Recent Buys: January 16th, 2014

I typically share my latest investments on Twitter before I get the chance to write about it here, so yesterday I revealed:

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Don’t be afraid to follow my Twitter feed though, because it’s not all filled with awful stock ticker puns.

unilever-brand-imprintI recently added to two familiar names in my portfolio.  I bought another $251 of Unilever (UL) which equaled 6.3049 shares at $39.81 each.  This holding now has a total value of $1,767.54, and earns $60.70 each year in dividends.  I’ve built this position on steady small contributions to my commision free Loyal3 account over the last few months.  I enjoy the extra diversity from these smaller purchases this account provides.  It really helps that Unilever has been lingering around fair value for so long too and if stays under $40, i’ll be buying more.

Franklin_Resources_Logo

I also averaged down 9.31% on another 26 shares of Franklin Resources (BEN) in my taxable Sharebuilder account for $51.42 each for a total transaction of $1,343.87.  My initial purchase of this company was less than a month ago when I thought $56.70 a share was fairly valued.  To my delight, a few analyst downgrades have brought the price way down, which allows me to pick up more rapidly growing dividends for less money.  This is one of those initial low yielding stocks that I expect to increase capital and dividends very quickly, similar to my holdings of Visa (V) and A.O.Smith (AOS), and my only regret with those so far was that I didn’t buy more.  Both recent purchases add $24.65 to my annual forward income for a new total of $1,473.93.

Going forward, I’m watching the Energy sector like a hawk.  CVX, NOV, KMI, and SLB are on my radar.  My BP position is down a ton; I’d love to average down again but also feel I’m already exposed to a lot of risk there for my portfolio size. Canadian banks seem attractively priced with their own risks and BNS and TD are my leading candidates.  I also want to buy more IBM, and hopefully I’ll have plenty of time for that as it lingers around this price or lower. Overall, I’d love for even more obvious stocks to come down in value, but I haven’t been too disappointed with my investment options lately.

On a side note, my fiancé and I have been doing a lot of planning and budgeting for our upcoming wedding and honeymoon.  We want to pay for everything ourselves in cash and not accept money that would set our parents back from their own retirements.  I’ll still be actively investing but just contributing about a third less to my portfolio over the next few months to account for these expenses. Then it’s full steam ahead.

How has January treated you so far?  What have you been buying?

My Dividend Growth

http://www.mydividendgrowth.com

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32 thoughts on “Recent Buys: January 16th, 2014
  1. roadmap2retire

    Great purchases, Ryan. I like UL and have been keeping an eye on it for a while. Just need the capital to make the move.

    Thanks for sharing (and the pun 🙂
    R2R

     
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  2. writing2reality

    Some nice purchases Ryan. I like adding UL, and have been doing so as well. I’m up to about $2,100 or so in my position, all through Loyal3. Of course, I seem to always be hitting the days it jumps back above $40!

    Bravo to you and the little lady for thinking about your parents. Most folks just take that for granted and plow ahead with an expensive event. The reward, and thoughtfulness, will pay off by being particular in focusing on exactly what YOU want for the ceremony and experience.

     
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    1. My Dividend Growth

      W2R,

      Thanks for that support, it feels so good to be in a position where we can purchase everything ourselves in cash. If we continue to take care of our finances we’ll be able to spend unlimited time with our parents in a few years. That’ll be especially nice for me being far away from them. We’re very lucky that my lady’s family lives here.

      Loyal3 has been a fun experience so far, I liked how it handled dividend reinvestment too and can’t wait to get one over $10 for the automatic reinvestment. Let’s hope this stock stays fairly valued for a while, 100 shares sounds like a nice number to have 🙂

      Best Wishes,
      Ryan

       
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      1. writing2reality

        I agree, 100 shares would be quite nice – and the best part is I’m just over halfway there and you’re over 40%. We can certainly celebrate (perhaps star in an Axe commercial?) once we’re collecting our dividends each quarter!

         
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  3. No More Waffles

    Ryan,

    Congrats on some great purchases! I Can’t applaud buying into Unilever enough.

    Also, those stock ticker puns made me laugh way harder than they should have! I guess that studying literature and linguistics must have rubbed off on my sense of humour or something.

    Keep it up,
    NMW

     
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    1. My Dividend Growth

      NMW,

      What’s up, HOMI?? (hehe, I hadn’t heard of that ticker until your latest post.) Gotta love dry humor. I’m aming for around 100 shares of Unilever if I get my chance with prices in the coming months. Hope everything is well with you, and I appreciate you stopping by!

      Best Wishes,
      Ryan

       
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    1. My Dividend Growth

      DFD,

      Energy is so volatile these days and I’ve stayed away so far. I keep wondering if I’m missing out on some of these great values by sitting on the sidelines. It’d be great to see oil prices linger just long enough to show up in earnings so the stock prices can come down to a closer percentage oil has, then I’m in. But there is no telling what’s going to happen. I’ll be curious to read when you hop into UL.

      Best Wishes,
      Ryan

       
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  4. TwoInvesting

    Ryan,

    Nice purchases. BEN will probably be my next pick for the Roth IRA. I’m looking for high growth companies and hopefully BEN will continue to fit that bill! I also added $250 into UL (via Loyal3 as well) and will be writing about some of those purchases shortly.

     
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    1. My Dividend Growth

      Scott,

      Always great to be on the same page as you. I really like BLK and TROW in the space as well, but BEN seemed to have the best valuation when I pulled the trigger. I think it would do quite nicely in your ROTH, it’s crazy to think of the potential value a company like this unlock at your retirement age. I think we’ll both be very happy by then 🙂

      Best Wishes,
      Ryan

       
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  5. Dividend Gremlin

    MDG,

    Nice move on both buys. BEN is a super solid decision, and one that if I had more $ around I would buy into. I’ve added a little more UL myself in Loyal3, which has been great overall even without credit card points.

    Weddings are definitely expensive, and some of the features can be hard to get around one. They can be stressful, but I found it you get your ducks in a row early and take your time it is not a big hassle. The asterisk next to that statement should be “as long as you don’t have a big family, and they live nearby.” Something will always pop up last minute, but you seem laid back enough that it won’t matter. Do make sure you get to eat and enjoy it though – it is your party after all.

    – Gremlin

     
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    1. My Dividend Growth

      Gremlin,

      I sure hope you’re right about BEN, and its competitors BLK an TROW are also fine choices in the sector. I want it to be a stock I can just forget about and let it do its magic. You had a great pick with UL, and I’m still wanting more myself with L3.

      Thanks for the advice! So far the wedding hasn’t been too overwhelming, but that’s probably because we haven’t done much yet. We’re still not sure how many people to invite for cost purposes, but it’ll probably mostly be family. A lot of my family lives in the Midwest and might not have the means to make it here, so we also might throw a party / reception for friends and family there too. It’s a lot to think about, but you’re right about me being laid back and I think we’ll figure it all out just fine. I’m very ready for our day and that awesome food 🙂

      Best,
      Ryan

       
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  6. My Dividend Pipeline

    Ryan,

    Man it is good to see to starting the year on offense. It looks like you are going to ride the momo that you built up all last year! Your progress is spectacular and amazing to observe. Don’t stop!

    MDP

     
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    1. My Dividend Growth

      DGJ,

      Thank you, it’s a great company we’re invested in. Financials are an interesting sector, with much more than just banks. Visa is probably my favorite holding in it. I’ll be curious to see if and when you get dive in deeper here.

      Best Wishes,
      Ryan

       
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  7. Long Term Investing

    Hey Ryan,

    Unilever is my top holding…I never really made money with it since I started investing 2 years or so ago, but I sleep very well as I think the potential in emerging markets is considerable.

    IBM on the other side, gave me nightmares…I ended up selling….Some stocks are just too stressful…

    Love your watchlist…NOV is definitely on my radar and I would like to average down on CVX while the yield is 4%+…

    All the best to you and fiancee…

    LTI

     
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    1. My Dividend Growth

      LTI,

      UL is an excellent company and has stable income, but a bit lackluster on capital growth lately. Good time to load up! In a decade, I imagine we’ll be very glad we’re shareholders.

      I’m excited to see what happens with IBM. With earnings approaching, I hope it doesn’t pop in price leaving me with regrets of not buying more here. I want it to fall to the low $150’s or further to buy more 🙂

      I’m just grateful we’re having some purchase opportunities lately, for a while in the summer everything felt so overvalued.

      Wishing you the best,
      Ryan

       
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  8. Dividend Mantra

    Ryan,

    Great purchases here. Good to see UL continue to keep up the progress. 🙂

    I hope to add some exposure to the asset management industry at some point here. BEN is one of the best around.

    Looking forward to seeing your dividend income grow and grow throughout the year!

    Best regards.

     
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    1. My Dividend Growth

      Jason,

      Thank you! I’m sure UL be inspiring me every day like you have BEN this far into my journey. (OKE that’s the last of the bad puns, I swear!)

      There seems to be several good discounts in the financial sector lately. The asset managers look tasty, and each have something to like that its competitors don’t. I also like how the major Canadian banks have been declining. My recent BNS purchase might need some averaging down soon, or perhaps I’ll add some TD to diversify there. So many options and such little capital!

      We’ve both got a big year ahead with our finances AND fiancées! I love this strategy because even though we’re both expecting reduced contributions, the dividends and their raises will still be doing good work for us throughout.

      Take it easy, my friend!
      ~Ryan

       
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  9. Melissa

    Hey Ryan!

    I’m new to the dividend investing world. How can I determine if a stock I’m purchasing is at fair value? How do you calculate this?

    Keep up the great work. I look forward to reading more about your progress.

    Melissa

     
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    1. My Dividend Growth

      Melissa,

      Welcome to dividend growth investing. I’m a big fan of the strategy and love watching my passive dividends grow each year. I wish you lots of success on your journey 🙂

      Once you get the ball rolling, you’ll develop your own methods and reasons for determining fair value of each company, but to get you started I’d refer you to one of my favorite authors on the subject, Jason @ http://www.dividendmantra.com He wrote an amazing article that should give you a detailed starting point called “How I Analyze And Value Stocks” http://www.dividendmantra.com/2014/01/how-i-analyze-and-value-stocks/

      The only extra tool I use is fast graphs, which you might see on my blog occasionally. It’s a quick way to scan historical data and see valuations. Typically on that tool, anytime the price drifts below the orange earnings line, it is a fair value. However, there are many exceptions to this, which is why fast graphs is only my starting point for identifying research candidates, then my process is very similar to Jason’s.

      I hope that helps and that you’ll stop by occasionally with an update on your progress, and thanks for following mine!

      Best,
      Ryan

       
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  10. Dividend Legion

    Hi Ryan,

    I’m waiting for UL to dip a bit below $40 to initiate a position, as it’s one of those companies that I really want in my portfolio (currently only consisting of 4). As for the energy sector, I am also watching the prices closely, and will hopefully seize a good opportunity!

    Loving the blog by the way, I must admit that I check it regularly!

    Best wishes.

    DL

     
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    1. My Dividend Growth

      DL,

      It’s an excellent company and I think you’re seeking it at a good price, I hope it drops there too and I’ll keep adding more. I’m waiting with you on energy, if oil prices linger for a bit I’d like to see an earnings report or two showing it. I think that might be the time to jump it, but timing these things is impossible so who knows?

      Thanks for following my journey here, it means a lot! I like the looks of your blog too, I had a portfolio your size just over a year ago so stick with it and keep those contributions flowing. It’ll be fun to watch your progress 🙂

      Best Wishes,
      Ryan

       
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