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|
|Unfortunately, we could not get stock quote TSE:AQN this time.||Algonquin Power & Utilities Corp||500||$11.18||$5,590||$285.40|
|Unfortunately, we could not get stock quote TSE:CPG this time.||Crescent Point Energy||300||$16.63||$4,989||$108.00|
|Total Yearly Div Increase||$393.40|
Companies I sold
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.
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!