UA-300188601-1 The Dividend Girl: Welcome in my RRSP portfolio Stella-Jones Inc. (SJ

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Thursday, March 28, 2013

Welcome in my RRSP portfolio Stella-Jones Inc. (SJ

My mom arrived late yesterday night and she's actually catching up on her beauty sleep. My brother is coming over later on this evening. He's not that far away, he's in Ottawa, so its going to be a quick bus ride. So its going to be a fun get together right here in Montreal!

Starting in June, Premium Brands Holdings Corporation (PBH) is going to increase its dividend by 6.3%! This is great news because I have face a decreased in my dividend since I sell my trouble Atlantic Power Corporation (ATP) shares. The annual increased for me represent an extra $32.78 in my pockets. And the best part is this: with this increased, my annual dividend income for 2013 would be of $7 307.99. It make $607 in monthly income (or equivalent because I don't get that every months but... the $610 monthly rent payment is almost reach!). Yeah!

While my little mommy asleep I just get on my hands on something I barely talked about: Stella-Jones Inc. (SJ). I got a few shares at $76.46. I had been following this one for the past couple days and when the stock fall behind the 80 bucks, I decided to kick in. SJ chart since its early beginning is stunning. Grow grow grow. Will it continue? I don't know, but I guess Stella-Jones Inc. (SJ) is a better alternative than Rob Carrick Richardson Packaging Income Fund (RPI.UN).

I hope my mom will be done with her beauty sleep soon because I want to go shopping.



9 comments:

Anonymous said...

OMG, are you really investing or just making fun with your readers? SJ doesn't provide stable dividends. It is not a growth stock. Telus is a good investment but you bought it at high price.

Anonymous said...

This is not a dividend stock...

Anonymous said...

This is not a dividend stock...

Anonymous said...

Hi Sunny!
Thanks for the news about Premium Brands. I had missed that - YEH :)

Regards,
MG

Anonymous said...

telus you are buying at 52-week high. Derek foster approach is to buy low...

Anonymous said...

the stock doubled already... again you are buying way at the top...

Anonymous said...

If you are a patient investor and invested in Stella Jones in 2000 you would have a gain of 32,000%. Now adays people arn't patient. They jump in and out of stocks.

SUnny-I expect you to hold Stella Jones for 20+ years-then you'd know if it was a good investment.

Have a HAppy Easter!

Mark

PS-I hope the Easter bunny is good to you.

Anonymous said...

Stella Jones is a Quebec based company that manufactures railway ties, utility poles and other pressure-treated wood products. It has no other business line, except for the recovery/treatment of the spent product.
“The earnings in the last quarter of 2012 included tax benefits associated with land donated to local development authorities and costs related to the McFarland Cascade acquisition.”
"Stella-Jones’ existing business decreased about nine per cent due to lower advanced delivery of railway ties in the quarter and a planned reduction in the tie recycling business.”
1.06% dividend yield. Brunner calls SJ a dividend growth company stating:” yield on your original purchase price of 21% in 15 years”.
But where will SJ be in 15 years? Their wood product is traditionally made with creosote. Environmentally unfriendly & there is a movement to replace all the old ties. Currently the price of composite and plastic ties (made from recycled plastic) is considerably more than treated wood. Thus the market continues. But for how long? Composite ties are showing longer lifespan and heavier load capacities. They’re rot & insect resistant.

Anonymous said...

The overall current analyst rating for SJ is a buy. The stock has been consistently trending upward over the last 4 years with a topping out about 80.00 last December and a corresponding volume spike on the initial test. The second test was 3 months later on lesser volume. Over the past 3 months there’s no clear indication of trending. Very optimistically, this indicator may come in the next 3 months. I suspect, however, the chart will continue to coil. Short term indicators are bearish. There’s a big difference between support (41.00) and resistance levels (76.00). For the Fibonacci players (or negative nellies) you’re looking at retracements at 54.00 and 47.00 If this is a company you really want to buy (my comments as above) then I would conservatively wait for a breakout above 80.00 defining the trend. The other way to play is if you low ball bid based on the levels, and incrementally increase it to catch a dip as it coils, especially if it monotonously continues to coil. This stock’s dividend payout is way too low to catch my interest. It’s not an industry I’m interested in as I feel its an industry in flux, about to change, and that change may be regulated/mandated/subsidized by various goverments. Plus SJ is a one trick pony. Cheers!

 

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