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The Retiree's Dividend Portfolio - Jane's September Update: Adding Vermilion Energy

Published Fri, 18 Oct 2019 09:40:08 -0400 on Seeking Alpha

Lately, I have emphasized improving the quality of the stocks in the portfolio and that can be seen primarily in the Taxable account where Dividend Kings and Aristocrats have grown to be a larger part of the portfolio. Finding quality companies has become more challenging since the goal is to purchase them at (or below) fair value since this decreases the downside potential, increases the dividend yield and improves the chance of upside in the future.
Vermilion Energy (VET) is an interesting play when we think about quality because the stock price has plummeted which has subsequently increased the dividend yield beyond a reasonable level. Historically speaking (even during volatile times), VET has seen its dividend yield push 6% and today it stands at more than double that level.
Data by YCharts
At first glance, this stock looks like a sucker-yield, which is a term that SA author Brad Thomas commonly uses to describe stocks that have an unsustainable dividend based on earnings or other factors that would make an investor want to avoid purchasing shares. When it comes to the oil market we have seen increased volatility over the last three-plus years which has pushed the price of crude to record-low prices on a number of occasions.
When looking at VET it is important to remember that cash-flow is king which means that FFO is a better indicator of how VET is performing. Please note that the FastGraphs image shown below is denominated in Canadian dollars.
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Stock name Last trade   P/E Earnings/Share Dividend/Share Dividend yield
VERMILION ENERGY 15.98   9.3 1.72 2.09 13.10
CENTURYLINK 13.53   0.0 -7.43 1.00 7.94
IRON MOUNTAIN 34.14   28.4 1.20 2.44 7.29
ALTRIA GROUP 44.46   13.2 3.36 3.36 7.23
BRITISH AMERICAN TOBACCO 37.99   0.0 0.00 2.68 6.64
BP 37.67   14.3 2.64 2.44 6.45
ENBRIDGE 34.70   19.7 1.76 2.21 6.38
ABBVIE 70.83   26.0 2.72 4.28 6.28
PHILIP MORRIS INTERNATIONAL 74.90   14.9 5.03 4.68 6.12
WILLIAMS 24.29   303.6 0.08 1.52 6.12
MAIN STREET CAPITAL 43.18   16.8 2.57 2.46 5.69
PPL 30.88   12.7 2.43 1.65 5.50
CANADIAN IMPERIAL BANK OF COMMERCE 81.35   9.5 8.59 4.33 5.17
LYONDELLBASELL INDUSTRIES 83.78   8.8 9.53 4.20 4.94
BANK OF NOVA SCOTIA 56.20   11.2 5.02 2.70 4.79
WP CAREY & CO 88.72   31.4 2.83 4.14 4.73
IBM 143.62   14.8 9.68 6.48 4.47
KEYCORP 18.03   10.7 1.68 0.74 4.08
VERIZON COMM 60.43   15.8 3.83 2.46 4.04
TORONTO-DOMINION BANK 56.54   11.9 4.74 2.22 4.02
ROYAL BANK OF CANADA 78.79   11.9 6.61 3.16 4.00
GILEAD SCIENCES 66.36   14.4 4.61 2.52 3.76
REALTY INCOME 74.49   56.9 1.31 2.72 3.69
GENERAL MILLS 54.09   18.6 2.90 1.96 3.59
MESABI TRUST 24.73   7.3 3.37 0.84 3.57
NETAPP 56.36   14.4 3.90 1.92 3.52
ARCHER-DANIELS-MIDLAND 41.45   17.8 2.33 1.40 3.47
3M 170.58   20.6 8.28 5.76 3.41
DIGITAL REALTY 126.53   116.1 1.09 4.32 3.38
EATON 87.30   17.0 5.14 2.84 3.27
CUMMINS 165.05   10.1 16.38 5.24 3.20
ILLINOIS TOOL WORKS 159.85   21.5 7.45 4.28 2.54
BANK OF AMERICA 29.67   10.6 2.80 0.72 2.45
JOHNSON CONTROLS 44.30   6.7 6.57 1.04 2.42
JOHNSON CONTROLS INTERNATIONAL 44.30   6.7 6.57 1.04 2.42
EAST WEST BANCORP 45.79   10.2 4.50 1.10 2.39
POLYONE 34.40   19.2 1.79 0.78 2.29
HONEYWELL INTERNATIONAL 168.63   17.9 9.44 3.28 1.93
RESMED 133.96   47.8 2.80 1.56 1.16
BERKSHIRE HATHAWAY A 324010.00   28.5 11356.59 0.00 0.00
BERKSHIRE HATHAWAY B 214.20   0.0 0.00 0.00 0.00
LAURENTIAN BANK OF CANADA 34.05   0.0 0.00 0.00 0.00

VERMILION ENERGY - VET
VERMILION ENERGY - VET  


Older articles featuring Vermilion Energy (VET):
Canadian Dividend Cuts And Suspensions List - What To Do
Dividend Cut And Suspension List - What To Do
Ovintiv: Anticipating A Dividend Cut
93 Monthly Pay Dividend Dogs And 80 Top Yield Funds For March
The Retiree's Dividend Portfolio - Jane's January Update: 4 Reasons Why You Find It Difficult Saving Money
This 6% Yield Is Not Fat, It Is Just A Little Husky
73 Dividend Boosts Declared January 20 And 27, 2020
89 Monthly Pay Dividend Dogs And 80 Top Yield Funds For February
The Retiree's Dividend Portfolio - Jane's December Update: The Year-End Review
How To Boost Your Yields Using The 'Income Method'

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