Last week the market took a little dip and I was able to pick up 500 shares @ $14.03 of a stock that had been on my radar for a while, Atlantic Power (AT). I had been looking at mining or power or oil and gas, as a new category to add to my small (but growing) portfolio. AT had lots of factors in its favor.
1) After listening to a recorded conference call, I see the company spent much of 2011 developing partnerships that will allow for increased income and maintain their high dividend. Even though they recorded a loss for 2011, they were building partnerships so their funds were well spent, IMO.
2) They have a decently high dividend, 8.05%, and they pay monthly. Woo hoo! For anyone who is keeping track, we now hold three stocks that pay monthly dividends.
3) This will probably not be a long term (probably not over 5 years) hold for me. I think high dividends are great, but I don’t want to hold more than half of my portfolio in what I would consider high dividend stocks (over 5%). I just don’t want the risk if dividend announcements go down and I feel I have to scramble to sell. Which makes me realize that my next buy should have a lower dividend rate.
That’s it for now, but I am working on a post where I report on my quarterly results and review. I am really excited about the trend I’ve seen since I’ve been putting more money in this account and investing for serious dividends. At this rate, 2012 is going to be fantastic! How has your 2012 started? Are you as optimistic as me, I hope so! Wishing all my readers a fantastic week. Hope you had a wonderfully and relaxing weekend.