Recent Buys: June 11th, 2014

Yesterday I added to two positions.  First, I bought 20 shares of Baxter International (BAX) for $73.51 a share in my Sharebuilder ROTH IRA.  The purchase total was $1,477.15 and gave me annual yield of 2.83%; I now have 42.2379 total shares of BAX.

Here are some recent articles I’ve enjoyed about BAX:

http://www.dividendmantra.com/2014/05/two-stocks-on-my-watch-list-for-june-2014/

Dividend Mantra has his sights on two stocks this month and one of them is BAX.  He explains his reasons for possibly adding to his position in this company. This is a great read!

http://www.dividendgrowthinvestor.com/2014/06/baxter-international-bax-dividend-stock.html

Dividend Growth Investor gives one of his detailed analyses, and his article increased my confidence on making this purchase.

target-2013Second, right after Target Corporation (TGT) announced its latest dividend increase of 21%, I decided to add 28 more shares to my position in my Sharebuilder taxable account at $57.14 a share.  The purchase total was $1,606.87  and gave me annual yield of 3.64%; I now have 52.1792 total shares of TGT.

Here is a recent piece I enjoyed about TGT:

http://seekingalpha.com/article/2255043-20-dividend-champions-to-buy-today

Two authors I regularly read on Seeking Alpha had something to say about TGT.  Chuck Carnevale shows an attractive fast graph of the company with a brief commentary.  David Fish, who manages the CCC list, also states in the first few comments that he has picked up TGT shares recently.

With these purchases, my combined 12 month forward dividend income increases by 16.57% from $659.98 to $769.35.

What do you think of BAX and TGT?  What are you buying lately?

 

My Dividend Growth

http://www.mydividendgrowth.com

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25 thoughts on “Recent Buys: June 11th, 2014
  1. Dividend Mantra

    Ryan,

    Thanks for including me in your post!

    And nice job on the two recent buys. I think there is a lot to like about both of these companies. I already own about as much TGT as I’d like to right now with my 70 shares, but I think the valuation is solid right now. Earnings are depressed right now, but as they normalize the share price will rebound and hopefully the dividend growth will continue. The recent raise was stellar.

    And I really like BAX here. It’s on my very short list for a purchase over the coming week or so. Also looking at SBSI, as I mentioned. Also looking at V right now. The growth is just astounding.

    Have a great weekend. Keep up the great work!

    Best wishes.

     
    Reply
    1. My Dividend Growth

      Jason,

      I really enjoying reading what companies are on your radar and thanks again for sharing with us! Your thoughts on TGT and BAX are spot on to my own, and I was happy to put my capital to work with them. I hadn’t heard of SBSI until I first read your post about it. I’m liking what I see, and I’m excited to dig into some research. You’re in a perfect spot to pick up a more growth dividend play like V; I imagine lots of future capital and income growth are ahead of it. Can’t wait to see what you decide on this month 🙂

      Hope you have a great weekend at the beach house for your sister’s birthday and spend some well earned quality family time.

      Take care!

       
      Reply
    1. My Dividend Growth

      JC,

      I’m with you on tuning out all the noise. I had already bought BAX, and I was a few minutes away from buying more John Deere since I loved their 18% raise last month; that’s when Target’s raise threw a curve ball at me. I think I’m still going to try to buy some DE soon. Are you considering adding to your position in that at all?

      All my best.

       
      Reply
      1. JC @ Passive-Income-Pursuit.com

        I just initiated a position in DE and if the share price continues to fall I’ll probably add some more. I want a chance to average down for a decent bit, usually I look for a 5% threshold but we’ll see since they have an ex-div coming up. Maybe a dip below $90 or to near $89 will do it.

         
        Reply
        1. My Dividend Growth

          Thanks for sharing your process. I like that you use a 5% threshold, makes me want to use some sort of rule of my own. Lot’s to think about! I really appreciate you stopping by. Have a great weekend 🙂

           
          Reply
      2. TwoInvesting

        Ryan,

        DE is next on the list for me too. I think they are very fairly valued (and even cheap) right now. Great future prospects as well as the world population grow and continues its need to eat.

         
        Reply
        1. My Dividend Growth

          Scott,

          I’m glad you’re on the same page, i’ll be watching to see if you pull the trigger. I added to my DE position a few days ago while on vacation in the Midwest. I kept seeing DE equipment everywhere 🙂

           
          Reply
  2. My Dividend Pipeline

    Ryan,

    I love both purchases. I bought some more BAX last week and have bought shares of Target three times over the last 8 months or so. While I have a pretty heavy position in Target, that 3.6% yield is very enticing.

     
    Reply
    1. My Dividend Growth

      MDP!

      Thanks for the support 🙂 Congrats to you too on those purchases, when I saw you pick up more BAX it made me more secure about adding to my position, so thank you for that! You do such a great job of spreading that money around to different companies, it’s very fun to watch. JC @ PIP also has a super heavy weight in TGT and is enticed, I’ll be interested to see if you two do end up adding here despite that. Luckily I’m just starting to build my portfolio and weight doesn’t play a huge factor yet, so I get to learn from you guys 😉

      Have a great weekend! 🙂

       
      Reply
  3. DGJourney

    Both are good purchases. TGT is definitely enticing with the dividend increase. I might look to add to my position if the share price stays down like the last couple of months.
    BAX is something I am looking to initiate position in. I don’t have any exposure in the sector and looking to initiate position pretty soon.

     
    Reply
    1. My Dividend Growth

      DGJourney,

      Thanks for the comment. I’ll be interested to see if you pull the plug on either of these since you have good reasons for both. There seems to be lots of growth to be had in the healthcare sector as the population and life expectancy continue to grow and I’m hoping the BAX story ends up like ABT with the split next year. Also with TGT you’re not really overweight and could average down a tiny bit, but perhaps you’ll find value in another company completely? I’ll be watching!

      Thanks for stopping by 🙂

       
      Reply
  4. DividendMongrel

    Great buys here MDG! I am also hoping to add a position with BAX in the near future. I already own a few shares with TGT and am happy with the dividend increase. I am hoping the continue on the right track and recover from all the trouble in Canada and security breaches. I also like T for this month and noticed you have a position with them as well. Do you think they are fairly priced at this time?

     
    Reply
    1. My Dividend Growth

      Dividend Mongrel,

      Thanks for the support. I’ll be curious to see if you get on board with BAX. I’m a big fan of TGT at this yield, what a great sign for shareholders.

      Regarding T, I bought the first bit of it around today’s prices last year and watched it go down until I added recently around $32. I like T as almost a bond and it seems undervalued as an income play. I do expect very slow growth though. Great timing for Dividend Mantra’s new article where he talks about stages of a portfolio and mentions T, I found this article very informative! : ‘A Multistage Rocket Model For A Dividend Growth Stock Portfolio’ http://www.dividendmantra.com/2014/06/a-multistage-rocket-model-for-a-dividend-growth-stock-portfolio/

       
      Reply
  5. Mr. SFZ

    Nice buys Ryan. While I haven’t looked at BAX too closely, I am interested in adding more to my TGT position especially after that large dividend increase (what a nice surprise 🙂 ), actually just put in a couple orders on Loyal3 a few minutes ago. Like JC and yourself, I’m also interested in DE, as well as Exxon, Smucker’s, and Dr. Pepper Snapple right now. Trying to diversify a bit, just tough to do so when so many stocks have run up so much.

    Keep up the great work man!
    -SFZ

     
    Reply
    1. My Dividend Growth

      Mr. SFZ,

      Great to hear from you. I was insecure about TGT last month but now I see so many DGIers have been loading up and we are in very good company. I added to my position just a few minutes after they announced the sweet raise. Glad you’re planning to reload the loyal3 account as well 🙂

      I love DE at these prices and may add more this week before the ex-dividend date. Lately I’ve been debating the differences of investing in a companies who have depressed forward earnings like DE vs. those with growing forward earnings like BAX. Mainly I’m wondering how others adjust valuations accordingly.

      I like those stocks on your watchlist. I remember almost pulling the trigger on SJM when it was hovering around $97 a few months ago and still like it. I hear you on diversifying, and I’m personally not trying to race toward that or my position weights in hopes it’ll all work out eventually. Especially since I’m only about a half year into aggressively adding to my portfolio and at all time market highs! I’m trying to force myself to keep valuation in mind first and foremost, even if it means loading up on the companies I already own. But more than anything I hope for pullbacks in companies outside of my portfolio soon!

      Hope all is well with you personally and take care!
      Ryan

       
      Reply
  6. Living At Home

    Nice buy! BAX remains me of the ABT spin-off. I think BAX will create good value by splitting the company into two, though I’m not a fan of spin-offs.

    Thanks for sharing!

     
    Reply
    1. My Dividend Growth

      Living At Home,

      Thanks for the comment. This will be my first spin-off, so I’m excited to see whether I will be a fan or not. I like the blog you started over there! You’re killing it for your age, keep it up!

       
      Reply
  7. DivHut

    BAX and TGT seem to be the flavor of the month as several in the dividend blog community have been buying. I am more partial to an investment in BAX than TGT. I jut don’t see the retailer having glorious days ahead from a long term perspective. Thanks for sharing.

     
    Reply
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  9. Dividend Diplomats

    Great purchases. You added two solid companies to your portfolio and a nice amount of dividend income. I have always had target on my watch list and the other Diplomat Lanny recently initiated a position in the company.

    Keep up the great work. At the end of the day, it is always a great idea to add two solid DGI stocks to your portfolio.

    Bert, One of the Dividend Diplomats

     
    Reply
    1. My Dividend Growth

      Bert,

      Thanks for the support. It felt great to add to my positions in both of these companies, I love watching forward dividends go up, nothing motivates me more. I like your site over there!

      I’m curious to see if you’ll join Lanny and I on the TGT boat. Thanks a ton for stopping by and leaving a comment.

      All my best,
      Ryan

       
      Reply
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