Friday, November 13, 2015

Three More Recent Buys - TransCanada, Inter Pipeline and Alaris

After writing a disclaimer as part of last week's entry recapping six transactions, and explaining how unusually high that number was, I made five transactions this week. In fairness, my three long-term buys this week all corresponded to planned purchases of stocks trading below the target prices set out in my November watch list. The other two transactions relate to short-term trade I made today in my RRSP. 

On Tuesday, less than a week after Inter Pipeline Ltd announced record results and increased their dividend by 6%, their stock fell below $24. I took the opportunity to acquire enough shares in my TFSA to re-establish my full position in the company. Using some accumulated dividends to buy shares at a discount to my average cost and at a dividend yield north of 6% was a no-brainer for me. 

Also on Tuesday, when Alaris Royalty's stock fell over 5% after announcing their Q3 results,  I established a position in the company in my unregistered account. Even though I already had an overweight position in Alaris in my RRSP, I wanted to open a position in my unregistered account as I feel comfortable contributing to this dividend grower any time it goes on sale. Instead of explaining yet again why I love this company, I'll refer you to a reply I made to a comment on last week's entryAlaris is now my largest holding, and I wouldn't hesitate to go even further overweight on it. 

On Wednesday, I added enough shares of TransCanada to complete my position in my unregistered account. TransCanada's share price has been trending downward since President Obama denied the Keystone XL permit, but the company has many other projects on the go, and was even rewarded a $500M contract to build a pipeline in Mexico. Completing my position in TransCanada that yields over 5%, and has plans to grow its dividend by at least 8% annually through 2017 was an easy decision. 

This morning, I saw an opportunity to purchase shares of Enbridge Income Fund below $30, and jumped at it with some over-reaction money I keep inside my RRSP. As the stock recovered a couple hours later, I decided to exit the position at a nice profit. 

My Investment Holdings page has been updated to include the above purchases. To paraphrase last week's ending thought 'with five transactions under my belt, I can assure you that the rest of November will be quieter.' 

Do you make any short-term trades or are you solely focused on holding securities for the long-term?

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