Dec 3, 2016

5 Recent Buys - AQN, ES, MDT, WPC, XEL

All right, here we go again. Change of month usually means more active times for me on the buying front. Going from November till December was no exception. I have bought more shares in Algonquin Power & Utilities (AQN.TO), Eversource Energy (ES), Medtronic plc (MDT), W.P. Carey (WPC) and Xcel Energy (XEL).


Buy in CAD - Algonquin Power & Utilities (AQN.TO)
Trade Price: 11.09
Shares: 10
Commission: 1.03
Total: 111.93
Sector: Utilities - Electric/Gas/Water
Yield: 5,1%
Payout Ratio: 134%
Dividend Increase Streak Years: 5
Annualized Dividend Growth 3-yr: 8,4%
P/E: 26,4
S&P Credit Rating: BBB

Buy in USD - Eversource Energy (ES)
Trade Price: 50.85
Shares: 2
Commission: 0.35
Total: 101.70
Sector: Utilities - Electric/Gas
Yield: 3,5%
Payout Ratio: 63%
Dividend Increase Streak Years: 18
Annualized Dividend Growth 3-yr: 8,1%
P/E: 18,1
S&P Credit Rating: A

Buy in USD - Medtronic plc (MDT)
Trade Price: 73.01
Shares: 2
Commission: 0.35
Total: 146.02
Sector: Healthcare - Medical Appliances & Equipment
Yield: 2,4%
Payout Ratio: 67%
Dividend Increase Streak Years: 39
Annualized Dividend Growth 3-yr: 10,7%
P/E: 24,3
S&P Credit Rating: A

Buy in USD - W.P. Carey Inc (WPC)
Trade Price: 57.10
Shares: 1
Commission: 0.35
Total: 57.45
Sector: REIT - Property Management
Yield: 6,9%
Payout Ratio: 78% (of AFFO)
Dividend Increase Streak Years: 19
Annualized Dividend Growth 3-yr: 17,7%
P/AFFO: 11,3
S&P Credit Rating: BBB

Buy in USD - Xcel Energy Inc (XEL)
Trade Price: 38.78
Shares: 3
Commission: 0.35
Total: 116.34
Sector: Utilities - Electric/Gas
Yield: 3,5%
Payout Ratio: 63%
Dividend Increase Streak Years: 13
Annualized Dividend Growth 3-yr: 5,9%
P/E: 17,9
S&P Credit Rating: A-

Well, that's quite a load of utilities! I kind of realized it only after all purchases completed. That's all right though. Utes are my kind of investments; boring and steady. And at the same time I must say that AQN.TO offers more excitement than a "normal" utility. More growth-oriented, also in water business and renewable energy, AQN.TO is good counterweight to traditional utilities ES and XEL.

I was prepared to buy MDT at $80 level, but their recent forward guidance disappointed investors and I got a ~10% discount. Not complaining about that. Too bad I have a small dividend taxation problem with the company, since it's based in Ireland. Without that Medtronic would be one of my cornerstone positions. And WPC, what a crazy yield. Even a tiny addition like 1 share gives a nice boost to dividend income. AQN.TO, MDT, WPC and XEL buys add to my January dividends, while ES payout should arrive in late December.

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

Disclosure: Long AQN.TO, ES, MDT, WPC, XEL

4 comments:

  1. I don't follow all of the companies listed, but I do like Medtronic, although I don't own it. Being a Canadian investor, I have limited my non-Canadian investments this year due to the currency, but did pick up some Royal Dutch Shell and Flowers Foods.
    I like the AQN buy. It is one of my two utility plays (the other being Fortis). I bought AQN in April at $10.75, and it is on my watch list to buy more. I have a hunch it may slide a bit if the Fed increases rates this month (which I suspect they will), so think I will wait until the announcement.

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    1. Currency fluctuations are annoying aren't they. Throughout the year EUR has weakened against U.S. and Canadian dollars, so in that sense my purchases have become more expensive.
      AQN is different kind of utility for sure, and Fed's decision with consequences will be very interesting to see.
      I have Fortis on my watch list, but probably I have enough utility stocks for now.
      Thanks for stopping by DoD!

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  2. As I always mention, I'm happy to see buys keep coming in especially when the market is marching ever higher. U.K. stocks look to be on relative sale these days. MDT, UL, DEO and others are looking much better. Like the MDT pick up. Thanks for sharing.

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    1. Keith, yeah I keep buying as long as I have free capital to deploy. MDT really looks like a bit of a sale right now. Forward P/E only around 16, which is good number for this kind of non-cyclical business.
      Thanks again for visiting and commenting!

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