Recent Buy: August 4th, 2014

I added to my position in Aflac (AFL) today.  Although the company recently posted better than expected earnings, it slightly decreased its forward guidance.  With an already turbulent market, this dividend champion was down almost 6% from where I originally bought it in April.  l purchased 24 shares for $58.55 each in my Sharebuilder taxable account, my old cost basis per share of $62.23 now decreases to $60.54.  The trailing P/E was only 9.33, and my yield on this purchase is 2.53%.  My total yield-on-cost for AFL increases from 2.38% to 2.44%.  This purchase adds $35.52 to my 12-month forward annual dividends for a new total of$920.08.

This will likely be the last I’ll be adding to AFL for a while and even if it dips further in price, I believe I got in at a great undervalued long term cost basis. However, I am searching for another investment in the insurance sector to go alongside Aflac, possibly Chubb Corporation (CB) or Traveler’s Insurance (TRV).  I’m going to try to add at least $1,400 every two weeks to my portfolio over the next few months, but if the market presents even better prices during that time, I’ll throw down even more.  I would love any suggestions for more research candidates from readers.

What do you think of AFL?  What is on your watchlist?

My Dividend Growth

http://www.mydividendgrowth.com

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17 thoughts on “Recent Buy: August 4th, 2014
  1. DividendMongrel

    Hey Ryan,
    This is a very good buy. I wanted to add that I also have AFL and DE on my watch list and I am hoping the prices stay low after I get paid. I have an emergency fund I don’t like to dip into but it’s hard when you see good value in both AFL and DE. Today I bought $50 worth of UL, KO, VIA , HSY, and APPL. I am bullish on APPL before the price hits the $100 mark. Nice post and I look forward to seeing what else you have on your radar.

     
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    1. My Dividend Growth

      Dividend Mongrel,

      Thanks for reading! I was definitely early on my DE buy’s. I paid in the $90’s per share in my taxable and roth accounts. I really want to average down the taxable account especially, but that would make DE my largest holding by a lot and I’m still debating whether or not I should diversify more first. It’s fun learning as we go in investing. I’ve posted it before, but my favorite all time quote is: “We have to continually be jumping off cliffs and developing our wings on the way down.” – Kurt Vonnegut

      Love your loyal3 purchases and I’ve been looking hard at UL and KO at current prices. Let’s hope the market remains rocky all the way to pay day for both of us.

      Take care!
      Ryan

       
      Reply
  2. Henry @ Living At Home

    Great buy! AFL looks very cheap at the moment. I believe it’s under 10 P/E. Luckily I bought some during the Japan earthquake. I’m thinking about buying some more again. What is on your radar besides those mention here?

    Cheers.

     
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    1. My Dividend Growth

      Henry,

      Hope all is well with you! I’m with you on valuation, this was too cheap to pass up. Very good foresight from you picking AFL when you did and I don’t think you can go wrong adding at current prices either. My radar has a few names rotating into it, but they might all go back up by the time I buy something in a couple weeks. I’m mostly curious about GE with great forward earnings, initiatives, and and all the rave from the community. I’m still a little scared by the dividend cut and the way the company handled it. Also looking at classics like WMT, CLX, KO, DPS, PEP, GIS, SJM, and IBM. I also like ROST a ton, fast graph looks great! I’ve seen you accumulating shares and think that’s a great choice. Let me know if you have other candidates to look into.

      Thanks for stopping by 🙂
      Ryan

       
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    1. My Dividend Growth

      Dear Dividend,

      Most of the insurance sector seems undervalued in my opinion and I’ve been leaning toward them over banking financials so far in my portfolio. I’m really wanting a great Canadian bank in my Roth Ira at some point too. Keep doing the good work over there and thank you much for checking in.

      Best wishes,
      Ryan

       
      Reply
  3. Dividend Growth Journey

    Great purchase. I don’t have any exposure in the insurance sector and will probably initiate one in the near future. AFL does look attractive at these levels.
    And good luck with future investments. $1400 every two weeks is really wonderful.

     
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    1. My Dividend Growth

      DGJ,

      Thank you! I’m really enjoying the process of investing the cash. I’d love to do more than the $1,400 bi weekly too, let’s hope the market warrants some serious buying soon. I see some great value spread across a lot of the insurance companies still. I think AFL would be a great long term choice, and who doesn’t want to own an undervalued dividend champion? I’ll be watching to see if you pull the trigger on your latest watchlist.

      All my best,
      Ryan

       
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  4. writing2reality

    Like the buy here Ryan, and wouldn’t mind picking up some more AFL for myself at this price. Also keeping an eye on GE and DE as other possibilities. This doesn’t include the Loyal3 purchases I’ve been making. I’ll be catching up on everything on the blog here soon enough.

     
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    1. My Dividend Growth

      W2R,

      Thank you much! Those are all strong choices, so hard to pick just one sometimes. It’s nice that we’re seeing some more dips, I’ll hope for a down day when you decide to pull the trigger. Sounds like you’ve been busy with the investments over the past months, I’m looking forward to hearing more.

      All my best,
      Ryan

       
      Reply
  5. Retire Before Dad

    MDG,
    I also like it here. I bought it previously around $61.5. Considering averaging down in my retirement account, or going with ETFs instead. Waiting to see how this market shakes out. Excellent dividend growth history that we all love!
    -RBD

     
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    1. My Dividend Growth

      RBD,

      Glad you’re on board for AFL. I’m not even sure love is a strong enough word for their 30 years of dividend growth and still such a small payout ratio. I think you’re wise to feel the market out, it’s so shaky lately. Ultimately I’m looking forward to hearing about your pick, especially if it’s an ETF.

      Take care!
      Ryan

       
      Reply
  6. Dividend Mantra

    Ryan,

    Great purchase. I really like AFL, and it’s one of my larger positions. I was lucky enough to be able to build the bulk of my position in AFL in the mid $30s, but I wouldn’t mind buying more right now either.

    That’s fantastic that you’ll be able to invest $2,800 per month. That puts you on pace for growing your dividend income very aggressively. I can’t invest quite that much any more, but I’ve found a happy balance between work, saving, investing, and living. 🙂

    Keep up the great work!

    Best wishes.

     
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    1. My Dividend Growth

      Jason,

      Always feels great when you sign off on purchases. Awesome your cost basis is so low too, another thing I love about investing in great companies is that even though I got in higher I still expect similar growth long term. That fact that I’m in the game at all right now is going to pay off so much in the future. I’m still finding my balance with the new pay rate at work, so I’ll probably end up investing even more as the girlfriend and I continue to cut expenses. She’s been so great and already had a serious frugal side. Nothing official yet, but after 5 years we’re finally going to get engaged soon and she’s demanding to not spend more than $200 on a wedding ring. She’s very fashion forward but always finds deals for super cheap and of all places she suggested Walmart because she found a few she actually really likes that look just like the $2,000 versions. I need to marry this woman asap, hehe.

      I’m still nostalgic from your post about Grand Rapids! So happy for everything happening in your life right now as you’re in an amazing situation working for yourself and could really do that from anywhere you want! The future is becoming boundless for you.

      Appreciate you swinging by!
      ~Ryan

       
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    1. My Dividend Growth

      MDP,

      Thank you much! I liked prices when you bought them last week and it went a little lower and I couldn’t resist. I can’t believe all the bargains lately! CVX had been having such a straight up year too, it was one of my bigger capital gainers before the sell off and I’m still up 10% since February. I wonder how much more it’ll bleed. Eyes are open and waiting, keep it up on your end too!

      Thanks for checking in,
      ~Ryan

       
      Reply

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