Friday, February 12, 2016

Latest buys : $CNR $BNS $ATD.B

February has been quite poor Market wise and it generaly means it's been good buy wise. I can't say that I have been doing big buys but I kept the nibbling machine on. Not full blast, but nevertheless on.

Let's take a look at what I did with my investing money :

I have expressed many times on this blog my love for trains. I own both Canadian Pacific (CP) and Canadian National Railways (CNR).

These companies have both been affected by the Market dips recently. It was a great time to get my hands on usually expensive shares of CNR. I already own CP and I won't add new shares until they start growing their dividend a little bit. It seems like they need their money right now to buy Norfolk. Will see how this goes. It's like a snake trying to eat an elephant... For now, I concentrated my time and energy on buying some more of CNR, its main competitor in Canada.

On January 26, Canadian National Railway raised its quaterly dividend to 0.375$. It represented a 20% increase. The dividend yield is still low at a little less than 2%, but the management team have been quite constant in their dividend raises. I am confident they will keep doing so in the future.

  • So, I have recently added 10 shares of CNR at 66.98% for a total of 669.80$ . This adds 11.50$ in dividend to my passive income. I now hold 70 shares of Canadian National Railway and I'd like to hold a 100 shares. So this stock remains on my target list. Unfortunately, I wasn't able to buy some more because that's all the money I had in this particular account. Hence the small buy.
  • I also bought some Bank of Nova Scotia. (again) How much of something good can you have? I guess a lot. I bought 19 shares at 53.55$ for a total of 1017.45$ This adds 43.20$ in dividend to my passive income. I now hold 170 shares of BNS and it's now my biggest financial holding with a weight of almost 6% in my entire portfolio. 

  • Finally, I bought shares of Alimentation Couche-Tard (ATD.B) twice. I bought 40 shares at a price average-cost of 56.83$ This adds 10.80$ in dividend to my passive income. I know this stock is not a dividend growth stock like most ones I hold and it's not very popular among the DGI community either.  My take on this one is simple : would you rather get on the wagon now, while the dividend is low and the stock price affordable, or when the dividend is fat but the stock price is way too high? I have big hopes in this winner. 

So that's it for now. Let me just tell you what I have in mind if Mr. Market keeps going down:
  • I have my eyes on buying yet again either some more Power Corporation or Power Financial (POW and PWF). If one of them goes below more that 5% of my cost-average price of respectively 26$ and 30$ I will move. I will say it once again : these stocks are super cheap.
  • CNR is still on my radar. If it goes below 70$ I will be extremely tempted.
  • I am thinking about selling my TransCanada Corp (TRP) shares to buy some more Endbridge (ENB). Same with my Jean-Coutu shares (PJC.A). Will see how it goes. I would like to own no more than 20 stocks.

What do you think about my buys and my immediate plans? I would like to hear about you guys.








8 comments:

  1. Great buys, ATD.B isn't on my radar due to the low dividend yield but I like your way of thinking.

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  2. Hey Tawcan! You are the Pistol Pete of bloggers. I'm still correction some typos. Yeah, I know about ATD.B and I understand your thinking too. Will see how it goes with this one. He's part of my experimental stocks, let's put it this way! ;-)

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  3. Great purchases, MD. Nice to see ATD getting added to your portfolio - it'll do great over the coming years, Im sure.

    I need to take a close look at the financials and the valuation and see if I want to initiate a position.

    Also, long CNR and BNS...so looks both of us have firm belief in those companies.

    cheers
    R2R

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    1. Thanks R2R. ATD.B is a stock that is growing fast so numbers and ratios aren't as easy to read compare to more established companies, like BNS and CNR.

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  4. Thank you for sharing MD. All awesome buys. Very solid high quality companies. You're doing fantastic so keep it up. One buy at a time and we will conquer all our dreams and goals. Cheers buddy.

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    1. Thank fast Edie! ;-) Yup, let's keep hustling one week at the time!

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  5. Bonjour,
    J'ai manqué le train avec CNR si je puis dire... bon achat! Le titre a repris des plumes depuis mais il demeure encore attrayant. Ça fait longtemps que je veux monter à bord mais le dividende est famélique. Pour Couche-Tard, mon feeling est le même que le tiens.. à long terme le dividende devrait être plus intéressant. Du moins, j'espère. Il est probable que je prenne une petite position sur ce titre cette année.

    Pourquoi vendre Jean-Coutu? Je pensais plutôt ajouter à ma position au prix auquel le titre se transige dernièrement.

    Keep investing!

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    1. Merci Alain. CNR va sûrement replonger cette année. Tu en achèteras à ce moment-là. Je crois que 2016 sera une dure année côté bourse. Le dividende n'est pas élevé, mais il est augmenté de façon constante. Quant à ATD.B, c'est un peu un pari. Mais j'ai confiance au titre. C'est pour du long terme. Pour ce qui est de PJC.A, je vais peut-être t'écouter. Le titre n'est pas cher et libre de dettes. Ça vaut peut-être la peine, surtout que je le verrais bien fusionner avec Metro. À suivre. Cela dit j'ai trop de titres avec 22. J'aimerais ramener le tout en bas de 20.

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Thanks a lot for your comment.