Sep 4, 2016

4 Recent Buys - AGU, AQN, MDT, XEL

Starting September with a Bang! Hah, well, perhaps that was a bit an exaggeration. But indeed I have continued to add more parts to my dividend machine. That machine now grinds out about $2,850 per year. I purchased additional shares of Agrium Inc (AGU.TO), Algonquin Power & Utilities Corp (AQN.TO), Medtronic plc and Xcel Energy Inc (XEL). Here are the transaction details:


Buy in CAD - Agrium Inc (AGU.TO)
Trade Price: 124.90
Shares: 1
Commission: 1.00
Total: 125.90
Sector: Basic Materials - Agricultural Chemicals
Yield: 3,6%
Payout Ratio: 56%
Dividend Increase Streak Years: 5
Annualized Dividend Growth 3-yr: 50,4%
P/E: 15,0
S&P Credit Rating: BBB

Buy in CAD - Algonquin Power & Utilities (AQN.TO)
Trade Price: 11.85
Shares: 10
Commission: 1.03
Total: 119.53
Sector: Utilities - Diversified Utilities
Yield: 4,6%
Payout Ratio: 137%
Dividend Increase Streak Years: 5
Annualized Dividend Growth 3-yr: 8,4%
P/E: 28,9
S&P Credit Rating: BBB

Buy in USD - Medtronic plc (MDT)
Trade Price: 86.45
Shares: 1
Commission: 0.35
Total: 86.80
Sector: Healthcare - Medical Appliances & Equipment
Yield: 2,0%
Payout Ratio: 69%
Dividend Increase Streak Years: 39
Annualized Dividend Growth 3-yr: 10,7%
P/E: 33,6
S&P Credit Rating: A

Buy in USD - Xcel Energy Inc (XEL)
Trade Price: 41.25
Shares: 6
Commission: 0.34
Total: 247.84
Sector: Utilities - Electric/Gas
Yield: 3,3%
Payout Ratio: 64%
Dividend Increase Streak Years: 13
Annualized Dividend Growth 3-yr: 5,9%
P/E: 19,5
S&P Credit Rating: A-

So, I'm working hard to get a good dividend income in October. All these companies should pay during next month. You may have heard about merger talks between Agrium and Potash Corporation of Saskatchewan Inc (POT). Shares of both companies have surged since the announcement, but as an AGU shareholder I'm not overly excited about this possible merge. I always considered AGU as smaller but more diversified and higher quality company. Recent dividend cuts by POT confirmed that all is not well there.Then again, bigger player in the industry would have its own benefits. We will see what happens, this merger is still far from completion anyways.

What else then, more Utilities! XEL is a fresh position for me and now I got to average down a little bit. AQN buying program continues with 10 additional shares every quarter. I have dividend withholding tax problem with MDT. Otherwise it would be a cornerstone position. Annoying, but I also like the company and sector too much to let it go.

Thanks for reading. My Portfolio page has been updated to reflect these trades.

Disclosure: Long AGU.TO, AQN.TO, MDT, XEL

4 comments:

  1. Looks like you started it with a bang and gonna bring in some income

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    1. D&H, absolutely. Hopefully these trades bring in some income next month, and every first month of a quarter after that.
      Thanks for your visit!

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  2. I like Agrium but I'm going to hold off until I see a clear bottom for Potash. Chinas recent deal caused a bit of an upside stir but i'm not sure it will hold.

    Lots of mines are shutting down that should help long term.

    Keep up the Divi Growth!!

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    Replies
    1. I like AGU too although I'm not a big fan of the industry where companies are heavily dependent on one commodity price. Having said that AGU is my only investment in Basic Materials sector.
      Thanks for stopping by DC!

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