Happy New Year Investors! Wishing you nothing but a successful year in 2022! Hope you have been enjoying the pure confusion of the markets to start off the year. We saw them take off and then come right back. To me personally it looks like many are moving money around from growth to blue chip with all the possibilities of interest rates hike to go with massive inflation. Before we get into the portfolio along with recent purchases here is what we have been up to:
- Celebrated Papa’s birthday with some Axe throwing (highly recommended)
- Having fun with the kids and getting back into more of a routine
- Got back into a routine at the 9-5
Blue chip names again continue to go higher. Banks, Insurance companies and Oil and Gas continue to do the heavy lifting for us.
Here’s a breakdown of allocation, changes slightly as we reduced our cash position and also put new cash to work (will get to this shortly).
December breakdown 71.4% Blue Chip, 24.7% Growth and 3.9% Cash
No sells this month
Opened a position in Brookfield Renewables by purchasing 70 shares @ $45.58
Who is BEPC:
Brookfield Renewable Corporation owns and operates a portfolio of renewable energy power generating facilities primarily in Brazil, Colombia, the United States, and Europe. It operates hydroelectric, wind, and solar power plants with an installed capacity of approximately 12,812 megawatts. The company was incorporated in 2019 and is headquartered in New York, New York.
It’s no secret that almost every name in the Renewable sector has been getting absolutely hammered. BEPC is no different after a very challenging 2020. Brookfield Renewable however has had an excellent year in 2021. It delivered record funds from operations (FFO) during the third quarter of $210 million, or 32% more than the prior year. Forward looking BEPC see’s potential for up to 20% annual FFO per share growth through 2026. BEPC has several catalysts powering that forecast, including inflation-linked contracts (This is very important), rising power prices, development projects, and M&A activity. That should support annual dividend growth of 5-10%. Current dividend yield is 3.61% at the time of writing this.
Renewables are the future if you like it or not so it’s a great time to get into these names before they start trading at higher valuations. This purchase increases our annual dividends by $104. A few deals have been announced by BEPC over the past month, here they’re!
Other purchase in the month include non dividend paying companies which I’ll mention but won’t go into full detail:
Added to WELL Health Technologies Corp (Ticker WELL.TO) by purchasing 400 shares @$4.33
- I believe in the Telehealth sector and long term I see this as a clear winner. They also announced 2021 numbers will be better than first reported.
Opened a position in AcuityAds Holdings Inc. (Ticker AT.TO) by purchasing 500 shares @ $3.54
- They are making money, have 128 million in cash, very little debt and current market cap at time of purchase was just over 214 million. It would be very difficult to find another company in the small cap sector with this nice of balance sheet.
Opened a position in Alibaba Group Holding Limited (Ticker BABA)
- If you can get by the China risk you get to buy a growing company in China for a forward PE of 12. If you compare this to Amazon, they are trading at a forward PE of 43. Not for everyone but for me I’m more than comfortable in owning them.
Dividend increases and decreases
- No increases or decreases in January
2016 – 2022 Dividends
We started the new year off with a solid January. Dividends received were $355.90, which is a year over year increase of 6%. We have set out our annual goal of $5,000 for 2022. Chart below shows where we are at to start the year. Currently 7% to $5,000.
|EXE.TO||$7.56||Yes, 1 share||TFSA 1|
|CSH.UN||$16.58||Yes, 1 share||TFSA 1|
|PLZ.UN||$10.64||Yes, 2 shares||TFSA 1|
|AQN.TO||$83.02||Yes, 4 shares||RESP|
Thanks to a great performance again by the banks and insurance companies our sector weighting has risen above 28.7%, would of been higher but allocated $ to the 4 companies I mentioned earlier.
There is a high probability that my next two purchases will be BEPC and AQN. If not it will be likely be in one of the sectors below and one of the companies listed.
Sectors I’m currently looking at
- Oil and Gas
Current Dividend watch list (Already own 4 of the 5)
- Algonquin Power & Utilities Corp (NEW)
- Brookfield Renewable Partners L.P.
Current Growth watch list (Already own 4 of the 6)
- Alibaba Group Holding Limited (NEW)
- Nuvei Corporation
- WELL Health
- Good Natured Products
- Bragg Gaming Group
- BRP Inc
Thanks for reading and feel free to leave a comment!
Invest in yourself
Disclosure: I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. Please ensure you do your own research.
2 thoughts on “Money While You Sleep 2022 January Edition”
like your organized & mathematical thinking! Don’t ignore transaction fees, on small purchases!
Thanks. I try to keep my purchases over $1,500 so the fee through Questrade is minimal.
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