Recent Buy: Canadian Utilities

purchase

Hey everyone I would like to share a recent purchase I made with you. Way back on May 11th I decided to buy more shares of one of my favourite stocks Canadian Utilities. This stock as well as others have seen a decline in their share prices as interest rates rise. Before we get into the details let me share with you some information about Canadian Utilities in case you are unfamiliar with the company.

About Canadian Utilities

Alberta-based Canadian Utilities Limited, with approximately 5,400 employees and assets of $21 billion, is an ATCO Company. ATCO is a diversified global corporation delivering service excellence and innovative business solutions in Structures & Logistics (workforce housing, innovative modular facilities, construction, site support services, and logistics and operations management); Electricity (electricity generation, transmission, and distribution); Pipelines & Liquids (natural gas transmission, distribution and infrastructure development, energy storage, and industrial water solutions); and Retail Energy (electricity and natural gas retail sales).

Source: Company website.

Why Different Account

What makes this purchase interesting for me besides growth my forward dividends, is that I purchased it in my Tax Free Savings Account (TFSA). I currently hold 156 shares of the stock in my Registered Retirement Savings Plan (RRSP) account. I purchased these new shares in my TFSA because over time I would like to only hold the stock in my TFSA and remove it from my RRSP. Why is this? Well I am doing this to free up cash in my RRSP to buy US stocks or potentially a ETF that focuses on international stocks. So the plan will take time as I will sell the shares in my RRSP once the share price starts rising.

cu-our-companies-feature

The Purchase

On May 11th I purchased 39 shares at $32.15 per share. The cost of the purchase including the trading fee was $1,263.84. The shares that I hold in my RRSP account have an average cost of $38.87 so I was able to acquire these new shares much cheaper.

Income

Canadian Utilities currently pays a quarterly dividend of $0.3933 so these new shares will boost my quarterly income by $15.34. Annually my income will rise by $61.36.

Well folks what do you think of my new purchase? What do you think of my plan to move the stock into my TFSA? Please feel free to comment in the comment section.

Thanks for reading

Matthew

Advertisements

6 thoughts on “Recent Buy: Canadian Utilities

  1. Nice buy matt. I bought them before at just north of 34.00. I keep debating adding more.

    Keep stacking those dividends man
    Cheers

    Liked by 1 person

    1. Thanks. I had been watching the price drop and thought at $32 I couldn’t pass it up. Personally if I had some cash I would buy more. Are their other stocks your looking at buying?

      Like

  2. Nice buy! I’ve been watching this stock for a while. Under $32 is a great deal, almost at 3 years low. I’m thinking of buying this stock next month. Hopefully it stays below $32. I like your plan of gradually shifting your CU holding from RRSP to TFSA.

    Like

  3. Tough not to buy the dividend growth champ in Canada. I’ve been adding as well and want to add more at these prices. By the time I retire in ~25-30 years this stock could provide a YOC of >20% on stock I buy today with a measly 5% dividend growth rate, which they’ve been increasing closer to 10% annually.

    Liked by 1 person

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

w

Connecting to %s