I bought in July 2011 at $12.47, after a friend pointed it out. Interestingly enough, he took his profits at $14+ and is regretting it.
Originally Posted by gibor
I bought at 14.30 and 16.30. Closed today at 18.01
I got in at $12.55. I was looking for $14 at the time, but it just wants to keep going. This one is on my trigger finger list.
Bought at 13.69 and am looking to get out soon. It has almost felt like too much of a good thing.
I may have got to the party a little late with all the recent posts about looking to get out. I bought on mar 19th a mere 13 days ago @ 16.75. I bought it for a long term hold and see this as a potential dividend aristocrat. I was not expecting this stock to take off like it has the last couple weeks in fact I expected it to pull back the minute I bought so I was ready to averaged down. I am still very early in my accumulation phase so I am torn when stocks perform very well after I buy my first tranche. Deep down I know and understand that 2 weeks of price action should be ignored for a long term hold but human nature is human nature(damn you evolution for taking so long to eliminate this trait!). I am getting better at dealing with this psychologically. Many would say I could be trading this up and down,with tight stops, but I am not ready to be a trader yet as I am still reading and playing with pretend money. It is also harder to trade when you can only check the market before and after it closes on most days. Perhaps I should set a stop loss on this one for a quick 5% return if it comes back down in the near term and rebuy later. I have yet to use stops with real $. I tried them in a virtual account and found that when my stop was hit the stock would be sold and then go back up.
Eclectic- thanks for the links to ROC. I currently only have equities RRSP and TFSA but I hope eventually, I will be able to increase my taxable income through investing to ensure that I am doing my part to help pay down the deficit. Regardless, it really helped me understand how ROC affects ACB.
Last edited by londoncalling; 2012-03-31 at 05:00 PM.
First bought in early 2010 just under $12.00, subsequently bought 600 for the TFSA at $13.63.
I own this and KEG.UN, and would only consider selling either in two cases:
Price appreciates to the point where the yield is sub 5%. (Can buy bank with more upside with similar yield, that could also be an option play if it falls to this yield).
If one is yielding ~2% more than the other, I'd sell and switch into the higher yielding one. I first bought KEG.UN when it was yielding ~2% more than BPF.UN, within a matter of weeks, it had narrowed the gap with a big price jump.
In my opinion, both are great income plays, as long as they yield ~3%+ more than the big banks and telecom guys.
I was considerint buying KEG or BFP last week-week and half...was waiting for some pullback, but they run up too fast...
The question how to identify not expensive high-yielders with good potential return?
The most simple answer I would give is to use the dividend growth model when picking yield stocks.
If you're investing purely for income in the here and now, you might focus more on just the highest yielding stocks, but if you're looking for a growing income stream I think the growth model is better.
Value = Next year's dividends/(required return - expected growth in dividend)
As an example - BPF:
Next year's dividend: $1.2348 (assume 5% growth)
Required return: 10% (assumes I want to see a minimum of 10% total return)
Dividend growth: 5% (example only and likely to be lower in reality)
X = $1.2348/(10%-5%)
You'll notice that the $24.70 value implies a yield of 5% which is the same amount as (required return-dividend growth).
While simple, the model should work fairly well, but is extremely sensitive to your required return, and the dividend growth. If you feel very strongly that a company can achieve X% dividend growth annually, it should be a good indicator of what value you can assign a company, but that's a difficult metric to predict with any real accuracy.
In theory, anytime the stock is below its "value" it's worth buying, but I'd look for a steep discount rather than just a few %.