Recent Buy – IPL

BuySell

A quick update on a a recent purchase in my portfolio to close out the month of October.

I feel like I keep repeatedly publishing the same post over and over ūüôā I had put in a low-ball offer a few weeks/months ago, which got executed last week. In this purchase, I added 100¬†shares¬†of¬†Inter Pipeline Ltd (IPL.TO) @ $20.80.¬†IPL is a pipeline company that I have been a shareholder in for a long time and continue to build my position over the years. I have doubled my position since the start of 2018 with these purchases. IPL now makes a substantial position in my portfolio and will possibly look at limiting any more build-up since I do not want to own too much portfolio concentration in a single stock. With a current yield of ~7%, this purchase adds CAD$168 to my forward dividend income.

With WCS crude prices selling at record lows, the upstreams are desperate to sell as much as they can to keep the revenues up (possibly a good time to look at some upstream plays in the Canadian oil sands sector, such as Suncor, Cenovus, Canadian Natural Resources etc…but I digress). As a result, all pipelines are running full and future capacities such as Line 3 from Enbridge that is scheduled to come online in fall 2019 is already completely sold out. In addition to the pipelines, upstream operators have been buying all capacity they can find on railroads, trucks etc. So, it’s a good time to be a midstream operator in Alberta, and I think this is a good opportunity to add to IPL.

Full Disclosure: Long IPL.TO. Our full list of holdings is available here.

Recent Buy – KL

BuySell

A quick update on a a recent purchase in my portfolio.

Hard to ignore some crazy cheap valuations in the precious metals mining sector. Last week, I nibbled a bit and added more to my already largest position in portfolio. I added 100¬†shares¬†of Kirkland Lake Gold¬†(KL.TO) @ CAD$23.00.¬†I have been buying KL (and its pre-merger Newmarket Gold) for a while now. The company has been one of the best performing stocks in TSX (and my portfolio) and executing even better than expected. Management continues to make fantastic progress with their revenue and earnings quarter after quarter, started issuing dividends last year (and has tripled them since!), news flow has been stellar every few months where higher/better/richer resources discovered in their existing mines. It’s hard to find a fault with this company.

Lately, the company has come under selling pressure and was a head scratcher for everyone. Finally, it was revealed last week that Van Eck (the ETF company) was dropping KL from its junior index (GDXJ) and promoting it to the senior index (GDX). GDXJ’s top holding was KL and this explained why there was so much selling over the past few weeks. It was also announced that Sep 21 would be the final day of selling out from GDXJ. When the market provides you fat pitches, you have to swing! I decided to wait until this window was closing and added to my position on the last day of selling. It has also been noted that insiders have started buying below CAD$25.00, so I think it provides good valuation at the current price. Current yield is close to 0.5% and with this purchase, I add $12¬†to my forward dividend income.

Full Disclosure: Long KL.TO. Our full list of holdings is available here.

Recent Buy – FNV

BuySell

A quick update on a a recent purchase in my portfolio.

The recent strength in US$ has sent commodities and precious metals plunging, and with it all gold focused equities have taken a beating. This provided an ample opportunity to add to one of my core positions in probably the best company in the space. I added 50 shares of Franco Nevada (FNV.TO) @ CAD$79.90. FNV is a streaming and royalty company, with lucrative deals in the gold, silver and oil&gas space. The deal structure is so good, that Franco has to literally do nothing for the next 30 years and will have increasing revenue and will be able to pay a rising dividend to shareholders. Now that is a sleep-well-at-night kind of stock. Franco Nevada is also a dividend grower, having raised dividends for 10 consecutive years. Current yield is close to 1.5% and with this purchase, I add US$48 to my forward dividend income.

I also hold Franco Nevada for my daughter’s Nest Egg portion of portfolio. I will earmark 15 shares from this purchase for her. See further details on her portfolio here.

Full Disclosure: Long FNV.TO. Our full list of holdings is available here.

Recent Buy – IPL

BuySell

A quick update on a a recent purchase in my portfolio to close out the month of August.

I had put in a low-ball offer a few weeks/months ago, which got executed just before the market closed last Friday. In this purchase, I added 100 shares of Inter Pipeline Ltd (IPL.TO) @ $24.00. IPL is a pipeline company that I have been a shareholder in for a long time and continue to build my position over the years. I have doubled my position since the start of 2018 with these purchases. IPL now makes a substantial position in my portfolio and will possibly look at limiting any more build-up since I do not want to own too much portfolio concentration in a single stock. With a current yield of 7%, this purchase adds CAD$168 to my forward dividend income.

Full Disclosure: Long IPL.TO. Our full list of holdings is available here.

2 Recent Buys – BCE, XLY

BuySell

A quick update on a couple of recent purchases in my portfolio. For this round, I added to existing positions.

  • First purchase: I added 60¬†shares¬†of¬†BCE Inc (BCE.TO) @ $53.40.¬†I’ve had my eye on the telecom sector for a while and after a lot of lowball offers that did not get executed, I decided to up my offer a bit and finally got filled. BCE owns interests not only in the telecom, but expanding heavily into the media & content business. With the stock yielding 5.6%, the purchase adds a nice $181.20 in forward annual dividends.
  • Second purchase: I added 2000¬†shares¬†in Auxly Cannabis¬†(XLY.V) @ $1.07. The company has recently undergone some transition and changed name from Cannabis Wheaton Income (CBW) to Auxly Cannabis. Auxly remains a great financier in the field of cannabis and has a great leadership team with Chuck Rifici as CEO. A sector in its infancy, there is immense chatter about buyout and large investment targets, esp with the large alcohol companies targeting Canadian LPs for marijuana-flavored drinks. I am a little disappointed with the price I paid since I was looking to add at $0.75, but my trade didnt get executed (missed it by $0.01), and the following day the stock rallied massively. Still think its a decent price and my ACB remains well under $1.

Full Disclosure: Long BCE.TO, XLY.V. Our full list of holdings is available here.