I sold Husky Energy (HSE) last week at
$29.25. Held it since Jan/12 when I
bought it for $ 24.45. With the dividend
I earned better than a 15% annualized return, but thought it was time to move on. I bought Husky when I was first transitioning
to dividend investing, primarily because it had a nice yield at that time of
about 4.8%. However, it has not
increased the dividend since 2009 and not sure when/if the next increase will
come.
I do hold other companies that have not had
an increase for awhile (Sun Life and Crescent Point to name two) but both of
these were yielding close to 7% when purchased, so I am prepared to be
a little more patient with these . Also,
I think Sun Life could return to be a dividend increaser in the next year or
two.
Energy stocks makes up a large chunk of the Cdn
index, but now that I have sold Husky I am down to two – Crescent Point and
Baytex. I am fine with that, as energy
stocks can be highly cyclical, which can make dividend predictability a little
challenging. Not in a hurry to buy
anything with the Husky proceeds. Have
been watching a couple of stocks but I am going to see if they retreat a little
more before buying. If not, I will look
elsewhere. At the end of the day I would rather miss a stock I could have
bought than make a purchase I end up regretting.
