Monday, 18 May 2015

Recent Buy! May 2015

    Found myself with some extra cash floating about since I received my tax refund this month, the benefit of not earning a lot eh? So with my tax return I put it to work right away and threw in some additional earned cash with it, as well as allocating some of my record breaking dividends from last month as well. And since I knew my return was coming I have been following a few stocks in particular, but didn't have the time to post a watchlist as I saw a good opportunity to buy. So I put that money to work by purchasing additional shares in the monthly paying Pembina Pipeling Corp. (PPL).

    Recently PPL has taken a bit of a minor beating in its share price, down 1.92% in the past month. Even though they recently declared a 5.2% increase in their dividend.  With a 52 week low of $36.16, and high of $53.04 it is a bit on the lower end of the midpoint of those valuations. I picked up my recent 47 shares at $41.13, which has lowered my average cost basis from my previous buy of PPL at $41.73 to a total share count of 70 at $41.33.

    With these additional 47 shares working for me, I now receive $7.17 more per month and $86 per year. Which roughly works out to a yield of 4.4%, which to me is pretty solid. And as with its recent dividend increase, PPL has a consistent record of increasing its dividend and has a good record of increasing its share value over time by consistently growing its business.

    Overall I have been quite happy with my holding of PPL and am very happy to now be holding more of this great company. In one my portfolio simulation accounts its grown in the lower double digits while paying out a great dividend. Combined with my prior holdings I now expect a healthy monthly payout of $10.68 to contribute to my passive income stream. I am also expecting to make another addition some time later this month, and will definitely make a list of what I am watching and hoping to add to my portfolio. As well as a couple stocks that I will be considering as potential buys if I were to have a non-registered account or a US stock for an RRSP contribution.


  1. Nice purchase, DW. Ive looked at Pembina in the past and really liked it. However, with a large energy exposure, Ive been focusing elsewhere with my investments.

    Best wishes

    1. I feel you on holding back due to a large allocation in energy. Its why I went with PPL over a large averaging down on Suncor. The business is a bit less dependent on actual oil prices. And my last big purchase in energy was AQN which is renewable/utilities and not oil at all.

      Thanks for coming by

  2. Nice purchase. I have never heard of PPL before, and I'm not very bullish on the energy sector. I might consider buying some oil futures if oil falls below $40.

    1. There are certainly a lot of different companies out there to choose from and never hear of! At this point if oil goes to below $40, its going to be a very interesting time for oil stocks/futures. Especially since many of the larger oil companies have cut down their capital spending/work forces already to adjust to lower prices.