Recent Buy: June 24th 2014

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I took a trip to see my family in the Midwest and spent some much needed quality time catching up and relaxing.  They live in a small city surrounded by flat farmland.  I saw John Deere tractors, equipment, and collectibles everywhere.  It’s not news that I’ve been thinking about adding to my position in that company, so I pulled the trigger just before the ex-dividend date.  This was my 3rd buy this month.  I already had some DE in my Sharebuilder Roth IRA, and now I’ve added these new shares to my Sharebuilder taxable account.   I purchased 17 shares at $91.07 a share for $1544.14 and a trade commission of $6.95.   This gives me a yield of 2.6% and adds $40.80 to my annual passive income.  Since my last buy, my 12 month forward dividends increased by 5.39% from $769.35 to $810.78.

If you haven’t researched DE as a dividend growth stock, I highly recommend looking into it at today’s prices.  Here are some things I like about the company:

* Growing dividends for 11 years with an average dividend growth rate of 15.1%

* Plenty of room for future dividend growth with a low payout ratio of 23%

* Consistent share repurchases

* Attractive current PE of 9.89 / Forward PE of 11.76 / 11 year average PE of 14.1

* A great play on worldwide future population growth and demand for food

* Company debt is often misunderstood and actually very well managed

With this powerful brand, we are getting paid to wait through the volatile times.  The dividend seems very safe and has a lot of potential growth ahead.

What are your thoughts on DE?  What have you been buying lately?

My Dividend Growth

http://www.mydividendgrowth.com

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8 thoughts on “Recent Buy: June 24th 2014
    1. My Dividend Growth

      DGJ,

      Thanks a ton for the support, it feels great to be able to put so much capital to work this month, old Ryan wouldn’t believe it were possible. Hope all is well with you and here’s to growing those dividends!

       
      Reply
  1. My Dividend Pipeline

    MDG,

    Nice purchase with Deere. I have some relatives who live in Iowa and work for Deere. I have toured some of the facilitites in Waterloo and the company is amazing. I really need to buy into both CAT and DE, but I always get distracted.

    Keep plugging away!

    MDP

     
    Reply
    1. My Dividend Growth

      MDP,

      Thanks for checking in. Iowa is great, I’m from neighboring South Dakota. I’ve been through Waterloo a few times, but never to the Deere facilities, that would be very interesting to see. I’m with you and want to get into CAT at some point. I don’t see DE equipment much in LA, but CAT has a strong presence in both SD and LA. You have a good reason for distraction here though, in seeking a little higher yield since you’re so close to FI! Maybe you’ll go for lower yields once you’re free? Really enjoying your progress and keep running!

      All my best,
      Ryan

       
      Reply
  2. Dividend Mantra

    MDG,

    Nice buy here! This company has been around for a while and it’s unlikely they’re going anywhere anytime soon. Although earnings are expected to fall for the next couple of years, this makes a nice long-term investment. That recent dividend raise was most impressive.

    Keep up the great work. That dividend income is really climbing now!

    Best wishes.

     
    Reply
    1. My Dividend Growth

      Jason,

      Great to hear from you and thanks for the support. I’m definitely in this one for the long term and hope they keep raising that dividend while we wait for earnings to return to growth. My forward income is climbing faster than I predicted even with investing in so many < 3% yielding stocks lately. It's pretty insane what commitment of just a half year can do. It's hard to believe I was worth less than 8K a year ago and had to make that last until I got a job in October. I've had a fortunate 2014 so far and hopefully I can keep the work income stable for a long time. All my best!

       
      Reply

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