3 Recent Buys – BIP, CU, FIH

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

  • First purchase: I added 48 shares of Brookfield Infrastructure Partners (BIP.UN.TO) @ $50.00. There’s been significant pullback lately and after waiting a long time to add more shares in this, I finally got the opportunity. I had a lowball offer sitting open on this company for a while and it was triggered yesterday when the stock fell below $50.00 mark. The stock currently yields close to 5% and is a dividend grower, while providing excellent infrastructure exposure around the world. BIP has a 10-yr dividend growth track record. The 1-, 3-, and 5-yr dividend growth rates are 12.5%, 10.8%, and 11.7% respectively.
  • Second purchase: I added 50 shares of Canadian Utilities (CU.TO) @ $32.92. The utilities sector has been in pressure as the interest rates are rising providing investors with better risk-free return. However, I think this presents a good opportunity to buy companies in this space currently. The current yield is hovering close to 5% and the company has a long track record of increasing dividends year after year. In fact, it occupies the top spot in the Canadian Dividend All Star list, with a 46-yr dividend increase streak.The 1-, 3-, 5- and 10-yr dividend growth rates are 10%, 10.1%, 10.1%, and 8.6% respectively. Not bad at all for a 5% yielder!
  • Third purchase: I added 100 shares of Fairfax India Holdings (FIH.U.TO) @ US$17.20. This was the third iteration of purchasing and I am far from being done accumulating this company. The company provides a great way to invest in India and has plenty of great investments already for a 3 year old holding company. I wrote about this company in the past here. No dividend from this company — the company follows the Berkshire Hathaway model and all funds are reinvested.

Full Disclosure: Long BIP.UN.TO, CU.TO, FIH.U.TO. Our full list of holdings is available here.

2 Recent Buys – CU, NGD

Some quick updates for the recent moves in my portfolio. I made a few purchases in January that I never got around to documenting, so here it is.

I made the following purchases in January 2017

  • 100 shares of Canadian Utilities Ltd (CU.TO) + 1 STO covered call
  • 1,000 shares of New Gold Inc (NGD.TO) *New position*
  • + New portfolio for my daughter – details coming soon in a separate post

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Canadian Utilities Dividend Increase

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The first dividend raise of the year! Canadian Utilities Ltd (CU.TO) announced a 10.17% increase in its cash dividend. (On a side note, the sister company Atco Ltd (ACO.X.TO) shareholders got a 15% raise) The quarterly cash dividend will increase from C$0.2950 to C$0.3250 per share and payable on Mar 01, 2016 to shareholders on record as of Feb 05, 2016.

 

Canadian Utilities has the longest streak of dividend raises in Canadian Dividend All-Star list with a 44-year streak. This raise keeps that tradition going on. The annual dividend rate goes up from C$1.18 to C$1.30. Yield going forward based on today’s closing stock price is 4.20%.

Canadian Utilities Dividends

Canadian Utilities (CU.TO) Dividends & Dividend Growth Rates

My portfolio consists of 50 shares of Canadian Utilities (read about my purchase here from Aug 2015), which increases my annual dividends from C$59.00 to C$65.00, an increase of C$6.00.

Recent Buy – Canadian Utilities Ltd

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August generally tends to be a rough month in the markets and brings plenty of volatility. Coupled that with the ongoing jitteriness of interest rate hike fears in the US and recession fears in Canada – there are some interesting opportunities out there. Regardless, I continue to purchase looking for good opportunities trying to tune out the noise. Whenever I make a purchase, I like to share my buys to document and illustrate how I am building my income stream over the course of months/years. My main goal is simply to keep investing at regular intervals and build my passive income over the course of time. In staying true to tradition, here’s another purchase in my portfolio, this time adding a new company to my portfolio.

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