Plaza REIT just gave me a raise (again)!

Just a quick update on one of my favorite REIT’S:

Plaza Reit PLZ.UN just increased their dividend for the 15th consecutive year!  Plaza is one of 2 REIT’S I currently own, and was the first REIT I ever purchased.  Although the retail REIT’s are getting beat up pretty good with the Amazon/online threat, I still like Plaza for the medium to long term as they have a proven history of responsibly increasing their dividends/growing their business.

  Some Highlights from the press release today:

  • Increasing the monthly distribution from $0.0225 to $0.0233 a 3.7% increase
  • Since 2003 the dividend has grown from 8 cents to 28 cents
  • AFFO payout ratio dropped from 82.1% to 80.9%
  • FFO and AFFO per unit increased by 3.4% and 6.5%, respectively

The dividend raise today gives me an extra $10.89 per year in dividends (which will be dripped into more shares).

Plaza is currently trading at $4.36 (very close to it’s 52 Week low) and has traded as high as 5.18 this year.  I think Plaza is still undervalued and anytime the price is below 4.50 is a great buy.  At the current price Plaza Yields 6.3%.

 

 

 

 

 

Recent Buy – Chorus Aviation.

I’ve been on a roll this week.  After no purchases in a couple of months – today I made my 3rd purchase in the last 2 days.

I picked up 268 shares of Chorus Aviation for 8.76.  Chorus is one of those reasonably priced, profitable companies with a monthly dividend that yields over 5%.  Even better RBC direct investing allows this one to drip – so even though I was only able to sccop up 268 shares I should be Dripping an extra share each month as well.

Chorus recently renewed a deal with Air Canada and although it will result in slightly less revenue per year – it guarantees them solid revenue until 2025. They have also expanded  their aircraft leasing side of the business which should start generating more revenue. The dividend looks to be well covered by earnings as well.

I don’t foresee any other purchases for the next couple months (aside from the bi-weekly purchases into my funds).  My portfolio now consists of 11 individual stocks -all Canadian and all owned in my TFSA & 5 funds (held in RRSP).

Updated holdings:

Alimentation Couche Tard
Chorus Aviation INC
Intertape Polymer Group
Algonquin Power
Caledonia Mining
Canadian Western Bank
Diversified Royalty
Nutritional High
Lucara Diamond
Artis REIT
Plaza REIT
US INDEX FUND (RRSP)
RBC CANADIAN EQUITY INCOME FUND (RRSP)
RBC Global Dividend Growth FUND (RRSP)
GWL Advanced ContinuumFUND (RRSP)
GWL Aggressive Continuum FUND (RRSP)

 

Recent Buy(s). Alimentation Couche-Tard & Intertape Polymer Group

I did a customized stock screen last week where I looked at companies with a history of paying/increasing dividends, strong EPS growth and trading at reasonable P/E.  My last post highlighted some of the companies I was torn between and finally today I pulled the trigger on two of them.

Alimentation Couche-Tard  (ATD.B)

I’ve had my eye on Couche-Tard for over a year now, and with the recent price pull back – coupled with the fact I had some cash on hand I figured I had to jump in.  I scooped up 125 shares @ $59.00 each.  Although the dividend only yields 0.61% I think the long term capital growth potential and dividend growth potential will keep me happy for years to come.  I am hopeful they will get into the soon to be legal Marijuana business as well.

The addition of these shares will boost my dividend income by $45.00

Intertape Polymer Group (ITP)

This was a stock I didn’t know much about a couple of weeks ago – but it showed up on my stock screen and after doing a bit more research I thought the price was too good to pass up.  The business itself is boring, but it has paid and increased the dividend for over 5 years (yields 3.5%)in US dollars, has increased earnings year over year and was trading at a 30% discount to the 52 week high.  I purchased 275 shares @ 19.08.

The addition of these shares will boost my dividend income by $192.50 (at current exchange rate).

Both purchases were made in our TFSA so all gains & dividends will be tax free.

I am still keeping my eye on Andrew Peller & Exco Technologies.  Hopefully the next time I have some cash on the sideline they are in my buy range.

 

Looking for feedback on a few stocks!

It feels like forever since I’ve been in a position to make a purchase.  The house sale has officially closed, funds have been transferred, and I have a bit of cash to play around with in one of the TFSA Accounts.

I’ve spent the last couple days narrowing down my potential buy(s).

These are the stocks that have caught my eye:

XTC – Exco Technologies

  • Current Price: $9.93
  • Currently yields 3.22%
  • Trading at almost 30% discount to 52 week high
  • Have consecutively increased dividend 11 times
  • Strong EPS growth

ADW.A- Andrew Peller

  • Current Price: $11.65
  • Currently yields 1.55%
  • Trading at almost 12% discount to 52 week high
  • Have consecutively increased dividend 11 times
  • Payout ratio under 30%
  • Strong earnings growth last 5 years

ATD.B – Alimentation Couche Tard

  • Current Price: $58.69
  • Currently yields 0.61%
  • Trading at 16% discount to 52 week high
  • Low Yield, but have raised it and lots of room to grow it
  • Very low payout ratio
  • Strong earnings growth last 5 years

ITP – Intertape Polymer

  • Current Price: $19.19
  • Currently yields 3.5%
  • Trading at 35% discount to 52 week high
  • Payout ratio creeping up

CAL -Caledonia Mining

  • Current Price: $7.47
  • Currently yields 4.70%
  • Trading at 68% discount to 52 week high
  • Profitable low cost producer
  • Recently moved to NYSE – should get more exposure

 

Just a couple notes:

I’ve had my eye on Andrew Peller,Couche Tard & Exco for some time – they seem to finally be trading at reasonable prices.

I already own some Caledonia, and have been looking for point to increase my position.

I do not know much about ITP – however they kept showing up in my stock screen, so thought I’d dig a bit more into them.

My stocks are purchased via RBC direct investing.  Not all stocks are eligible to be dripped via RBC.  Of the 5 listed above only ATD.B is eligible to DRIP which is fairly annoying.

If you have any thoughts about any of the stocks listed above – I’d love to hear.

 

Thanks