work. Also glad to have you in the Facebook group 🙂
Hey Matt thanks. You as well, I see your posts there =)
You got a great deal PCI! Great buy. I also joined the Facebook group. It is an active group.
Hey pell thanks. Yeah tend to learn and get tipped from that facebook group. Cheers
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
Thanks Road. Curious why dont you own any enbridge?
Enbridge Inc looks good. Solid business and nice yield \ payout ratio.
http://goo.gl/ZHuwgu
Yep long term should be a great buy
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.
Good to hear Leo. I was really debating it but at the same time i love enbridge. Next quarter should be better since more ppl use natural gas in the fall/ winter.
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.
no problem Sarah that’s what the community is all about. Sharing great finds, may it be enbridge at its current value or the facebook group! Cheers
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
Dam john that is not something i watch at all. Maybe something to consider. Seems like a tonne of potential returns. You think its going to stay flat? I dont know much about natural gas but seems like more power plants are going to it and ppl upgrade their stoves to it. Could consumption be going up? Thanks again for the idea though, something to research.
Or even better look at HNY…
Will do, you and John always give me something to read. I appreciate it!
@cris, I agree a look at HNY as an alternative or addition to ENB
ENB is getting very attractive at these levels. I don’t own it, but I’m considering getting some shares.
Hey Income, I don’t know how your taxes are structured in Germany but yeah Enbridge seems like a great value, dividend and growth stock at current levels.
I’m from Montreal 😉
Nice good bagels and poutines =)
I had added some ENB yesterday and looks like it was a little bit too early.
Hey May welcome. Yeah maybe same here. Hard to time the market longterm should be good though =)