Sunday, August 4, 2024

The Cost of Staying Cool in August, 2024

 

It's August, 2024 and the month is starting out with high humidity levels and heat warnings where I live. I'm definitely not a "fan" of heat and the AC is cranked more than usual these days. A higher power bill to come as the local power utility rakes in more money from me.

Enbridge (ENB.TO), known for being a major pipeline in Canada and the US released it's 2nd quarter report plus updated about it's finalising buying more utilities in the US in several States with that side of their company growing.

All looks positive to me and ENB has an ex-dividend date for August 15th with a 7% yield. I'll add more although the lower Graham Number indicates overvalued and at a year high so far. I prefer buying a stock that is undervalued with room to move up in price but building dividend income is on my agenda 

Continuing with the "Utility Sector" theme, Fortis (FTS.TO) out of St. John's, Newfoundland is spread out through North America and beyond. With an ex-dividend date of August 20th, it's 2nd quarter report was also upbeat as I expected and I will continue to buy that stock with a 4% yield, also near it's yearly high.



I assume the Bank of Canada lowering interest rates and decent half year reports from companies like Enbridge and Fortis are what interested investors like to see and driving the stock prices up for now. Emphasis on "for now" where the Market is always churning with what's going from day to day but to stay on track with a plan, I ignore the short term daily moves.

Later in August, there are ex-dividend dates for insurance companies or the Lifeco sector I'm fond of such as Manulife Financial and Great-West Life with yields in the 4 to 5% range plus more companies to add to like Algoma Central (ALC.TO), the Great Lakes shipping company I currently hold. More on that in my next article.


  

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