The person commenting was right. When the market is down, I put my dividends into what I hope will be good spots to stash the cash but there are times I wish I had a bit more to invest. Well, I've taken that comment to heart and moved a bit of my investments from the market and into cash. If the summer proves to be a bad time to be in the market, I'm prepared.
I bought some Inter Pipeline when it was going for the fire sale price of about $8. I've enjoyed a nice monthly dividend every since. Recently, my holdings had grown to about 160 percent of the original investment, and this does not count the dividends that I have spent for living in retirement. Nice. I sold all my remaining IPL.UN at just more than $20 this week. I can see IPL.UN climbing another ten percent but I'm comfortable exiting at this time.
I now have close to 8 percent of my portfolio in cash. I will remove a little to live but no more than what I would have made if I had continued to hold the stock. By doing it this way, the cash will last for more than fifteen years.
If there is a crash, and with Greece threatening to back out of their debt solution promises it could be in the cards, the cash will add stability to my portfolio. Plus, I will have the funds to buy some of the bargains. If the market does not crash but climbs, my other investments will carry my portfolio higher.
It is a can't lose situation. I thank the person who made the comment. I'm comfortable and that is an important part of investing.
Trinidad Drilling (TDG) may be my next buy
P.S. Some of my recent plays, if you've been following, have done well, especially if you have gotten in and out as discussed. Progress Energy returned a quick ten percent and Penn West did likewise. If you have continued to hold as PWT turned south, my guess is that it will come back. There will be another exit point in the future. As long term holds, oddly I favour Progress Energy over Penn West but I'd rather not hold either well into the future.
Right now I am looking at buying some Trinidad Drilling (TDG). If it drops a bit more, I'm in. The dividend is small but it will do in a pinch. It's about 20-cents annually. Many believe that TDG will outperform and they see a future price of about $11 a share. Unfortunately, the risk is high.
This is what I found on the Scotiabank site:
Trinidad is Canada's fifth-largest contract driller with one of the newest, deepest, and most technically advanced fleets in both Canada and the United States, and growing exposure to Latin America. Trinidad's other business lines include coring, pre-setting, and rig construction.
They also say:
Solid outlook. We continue to have confidence in TDG's operations. With 65% of its fleet contracted for two years and essentially a Tier I fleet, we believe TDG is better insulated from reduced industry levels.
I checked some other sources and mostly they concur. I'll buy a thousand shares or so and move on when the shares get past $9. The dividend will keep me happy while I wait.
Cathedral Energy may be another option with 5.1% dividend
If TDG is not what you are looking for, my other pick in the drilling field is Cathedral Energy Services Ltd. (CET). This investment has the extra bonus of, according to Scotiabank, "a stable 5.1% dividend yield."