BIP, Other Stocks Trending, the DRIP still shines

I am making a little point in that the AAPL was no "one hit wonder" and there are many more stocks that did the exact same thing. In that case choosing trades was fairly easy as any decent company was hitting a trend around the same time, which makes for a great trading environment as long as the total account is positioned with the possibility of a change in the trend being covered.

Brookfield Infrastructure Partners, (BIP)

I annotated the chart and it pretty much says it all:

Buying and selling according to the chart without regard to any dividends using $1,000 trade sizes yields a 21.2% profit, about $843.

Back to dividend re-investment I noted the next chart two ways, one for straight timed buying to be just ahead of the record dates and opportunity buying. Opportunity buying consists of considering buying anytime in the 30 days prior to the record dates if the price is under the 50 or 200 SMA lines.

Timed buying:                                                          Opportunity Buying:


Adjusted Cost Base (ACB) = $17.60
Total invested  = $10,000 (590 shares)                    614 shares
Current price = $28.17
Total value = $16,640                                              $17,305
Capital gains (on paper) = $6,640or 66.4%              $7,305 or 73%
Final dividend payout = $71.22                                 $73.79

Basically, either method works well so I might split the difference between them. The thing about opportunity buying is that sending in a cheque to buy through the DRIP leaves the timing up to the processing department at the transfer agent... which means timing is not great. There is some return lost as a result of true timing using a broker as there are commissions and even share purchases with a synthetic DRIP (no partial shares counted).

Jeff.