Recent Sell – KMI, Bonds

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A couple of sales in my portfolio recently as I try to align my portfolio closer to what I think is better for long term growth.

I sold and closed my positions in:

  • Kinder Morgan Inc (KMI). Loss = 26%
    • I’ve held KMI for a long time and held through the rough patch the company went through a few years ago. However, my capital is not only stagnant, but losing value by staying invested in this dog of a company/industry. So, decided to cut my losses & exit.
  • Bond portfolio: Sold off most of my bond holdings after some good gains, thanks to continued depression of interest rates.
    • Vanguard Total Bond Market Index ETF (BND). Gain = 8.3%
    • Vanguard Emerging Markets Bond Fund (VWOB). Gain = 23.5%
    • BMO Emerging Market Bond CAD Hedged ETF (ZEF.TO). Gain = 16%

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

2 Recent Buys – GOOGL, KMI

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A quick update on two purchases in my portfolio. Without further ado, here are the details.

  • First purchase: I added to my position in Alphabet Inc (GOOGL) @ $1,175.00. Alphabet is a recently new position in my portfolio that I initiated in August and slowly adding to build to a full position.
  • Second purchase: I added 100 shares in Kinder Morgan Inc (KMI) @ $20.00. KMI is my only pure pipeline play, which has turned things around pretty well over the past couple of years, although it is still pretty leveraged. Not a lot of 5% yielders as the yields continue to fall, so adding this at a 5% yield will increase forward dividend income by $100. It is also expected that dividends will be raised by 25% next spring, so thats a pretty good growth rate.

What are your thoughts on these purchases. Share a comment below.

Full Disclosure: Long GOOGL, KMI. Our full list of holdings is available here.

3 Recent Buys – KMI, RACE, CSU

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A quick update on three purchases in our portfolios. It is getting harder and harder to find good value plays as the market seems be pushing the boundaries on the valuation front. With a lot of stocks trading close to 52-week highs, pickings have been pretty slim. However, due to an oversized cash position, I decided to pay up and put some capital to work.

  • First purchase: I added to my position in Kinder Morgan Inc (KMI) @ $19.97. I wrote more about my KMI decision during my last iteration in March. Click here to read about the reasoning. The stock yields 5.0% with a raise of 25% expected in 2020.
  • Second purchase: I added to my position in Ferrari N.V (RACE) @ $165.35. I wrote more about decision to buy this company earlier in July. Click here to read about the reasoning.
  • Third purchase: I added to my position in Constellation Software (CSU.TO) @ $1,252.00. Constellation continues to execute well and aggregate small VMS companies led by a brilliant leadership team. A small dividend is paid (yield of 0.4%), but this is a growth-focused stock.

Full Disclosure: Long CSU.TO, KMI, RACE. Our full list of holdings is available here.

Kinder Morgan Dividend Cut

Kinder Morgan Inc (KMI) announced a 2016 outlook for the company and with that, announced a dividend cut in order to get the cash flow under control. The dividend distribution amount for 2016 is $0.50, down from an annual rate of $2.04, which results in a 75.5% cut. I shared my thoughts on Kinder Morgan yesterday in this article here. The forward yield going forward is 3.18%.

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