Friday, 22 April 2016

Next Buy Watchlist: April 2016

    While I have been rather busy lately with some recent buys, mainly building up and cost averaging down my position in Manulife Financial, not once, but twice! Adding to Pembina Pipeline as well, as my most recent buy in TD Bank. I have been buying stocks and building up my portfolio while neglecting to post about those stocks which are on my radar. Sometimes it is due to seeing an opportunity crop up and I go for it, or being just a bit too busy to post, or not having any particular stock in mind.

    This time around since my last buy of TD I have a definite purpose for my next buy. My holdings in the Financial sector, and oil related companies has become more heavily concentrated than I would like. In part due to buying more of those stocks as they sank in value, and have now rebounded a bit resulting in their further weighting in my portfolio.

    Specifically I am looking to build up my positions in my renewable energy and utility company AQN, PZA which owns the franchising rights to a chain of fast food pizza stores, firmly in the consumer market and the Canadian telecom giant BCE, also known as Bell Canada.

Algonquin Power and Utilities: (AQN)

    To date, AQN has been the top performing stock in my portfolio. The company has been steadily growing its revenue base through acquisitions and new projects; primarily wind and solar power projects, and buying utility companies. Annual revenue increased 9.2% in their last four quarters, annual adjusted net earnings were up by $.46 per share, 24.3%!

    The only current 'downside' at the moment is that since the dividend is paid in USD, the dividend has gone down a bit due to the current increasing strength of the Canadian dollar.

The stock ended the week at a price of $10.67, dividend yield of 4.72% and Price to Earnings of 25.34.

Pizza Pizza Royalty Corp: (PZA)

     I have held onto my shares of PZA for quite some time now, and have added to the position in the past as well. Throughout all the market volatility in the past year, this stock has more or less held its own compared to the swings in Financial and Oil companies. And that is something I like about it; the relative stability of its stock price, and its consistent monthly dividends which increases twice in 2015.

    The company is steadily increasing year over year sales in most of its locations, and opening more than they are closing. Sales increased by 5.6% last year, the restaurant network added 7 more total locations, their cash reserve was increases by about one million dollars. The company also saved themselves a lot of money by negotiating down their credit facility interest rate down by 1.37% which is good management to me.

     The stock ended the week at a price of $13.7, dividend yield of 6.11% and Price to Earnings of 16.69.

BCE, Bell Canada: (BCE)

    If you live in Canada, you basically have three main options for your phone and internet provider; Rogers Media, Telus and BCE. More than being just a telecom provider, BCE has continued to generate consistent gains in profit and steadily a steadily growing dividend. Throughout the volatility of the last 6 months, BCE's stock price decreased by -.88%, which is only slightly worse than the TSX Composites -.03%.

    The stock ended the week at a price of $58.48, dividend yield of 4.67% and Price to Earnings of 19.61.

    On my long term radar, and looking to further diversify away from Energy and Financials I have been looking into possibly adding a railway to my portfolio, with Canadian National Railway Company (CNR) currently as my favourite.


  1. Hey DW,

    Nice list... I'm now looking into AQN as a renewable energy play. Few names to look into it. Thanks for this.

    1. Thanks.
      Yeah, I really do like that AQN is both a renewable energy company, with the added stability of having a sizeable Utility business as well. Both sections of the business tend to have fixed long-term service contracts.

  2. Thanks for sharing. I'll need to take another look at Pizza, Pizza. It's not a typical DGI stock, but the dividend is interesting. I don't care for the product, but I still buy it for kids parties and such.

    1. PZA is certainly not the common DGI stock. Its more on the small-cap side, and you are technically buying the Royalty Pool, not franchises themselves. The products I find are fine, good enough at a great price, with a lot of good specials. And I would rank their online ordering system is top-notch.