Recently I made purchase for a long time hold in my investment account. I was not going to make a purchase as I was planning on building up my cash in my account.
The valuations of most companies in Canada are high right now making it difficult to find value. One of the sectors that has been hard hit is REITs. This is due to the concern over interest rates. I didn't add to my positions in the REITs as a big percentage of my stock portfolio is already in REITs and a real estate corporation.
I averaged down my position of Emera (EMA.TO) as Emera was trading near a 52 week low. I purchased 49 shares @29.40 for a total of 1445.72 with commissions. The yield on this purchase is 4.745%. This purchased added $68.60 to my annual dividend income. Emera has increased there dividend yearly since 2007.
Cost = 1445.72
Cash= 775.56
Borrowed Money (6 %) = 670.16 on margin
Emera Inc. is an energy and services company with over 8 billion in assets and 2012 revenues of 2.1 billion. The company is involved in electricity transmission and generation, transmission and distribution along with gas transmission and utility energy services. They are mostly in the north east of United States and eastern Canada. Emera also has operations in the Caribbean. - Emera Investor Relations.
A large percentage of Emera's business is from Nova Scotia Power. Nova Scotia Power is the only company in Nova Scotia, which has a population of near 1 million, to deliver power to consumers. The wind mills there are owned by Nova Scotia Power or companies that supply the power to NS Power.
I believe Emera will continue to grow and make Nova Scotia Power a smaller percentage of their over all business matters.
I will update my portolio in early October.
Disclosure Long EMA.TO
DISCLAIMER:
Great call on buying Emera. I also have been averaging down on Emera as it hits the high 28's.
ReplyDeleteEmera is a hold and buy kind of stock that will pay dividends for decades to come.
Canadian Reits are also pretty cheap right now. Would love it if banks were cheap but they are not.
$25000 Dividends,
DeleteEmera definitely a good stock to hold. People NEED electricity everyday so it is very safe.