RE:RE:RE:RE:DOW up almost 300 points....when2buy wrote: Rough math suggests you have a $55>$56 Cost base. Definitely near a multi-year high trendline so likely you entered during peak valuations. Unfortunate, you didn't see my running commentary on ENB for most of 2017, etc (and ALA ;)). Regardless, one has to decide whether to stay in the same sector (Pipes / Infrastructure) going forward and then what is the growth profile from today. Your stock doesn't care what you paid for it, so you have to decide if you are in the right stock for future growth once you've picked the neighbourhood.
You've identified what many dividend / DRIP investors fail to acknowledge. Your yield is not today's yield unless you bought it today. Knowing this, no one is tied to their dividend stock (or shouldn't be) and should evaluate what other opportunities exist at the SAME (or higher) yield with a better TOTAL RETURN growth profile. In other words, what other stocks could I own that have (in your case) a 4.8%+ yield WITH A GROWTH PROFILE that will not destruct TOTAL RETURN value over the period of time you deem reasonable (1-3-5-7-10 years, etc).
Your example illustrates the need to understand long-term valuations, dilution effects of acquisitions and mergers (unfortunately too few understood this with ALA as well). Additionally, dividend investors tend to DRIP regardless of price. I prefer to purchase a stock WHEN I WISH TO, not according to the company's dividend schedule. Commissions should not be an issue in today's self investing options. Admittedly, this requires a more in-depth knowledge of the companies' reporting and guidance.
GL2U
When2buy: Thanks--your on my ENB purchase sums up exactly the mental math I'm doing in my head much more eloquently than I ever could have, and your math on my cost base is pretty much spot on. The only thing I would add is that some of the pain has been reduced from the dividends received, bringing my cost base down to the low 50s. I indeed wish I had seen your commentary on ENB and ALA, as I happen to hold both and they represent a sizable weighting of my portfolio (ENB more than ALA). As you follow both stocks, you'll know that both also represent sizable LOSSES (albeit paper, for now) in my portfolio! I bought ENB over two years ago and the opportunity cost has been huge.
With the declines, I've been looking at whether to exit or to keep holding, but hard-pressed to find a stock that meets the requirement of having the same or higher yield + a better total growth profile. Are there any stocks that you do like on a growth + yield profile? My friends keep suggesting Canadian weed stocks, but as I've recently retired, I didn't think it would be prudent. As my hope now is that there is slightly more upside risk than downside risk to ENB, I'm going to keep on collecting my 4.8% until something changes. :)
Thanks and GL2U