It’s Back – Recent Stock Purchase

It’s Back – Recent Stock Purchase

Hey everyone

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

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.

Retail

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.

Potash

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.

Nitrogen

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.

Phosphate

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.

The Buy

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.

Conclusion

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.

Cheers

Rob

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.