Recent Buys: August 3rd – 24th

August has been an exciting month for long term investing.  I thought we were getting bargains early in the month and bought into a few positions only to watch prices go much lower.  But the more I can invest in high quality dividend growth businesses at these depressed stock prices, the faster my dividend income will grow.  So I’ve never been more happy to average down on several falling knives in my portfolio.  I’ve managed to put $8,032 to work so far this month and have increased my 12-month forward annual dividend income to $2,385.42.

I’ve only been investing for about a year and a half and with such little time in the market it’s no surprise my overall portfolio is in the red. Jason @ Dividend Mantra wrote a great reminder that “Time In The Market Trumps Timing The Market For The Long-Term Investor”.  Since these purchases added no new names to my portfolio, I wanted to roll it all off in one post.  (For those unfamiliar with Fast Graphs, when the black current price line moves into the dark green earnings area it indicates the business is undervalued.  Here is a basic demo on how to read fast graphs):

On August 3rd I bought 30 shares of Franklin Resources (BEN) for $45.40 a share with a $6.95 commission for a total transaction cost of $1,368.95.  The 1.31% yield on my purchase added $18.00 to my annual dividend income.  BEN is a global asset manager in the finance sector who has raised dividends for 35 years.  The stock sells for a blended P/E ratio of 10.8.2015_AUGUST_FG_BENOn August 6th I bought 18 shares of T. Rowe Price Group (TROW) for $75.95 a share with a $6.95 commission for a total transaction cost of $1,374.05.  The 2.72% yield on my purchase added $37.44 to my annual dividend income.  TROW is another global asset manager in the finance sector who has raised dividends for 29 years.  The stock sells for a blended P/E ratio of 14.4.2015_AUGUST_FG_TROWOn August 13th I bought 9 shares of International Business Machine (IBM) for $155.41 a share with a $6.95 commission for a total transaction cost of $1,405.64.  The 3.33% yield on my purchase added $46.80 to my annual dividend income.  IBM is a multinational technology and consulting business who has raised dividends for 20 years.  The stock sells for a blended P/E ratio of 8.8.2015_AUGUST_FG_IBMOn August 21st I bought 14 shares of Union Pacific Corporation (UNP) for $86.52 a share with a $6.95 commission for a total transaction cost of $1,218.23.  The 2.53% yield on my purchase added $30.80 to my annual dividend income.  UNP is a railroad based in the western United States who has raised dividends for 9 years.  The stock sells for a blended P/E ratio of 14.2.2015_AUGUST_FG_UNPOn August 21st I bought 13 shares of Johnson & Johnson (JNJ) for $95.89 a share with a $6.95 commission for a total transaction cost of $1,253.58.  The 3.11% yield on my purchase added $39.00 to my annual dividend income.  JNJ is a global healthcare and consumer goods business who has raised dividends for 53 years.  The stock sells for a blended P/E ratio of 14.9.2015_AUGUST_FG_JNJOn August 24th I finally dipped into the risky oil and gas sector and bought 13 shares of Chevron (CVX) for $72.17 a share with a $6.95 commission for a total transaction cost of $1,161.67.  The 5.89% yield on my purchase added $68.48 to my annual dividend income.  The stock sells for a blended P/E ratio of 11.7.2015_AUGUST_FG_CVX1I picked up 2.2305 shares of Wal-Mart (WMT) in my commission free Loyal3 account for a total of $150 and average purchase price of $67.25.  The 2.91% yield on my purchase added $4.37 to my annual dividend income.  WMT is a consumer services retail operator who has raised dividends for 42 years.  The stock sells for a blended P/E ratio of 13.2.2015_AUGUST_FG_WMTI picked up 1.3096 shares of Coca-Cola (KO) in my commission free Loyal3 account for a total of $50 and average purchase price of $38.18.  The 3.46% yield on my purchase added $1.73 to my annual dividend income.  KO is a global beverage business who has raised dividends for 53 years.  The stock sells for a blended P/E ratio of 18.7.2015_AUGUST_FG_KOFinally, I picked up 1.2438 shares of Unilever (UL) in my commission free Loyal3 account for a total of $50 and average purchase price of $40.20.  The 3.28% yield on my purchase added $1.64 to my annual dividend income.  UL is a massive European consumer goods business whose dividend rises steadily in Europe but not so steady in the US due to currency exchanges.  The stock sells for a blended P/E ratio of 18.7.2015_AUGUST_FG_ULOverall I was able to add $248.26 to my forward 12-month dividends and now average $198.79 a month in income.  I still have some cash for another purchase or two in the coming weeks, but I’m trying not to rush in.  I’m hoping we see a bear market for a long while so these new dividends I’m getting will be reinvested into even better valuations.

How was your August?  What are you buying with all these bargains?

My Dividend Growth

http://www.mydividendgrowth.com

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34 thoughts on “Recent Buys: August 3rd – 24th
  1. Dividend Legion

    Hey Ryan,

    Wow, so many purchases! It’s awesome that you had the capital to…capitalise (hehe) on these opportunities that we’re currently getting. I also bought some JNJ like you. You can’t argue with it at these prices!

    As for your overall portfolio loss, I’m on the same boat as you. My time in the market is a mere 8 months, so not a good chance I’d be making a profit during a bear market.

    Let’s keep going and buying at incredible discounts!

    DL

     
    Reply
    1. My Dividend Growth

      Haha, nice pun there 😉 I was lucky to put so much cash to work over the month even if some purchases were early, and I feel great about the future dividends I secured. I’m glad we both landed some more JNJ, congrats to you!

      I’m liking the red in our portfolio reminding me that the dividends are reinvesting at much better prices. I sure hope this lasts cause I’m ready. Thanks for the comment!

      Best Wishes,
      Ryan

       
      Reply
  2. JC @ Passive-Income-Pursuit

    Man you weren’t kidding about investing quite a bit over the last week or so. Lots of great companies here and I can’t really question any of the purchases because just about all of them were crossing my mind as I saw my portfolio bleeding out. If I had more capital available I’d have been adding to my positions in TROW, JNJ, and UNP for sure over the last couple days and WMT is looking really good here as well. I’m also thinking of adding ETN and BEN to my portfolio although BLK is one I’m thinking of adding as well. Also looking at NSRGY to add another consumer staple giant to the mix. I love seeing red across my portfolio because the long term valuations just get better and better. The CDN banks still look good here as well. Hopefully we get the full blown ~20% correction to unlock even more value. Although if the recovery could wait a month or two that would be great so I could free up some more cash.

     
    Reply
    1. My Dividend Growth

      Haha, yeah I went all out. I didn’t time it all exactly right, but I’ll be pouncing again on any more moves down. Here’s hoping. Glad to hear you’re on the same page, that’s always reassuring! I’ve had such a bad history with timing purchases of BEN. I would love a cost basis around today’s levels, it’s trading at a pretty rare price even with all the headwinds. I want to keep averaging down, but don’t want it to be such a large position. Tax loss harvesting doesn’t make much sense with my portfolio size either so I’m probably going to end up throwing more capital at it and worry about re-balancing it later if it ever comes back. BLK looks great here too and it’s different enough from TROW and BEN that I’ll probably eventually start a position, but not for a while I’m guessing. I wish I had a huge lump sum these days because there are just so many names on sale. Here’s hoping this lasts and we both have plenty of time to pick up the deals. Thanks for the comment, JC 🙂

       
      Reply
  3. Adam

    Great set of buys here MDG! I agree about a bear market. It is great for building up the portfolio! Wow, IBM is deep in the dark green on the FastGraph isnt it? Thanks as well for the BEN pick. I hadnt heard of this one before but I will add it to my watchlist to do some research. Congrats on your purchases!

    -Adam

     
    Reply
    1. My Dividend Growth

      Thank you, Adam. I can’t wait to see how all this market noise plays out, it’s great to have a long term plan, isn’t it? IBM is super attractive here in my opinion at a forward P/E ratio of less than 9. I like what they’re doing too with the business these days, but tech in general is pretty risky. BEN has been the main falling knife of my portfolio, but I’m still extra bullish on them. They’ve got some issues, but I still think the best days are ahead. I would love to hear your thoughts if you ever read up on them. I appreciate the comment!

       
      Reply
  4. Dividend Gremlin

    Ryan,

    Holy crap, what a month. Got to love it. This month I went long on XOM in my Roth and added the new positions of WMT and HSY to my Loyal3. Gotta love this market. Nice to see we increasingly share names in our portfolios, but that is bound to happen.

    Long – UNP, WMT, UL, KO, and JNJ right there with you!

    – Gremlin

     
    Reply
    1. My Dividend Growth

      Hey there Gremlin. Oh man it felt good to add so much forward income, especially after losing so much from the BAX spin-off. Congrats on picking up XOM, they appear to be the safest of the oil majors. I would have been all over them if it weren’t for the massive bleeding of my CVX & BP positions. I think you picked the better company. I saw HSY fall to the mid 80’s and wish I’d have had more capital in my L3 account to buy. Those are some solid purchases you made my friend, and I’m in good company sharing so many holdings with you. Thanks for the comment.

       
      Reply
  5. Dividend Hustler

    Just friggin Awesome! It’s a great ” High ” feeling you get hey Ryan? I know how you feel that’s why I just love this journey. Buying ” Income ” producing assets is awesome. I love it. Thanks for sharing this journey with us and love the intensity.
    Keep Hustling it UP!

     
    Reply
    1. My Dividend Growth

      Hi Tyler! I’m definitely feeling high these days thinking about this dividend income in the future. It’s so weird to me that more people don’t invest with this obvious strategy. You’ve been making great strides this month as well my friend, congrats on the great purchases over there!

       
      Reply
  6. Tawcan

    Wow someone has been very busy on the buy front lately. That’s awesome Ryan! We haven’t pulled any buy triggers yet in August but probably soon.

     
    Reply
    1. My Dividend Growth

      Haha, yes I have indeed been busy! There’s a little more cash where that came from too, so I hope your hold out brings us much lower prices and we both scoop up some names from our wishlist. Always a pleasure to hear from you, Tawcan.

       
      Reply
  7. Pingback: Buys 08/15 | The Dividendlover

  8. roadmap2retire

    Way to go, Ryan! Those are some excellent purchases at great prices. Congrats on adding almost $250 to your forward div income. Thats fantastic progress and keep up the great work!

    R2R

     
    Reply
    1. My Dividend Growth

      Thanks for the kind words, R2R. It felt great to make up for that BAX dividend cut and some over the month. I’m loving that all these dividends get reinvested, let’s hope the market remains volatile and ripe for the picking. Cheers!

       
      Reply
  9. Dividend Mantra

    Ryan,

    Awesome work over there. Very, very busy. Love to see it. You picked up some really great names here at some really solid valuations. And what a big increase in your annual dividend income. Nice!

    Looks like that new gig of yours came with a pretty significant bump up in pay. Awesome. 🙂

    Keep it up!

    Best regards.

     
    Reply
    1. My Dividend Growth

      I have to try to keep up with you, sir. Hehe, you’ve been killing it Jason. The market is popping right back up now and I’m getting sad seeing all these names becoming less attractively valued 🙁 I must be a real DGI investor now with these sort of emotions. I have you to thank for that!

      The new gig wasn’t that big of a pay increase, but the title will be amazing for my career. I had a little extra cushion in the emergency fund and thought it’d go to much better use in the market. I’d love to add even more if we have another big downturn. Otherwise, I’m likely to keep chipping away with about 2-3 grand a month through the end of the year. Best wishes to you my friend!

       
      Reply
  10. The Security Whisperer

    Hi Ryan,

    First time visiting your site…awesome job you are doing building your portfolio. I see you are a fan of BEN and TRW…I love asset managers as a business; economies of scale, good cash generation, solid long-term business model.

    Looks like you will also be among the many investors waiting to find out how BNS performed when it reports Q3 numbers on Friday 🙂

    TSW

     
    Reply
    1. My Dividend Growth

      Thanks for stopping by, TSW. I like the looks of your site as well and will be stopping over.

      Glad to hear you’re also bullish on asset managers. I love BEN as a businesses but learned a lot from how quickly I averaged down in it. I wish I had been a bit more patient, but I suppose in the super long run it probably won’t matter much.

      I wish I could average down on BNS in my IRA too right now, unfortunately I maxed out my contributions for the year. It’s weird because I’ve commented many times that I wanted to sell DE in the high 90’s and PG in the 80’s but never did. I need to listen to my gut more, oh well!

      Happy Investing!

       
      Reply
  11. Captain Dividend

    What a month so far, you’ve put some serious money to work for you here. I wish I had that kind of money to invest with! I’ve had my eye on a few of these names so I appreciate the charts! 😮

     
    Reply
    1. My Dividend Growth

      Hey there Captain! I’m very fortunate at the moment with my income, but scared for the end of this year when my gig ends. Here’s hoping for good things. I’m glad to help with the charts, pretty much my whole watchlist was attractively valued last week on them. So sad things seem to be moving up again so soon. Best wishes!

       
      Reply
  12. IR

    It’s always annoying when you use your powder buying on the way down and then there is a really big correction and you’re left without much capital to play with. I guess its always a balance between leaving money in cash earning nothing and stuffing it all the market.

     
    Reply
    1. My Dividend Growth

      I know! First world problems I suppose. In the long term we’ll be super happy we took the time to invest at all. I like the looks of your website over there, very cool and I’m excited to see it develop, best wishes!

       
      Reply
  13. Dividend Growth Journey

    Ryan,
    Great list (and lot) of purchases. Congrats. Several stocks common between our portfolios and stocks that I have been adding recently as well (CVX, WMT, Unilever, JNJ etc)
    Looks to be a huge month for you and with forward dividends close to $2,400, the snowball is beginning to take effect… All the very best.

     
    Reply
    1. My Dividend Growth

      Hi DGJ hope all is well! Glad to see we’re on the same page with those names, it’s been easy pickings these days in the market let’s hope that continues. It’s pretty wild that an average of $200 gets automatically reinvested, that’s going to start making a dent as you been seeing yourself. Thanks for stopping by, good to hear from you 🙂

       
      Reply
    1. My Dividend Growth

      Hehe, you got it! I had a super busy month with work and an unexpected trip back to the Midwest. I’m back now though and am ready to start posting a little more regularly. Hope all is well, Vivianne!

       
      Reply
  14. DivGuy

    What a great list of purchases! You’re killing it. 😉

    I somehow “disagree” with CVX as I think future growth is at risk. To me, companies with yield higher than 5% are usually bound to higher risks, but the dividend payment is not at risk for the moment. You might still earn good returns from it.

    Cheers,

    Mike

     
    Reply
    1. My Dividend Growth

      Thank you, Mike! I totally hear what you’re saying on CVX and I agree it’s super speculative with current events. It’s more a gut feeling purchase. I think after limiting their cap-ex spending their cash flow doesn’t seem too bad, but there is a lot to be nervous about and it could get much worse. Hope all is well with you my friend, thanks for the comment!

       
      Reply
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