New Account & New Stock For The Portfolio

Hello everyone hope you are well. On today’s post I am going to share with you a new account and a new stock that has been added to my portfolio.

New Account

The new account is one that I have mentioned before on the blog, but only in my net worth posts. The account is my Locked In RRSP account. This account is from a previous employee from whom I got laid off from in 2010. Since that time the bank has had control of this money and it was in mutual funds.

Last month I had the thought of why don’t I take control of the of the account and invest in stocks, and receive dividends. So I opened an account with my brokerage and last week the money was finally transferred into my new account giving me control. The money was not a huge amount, about $3,858. Beginning in March I will be adding this account in my monthly dividend income report as that is when dividends will start to flow into the account.

With this account I cannot add money to the account as it is a Locked In RRSP and I cannot withdraw the money until a certain age. So that being said my goal for this account was to find a stock that I could drip and gain additional shares each month. As it turns out I couldn’t decide on a stock, I did however buy a stock that pays monthly with a high dividend yield.

Stock Purchase

The stock that I decided to purchase for my Locked In RRSP account is Enbridge Income Fund Holdings. I purchased the stock near it’s 52 week low, and believe the stock can rebound and provide some capital appreciation.

About The Company

Enbridge Income Fund Holdings Inc., through its investment in Enbridge Income Fund, holds energy infrastructure assets. The Company’s business is limited to ownership of its interest in Enbridge Income Fund (the Fund). The Fund’s objective is to pay out a high proportion of available cash in the form of dividends to shareholders. The Fund is involved in the transportation, storage and generation of energy through its liquids transportation and storage assets, including the Canadian Mainline, the Regional Oil Sands System, a 50% interest in the Canadian and United States portions of the Alliance Pipeline, which transports natural gas, and interests in renewable and alternative power generation assets. The Fund’s assets consist of a portfolio of Canadian liquids transportation and storage businesses, including the Regional Oil Sands System in Alberta and pipelines in the Saskatchewan Bakken region, and the Canadian segment of the Southern Lights Pipeline.

Source (RBC Direct Investing)

Dividends

Enbridge Income Fund Holdings has been raising it’s dividend since 2011. Last week the company announced during their quarterly earnings release that they will continue to raise the dividend 10% per year through 2020 instead of 2019 as previously planned. The stock has a current yield of 8.10%

Purchase

On February 13th I purchased 141 shares at $26.97 per share. Total cost of the buy was $3,812.76 (including trading cost). I believe I bought at a good price as the stock was near it’s 52 week low ($26.36).

Income

Enbridge Income Fund Holdings currently pays a monthly dividend of $0.1883. My 141 shares will pay me $26.55 per month. Annually I will receive $318.60. If the stock drops a bit more than I will be able to drip a share, if that doesn’t happen I am ok with that. I am happy to collect $26.55 per month, after awhile I could buy another stock with the cash.

Well folks what do you think of my purchase? Would you invest in this stock?

Thanks for reading

Matthew

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