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I’ve Had Enough of Pengrowth Energy (PGF)


In my efforts to reduce my overall portfolio positions, I had set a stop-loss limit on a couple of stocks. SNC-Lavalin, and Magna International were two such stocks which were consequently sold after for very good, double-digit returns. On the other hand, Pengrowth Energy has been a dog of a stock ever since I had purchased 195 shares at $3.80 each on March 24th, 2015.

Pengrowth Continuously Cut Their Dividend

I’ve mentioned multiple times when speaking of this position that I was unhappy with it shortly after learning more about the market. My initial thesis for purchasing the stock was nothing more than the fact that there was a problem with oil & gas companies due to low oil prices, and that it had a monthly paying dividend which was very high (and obviously, not maintainable).

This is what happens when you don’t do your due diligence and blindly buy shares of companies. I’ve learned a great, great deal since that time over a year ago. The stock had cut their dividend before completely dropping it and I have not receiving a dividend from them for all of 2016; and believe it will be a long time before, if ever, they reinstate their dividend.

I had invested such a small sum of money into the stock (luckily), since I knew, at least, that any investment in the oil & gas sector was dangerous when I did so back then.

Pengrowth Energy Shaved Off 44.62% of My Investment

My initial cost basis of $195 shares at $3.80 with a $6.95 trading cost comes out to $747.95.

The stock fell sharply and then YTD has come back up decently with a gain of 78.43% as of November 20th. Unfortunately I had still paid much more for my shares, as it set off my stop loss limit at $2.05. I had completely given up on regaining the rest of my money as things just don’t look too great for the company at all. In addition, this little cash could still be earning some dividends in another investment. In the end, I was able to recoup $392.8 after trading costs. I could easily reallocate that cash into an investment yielding 5% and earn $16.49 a year, or $1.37 a month (every dollar seriously does add up).

In addition to the $392.80 in capital I was able to recoup from my loss, I received a total of $21.45 in dividends throughout my holding period.

After all is said and done, I transformed $747.95 into $414.25, a total loss of $333.7, or 44.62%.

Dividend Beginner

A 22 year old Canadian dividend growth investor striving for early financial independence; building as many passive income streams as early as possible.
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My publishings on references an opinion and is for information or entertainment purposes only. It is not intended to be investment advice. Seek a duly licensed professional for investment advice. I am not responsible for any decisions you make concerning finances, taxes, or investments. You must perform your own research and always take caution when extending capital.