October 2020 Stock Purchases / 1 Sale – Sweet!
October 2020 Stock Purchases / 1 Sale
Its been awhile. Life has been busy as the season is starting to near its end. Between work, all the leaves to clean up around the property and kids. I haven’t felt like sitting down to write a post.
This one will be a summary of our purchases and sale we did this month.
Let’s start off with the sale. Im pretty sure I’ll hear about this but I think its a great move for our portfolio long term.
Sale of Brookfield Renewable Corporation.
After Brookfield Renewables created their new corporation we got some shares of them. I really don’t need 2 tickers of the same stock so was debating what to do. Should I sell my normal shares and put all that money into the corp or vice versa?
At the same time these 2 tickers now made up over 9.5% of my portfolio. (Its safe to say Brookfield Renewable has done very well for us.)
I decided to sell our 36 shares just north of 81 bucks each. While the corp has advantages with taxes for other investors I didnt think the stock would propel itself too much further ahead then bep.un and keep those shares.. Clearly I was wrong as bepc keeps running…
I still hold 148 shares of bep.un that currently makes up 6.4% of our portfolio.
I really love the company but wanted to lower that allocation and move some money into a company I have wanted to own for awhile and think is undervalued. (Bep has had a massive run up since mid September)
This sale lost – $62.49 usd in forward dividend income.
Turning that clean energy money into dirty energy….
I said it last month when I sold our altagas shares. I would love to start a position in Tc energy (trp) someday. Well that happened earlier this month. I noticed they were trading at 55 bucks a share and don’t see that too much, So I used the proceeds from the bepc sale and some new cash to start a position in them.
Crazy right? Renewable’s are the future. Gas is dead..
Well currently I think the renewable’s are overvalued while oil and gas stocks are quite cheap. As I try to keep my sector diversification in check, my oil gas stocks have fallen to one of my lowest sectors. I always love pumping our lower sectors.
Gas will still be around for a long time and natural gas especially will always be in demand. While the producers will really feel the cyclical nature of the business the pipes will still need to move product. These days its harder than ever to get approval to build a new pipeline and the companies that have them in place, basically have a solid moat.
Enbridge for example is one bill I will always have. I wanna heat my water and home, I need natural gas. I cant call another provider like I could do with my phone bill. As an investor, you got to love that.
Of course there is risks investing in this sector at the moment, we have seen the gauntlet of dividend cuts. I am a victim of the IPL cut.. arg! But I feel Tc energy can weather this storm especially with their lower payout ratio compared to Enbridge.
We bought 71 shares of Trp at just over 55 bucks a share. At this price we had roughly a 5.9% starting yield and these shares will now generate $230.04 in added income.
The company has raised their dividend each year for the last 20 years and has a 5 year div growth rate of 9.5%
Morning star gives tc energy a fair value price of $66.34. At the current price of $53.40 the stock could be 24.23% below fair value.
Let’s be honest, microsoft ain’t cheap! But they seem to be doing all the right things and have tonnes of growth vectors lined up. I think this may be the best dgi tech stock out there.
My portfolio has not performed the best this year due to my lack of tech.. It has been something I have wanted to grow, but haven’t wanted to pay for them and their low starting yields. (Msft has a 10% 5 year div growth rate though – better yet a 14.3% 10 year div growth rate)
A couple months ago I started a small position in Microsoft and was glad to beef that position up this time around. I bought the shares at 216 and change, so averaged up. Their earnings were approaching and I wanted in before them as I thought they would beat earnings yet again. Well they did and the price dropped along with the rest of the market..
Ahh well can’t time the market!
Slowly I plan to grow this into our largest tech holding. Here’s hoping the market continues to slide.
This purchase added $15.68 to our forward income.
Well there you have it our October 2020 Stock Purchases / 1 Sale moves… Brookfield renewable continues to be one of my favorite stocks in the portfolio, I just had to trim it down a bit.
In total we added $183.23 to that income so far this month.
Currently we have a bit of cash that I’m waiting to deploy but the way the market keeps dropping before elections makes me want to wait a bit. Maybe I’ll make a purchase Friday. It would be a Canadian stock/ etf so I’m debating between more Enbridge, Td, xre.to or maybe even capreit.. I guess we will see what opportunity’s arise.
What are your thoughts on these moves? Any stocks in particular you have or will be buying?
Have a great Halloween!
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.
Great buys. I have been buying MSFT, JNJ and tons of ENB.
3 great companies
JNj has and keep pulling back. Id love to grab me some more soon.
Great buys Rob, MSFT and TRP are long term holdings for me. I agree with you about holding two tickers I actually went the other way and sold BEP and kept BEPC.
Was a great move on your part as bepc is on a tear!
Great buys. I kept my both BEP.UN and BEPC since they are both in my TFSA, so no tax implications and the numbers are low. I am surprised that they went with the 2 entities, instead of just converting to a corporation. Maybe, on day they will give investors the opportunity to convert one position to the other via a corporate action.
When buying oil and gas, it is safer bet to buy the transporters over the producers. Natural gas is needed for electricity, heat and fuel for some vehicles across North America.
Who knows, what will happen. Clearly it has drawn in more investors and was a great move though. Definitely a fan of the pipes
No way!! That’s crazy because we did the same trade. We had Brookfield Renewable in my wife’s portfolio. Clean energy stocks had a big run-up and are way overvalued these days. Anyway, she wanted to exit. I suggested her to buy TC Energy and she did. I will probably buy TC in my own portfolio as well, especially if it continues to trade in the low 50’s territory. The payout ratio is between 50 and 60% which is darn good! Microsft buy is also good! Keep up the good work!
haha that is kinda crazy.. guess great minds think alike eh?
I may add more to trp at these levels as well. Gotta love seeing the red in the accumulation phase.
I’ve owned TRP since 2003 and ENB since 2004. IPL I first bought in 2015. (I don’t get them all right.) Other pipelines we own like KEY and PPL I first bought last year and have been adding to these two every so often. Pipelines represent just less than 15% of our all Canadian taxable dividend growth portfolio. I like this sector a lot just for the fact that it’s down and other investors seem to hate it. I’ll take the high dividend yields along with some income growth thank you very much.
Wow you basically got all the Canadian Pipes! Im a big fan of enbridge and trp. IPl I bought more for the heartland complex. I keep debating adding at these levels but that div cut left a bad taste in my mouth.
No question its not a bad idea to buy the out of favour sectors as they offer great yields and growth as you stated.
Nice job, love the moves being made and the net dividend income added. Getting to freedom, one step at a time!
Que Mel Gibson – FREEDOM!!!!!
Nice purchases. BEPC certainly has run up quite a bit, I’m just as surprised as you are.
yeah. Here comes the 3 for 2 stock split though. =)