Recent Buy: June 24th 2014
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?