Recent Purchase: Whitecap Resources (TSE: WCP)


On October 22nd, I purchase 120 shares of Whitecap Resources (TSE: WCP) at $12.43, with a trading cost of $6.95 for a total investment of $1,498.55. My stake in WCP has added $90 to my 12-month forward dividends, which now hovers around $900 CAD.

According to CIBC Investor’s Edge:

Whitecap Resources Inc. is engaged in the exploration, development and production of crude oil, natural gas and natural gas liquids in Western Canada. The Company’s activities are concentrated primarily in Northwest Central Alberta and Southwest Saskatchewan. In May 2014, the Company acquired certain strategic light oil assets focused primarily in Whitecap’s Pembina Cardium / West Central core area, as well as at Boundary Lake in northeast B.C.Concurrent disposition of certain Nisku natural gas production and related facilities located in the Pembina area to Keyera Corp.

On the day of this writing (November 1st), Whitecap Resources trades at $11.61 a share. The annual dividend yield is 6.46%, paid monthly. The monthly dividend payments were a great bonus to owning this stock as it’s very encouraging to see money coming in monthly from your investment decisions.

WCP’s 5-year yield average is 2.24%, so it’s flown up quite a bit as the company has increased their dividend payments every year since 2013 and with the stock price dropping 20% in the past one year, although the stock is up 1.49% YTD despite consistent concerns in the energy sector.

WCP trades at a very healthy P/E of 13.7, however the forward P/E currently stands at 38.7. The payout ratio is also quite high at 90.14%

Thomson Reuters Stock Report has a $16.00 price target on WCP stock, which would represent a 37.5% increase from the current price. There are 4 strong buy ratings and 13 buy ratings.

Annual revenue is expected to come in 3.4% lower for 2015, but rise 18.7% throughout 2016.

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