Union Pacific: Is It Bottoming Soon?

Union Pacific Corp

Union Pacific Corp (UNP) is the largest publicly traded railroad company in North America. The company commands an impressive 32,000 miles of rail network in western US.

Railroads are considered a wide moat industry, as it entails immense capital requirements and new entrants in the industry are almost unheard of. Railroads are the pulse of the economy. Whether transporting crude, lumber, merchandise, agricultural or industrial products, railroads are what keeps the economy moving. Railroads are often closely observed by economists and analysts to get a sense of how the overall economy is doing. It is also considered a leading indicator for any recessions or slowdowns.

While crude shipments are on their way to a recovery thanks to the rise in oil prices, coal remains in a secular downtrend – both of which play a crucial part in UNP’s revenue.

Is the stock bottoming soon? Continue Reading Here >

Chatter Around the World – 149

Chatter Around the World is a curated weekly update of articles related to economics, investing, dividends and personal finance. In these weekly updates, I also capture my blog updates and news related to my portfolio holdings.

How the Fed’s language/emphasis has changed over the years

Let’s dive into the links that caught my attention this week.

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Recent Buy – Pan American Silver Corp

Whenever I make a purchase, I like to share my buys to document my journey towards financial independence. This latest purchase diverges from the normal buys that I normally pursue, as I shared in this post – Multipronged Approach to Investing. So far, I have relied on companies with growing dividends, but the current market leaves me nervous wanting me to look elsewhere. I started to look at contrarian trades and looking for undervalued assets and decided to make further moves in this space.

Last week, I shared my first move in the precious metals space with a purchase of Silver Wheaton Corp (SLW.TO) (details here). Continuing with the theme, this time I am directly targeting a mining company. Investing in precious metals can take many forms and I have discussed some methodologies here and here. To recount from those articles, investors may choose to invest using bullion (comes with ownership/storage costs), ETFs (paper contracts, loses the point of investing in precious metals) or mining companies (comes with risk, such as exploration risks, management issues, lack of understanding space etc).

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Passive Income Update – May 2016

Welcome to our monthly passive income update for May 2016. This is part of the scorecard series where we track our dividends and other sources of passive income. We also include changes and updates related to our investments during the month – showing the growth of our dividends going forward.

Passive Income  Update

Passive income for the month of May 2016 was C$615.91. The passive income for the month comprised of US$312.35 and C$206.73 (exchange rate is US$1 = C$1.31).

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Passive income change is -1.74% QoQ and -5.04% YoY for the month. The passive income YTD is $3,421.31 achieves 38% of our annual goal of earning $9K.

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Exelon Corp Dividend Stock Analysis

Exelon Corp (EXC) operates in the electric and natural gas distribution business servicing Illinois, Pennsylvania, and Maryland. The company suffered during 2012/2013 as it saw profits fall and the company had to resort to cut its dividends. The dividend cut resulted in the stock getting punished severely, as the income investors headed to the exit door. However things are starting to turn around as the company just raised its dividend for the first time in April (a 2.58% raise) since the cut and currently appears slightly undervalued. There is a potential for some upside movement over the next year, but the company also faces closure of its best performing (albeit losing) nuclear power plants in Illinois.

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