Going back to my "Doh!" moment, I come to the conclusion that if I am going to make the most of compounding the returns I can gain from this investing style, then I must make certain that any stock that I will wish to make use of DRIP with; I must be sure to purchase enough shares/units to make certain the dividends earned are enough to buy more shares/units.
With that simple concept, I feel as though a light, albeit a small one, has come on.
I have today added another 165 units of HCR.UN bringing my total to 320 which will earn in the ballpark of about $25 a month, enough to get another "free" unit every month, maybe even two....
Monday 9 May 2011
Sunday 8 May 2011
Newest Step
Heyo Folks -
I have had a bit of a "Doh!" moment this week. I realized that I cannot DRIP part units of most of my stocks - I simply do not have enough dividends coming in to get new shares for the dividends earned.
This now seems like an obvious thought - but like I said I am still learning.
This week I picked up some payments from my REITs - every little bit adds up.
I have spent a good portion of the week reading and learning from a couple of blogs out there notably:
The Passive Income Earner
Dividend Money
and of course
The Dividend Guy Blog
and many others that I visit on a regular basis.
I had some money moved over from an RRSP I had with an old employer - and more to move as I get clearance to move over the profit sharing portion.
With that money just sitting there and not paying it's way; I have been looking for somewhere to put it. That in mind and applying what I have learned from the blogosphere I created a screener and tried to locate a stock to put to work for me.
My screener looked for the following:
That left me with Emera and Wisconsin Energy
Both are in the utilities world. Emera has the much higher yield and the better dividend growth rate. Wisconsin Energy has the better EPS growth and better dividend coverage.
Ultimately I decided on 100 shares of WEC for a couple of reasons
Now with both Algonquin and WEC in my portfolio I am a little utility heavy so now need to find my next target. I found a couple of articles which may help one about Microsoft, Dell and Cisco at Frank Voisin and another at The Dividend Pig about Intel.
Let me know what you think!
I have had a bit of a "Doh!" moment this week. I realized that I cannot DRIP part units of most of my stocks - I simply do not have enough dividends coming in to get new shares for the dividends earned.
This now seems like an obvious thought - but like I said I am still learning.
This week I picked up some payments from my REITs - every little bit adds up.
I have spent a good portion of the week reading and learning from a couple of blogs out there notably:
The Passive Income Earner
Dividend Money
and of course
The Dividend Guy Blog
and many others that I visit on a regular basis.
I had some money moved over from an RRSP I had with an old employer - and more to move as I get clearance to move over the profit sharing portion.
With that money just sitting there and not paying it's way; I have been looking for somewhere to put it. That in mind and applying what I have learned from the blogosphere I created a screener and tried to locate a stock to put to work for me.
My screener looked for the following:
- Yield > 4.5%
- EPS growth over previous year > 10%
- Dividend 5 year growth average > 8%
- Dividend Coverage (EPS/Dividend*100) of at least 115%
- Emera Inc (TSX:EMA) witha a 57.7% 5 year annualized return
- Wisconsin Energy Corp (NYSE:WEC) with a 48.1% annualized return
- Altria Group Inc (NYSE:MO) with a 142.6% 5 year annualized return
That left me with Emera and Wisconsin Energy
Both are in the utilities world. Emera has the much higher yield and the better dividend growth rate. Wisconsin Energy has the better EPS growth and better dividend coverage.
| Name | EPS Growth (Projected This Year vs. Last Year) | Dividend Yield | Dividend Growth Rate 5 Year Average | Dividend Coverage |
| Emera Inc | 16% | 11% | 70% | 145% |
| Wisconsin Energy Corp | 30% | 5.10% | 36% | 244% |
Ultimately I decided on 100 shares of WEC for a couple of reasons
- A chance to leverage the strength of the Canadian dollar
- WEC looks to have better long term prospects to grow the dividend
Now with both Algonquin and WEC in my portfolio I am a little utility heavy so now need to find my next target. I found a couple of articles which may help one about Microsoft, Dell and Cisco at Frank Voisin and another at The Dividend Pig about Intel.
Let me know what you think!
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