It’s Back – Recent Stock Purchase
It’s Back – Recent Stock Purchase
Hope you have been having a fantastic month so far. I just came back from a weekend away with the boys fall musky and pike fishing. Get them while they are fattening up before the winter. No musky but we caught about 25 pike up to 7 lbs and one 8 lb rainbow trout. That was cool but was out of season. We just release the fish, hopefully next year we can get them again but bigger.
It was a great time – the weather cooperated, no bugs and the fish were biting.
On to The Stocks
A couple weeks ago I posted our watch list for the month. It included Brookfield Property Partners, Telus, JNJ, 3m and disney.
I had a great opportunity to buy 3m at $151 but I tried to time the purchase at 149 and change. Missed that one! The stock has ran right up. Since then U.S stocks ran up and I decided to make this months purchase a tfsa one and let those us dollars stack up a bit before next months purchase.
So my eyes were set on telus and BPY.un, until Cris one of my long time followers mentioned looking into Nutrien again. This was a stock I used to hold and have wanted to add back to the portfolio. I sold my position last year for about $71-72 a share to buy one of our cars.
I have seen it a couple times this year around the 64 dollar mark but as I raise cash the stock rebounds and I buy something else. Not this time.
Nutrien is the result of the merger between Potash Corp and Agrium. It is now a powerhouse of a agriculture company. As the worlds population increases the need for fertilizer will continue to grow. Also the move to legalize dope should benefit them in this regard as well.
Here’s a couple highlights from Nutrien’s website.
Our network of over 1,700 retail locations in seven countries provide a wide range of products and services to help growers around the world feed the future. We provide our customers with complete agriculture solutions including nutrients, crop protection products, seed, service and digital tools.
Nutrien is the world’s largest potash producer with over 20 million tonnes of potash capacity at our six lower-cost potash mines in Saskatchewan. With decades of high-quality reserves and our multi-year expansions complete, we are well positioned to meet the world’s long-term potash needs.
Nutrien is the third-largest nitrogen producer in the world with over 7 million
tonnes of gross ammonia capacity and the ability to produce more than 11 million tonnes of total nitrogen products in the US, Canada and Trinidad.
Nutrien operates two large integrated phosphate mining and processing facilities and four regional upgrading plants in the US. Nutrien is now self-sufficient in phosphate rock.
Gotta love the range of operations Nutrien has from mine to retail. Right now there is a short-term global slowdown in the potash market and nutrien has decided to temporarily shut down some production until things pick up. I think this is why the stock has recently pulled back. Being a long term investor I feel this offers a good buying opportunity.
This is great for our sector diversification as well, since we don’t have any positions in the basic material sector at the moment. (we do own physical precious metals though)
So on Monday we purchased 26 shares at a cost of $64.16 per share. It currently pays .45 cents u.s quarterly and sports a yield of 3.72 in Canadian dollars. This purchase adds 46.80 usd to our forward dividend income.
I’m glad to be holding Nutrien once again. Since the merger they have proven to be shareholder friendly. This year they raised the dividend twice increasing it a total of 12.5%. Have they proven themselves to be a solid dividend growth stock? No, but they are a pretty new company. Short term things may be a little rocky, but long term I believe the future looks good for the fertilizer companies of the world.
Dividend Portfolio has been updated.
What are your thoughts on this purchase, or what have you been buying?
As always have a great day.
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.
Nice buy. I have never owned it (except for in my funds), but was actually recently looking at it as well. I never pulled the trigger, but will keep an eye on it.
Thanks man, it may keep dropping on potash wooos. Definately worth watching.
Congrats on the purchase, one step closer to freedom as I say!
Yes! slowly but surely.
Cant wait for my mel Gibson moment… FREEDOM!!
Nice buy Rob, I remember owning Potash Corp but sold it a long time ago. I will have to add Nutrien to my watch list. Congrats on the purchase!
Potash was nice for sure but gotta love the added diversity after the merger. =)
Congrats on the purchase. I put an order to buy NTR today and unfortunately it’s not filled up. The price I offer obviously too low. I will try again later.
haha what is your target price?
hope it hits (if it’s not too low) haha.
Nice to see you putting that cash to work May.
My original price is 63.20. As it’s even lower today, I got 100 shares @62.99. Prepared to buy more if it’s going lower.
My cash is cumulating and I didn’t buy much this year. Really need to deploy the money. The market is full of uncertainty and I am feared to buy. Reading your post gives me more courage. Thanks.
Nice, way to buy it under 63.
There has been a tonne of noise the past 3 years since I started investing. I have also passed on certain stocks because of all the noise surrounding them. Some are up 10-20% since and had a massive starting yield. Aristocrats and kings… Wish I didn’t listen to the noise at the time.
You should definitely listen to the noise but start filtering it out as well. Way to put some of your cash to work May
All the best
Definitely trying. Bought 100 shares of QSR this morning at $84.73.
nice. Love qsr. 3 great brands under one roof
Great buy. No future headwinds that I see with fertilization. Great place to put your money.
The grass is always greener on the other side?
Well the ones who fertilize that’s for sure!
Certainly a nice buy! It’s even nicer, you got it for 10% cheaper from where you sold it. I’m also keeping an eye on Nutrien, especially at these levels.
Got to love buying it cheaper than I sold it, helps with the buy for sure.
Last week I bought myself 50 shares. I will add more if price goes around 60 CAD.
One more think, because they pay the dividends in USD, today I called my brokerage to have the shares changed in USD as well, and to keep the dividend in USD.
Here are 2 more stocks to watch: QSR (~82) and SJ (~35).
Regarding the cash, I recommend everybody to have min. 5% in cash at any time for any opportunity.
Myself, as I try to play more defensive these days, I am around 15% in cash or cash equivalents and intend to increase it. Why Buffet is having more then 25% in cash?
Happy Halloween everyone!
nice watchlist, I’d love to add more qsr as I’m a fan of all 3 brands.
Stella Jones I dont follow much.
Interesting about the cash, that seems like a tonne. What would make you deploy that? a 10% overall market drop or more?
I guess I bought both QSR and SJ too early. SJ I bought @37.58.
Will buy more of everything if they are down more.
I have about 30% cash, and another 10% in bonds right now. I think it’s just too much. What’s your target of cash? 25%? Do you have other FI asset?
I am a value investor person and I try to have some margin of safety when I deploy my money, special in these days. I would say that the buy and hold is good strategy but, sometime, you have to be reasonable in your expectations and to trade a little bit the market.
When your portfolio grows, having some cash available make more sense. For a while, I didn’t like the idea of just keeping a lots of money in cash (even if last year cash was the best performer of the year) until I found the ZST ETF which gives me 2.8% dividend paid monthly. After all costs I keep around 2%. I have most of my accounts with Questrade and don’t have to pay when I buy ETF, just when I sell, 5CAD/order.
When the opportunity arise, I deploy in one stock 2,3 orders progressively based on how low the price goes. When the company is recovering I sell some of the shares and the rest I let it run. More I see the company is undervalued, more money I deploy.
I recommend to look a little bit in the technical/charts analyses and accommodate it with fundamentals/value investing. Some indicators can really help (RSI, MACD, EMA20,50,100,200, Fibonacci) to make better entries and exits.
Last fall I had over 25% in cash and in December I ended with 3% in cash. Is hard or impossible to time the lowest price but, when market is going down I invest every few days around 2-3000.
The market is overvalued and in the last couple weeks I sold or reduce positions in Apple, GS, BBBY, MS, BEP.UN, BIP.UN, MG, XIU, HXS. I bought NTR (when will reach 60 I will add more), emerging markets ETF, gold and copper miners, PCG, CAH, LNR
I am doing mistakes as well but, 80% of them are mostly because I am not patient or don’t read proper the charts to place my trades.
EX: I sold QSR at 99 (40P/E) but the average P/E is around 25. To get to that average the price should be around 80.
Check these video series:
Thanks so much for all the information. I have lots of cash last December but didn’t have courage to deploy the cash when the market was down. I am still new to this game, so lots of things to learn.