Recent Stock Purchases – $166.76 Of Added Forward Income

recent stock purchases

Recent Stock Purchases – $166.76 Of Added Forward Income

We made 2 purchases already this month. Time continues to fly by and this market, just keeps running. Biden wins and we see some green and then pfizer says they are getting close to a covid vaccine and things get really excited..

Who knows when people will actually be lining up to get the vaccine but there’s a little bit of light at the end of the tunnel right?

Here in Ontario things are really starting to tighten up yet again, it seems its just a matter of time before we go into full lock down.. Is it necessary? Well the media definitely would have you believe it is. I have my doubts. The city I work in has only 25 active cases in the whole city and yet they are going into red. But that’s a whole different topic right?

It’s sad to see all these small businesses struggling to get by and governments basically shutting them down while the big corporations keep on rolling along and generating larger profits. As an investor you want to see your stocks getting larger profits, unfortunately it just feels like its becoming a uneven playing field.




Stock Purchase #1 – Enb.to

Enbridge – This is one of our largest holdings and our biggest contributor to our dividend income. For that reason alone I was debating on adding to them. On the other hand Energy stocks have just got beat right down in 2020. Straight up beaten!

The reality is we will need conventional energy for along time still. We can transition away from it which some places are doing but there will always be those people who drive older cars. Hey we are them! Both our vehicles are 2013, screw new. We aren’t rich enough for that new car smell yet.

Natural gas will be the cleaner alternative moving forward until things go all renewable or some other new tech energy source.

Enbridge is North America’s largest pipeline company and goods will be flowing through those pipes for quite some time. Adding new pipes or even working on an existing one in this day and age is a nightmare which can be bad for Enbridge stock but also shows how wide of moat those existing pipelines do have.

The good thing is Enbridge has came out and said the writing is on the wall and will start investing more into its natural gas and renewable’s business. While all these other renewable utility’s are setting new highs and frankly are getting too expensive. Here’s this wide moat energy behemoth that will be transitioning to renewable’s for dirt cheap.

How cheap?

Well here’s their 5 year chart

enbridge 5 year chart

Cheapest it’s been in 5 years! Now some of you may be saying that’s a loser stock then, but the company has a increased its dividend by 11.75% on average each year the last 5 years. They are targeting a 5-7% div increase per year until 2022 now though which they mentioned after last years solid raise. They currently offer a mouth watering 8.67% starting yield..

Is it sustainable? I think so, in fact I think they will raise their dividend next month by 5%. In my opinion 5% would be great in this environment and Id rather them pay down some of that debt or even buy back shares at these prices with their extra cash flow.

Enbridge is a wide moat Canadian stock that is undervalued. Morningstar gives it a fair value of 52.44 per share representing a potential 44.22% return to get to fair value plus those dividends while you wait!

We added 39 more shares to our kids resp at $36.29 per share. This added $126.36 to our forward income and also maxed out the kids resp for yet another year.

Stock Purchase #2 – Jnj

Johnson & Johnson – One of my new favourite stocks. They have stayed in that 135-150 window for awhile now. Which is a good thing because I really think they are at fair value in that range and I’m in the accumulation phase. I love the company and their brands, they are a dividend king and in general I love the healthcare space as the population ages.

Will they develop the covid vaccine? Who knows, that’s just speculative but they already have so many avenues to generate revenues and have been doing it along time. The elephant in the room these days is the Opioids and Talc Cases that keep going to trial. I think that’s the main reason jnj hasn’t taken off like most stocks and once they get resolved and surgery’s get back to normal we will see a nice run.

Unfortunately it has already seen a nice run Biden got elected. It used to be 137 a share. The goal was to grow my position each quarter though if its under 150.

It just made the cut this time around and we added 10 more shares at $149.63. Not a steal but in the long term I think I won’t be complaining. This purchase added $40.40 usd to the forward income of our dividend portfolio. A dividend king and a Triple A credit rating, gotta love jnj!

recent purchases - wide moat

Conclusion

Well our recent stock purchases added to our existing positions in 2 wide moat dividend growth stocks and will generate $166.76 in forward income. So far it’s been a good month in the investing world with all these green days and growing incomes.

With all these new covid cases in the states I’m hoping for some better opportunity’s moving forward, but that old adage always stands true – Time in the market beats timing the market.

What are your thoughts? Have you been making any purchases or taking advantage of these cheap energy stocks?

cheers

 

8 Responses

  1. DividendsOn says:

    Good work Rob. I added more shares to our ENB about a week and a half ago.

  2. Looks like ENB is quite the popular stock these days with a lot of investors continuing to add to their positions in this pipeline. Great stuff Rob!

  3. John says:

    Nice Rob! I also added to Enbridge (and a bit to Fortis) earlier this month. I had lots of other plans for investment heading into year end, but then my furnace got red tagged >:(

    Now i’m learning that COVID supply chain issues didn’t end when toilet paper was available in stores again. Suffice to say, my investment plans are on hold!

    • Rob says:

      hey John

      Arg sorry to hear that John. Hope they get that furnace replaced for your asap, its really cold today out there.. We were just talking about possibly getting our heat exchanged replaced. Its been shot since we bought the place. Just don’t use it, but it could be beneficial.

      Nice purchase of enbridge and fortis. I keep debating starting a position in fortis but at the same time debate more algonquin and possibly bip.. Sooo many utilitys!
      haha cheers John

  4. May says:

    Great buy. You are already making money. I bought some ENB too early. My ENB on whole still in deep water since I began to buy it three years ago. I am thinking ENB might become a target of capital loss harvest at year end? I was attempted to buy more ENB but feel that I am already overweight with pipelines.

    I think ENB should not do another dividend raise coming December though. I’d rather they reduce the debt and put the balance sheet in better shape.

    • Rob says:

      hey May

      Long time! Great to see a comment from you. Hope life’s been good. I’m down on Enbridge as a whole as well, but as a long term play i’m not too worried about it.
      There’s no question enb could be a target for tax loss harvesting but people could of already been selling off their positions. If it drops more that’s great from a drip perspective but like you, Our position is getting overweight and I don’t know if I would add more currently.

      If Enb just maintains that div I’ll be happy but I think they will come through with a raise. No question they could use that money to improve their financial position.

      cheers May!

Id love to Hear What You Think

This site uses Akismet to reduce spam. Learn how your comment data is processed.

%d bloggers like this: