The Second Wave of Bargain Shopping - AQN, SRU, NFI, ENB, BNS

Today I pulled the trigger and finally bought more stocks. The last time I bought stocks was 3 months ago. I must admit that prices in March were lower due to the uncertainty about the economy. Back then nobody knew how bad the pandemic would damage the economy. Now that most places are back to business, the general sentiment about the economy has improved. Even the demand for gas has improved and gasoline prices are almost back to normal.

Not sure if now is the best time to buy stocks. We may have better deals in fall. Nonetheless, I decided to get back into stock buying and will continue to do so for as long as possible. 

This year I started investing in a regular account since my TFSA account is maxed out. Therefore, I bought one stock in TFSA account and four stocks in a regular account.

TFSA Purchase
In my TFSA account, I added 55 shares of SmartCentres REIT to my existing position. I believe that this REIT is best positioned to recover from this pandemic. I paid $20.80 per share and now own a total of 150 shares. This purchase will increase my monthly income by $8.48 or by $101.77 per year.

Regular Purchases
I bought four companies in a regular account. All four companies are new for my portfolio and I believe they are well-positioned for a long-term hold. Here’s what I bought:

  • 110 shares of Algonquin Power for $18.22 per share
  • 110 shares of NFI Group for $17.74 per share
  • 53 shares of Enbridge for $41.87 per share
  • 35 shares of Bank of Nova Scotia for $56.59 per share

Quick Rational Behind Those Buys
  • Algonquin Power – I love utility companies. They generate predictable, recurring cash flow.
  • NFI Group – their business is not going away anywhere. Transit buses will always be in demand. The stock is still cheap and could double in a few years.
  • Enbridge – the biggest Canadian energy company. Well diversified with growth projects in place. The stock is very cheap.
  • Bank of Nova Scotia – It’s the bank I was missing among my other bank holdings. It’s a great price and a great opportunity to start a position in BNS.

Addition to Dividend Income

  • 110 shares of Algonquin Power will add $15.51 USD per quarter or $62.04 per year
  • 110 shares of NFI Group will add $23.37 per quarter or $93.50 per year
  • 53 shares of Enbridge will add $42.93 per quarter or $171.72 per year
  • 35 shares on BNS will add $31.50 per quarter or $126.00 per year

Total Dividends Added to Portfolio (TFSA + Regular Account): $138.75/QRT or $555.03/YR

These Purchases Cost Me: $9,299



COMPANIES PROFILES:

SmartCentres (SRU.UN.TO)
SmartCentres is one of Canada's largest real estate investment trusts with total assets of approximately $9.5 billion. It owns and manages 34 million square feet of retail space in value-oriented, principally Walmart-anchored retail centres, having the strongest national and regional retailers as well as strong neighbourhood merchants.

Algonquin Power & Utilities Corp. (AQN.TO)
Algonquin Power & Utilities Corp. is a renewable energy and regulated utility conglomerate with assets across North America. Algonquin actively invests in hydroelectric, wind and solar power facilities, and utility businesses, through its two operating subsidiaries: Liberty Power and Liberty Utilities

NFI Group Inc. (NFI.TO)
NFI Group Inc. is a manufacturer of transit buses and motorcoaches, based in Winnipeg, Manitoba, Canada. The company is the largest bus manufacturer in North America, with a 43% market share of all heavy-duty transit buses and a 45% market share of all motorcoaches produced in 2018. The company employs 6,200 across 31 facilities in the United States and Canada.

Enbridge Inc. (ENB.TO)
Enbridge Inc. is a Canadian multinational energy transportation company based in Calgary, Alberta. It focuses on the transportation, distribution and generation of energy, primarily in North America. As a transporter of energy, Enbridge operates in Canada and the United States, the longest crude oil and liquid hydrocarbons transportation system in North America. As a distributor of various fuels, it owns and operates Canada's largest natural gas distribution network, providing distribution services in Ontario, Quebec and New York State.

The Bank of Nova Scotia (BNS.TO)
The Bank of Nova Scotia, operating as Scotiabank, is a Canadian multinational banking and financial services company. One of Canada's Big Five banks; it is the third largest Canadian bank by deposits and market capitalization. It serves more than 25 million customers around the world and offers a range of products and services including personal and commercial banking, wealth management, corporate and investment banking.

6 comments:

  1. nice German

    All great buys. Algonquin is one I want to grow in my portfolio.

    keep it up man. The income keeps growing
    cheers

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    Replies
    1. Hi Rob! Utilities are boring investments, but they keep your wealth secured :) It looks like the green energy is the way to go. Algonquin is well diversified among different green energy options. Cheers!

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  2. Well done buddy!!! Love the buys I own all of them and will hold them for the long term. You're income is going to soar leaps and bounds :)

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  3. Great names indeed. I own all but SRU. I was disappointed NFI cut their dividend and added to BNS in March. I have held AQN forever(ACB of 5.71) and it has treated me well. I have an order in for AQN currently. I believe we will see another leg down in the fall but would be happy to add at this price.

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    Replies
    1. If we're going to have March low levels in fall, that would great. I will save up more cash to buy the dip.

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