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Wednesday, December 14, 2011

Welcome in my investment portfolio Agrium Inc. (AGU)!

Ok, I know, with this week pay cheque, I was supposed to convert Canadian dollars into US ones and following what, I was supposed to invest in a US blue chips. That was actually BEFORE the TSX began to drop some points AGAIN.

Because of my margin situation, I need to be very careful the way I handle my finance. I really need to add up to the value of my non-registered portfolio. That way, I decrease my chances to get a margin call or worst, having part of my precious portfolio sold out. I don’t have too many choices, I need to pay off my margin or invest in Canadian dollars. I decided to invest in Canadian dollars. That’s how I invested in some stocks of Agrium Inc. (AGU) at 67.20$. AGU closed today session at 67.13$.

A sign that this worldwide economy is in a real bad shape are the numbers coming directly from the U.K. Personally, I always taught of the U.K. as being one of the best economies worldwide. But seem like no one can go intact of this bad economy. According to the Globe and Mail, Britain’s unemployment rate hit its highest level for 17 years!
Too bad. Love those British people!

While having those things in mind, it’s important to adjust to the overall situation. It was a good idea to get more of those fantastic US dollars – I was certainly happy about the idea – but with those circumstances, I preferred to stick to Canadian stocks.

Sorry US dollars!

My investment made in Agrium Inc. (AGU) today is close to 1 000$. This amount only provides me a couple of stocks – even less than 20. But no matter how much stocks I hold of AGU now, AGU certainly bring a nice diversification in my maybe too pipeline oriented portfolio. Agrium Inc. (AGU) is a potash producer. The company announced today an annual dividend increased from 0.055$ to 0.225$. Nice, but Agrium Inc. (AGU) dividend is not exactly what I will name as being generous.

However, I think that Agrium Inc. (AGU) can bring a great deal in my investment portfolio.

Also today, Agrium Inc. (AGU) announced that measures had been taking for the company to increase its potash production of 50%. That’s quite something right there.

Overall, AGU chart is impressive. In the past 52 weeks, AGU lowest value had been of 63.93$ and highest 98.02$. I place my trade at 67.20$. At 67.20$, I am not that far away from AGU lowest value of 63.93$. There could be some volatility on this stock, but the try really worth it. Imagine if my stocks reached one day 100$! My investment in AGU could turn out to be very lucrative in the future.

Even following this new investment, my overall non-registered portfolio value is under the 110k. Sad but at least, I am still holding to a job. I am not from the statistic. At least for now.


Anonymous said...

Good choice at a good price and should pay off very well in the long term. This coming from one of your critic...

Sunny said...

A critic right?

Well, the only thing I can reply to this is that one day, you'll realize just how good of an investor I am and how lucky you are to have the immense privilege to read this blog for free.


Anonymous said...

Man, just yesterday, I bought POTash instead. Probably would've bought AGU with the news today.
Ha! Good choice.

Liquid Independence said...

Great choice D-Girl. People will always eat so agricultural stocks like AGU will be very safe. I'm personally thinking about buying some (POT). Too bad fertilizer companies don't pay good dividends.

HighonDividends said...

AGU is not a dividend stock. Div = close to zero! Effectively zero.180 degrees from what you preach.

Sunny said...

POT is a good choice too. I wrote about investing maybe be in POT before, but I never invested in it. I don't like stocks like POT who are massively being covered by the media. There's been that acquisition story about POT. Like what the heck. what is successful and shiny need to remain to Canada. I guess POT will learn from its mistake... That's why I didn't invest in POT. AGU seem to be a good bet.

Hello High on Dividend,

During those difficult economic times, I explain I wanted to focus on blue chips rather than high dividend payers in order to add value to my portfolio. It's the only way to create value for the long term.

I had acquired lately good dividend payers, like FC, but I
am looking forward to invest more in more in blue chips for the upcoming year.

Holding exclusively high dividend payers is too dangerous. Need to mix with blue chips - its a requirement to be able to survive while being on a margin account and its a requirement to survive in those difficult economic times.



Thanks Liquid. Its seem like there's a bunch of high quality stock out there that just pay very little in dividend unfortunately... Too bad, but I will be happy with an income of 7k in dividend per year.

HighonDividends said...

Ok, good point.

But you can buy US blue chips that pay high dividends just as easily as you can low or no-dividend payers. You can have it all!

AVN, WMT, LMT, COP are some of my latest longs.....

MathLaj said...

For your margin situation, the best solution could be to just put cash in your account, with no buy.
I know it is really not as fun as buying something, I'm in stocks/options stuff for three years now so I totally understand that a deposit with no buy is like a date without a kiss ;)
But still it would lower your margin requirement and could avoid you margin call. The reality is (and you probably know this already) as long as you buy something with the deposit you make, you put it at the "same risk" of margin call, it still has to go up for you to avoid that "call from hell". If this new investment goes down, it could itself trigger that call.
Anyway, nice blog! I read it for few months now and this is my first comment.

Math... the quebecker... but shhhhhut, please dont tell anybody!

PS. I agree on many of your point-of-view about the Province de Québec so it's not as I'm gonna try to argue with you on this matter!!


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