To The Moon

So with the tariffs hitting tomorrow, I thought I'd take a look how this mite impact some dividend stocks I have invested in that focus on oil and gas pipeline infrastructure. Two of which I have owned in the past, but don't currently own, and the third one that I currently own.

The first two are $Enbridge(ENB)$ and $Valero(VLO)$. Both appear to own pipeline assets that cross between Canada and the USA. So with impending tariffs of 10% on imports from Canada their profits could be impacted, if Canada cuts supply to America. although they also have significant assets in the USA. So this impact might not be huge. But it's food for thought.

The third stock that I do own, $Hess Midstream Partners LP(HESM)$ appears to only own pipeline assets within the states, and mainly pumps oil gas and water for their parent company $Hess(HES)$. Hesm pays a nice dividend too, so I don't need to panic.

This was an interesting research exercise though, and although not a deep dive, it gives me confidence in my investment going forward. Also, on the back of the first two companies being negatively Impacted, hesm could also be impacted negatively by association. This would represent a great opportunity to buy more stock at a discount.

What do you guys think? My thesis for investing in all three was based mainly on their long term dividend return and growth. In the end I sold Enbridge and Valero because I didn't need 3 pipeline stocks, Hess was the winner for me. If enbridge's and Valero's revenues are significantly impacted by the tariffs and they have to cut dividends. Well if you're a dividend investor you know, the stock price will be slaughtered.

Another interesting observation I have from stocks "crashing" today is that only my growth stocks with crazy p/e or p/s ratios are Down. All my rather defensive dividend stocks are holding up just fine. Will the growth stocks recover later in the week or continue to fall? No clue really. But what I do know is that Trump will continue to create market uncertainty going forward. Which means a roller coaster ride for the market. So I will definitely consider selling off growth and buying dividend stocks in the short term. Maybe buying very long calls in the growth stocks too, if the price is right. Then I can lock in a great price to buy the growth stocks back at a discount 2 Years from now. If we do go into a recession, well historically, it won't last 2 years. 

Should have, could have, wish I did or didn't, won't help atm. the market mite implode, or it might not. So my strategy is to take some risk off the table, maybe take out the risk of impending doom by realising my profits on the growth stocks but Not throwing out the baby with the bath water... go long buying calls so I can get my growth babies back. And putting the balance into the safety of dividend stocks that won't grow much but also won't implode. And will give me a nice return in dividends in the meantime.

As always, may all your trades be ever in you favour 

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