Recent buys


When I made my Suncor purchase a few weeks ago, I thought that would to be my only purchase in December and therefore the last purchase of 2014. I was quite content with the purchases I've made the last few months and believed that we have made excellent progress with our dividend income stream. With 2015 just around the corner, I have been making preparation so we can transfer $11,000 to our TFSA's on January 2nd and start buying more dividend paying stocks in early January.

Turned out Sunsor wasn't the last purchase of the year. Oops!

Although the markets seem to be on the road to recovery lately, volatility remains due to the low crude oil price and investors' general low confidence for 2015. As mentioned in my December stock consideration post, I have been monitoring energy stocks closely. Since most oil stocks are still far from their 52 weeks highs and have very attractive dividend yield, it's tough not to take a serious look at them. I love volatility because they provide great buying opportunities. With some freed up cash on hand, I made the following purchases:


19 shares of BP PLC (BP)
14 shares of ConocoPhillips (COP)
36 shares of Unilever PLC (UL)


BP is an integrated oil and gas company. The company operates in two business segments - exploration and production, and refining and marketing. Due to the Gulf of Mexico oil spill, BP stopped its dividend payment in late 20010 for 2 quarters but started paying dividends again in 2011. The dividend payments have been increasing year over year since 2011 at an average 3 year growth rate of 11.77%. BP currently trades at a PE ratio of 12.88 and a PEG ratio of 1.16. Compared to other oil stocks, BP has a relatively high dividend yield of 5.94%.

High yield stocks usually comes with some associated risks and BP certainly brings some. First, the high payout ratio is a little concerning, especially considering the low crude price. It's uncertain whether BP can continue to increasing dividends at 10% rate. However since the yield is already high, naturally a lower dividend growth rate is expected. My rationale for making this purchase is to average down our cost as we already own a small position of BP in our dividend portfolio. I am limiting our exposure to BP by adding only a small amount of capital. BP remains a very small portion of the total dividend portfolio.


ConocoPhillips explores for, produces, transports and markets crude oil, bitumen, natural gas, liquefied natural gas (LNG) and natural gas liquids on a worldwide basis. The Company manages its operations through six operating segments, which include Alaska, Lower 48 and Latin America, Canada, Europe, Asia Pacific and Middle East, and Other International.

COP currently trades at a PE ratio of 11.97 and a PEG ratio of 1.43. The stock yields at 4.18% which is quite attractive compared to other oil & gas stocks. ConocoPhillips is a US dividend contender, having increased dividend for 14 straight years. It has an impressive dividend growth rate as well, with a 5 year annualized rate of 13.5% and a 10 year annualized rate of 15.83%. At 50% payout ratio, I expect the dividend growth to continue at an attractive rate.

I initially wanted to use the capital to purchase Cheveron (CVX) to add to our existing position but decided to go with ConocoPhillips (COP) as a way to diversify our holdings in the energy sector. COP not only has a slightly better dividend growth rate than CVX but it also has a lower break-even price. According to my research, COP has a break-even price of about $40 per barrel. This piece of information ultimately made the purchase decision for me. At break-even price of about $40 per barrel, it means the company has a bit of cushion on margin and can continue making money at the current low crude oil price.

I am convinced that our need for oil and gas are not going away anytime soon. With the low crude oil price, investing in energy like COP and BP simply makes sense.


Unilever PLC
Unilever PLC is a supplier of fast moving consumer goods. The two parent companies, Unilever N.V. (NV) and PLC, together with their group companies, operate as the Unilever Group (Unilever). Its products are grouped into four principal areas: Personal Care, Home Care, Foods and Refreshment. The Company’s four product areas are: Personal Care, which includes sales of skincare and haircare products, deodorants and oral care products; Foods, which includes sales of soups, bouillons, sauces, snacks, mayonnaise, salad dressings, margarines and spreads; Refreshment, which includes sales of ice cream, tea-based beverages, weight-management products and nutritionally enhanced staples sold in developing markets; Home Care, which includes sales of home care products, such as laundry tablets, powders and liquids, soap bars and a range of cleaning products. Unilever products are everywhere. I'm sure you've heard brand names like Dove, Lipton, Vaseline, Ben & Jerry's, and Knorr. When I look around in our home I can find many UL products.

UL currently trades at a PE ratio of 18.7 and a PEG ratio of 5.09. The stock has a 3.70% dividend yield and a conservative payout ratio of 68.8%. UL has grown its dividends at 8.48% annualized over the last 10 years.

Considering we already own another consumer goods giant, Procter & Gamble (PG), owning Unilever gives us a bigger pie of the overall consumer sector. Like Dividend Mantra whom just purchased UL recently, UL is an extremely long term holding for us. I plan to continue adding to our UL shares in the future so we can DRIP. Considering that 2 billion consumers worldwide use a UL product each day and 57% of the sales are made in the emergent markets, UL should continue growing its revenues.

I'm very happy to be able to make these 3 purchases before end of 2014. I'm pleased to finally own a piece of ConocoPhillips and Unilever.

These three purchases add $138.13 to our annual dividend income. I have updated our dividend portfolio. to reflect the addition of COP and UL.

What do you think about these purchases?

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  • Reply
    Income Surfer
    December 31, 2014 at 10:47 am

    Those look like some good buys Tawcan. I have been keeping an eye on energy and European domiciled companies as well. Here's hoping for some volatility in 2015. Wishing you (and your family) a great 2015!

    • Reply
      January 2, 2015 at 10:48 am

      Hi Income Surfer,

      Hoping for some volatility in 2015, need that for portfolio accumulation.

  • Reply
    Dividend Mantra
    December 31, 2014 at 2:12 pm


    Nice buys here. Looks like you finished off 2015 with a bang! 🙂

    Glad to be a fellow shareholder across all of these companies. Agreed that BP carries some additional risk, which is why I'm also keeping it a rather small position. UL is about as solid as they come, and the price appears to be at least fair here.

    Happy New Year!!

    Best regards.

    • Reply
      January 2, 2015 at 10:50 am

      Hi Dividend Mantra,

      We share similar thoughts on BP. UL is as solid and huge as you can get. Plan to hold UL for a very very long time.

  • Reply
    December 31, 2014 at 4:12 pm

    Another great buys and thanks for sharing your recent buys. Happy New Year to your family!

    • Reply
      January 2, 2015 at 10:51 am

      Hi FFF,

      Thanks for dropping by. Very happy with these purchases. Hope you had a great new year's with your family. Here's to a great 2015.

  • Reply
    Grow Independent
    December 31, 2014 at 7:44 pm


    I like all three of your choices, especially at current levels. The stocks in your portfolio are a great selection of solid dividend stocks.
    Good luck with those!

    • Reply
      January 2, 2015 at 10:52 am

      Hi Grow Independent,

      Thanks for dropping by. Let's hope I can continue adding more UL in the near future. I really like this company.


  • Reply
    Dividends with Children
    December 31, 2014 at 8:54 pm


    Nice guys across the board! I would have been comfortable pulling the trigger on any one of those three and am already a happy shareholder of all three.

    As far as energy goes, I'm in the same crowded boat as many investors with heavy allocations already. But I'm eyeing the likes of COP, CVX and a few others, and if new lows are reached in the coming months then it will be hard for me to resist adding more. I'll likely FRIP into at least a couple of them regardless.

    What I ended up buying in December were GE and CAT (new position). The former I got on its dip near the $23s and the latter wasn't timed as well. In the grand scheme that shouldn't matter.

    Here's to a successful 2015 of accumulating more income producing assets!


    • Reply
      January 2, 2015 at 10:53 am

      Hi DWC,

      I hope we'll see new lows with COP and CVX. However at current level I think the price is fair. I would like to add to CAT or DE in the future too.


  • Reply
    December 31, 2014 at 9:15 pm

    I'm a huge fan of UL! Very boring and very solid company. I plan on holding my shares for a long long time.

    I've stayed away from BP because of the additional risk. Might FRIP into a few shares sometime in the near future, however, but it definitely won't be a major position.

    Way to end 2014 with a bang!

    • Reply
      January 2, 2015 at 11:04 am

      Hi Seraph,

      I love PG and UL, see their products every day at home. Very boring but very stable companies. BP is a bit more risky but can have big rewards too.

  • Reply
    Dividend Diplomats
    January 1, 2015 at 9:06 am


    Closing the year out! I like it. Pooling in cash producing assets = nothing wrong with that. I've been eyeing out all 3 over the last month or so and I also made one final purchase, mine was on the 30th, that I'll have a post out soon on.

    Great job wrapping the year, Happy New Years and Cheers to a first great day of 2015!


    • Reply
      January 2, 2015 at 11:04 am

      Hi Lanny,

      Can't wait to hear what you purchased. Let's have a great 2015.

  • Reply
    January 1, 2015 at 1:37 pm

    Nice buys. I have been building up a position in UL as well. They have been acquiring new brands recently which makes me think there is a potential growth story forming.

    • Reply
      January 2, 2015 at 11:06 am

      Hi John,

      I definitely like that UL is adding brands under their big umbrella. That's always a good sign. Thanks for dropping by.


  • Reply
    January 1, 2015 at 5:35 pm

    Great purchases, T. Both those companies have been on my watchlist for a while now and I would love to own them if I had the cash free. I still might just go ahead and use the last remaining of my cash afterall. it is tempting.


  • Reply
    Petrish @ Debt Free Martini
    January 1, 2015 at 10:14 pm

    Ok so I am so conservative with my money, and I realize that I'm gonna have to step out of my comfort zone one day and actually take a risk. Reading this post....I feel like a fish out of water, but I hope after following your blog this year I will be singing a whole different tune. Looking forward to the education.....

    • Reply
      January 2, 2015 at 11:07 am

      Hi Petrish,

      Thanks for dropping by, hope what I wrote and will write in the future will help you become a better investor.


  • Reply
    January 1, 2015 at 10:25 pm

    Hi, new years greetings and thanks for being a giver and not a taker.
    You write that your Dec purchases will add to your div income. Do you have some type of an excel dividend spreadsheet, to keep track of all of you dividends? tia.

  • Reply
    January 1, 2015 at 11:02 pm


    Nice stock selection. It appears that you're putting together a really nice portfolio. I wish you the best.

    Dennis McCain

  • Reply
    January 2, 2015 at 5:48 am

    That is a very nice way to close out 2014. I have been contemplating adding to my BP position to average down my cost basis and plan to add UL to my portfolio also. Looking forward to seeing what you have in sore for 2015.

    All the best

    • Reply
      January 2, 2015 at 11:09 am

      Hi Lynx,

      Thanks for dropping by. I think averaging down any energy stocks make sense right now. Don't miss the opportunity.


  • Reply
    January 2, 2015 at 3:34 pm

    I like all three of your purchases. BP and COP are both on my watchlist while UL is in my ROTH. I'm still on the energy sideline for my long term dividend portfolio but still keep a watchful eye on the sector. As I always say, there's just too much volatility for my liking and I'd rather buy into the sector on an upswing and miss the bottom rather than keep averaging down. Thanks for sharing your recent buys.

  • Reply
    January 3, 2015 at 3:53 am

    Excellent buy Tawcan! I have these companies on my watch list and have been waiting for them to go on discount.

    Also, do you hold these stocks in your TFSA?

    • Reply
      January 5, 2015 at 11:18 am

      Hi Jeff,

      I hold these in RRSP to avoid the 15% withdraw tax on US dividend stocks.

  • Reply
    No More Waffles
    January 3, 2015 at 3:59 am


    I'm glad to be a fellow shareholder of BP and Unilever! Just a couple of days ago I also bought some more Unilever because I simply can't get enough of that company. Great products and huge consumer reach are everything a business needs to be successful.

    Keep it up,
    All the best for 2015,

  • Reply
    January 3, 2015 at 6:13 am

    Unfortunately I don't have any experiences with this, but they seem like a good purchase as well. Anyway, I love it when people do invest money and not just spend recklessly in the 'holiday spirit' 🙂

  • Reply
    Passive Income Mavericks
    January 4, 2015 at 9:34 am

    Nice buys Tawcan, I also bought BP, COP and other energy companies. UL is my stock watch list. Looks like you fired your gun in Dec like myself.

    Keep up the progress!

  • Reply
    January 4, 2015 at 6:03 pm

    Hi Tawcan,

    I'm relatively new to the dividend investing idea.

    I'm also a Canadian and was wondering if you had any articles that dealt with investing in US companies as a Canadian?

    The two main questions I had were how taxes work and also if you take into account where the Canadian dollar is when buying US stocks.

    Love your website, have really learned lots.


    • Reply
      January 5, 2015 at 10:46 am

      Hi TC,

      Welcome to the dividend investing world. You can take a look here for my dividend approach:

      Basically I only invest US stocks in RRSP to avoid the 15% withdraw tax on dividends. Hope this helps!


  • Reply
    Jayson @ Monster Piggy Bank
    January 5, 2015 at 4:52 am

    Excellent purchase before the end of the year. The only one I recognize is the Unilever. Been wanting to buy some. This year, I am planning to purchase. Good job Tawcan.

  • Reply
    Asset Grinder
    January 5, 2015 at 1:02 pm

    Just transferred over some shares today to my tfsa. I find it helpful too transfer stock over cash. You can take a capital loss if the equity is down to claim and also you can pick the low price in the day range of the security you are transferring over which could equate to 2% on some days, even more on others.

    Good purchases and happy new year buddy.

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