Saturday, September 12, 2020

Recent Buy - UGI Corporation (UGI)


Wednesday September 9th, I bought 80 shares of UGI Corporation at $ 33.47 per share plus commission.


 UGI Corporation distributes, stores, transports, and markets energy products and related services in the United States and internationally. The company operates through four segments: AmeriGas Propane, UGI International, Midstream & Marketing, and UGI Utilities. It distributes propane to approximately 1.6 million residential, commercial/industrial, motor fuel, agricultural, and wholesale customers through 1,800 propane distribution locations; and sells, installs, and services propane appliances, including heating systems and propane-powered generators. The company also distributes liquefied petroleum gases (LPG) to residential, commercial, industrial, agricultural, wholesale and automobile fuel customers; and provides logistics, storage, and other services to third-party LPG distributors. In addition, it engages in the retail sale of natural gas, liquid fuels, and electricity to approximately 13,000 residential, commercial, and industrial customers at 41,000 locations. Further, the company distributes natural gas to approximately 655,000 customers in the portions of 44 eastern and central Pennsylvania counties through its distribution system of 12,300 miles of gas mains; and supplies electricity to approximately 62,000 customers in northeastern Pennsylvania through 2,500 miles of lines and 14 substations. Additionally, it operates electric generation facilities, which include coal-fired, landfill gas-fueled, solar-powered, and natural gas-fueled facilities; a natural gas liquefaction, storage, and vaporization facility; propane storage and propane-air mixing stations; and rail transshipment terminals. It also manages natural gas pipeline and storage contracts; develops, owns, and operates pipelines, gathering infrastructure, and gas storage facilities; and offers heating, ventilation, air conditioning, refrigeration, mechanical, and electrical contracting services. UGI Corporation was founded in 1882 and is headquartered in King of Prussia, Pennsylvania.



UGI is a Dividend Champions with a 33 year streak of dividend increases. Dividend growth rates for 1, 3, 5 and 10 years are 12.3, 7.2, 7.3 and 8.1. (DividendChampions.xls)


UGI Corporation now pays dividends of $ 0.33 per share normally in January, April, July and October.



Details of my purchase:




Some ratings for UGI:


    Yahoo: Mean Recommendation 1.7, 1y Target Est $ 45.25


    Reuters: Mean Rating 1.75



At today's exchange rate, that purchase 80 shares of UGI will increase € 66.40 ($ 78.67) of my expected annual net dividend income and will increase my portfolio's projected annual net dividend income to € 15,100.00. With purchase price $ 33.47 plus commission ($ 5.91) my starting yield on cost is3.94%. After this acquisition, UGI’s weight of my portfolio is about 0.44% and its share of future annual dividend income is approximately 0.43%.


Click here to see my portfolio.


Full Disclosure: Long UGI


Thanks for stopping by!


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