Monday, November 16, 2015

Recent Buy - New Jersey Resources

This week I decided to switch some things around in the portfolio. Nothing too major but in the wake of the pending sale of Piedmont Natural Gas (PNY) to Duke energy (DUK) I decided to sell my stake in PNY. Shares jumped around 20% after the big news last month and I thought I should sell just in case the merger doesn't go through for whatever reason. These things have to undergo regulatory approvals and such and I didn't feel like risking my gains by holding any longer.

So I wanted to replace that with a similar stock and I found one that fits perfectly. New Jersey Resources (NJR) is a relatively under-followed energy holding company. The company's primary business is regulated natural gas distribution to roughly 500,000 customers in New Jersey, it is also growing it's pipeline and storage business, as well as it's clean energy services.

I sold 160 shares of PNY @ 57.58
I purchased 355 shares of NJR @ $29.70

New Jersey Resources Chart

NJR Basic Statistics
  • Ticker Symbol: NJR
  • Sector: Utilities
  • Yield: 3.25%
  • Dividend Streak: 19 years
  • Annualized Dividend Growth 3yr: 6.6%
  • Payout Ratio: 50%
  • P/E Ratio: 17
  • Market cap:$2.6 Billion
  • Website:

NJR Dividend Growth

Saturday, October 31, 2015

October Dividend Update

October has come and gone (almost) and it's time for my monthly dividend update. This time around I suspected may be a light month because WMT not paying this month. WMT has a weird payout schedule where they pay twice in the first month of the quarter and twice in the last month of the quarter over the course of one year. Not only that but Kraft/Heinz (KHC) has moved their dividend back a bit and it looks like well be getting an announcement in a week or so regarding the next dividend. All of this made for one of my weakest dividend months in a long time.

My dividend total for the October was $234.23 which is a 10% improvement over last years October total of $213.12. Next month as well as next quarter should put me back on track as I made some late purchases (WMT , GSK) which just missed the ex-dividend dates for this October. These new purchases should show up next time around. My dividend income is listed below.

October Purchases
  • Walmart (WMT) - 16 Shares @ $63.75
  • Walmart (WMT) - 20 Shares @ $58.40
October Dividend Increases
  •  Altria (MO) - From .52 to .565 (+8.6 %)
October Dividend Income
  • Coca-Cola (KO) - $20.13
  • GlaksoSmithKline - (GSK) - $34.32
  • Altria (MO) - $53.68
  • Philip Morris (PM) - $14.28
  • Realty Income (O) - $19.05
  • Piedmont Natural Gas (PNY) - $52.80
  • Sysco (SYY) - $19.80
  • Hattera's Financial (HTS) - $24.75
Total Dividends For October 2015: - $234.23

Monday, October 26, 2015

Duke Energy is acquiring Piedmont Natural Gas (PNY)

   This morning I got word that one of my favorite dividend utilities is being purchased by Duke Energy. The deal which is a cash deal and is set to be completed by the end of the year for nearly $5 billion in cash. PNY shareholders are set to receive $60 per share of stock so this is about a 40% premium of the $42/share price Piedmont had been trading for. While I'm saddened to see one of my favorite dividend utilities slip through my fingers, it looks like I'll be getting a pretty good deal here. Now I will have to replace my shares with another utility and I already have one in mind but I have a year to decide so I have plenty of time.

CHARLOTTE, N.C., Oct. 26, 2015 /PRNewswire/ -- Duke Energy and Piedmont Natural Gas today announced the boards of directors of both companies have unanimously approved a definitive agreement for Duke Energy (DUK) to acquire Piedmont for approximately $4.9 billion in cash.

"We look forward to welcoming Piedmont's employees and one million customers in the Carolinas and Tennessee to Duke Energy," said Lynn Good, president and CEO of Duke Energy. "This combination provides us with a growing natural gas platform, benefitting our customers, communities and investors."

"This is an exciting moment for Piedmont Natural Gas, its shareholders, customers and employees," said Tom Skains, chairman, president and CEO of Piedmont Natural Gas. "The strategic combination of our two companies will deliver compelling value to our shareholders, greatly expand our platform for future growth, enhance our ability to provide excellence in customer service and give our employees more opportunities in one of the largest energy companies in the United States."

Piedmont Natural Gas began operations in 1951 in Charlotte and Duke Energy was founded in the city in 1904. Both companies have played leading roles in supporting economic development in the Carolinas and establishing the Charlotte region as a major hub for energy companies.

Duke Energy and Piedmont also are key partners in the $5 billion Atlantic Coast Pipeline that will be the first major natural gas pipeline to serve Eastern North Carolina.
Terms and leadership

Upon transaction closing, Piedmont shareholders will receive $60 in cash for each share of Piedmont Natural Gas common stock. This represents an approximate 40 percent premium to Piedmont's Oct. 23, 2015, closing stock price.

Duke Energy will also assume approximately $1.8 billion in Piedmont Natural Gas existing net debt, representing a total enterprise value of approximately $6.7 billion.

A fully underwritten bridge facility is in place with Barclays to complete the transaction. Duke Energy will finance the transaction with a combination of debt, between $500 million and $750 million of newly issued equity and other cash sources.

Piedmont Natural Gas will retain its name, operate as a business unit of Duke Energy and maintain its significant presence and its headquarters in Southeast Charlotte. Duke Energy and Piedmont will maintain their current levels of community involvement and charitable giving.

Duke Energy will add one member of Piedmont's board of directors to its board after the transaction is closed. An existing member of Piedmont's management team will lead Duke Energy's natural gas operations in the Carolinas, Tennessee, Ohio and Kentucky, and report to Good.

Completion of the transaction is conditioned upon approval by the North Carolina Utilities Commission, expiration or termination of any applicable waiting period under the federal Hart-Scott-Rodino Antitrust Improvements Act of 1976, and Piedmont shareholder approval.

The companies also will provide information regarding the acquisition to the Public Service Commission of South Carolina and the Tennessee Regulatory Authority.

The companies are targeting a closing by the end of 2016.
The companies will continue to operate as separate entities until the transaction is completed. 

Source: PR Newswire

Wednesday, October 7, 2015

Recent Buy - Walmart (WMT)

Earlier this week I pulled the trigger on another purchase. This time around I had my eye on several stocks but ultimately choose Walmart (WMT). Luckily at the time of my purchase the markets were in a selloff on Monday morning which allowed me to get a great price So I was happy about that. I usually don't get that lucky.

I purchased 16 shares of WMT at $63.75 giving my a total of 50 shares total.

Wal-Mart Stores, Inc. operates retail stores in various formats around the world. The company operates its business through three reportable segments: Walmart U.S., Walmart International and Sam's Club.

I noticed that 'Passive Income Pursuit' just published a new analysis of Walmart over on Seeking Alpha too if you guys wanna check that out.

Walmart Stock Chart

WMT Basic Statistics
  • Ticker Symbol: WMT
  • Sector: Consumer Goods
  • Yield: 3.02%
  • Dividend Streak: 40 years
  • Annualized Dividend Growth 3yr: 11%
  • Payout Ratio: 40%
  • P/E Ratio: 13.8
  • Market cap:$212 Billion
  • Morningstar Fair Value: $79
  • Value Line Target Price: $100
  • Website:

WMT Earnings Growth