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


  1. Never heard of this one Captain. But for a utility it looks pretty solid. I'd like to see the starting yield a bit higher but mid single digit dividend growth is good. Love the idea of owning utilities because I love the local monopoly businesses.

    1. The yield was actually a bit better than the yield PNY was sporting, so that was a bit of an upgrade there as well as slightly higher dividend growth. I do like utilities as well, they seem very safe and reliable as opposed to a tech stock for example which has to keep innovating to stay competitive.

  2. Interesting find. I too am looking for something else besides PNY.

    1. It's smaller cap stocks (utilities generally are) like these which don't tend to get that much attention but there's plenty of nice dividend growth stocks out there that aren't the mage cap stocks that we hear so much about. Glad to bring it to your attention.

  3. I'm not into utility that much, but this seems like a good replacement for your stock! What is their clean energy services about?



    1. It's a newer program where they own and operate energy projects (mainly solar) that generate clean power, provide low carbon energy solutions to their customers. They are working on a wind farm also. They have 130 megawatts of power so far and looking to expand.

  4. I love your decision there. That uncertain gain can be easily recognized by just selling it. Good job with the new buy as well!

    1. Thanks BSR, I am pretty happy with this transaction. I get to own a similar company which is paying a greater dividend yield and slightly better dividend growth as well. It should boost my dividend income by about $30 a quarter. Not too shabby.

  5. Wow, congrats on the 20% gain. I like your strategy on why you sell a stock.
    Best of luck on future investments!!

    I tried to comment 2 times on ipad and it didn't take. Humm?!!

  6. Thanks for sharing. I've never looked into this company, I'm excited to do a little research.