What’s up FIRE bros. I’ve been doing some buying and got to throw it out there.
FIRST, some questions.
- Is the market expensive? YES
- Are yields Low? YES
- Are earnings weak? YES
- IS there going to be a crash soon? Hopefuly!
- So why buy?
Because…markets are impossible to time.
If you would have told me in February 2016 when the DJI was 16,100, that by the end of the year it would hit 20,000 I would have fell off my chair laughing. ABSURD, I would have vehemently proclaimed!
Alas, we are here.
I reluctantly bow my head to the Mad Hatter Market and push all in.
Companies I Bought
| Company Symbol | Company Name | Shares Purchased | Purchase Price | Total Dollar Amount | Yearly Income |
| [stock_quote symbol="TSE:AQN"] | Algonquin Power & Utilities Corp | 500 | $11.18 | $5,590 | $285.40 |
| [stock_quote symbol="TSE:CPG"] | Crescent Point Energy | 300 | $16.63 | $4,989 | $108.00 |
| Total Yearly Div Increase | $393.40 |
Companies I sold
None
Recent Stock Purchases
What Does This Company Do?
Algonquin Power & Utilities is a diversified North American utility. It has a portfolio of wind, solar, hydroelectric, thermal, and natural gas power-generating facilities, which have an installed capacity of 1,185 megawatts.
Why I Like It
I’m really hot and heavy on AQN right now. I bought 500 shares but I plan to add 1000 more on any dips. The company is like a better Fortis in my opinion. I’m getting a yield of 4.88% at $11.18.
It has a payout ratio of about 50% and most of its earnings are rate-regulated which translates to more stable and predictable earnings.
The dividend has grown from US$0.06 to US$0.1059 cents, which equates to an annualized growth of 9.9% since 2010. The company plans to increase its dividend by 10% per year based on increase earnings and cash flow.
What Does This Company Do?
Crescent Point Energy Corp is involved in acquiring and holding interests in petroleum and natural gas properties and assets related through a general partnership and wholly owned subsidiaries.
Why I Like It
This is going a little bit against the grain. A contrarian play if you like. I bought 300 share and will add 200 more if it dips to the $14 range. I like this company because it is in a good position for the continued recovery of oil.
It has had positive surprises in the last 2 quarters and has learned how to cut costs in a serious way. They have reduced their debt from $4.2B in 3rd quarter 2015 to $3.6B in 3rd quarter 2016.
Major investors also raised their stakes following strong investor sentiment towards Crescent Point stock, including TD Management Inc., which raised its stake by 12.9%. Vanguard Group Inc. also boosted its stake in the company by 10.7% in the previous quarter.
It also pays a small dividend which should grow once it turns the key on some new assets in Saskatchewan.
Boy that province is tough to spell!
Thanks for sharing your stock picks! I have been strongly considering as AQN as well. Glad to know I would be in good company if I pulled the trigger. Thanks again for your perspective!
Jay recently posted…Trend Following Trade Ideas January 2017 Part 3
AQN looks really nice to me. I will be picking op more if the market slides a bit.
Cheers
Nice choices. You can’t go too wrong with high quality utilities over the long-haul; just sit back and collect the dividends 🙂
Nothing better than sitting back and collecting money 🙂
Nice pickups I’ve been looking at AQN for a bit. Hopefully pick up a few shares this year but who knows
Doug recently posted…OHI Dividend raise
The more I look at it, the better it appears. They have a 5 year plan to increase the divi by 10% per year.
I’m long AQN. You’ve got me beat on share though. I like everything about this company.
Investment Hunting recently posted…Why You Need to be Playing Financial Offense This Year
Hey IH
I might pick up more shares of AQN. I just can’t find anything I don’t like about this company.
AQN is on my watch list for the longest time. You can’t go wrong on utilities for reliable dividends. Waiting for utilities to cool off a bit more and i’ll start going into utilities.
Dividends 4 Future recently posted…Mid-January 2017 Update
I do agree that the Utilities are expensive.
Saying that, the whole market is too expensive.
Time will tell but I think AQN will be more expensive in 5 years then today.
Thanks for sharing your recent buys. You hit it on the head regarding market timing. No one would have guessed the market to be where it is today a year ago. Same with oil prices and other commodities. Last January the market was in free fall and the headlines were declaring the bear market has begun. Whatever. Right? Just continue buying solid dividend paying companies. Average into positions, remain diversified and take advantage of near term price sell offs. Happy to see the buying continue!
DivHut recently posted…Recent Stock Purchase II January 2017
Hi Keith,
I consider myself a net buyer, meaning, I plan to buy more than I plan to sell.
I will buy on the ups and the downs and try not to focus on short term fluctuations. It’s a long road and all I know is that I can almost guarantee that the market will be more higher in 20 years than today.
Look like you’re staying busy in Jan over here as well. That’s a great increase in portfolio value as well. On to Feb!
Thanks Chris,
Onwards and Upwards 🙂