Buy Alert: Western Forest Products (again)

Western Forest Stock

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!

4 Comments on “Buy Alert: Western Forest Products (again)

  1. Thats a tonne of shares with a lot of drips. love it man..

    The timber industry seems to be getting killed lately stock price wise.

    keep stacking those divs
    cheers

    Like

  2. Being involved in the timber industry in a roundabout way through our Helicopter, which contracts for WFP. I’ve always been hesitant to invest in this industry. Living in BC, we’re all too familiar with how the forestry industry has its ups and downs. I like your analysis of the stock though, and pretty sweet to be DRIPing that much! Hope the trade talks and tariffs don’t affect the industry this year.

    Like

  3. Hi, would like to hear your thoughts about WEF now since i dropped quite a bit.

    Like

    • I still think long term it will be okay. Currently facing a few big challenges (obviously) the strike needs to get resolved, uncertainty with trade/china/US

      Could go lower short term, but I plan on holding for 5-10 years.

      I’ll continue adding to it via DRIP.

      Like

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