I have made a few changes to my portfolio last month. I have decided to continue with my path of renewables and I added a company called Greenlane Renewables. I also wrote an article recently about waste management companies so I decided to add GFL Environmental Inc as well to my portfolio. Lastly I wanted to ass some insurance to my portfolio(sorry for the pun) and I picked up Manulife Financial. With these new pick ups I decided to take some profits and exit The Northwest Company. I figured it was also time to get rid of Wells Fargo, I plan to stay away from financial institutions for the time being in my TFSA. Through everything that has been happening I have still been averaging down on what I could and am almost up on everything in my TFSA except for Vermilion. Lets just say it is going to take me a while to recover from that.
TFSA top 4 percentage of holdings
RRSP top 4 percentage of holdings
- TransAlta Renewables(RNW) 20%
- GFL Enfironmental Inc(GFL) 18.4%
- Manulife Financial(MFC) 13.7%
- Greenlane Renewables(GRN) 9.8%
- IBM(IBM) 20.8%
- Bank of Nova Scotia(BNS) 14.9%
- Prudential Financial(PRU) 14.3%
- Great West Life(GWO)13.1%
- Bell Canada(BCE)-$59.06/Share Cost Basis, $52.2 Billion Market Cap, 2.7 EPS, 19.3 P/E, Dividend Yield 5.77%, Dividend Payout Ratio 120%
- Electrameccanica Vehicles(SOLO)-$2.96/Share Cost Basis, $181.5 Million Market Cap, -0.51 EPS, N/A P/E, Dividend Yield N/A.
- Hewlett Packard Enterprise Co(HPE)-$13.20/Share Cost Basis, $13.03 Billion Market Cap, 0.97 EPS, 10.38 P/E, Dividend Yield 4.75% and Dividend Payout Ratio 27.1%.
- Telus(T)-$23.72/Share Cost Basis, $31.2 Billion Market Cap, 1.17 EPS, 20.8 P/E, Dividend Yield 4.77%, Dividend Payout Ratio 99%.
- GFL Environmental Inc(GFL)-$36.07/Share Cost Basis, $11.25 Billion Market Cap, -1.96 EPS, N/A P/E, Dividend Yield 0.16%, Dividend Payout Ratio 80%.
- Transalta Renewables(RNW)-$15.74/Share Cost Basis, $3.63 Billion Market Cap, 0.40 EPS, 34.06 P/E, Dividend Yield 6.88% and Dividend Payout Ratio 138.6%.
- Vermilion Energy(VET)-$13.71/Share Cost Basis, $1.16 Billion Market Cap, -8.47 EPS, N/A P/E, Dividend Yield(currently suspended)
- Greenlane Renewables(GRN)-$1.48/Share Cost Basis, $155 Million Market Cap, -0.03 EPS, 85 P/E, Dividend Yield N/A.
- Wajax Corp(WJX)-$9.90/Share Cost Basis, $240 Million Market Cap, 1.66 EPS, 8.6 P/E, Dividend Yield 8.35%, Dividend Payout Ratio 60%
- Universal Corp(UVV)-$43.50/Share Cost Basis, $1.11 Billion Market Cap, 3.07 EPS, 20.5 P/E, Dividend Yield 6.78%, Dividend Payout Ratio 59%
- Prudential Financial(PRU)-$62.90/Share Cost Basis, $27.3 Billion Market Cap, -0.62 EPS, 7.3 P/E, Dividend Yield 6.37%, Dividend Payout Ratio 38%
- Bank of Nova Scotia(BNS)-$56.49/Share Cost Basis, $68.4 Billion Market Cap, 6.09 EPS, 11.22 P/E, Dividend Yield 6.37%, Dividend Payout Ratio 59%
- International Business Machines(IBM)-$121.33/Share Cost Basis, $111.9 Billion Market Cap, 8.97 EPS, 11.4 P/E, Dividend Yield 5.19%, Dividend Payout Ratio 51%
- AT&T(T)-$30.44/Share Cost Basis, $213.9 Billion Market Cap, 1.64 EPS, 9.4 P/E, Dividend Yield 6.93%, Dividend Payout Ratio 58%
- Enbridge Inc(ENB)-$42.06/Share Cost Basis, $87.8 Billion Market Cap, 0.91 EPS, 17.4 P/E, Dividend Yield 7.47%, Dividend Payout Ratio 330%
- Great West Life(GWO)-$24.08/Share Cost Basis, $24.9 Billion Market Cap, 2.64 EPS, 9.88 P/E, Dividend Yield 6.53%, Dividend Payout Ratio 65%
- BCE Inc(BCE)-$57.00/Share Cost Basis, $52.2 Billion Market Cap, 2.7 EPS, 19.3 P/E, Dividend Yield 5.77%, Dividend Payout Ratio 120%
I just want to give a little breakdown of that companies I own and why I hold positions in them. I am a very long term investor and I also like to hold positions that pay out a dividend and I also like to diversify my stock options. I don’t personally hold any bonds, preferred shares or warrants. Before Covid-19 happened all of my holdings payed out a dividend. As you can tell, some of those dividends have been suspended. I am more than fine with this because it means the company is being responsible with their money and using it to keep operations running and keep people employed.
I wanted to buy Telus(T) because they haven’t recovered yet from their 2 for 1 split earlier this year. I feel that they are right now somewhat undervalued since they are the second biggest telecom in Canada and they are trading at under $25/Share. They pay a decent dividend and have great growth potential along with crazy high revenue due to the monopoly that the big telecoms have in Canada.
I wanted to get into tech and I feel that it is hard to do in Canada because we do not have a very big tech sector so that is why I decided to get into Hewlett Packard Enterprise Co(HPE). HP actually split up into 2 different companies a little while ago and HPE is the software, financial services and corporate investment side of it. I feel that being split off and separated they have a good chance to break through in the software game and be a big contender. I plan to add more to my portfolio in the future.
When I added Electrameccanica Vehicles Corp(SOLO) to my portfolio I had actually already been watching them for a while. Their numbers aren’t great, they don’t pay a dividend and they are a very niche EV, even for the EV market haha. They are starting to really open up manufacturing facilities and expand their product. Also the face that they are a Canadian company peaked my interest haha.
The Main reason why I added GFL environmental Inc(GFL) is because I feel like there is not much competition in Canada when it comes to big time waste management companies. These guys just recently IPO’d this year and I feel they are still a really good price. They have lots of room to grow in the industry and its great they are in the US and Canada.
I wanted to get into a renewable company and tried to find one that had alot of upside. Transalta Renewables(RNW) was created from Transalta Gas just a few years ago and has had some ups and some downs for them. I feel like its a great transition for Transalta and it is going to be a big part of the company. I like everything about this company, they have projects on the go, they have a very nice dividend but they payout ratio is a little high for my liking. I hope that in the future Transalta Renewables and Transalta gas can just become 1 entity.
Well, because I wanted a renewable company in my portfolio I also had to go the other way and have an Oil and Gas company. For that I picked Vermilion Energy(VET). I had actually held off on any Oil and Gas exposure for quite a while because it always seemed so volatile, boy was I right. I finally decided to get into it just before this whole pandemic started. I didn’t get in at the peak but I was still up there. The main reason I got in was their earnings and their dividend. The numbers seemed really good until everything fell out. I have averaged down a fair amount and they have been bouncing back this last month. I just hope they can keep up the momentum and get back to their dividend glory days.
I chose to add Greenlane Renewables(GRN) because they are in the biogas side of renewables by producing renewable natural gas out of waste from landfills, wastewater treatment, dairy farms and food waste. They in turn make it into fuel for vehicles and add it to the natural gas grid. It is not a type of industry that is oversaturated right now and I missed the boat on Xebec when it was under $1 so I figured I would get into these guys now.
Wajac Corp(WJX) was a different take for me personally. They are into the equipment rental business and do a big part of their work with the oil and gas industry. But the thing that got me into them is their warehouse side of business. Right now with Amazon, Alibaba and Shopify growing at break neck speeds I feel that the warehouse sector is booming and these guys have the equipment side of that locked down. Seems like those rentals are starting to pay off.
That is all I currently hold in my TFSA portfolio. I continue to look for new opportunities and plan to get some exposure into Canadian financial institutions in the future. As per my last blog I am going to have a tough choice as to who I am going to invest in. I try to keep my portfolio as diversified as possible because you need to be able to take advantage of a down market and look for opportunities when things are good.
That is all for today and remember everyone, invest in yourself first.