Like last week’s post, I had you try to guess what the equity I bought in my TFSA was. So I’ll try and do the same again this week.
I had bought a very small amount of shares of this income trust before 2011 rolled around. With the newly added money ($5000) I put in last month, I added more shares to equal 100 shares. When I get more money in my TFSA from my tax refund, I plan on buying more of this stock.
Alright, here goes, time to put on your thinking caps:
- This is another big dividend payer- 8.28% annual yield (that’s $0.10333 per share per month or $1.24 per share a year)
- They didn’t decrease their payout to investors even though they converted from an income trust to a corporation (one of the few ones that didn’t). This says a lot since the government changed the tax structure, so they are being taxed and still paying the investors the same amount. That says a lot.
- It’s an independent energy supplier with electricity and natural gas customers throughout Canada and the US (they use contracts and long term fixed-price agreements)
- More energy supplied to the US (more customers) and a little more natural gas supplied to Canada (in terms of customer numbers)
- They are also one of the largest competitive green energy retailers in North America- you can choose to have a portion of your energy come from renewable resources
- Current P/E ratio is 10.03 (which is good)
- Canadian stocks are heavily weighted in utilities and this is one of them 🙂
- You can DRIP it (I still need to get in on this DRIPing action)
Okay, did you guess it? It’s kind of an investment darling for a lot of people, PF bloggers alike (I know Sunny from My First 50,000 is a huge fan)- it’s…. drum roll please….
Just Energy. Their Just Green program (using renewable resources) seems very innovative and it appears there is a lot of potential growth for the company. Again, if you are thinking about this stock, I warn you I am not a financial professional, so do your due diligence and research before you make the plunge with any investment advice or opinions. 🙂
Readers, did you guess it right? If you have this stock, what do you think about it? Any readers use this company for their electricity and natural gas?