Recent Buy


As mentioned in my earlier post, I'm looking closely at stocks in the energy sector for the month of December. The price of crude oil continues to be volatile and this has provided an excellent opportunity to add to our existing energy stocks.


A few days ago I purchased 60 shares of Suncor to our existing position as a way to average down our purchase cost.


This marks the third Suncor purchase in the last few months. We now have enough shares to DRIP 2 shares of Suncor whenever dividend is distributed. I'm pretty excited that we can now DRIP two shares instead of one.


The price of crude oil can continue to drop, it can also go up. The reality is, we don't know which way it will go. In fact, we don't know which way the markets will go in the short term. The overall markets may continue going sideways for the next few months. Does it really matter for a long term investor like me? The answer is NO! A down market is actually a welcomed event during the accumulating phase of a dividend portfolio. Lower priced stocks means we can purchase dividend paying stocks at a discount and wait for the price to recover. I've done this with Manualife, Johnson & Johnson, and other stocks in the past. Suncor's fundamentals remain strong despite the weak crude oil price. I truly believe Suncor price will eventually recover. If you told me half a year ago that I could purchase Suncor at 3.5% dividend yield I'd tell you that you're nuts. The 3.5% dividend yield for a solid company like Suncor is too good to pass.


Be Fearful When Others Are Greedy and Greedy When Others Are Fearful
-Warren Buffet


Last time I checked this Warren Buffet guy is pretty smart when it comes to stock investing. I think I'll listen to his advise.

This purchase adds $67.20 in our annual dividend income.

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  • Reply
    December 16, 2014 at 1:08 pm

    I dont follow Suncor as closely as some of the other oil companies, but its the best of the lot in Canadian oil companies. No wonder Buffett is an investor. The 3.5% yield sure doesnt hurt.

    Congrats on adding another $67.20 to your dividend income.


    • Reply
      December 16, 2014 at 9:58 pm

      Hi R2R,

      I'd love to add to some US oil companies but right now we don't have any fund in our RRSP. Need to wait for a little bit, hopefully the markets will continue to be volatile. 🙂

  • Reply
    December 16, 2014 at 1:41 pm

    I also bought SU.TO as it is diversified in the oil industry also. Having bought PetroCan refinery a couple of years ago makes it safer than just a supplier of crude oil.

    Also bought ET.TO Evertz Technology Needed more tech exposure. Has a good history of dividend increases, pays 4.23% div. Beta of 0.45

    • Reply
      December 16, 2014 at 9:59 pm

      Hi NRG,

      ET.TO looks interesting will have to take a closer look. Thanks for sharing!

  • Reply
    Income Surfer
    December 16, 2014 at 4:43 pm

    Congrats on adding to the future dividends Tawcan. We're doing the same, and couldn't be happier that global equity markets are FINALLY giving us some volatility! Have a great night

    • Reply
      December 16, 2014 at 10:00 pm

      Hi Bryan,

      We've loving this volatility. The only downside is not having enough cash around to do mad stock shopping spree!

  • Reply
    December 16, 2014 at 5:56 pm

    Thanks for sharing your recent purchase with us. As you noted no one can predict where oil is going int he near term. Higher, lower is anyone's guess. At least you are getting paid a nice yield to wait which is why I love any dividend stock. Let the weeks, months and years roll by all along getting paid a nice dividend while you wait.

    • Reply
      December 16, 2014 at 10:01 pm

      Hi DivHut,

      Looks like you're buying stocks just like us to take advantage of the volatility. Let's just continue executing our investment strategies and ignore the news.

  • Reply
    Asset Grinder
    December 16, 2014 at 6:27 pm

    I was deciding bewteen baytex and suncor. Sorry to say I made the wrong choice a week ago lol. Stupid me yield chasing! Good buy man

    • Reply
      December 16, 2014 at 10:02 pm

      Hi Asset Grinder,

      Looks like Baytex has taken a beating lately just like rest of the energy sector. Chasing yield is OK sometimes as long as you don't put everything in the same basket. 🙂


  • Reply
    December 16, 2014 at 10:02 pm

    Gotta love volatility. Nice purchase and excellent addition to the annual dividends. Just another step in the right direction!

    • Reply
      December 17, 2014 at 4:52 pm

      Hi Seraph,

      Yes definitely got to love volatility. Hopefully it'll stay for a little longer.

  • Reply
    Mrs. Maroon
    December 17, 2014 at 3:27 pm

    We have always stuck to the index fund strategy. We love it because we don't have the time or desire to watch individual stocks. However, here lately I've asked Mr. Maroon "should we buy some energy stocks?" on multiple occasions. Being in it for the long haul, having a chance to buy in while oil is so low sounds like a great idea. We haven't pulled the trigger yet, but I still like the idea, even though it strays from our normal strategy.

    • Reply
      December 17, 2014 at 4:54 pm

      Hi Mrs. Maroon,

      Even with index fund strategy now would be a good time to purchase some index funds since the markets have been down so much.

  • Reply
    Dividend Mantra
    December 17, 2014 at 4:16 pm


    I'm still looking for opportunities to add to my energy holdings, though the energy sector makes up like 15% of my portfolio right now. So I'm also being cautious.

    SU seems like it has really solid fundamentals. What's the break even point for oil for SU? I know oil sands are particularly expensive. Do you know what oil has to be at for them to break even?


    • Reply
      December 17, 2014 at 4:55 pm

      Hi Dividend Mantra,

      I'm a bit cautious on energy stocks but plan to add more in the future as I have plans to add to other sectors too.

      Break even point for oil for SU seems to be around the low $60 range, so hopefully the crude oil price will go back up soon. 🙂

  • Reply
    Henry - Living At Home
    December 17, 2014 at 5:14 pm

    Buy nice. If you like something then you should like it better at a lower price. Good luck with the investment!

  • Reply
    Dividend Diplomats
    December 17, 2014 at 5:56 pm


    Making moves! Nice job racking up another 60 shares = SICK! Just awesome and great addition to your dividend income and averaging down your cost - I dig it and love it. Wish I had more capital to attack stocks on my watch list. Still 14 days left of December, lets go!


    • Reply
      December 18, 2014 at 8:27 am

      Hi Lanny,

      Thanks. Really glad that we were able to average down the cost.

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