Buy Alert: Western Forest Products (again)

New Stock Buy!

I just made my second stock buy of 2019.  Instead of initiating a new position, I added to an existing one.  I had recently received $500 as a reward from my RBC VISA reward program, which was deposited into my TFSA, so I thought I should put the money to work right away.

The Buy

I purchased 310 shares of Western Forest Products at a price of $1.835.  This brings my total share count to 1881 and brings my average price down to exactly $1.836!

This will add an additional $27.90 to my annual dividend income and allow me to drip an additional 3-4 shares per quarter depending on the stock price.  I am now on pace to DRIP 92 shares per year (and rising with each additional DRIP).

The Why

I’ve talked about Western Forest many times, so I wont go into to many details again.  It essentially boiled down to a few things.

• Essentially zero debt on the balance sheet
• Trading at a reasonable 11x earnings
• Company is buying back shares, because they believe it is undervalued
• Well covered 4.79% yield (53% payout ratio)
• Growing dividend
• Recent acquisitions and improvements to facilities should help increase margins and revenue in future

You can see my other posts about Western Forest HERE and HERE

This purchase brings my forward annual dividend income up to $6546.60*

*About half my portfolio is currently in funds that do not pay any distributions or dividends.  You can view the full portfolio HERE

Cheers!