Today, August 8th, I sold some of my Saputo (TSX-SAP) stock and bought some AltaGas (TSX-ALA) stock. The reason for the change is that I think money that where the money is going to be made is in dividends not capital gains until the West does something to solve our debt problems.
Also Saputo was my biggest holding. It got to be the biggest holding because it has done so well. I had made total returns of 17% per year on this stock.
The downside of Saputo is that the dividend is very low, coming in at just 1.76%. AltaGas has a current dividend coming in today at 4.53%. One thing that is important to me is cash flow because I am living off of my dividends.
There is a cautionary note with AltaGas as they have decreased their dividends as well as increased them in the past. However, the decrease in dividends did come as a result of them switching from a unit trust company to a corporation. Their Dividend Payout Ratio for EPS is still a little high, but I think it is manageable.
This blog is meant for educational purposes only, and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. See my website for stocks followed and investment notes. Follow me on twitter.