Recent Buys: June 5-10th, 2015

I was gun shy in May, but I’ve been making up for it by investing $5,306.33 in June so far.  I added $190.61 to my 12 month forward income by spreading my contributions out over several existing holdings; I still own shares in just 25 businesses with plenty of room to expand.  Each company pays me rising annual dividends and the more shares I can get, the more income my portfolio generates.  Here’s where my new capital went:

On June 5th, I added 35 shares of Omega Healthcare Investors (OHI) for $34.80 each and a $6.95 commission for a total transaction of $1,224.95.  The 6.21% yield provides $75.60 in annual income.  My first purchase of this business was at the end of April when I got in at $36.76 a share.  Nothing has changed so it was a no brainer to buy even more forward annual dividends for my money.  The price may run down even further, and sadly I’ve maxed out my contribution limit for the year in the ROTH IRA where I hold it.  If things do tank, I’m considering selling a few positions that don’t need to be in my tax deferred account to free up some funds.  I’d likely repurchase them in my taxable account.  I have a feeling there will be a few more REIT and Canadian Bank sales this year, and I’ll need some purchasing power.  I present an updated fast graph of OHI.  (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)

2015_JUNE_FG_OHI

On June 8th, I added 8 shares of International Business Machines (IBM) for $165.97 each and $6.95 commission for a total transaction of $1,334.71.  The current 3.13% yield provides $41.60 in annual income.  I’ve been averaging down on this one for a while.  I first bought it in September of 2014 at a lofty $191.47 a share, and then again in November at $163.70 a share.  I’ve managed to bring my cost basis down to $174.06 a share or 9.09% lower than my original purchase.  I like what’s happening at IBM these days.  Anyone interested should check out their recently released: “IBM Strategy and Financial Model 2015”  Which has several great charts that show how IBM is progressing and where it’s heading.  Here’s an updated fast graph:

2015_JUNE_FG_IBMOn June 9th, I added 19 shares of Baxter International (BAX) for $64.13 each and a $6.95 commission for a total transaction of $1,225.42. The current 3.24% yield provides $39.52 in annual income.  That payout will be cut with the upcoming shareholder reward of a spin-off.  The new company Baxalta (BXLT) will have a payout ratio of 15% of earnings while Baxter’s payout will be 35%.  I’m happy to collect a smaller dividend for better long term results.  These will be two brand new businesses after the spin-off, and I see a lot of value being unlocked.  I started buying shares of BAX in November of 2013 and kept adding after they announced this spin-off.  Even after all the buying, I still have a pretty high cost basis of $69.16 a share.  Maybe I should have waited until after the spin-off to buy, but it’s hard to predict anything and I’m eager to see what happens.  You can read technical information on the spin-off here.  There’s also a slide presentation with more general information.

2015_JUNE_FG_BAX

On June 9th, I added 14 shares of Union Pacific Corporation (UNP) for $99.95 each and a $6.95 commission for a total transaction of $1,406.25. The current 2.20% yield provides $30.80 in annual income.  This was my sole purchase in May.  It’s now under a $100 a share, and I thought it wouldn’t hurt to double down immediately.  If we get a further pullback to the mid or low $90’s, I’ll likely be adding another batch.

2015_JUNE_FG_UNPI also had a few commission free Loyal3 purchases in Wal-Mart (WMT).  I combined $15 in dividends with $100 in new capital to add 1.5757 shares for a yield on cost of 2.69%, which also provides $3.09 in annual income.

2015_JUNE_FG_WMT

My new total annual dividend income is $2,078.69 or an average of $173.22 each month.  I served tables up until a few years ago, and now it’s as if I’ve picked up two shifts a month without doing any work and the tips just keep getting bigger.  I can’t wait to start earning an editor’s day rate in dividends.

What do you think of the purchases?  What are you buying?

My Dividend Growth

http://www.mydividendgrowth.com

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34 thoughts on “Recent Buys: June 5-10th, 2015
  1. Dividends With Children

    Nice buys, MDG.

    I’ve added UNP over the past 30 days at just over $100 and the day job kept me from buying OHI under $35 like I had planned to. Good names up and down your list and a lot of capital deployed on weakness. Love it!

    The BAX buy is interesting. Like you my cost basis is in the $69s and I’ve been eyeing it as these $65ish levels. It’s more of a longer-term play at this point but I’m starting to think $65 for both companies will look like a missed opportunity after the spin-off completes.

    Best,

    DWC

     
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    1. My Dividend Growth

      Thank you much, DWC. It felt great to put that capital to work, hopefully I’ll be rewarded. Congrats on that UNP pickup, and it sounds like we’re on the same page quite often with OHI and BAX as well. I’m hoping to learn a lot from my Baxter investment. I’m with you in seeing slower growth for a good while, but I’m thinking we’ll be very happy and outperform after a decade or so. I’ve probably added a bit much, and too quick for comfort, but couldn’t resist another 8% pullback from my cost basis. I’ll be watching closely.

      Great to hear from you and take it easy!
      ~Ryan

       
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    1. My Dividend Growth

      Thank you much, DB. I think you have good taste because your two favorites also appear to be the most undervalued of the bunch. I’m pumped for you to get that RRSP rolling and I’m excited to see your next purchases. Keep at it!

       
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  2. Adam - IWTRS

    Ive been seeing Baxter show up here and there throughout the community lately. I have bo idea who they are but now im intrigued and will need to check them out.

    Always inspirational to read recent buys from others and see increased annual dividends! Nice job!
    -Adam

     
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    1. My Dividend Growth

      Hi Adam, that means a lot. Thanks for stopping by! Baxter is changing dramatically before our eyes… again. They have an unusual history of rewarding shareholders with spin-offs and each one has been very lucrative. I was invested before they announced the most recent spin-off (to be spun off with any shares settled by June 15th). I like the long term story, past and future so I’ve just been adding while growth has been weak in the short term. I was a little nervous about a bigger pullback, but shares have already run up 6% since this purchase. Who knows what’ll happen after the spin-off. Major sell off of one or both?

      It looks like you’ve had a recent buying spree of your own, and you have a cool looking site that I’m looking forward to following. Keep up the good work!

       
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    1. My Dividend Growth

      Appreciate that Mike. I was getting so uncomfortable with all that cash piling up. Day traders may feel stress with money in the market, for investor’s like us it’s a relief putting it to work. Love this strategy.

      Best Wishes!
      ~Ryan

       
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    1. My Dividend Growth

      Contributions are the name of the game, glad to hear you sign on of these ones. Next milestone is $2,400 in forward income to average $200 a month. Onward and upward, just like you Tawcan 🙂 Hope all is well!

       
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  3. Dividend Mantra

    Ryan,

    Great set of purchases here. Love seeing all that capital put to work. You unloaded that BB gun over there. Boom! 🙂

    I’ve been giving strong thought to one more purchase of BAX lately, but it’s already a little larger than a full position for me. And it popped quite strongly today. Opportunities come and go… Gotta be quick.

    That’s so awesome that your extra worker is basically working two shifts per month for you now. Keep it up and it’ll be working full time plus overtime one day.

    Best regards.

     
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    1. My Dividend Growth

      Haha, glad to hear you like where my bb pellets went. I’m surprised BAX jumped over 6% since this purchase already, and I wouldn’t buying anymore near these levels either. I’m so curious to see what happens after the spin-off. I’m guessing we’ll see Baxalta get acquired at some point, but It’d be really cool if they became a long lasting growth machine on their own. This is probably one of the biggest speculative plays I’ve made, even though I feel confident in all my research. Ultimately I want to learn a lot from how I invested in BAX.

      Your extra auto service worker is killing it these days too, we’re both on an awesome path to freedom here. Couldn’t be happier about it!

      Cheers!
      ~Ryan

       
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  4. DivHut

    Great buys putting some good money to work instead of having it sleep. Seems like every blog has a REIT play this week. Like OHI and other health names. I just added to my VTR and HCP several days ago. As you stated, and I agree, there will be more REIT sales going on as people fear the interest rate rise. BAX is my second favorite pick from your list above then UNP. Just my take on things. Thanks for sharing a busy buying week with us.

     
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    1. My Dividend Growth

      Good to hear from you DivHut. I felt that money piling up and was happy to get it working, so much better than sleeping hehe. I’m glad to see REIT’s come down, but also sad my 2015 ROTH IRA contributions are maxed out. I’m pretty much only interested in holding REIT’s there at the moment and wish I wouldn’t have loaded it up with some of the names I did, but live and learn I guess. Great taste with your adds, I picked VTR for my father’s IRA and really like what I see from both those you mentioned. Hope all is well with you and take it easy this weekend!

       
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  5. Martin

    I like visiting other dividend investor’s blogs to see what they are investing in and what stocks they choose. Then I compare it with my watch list to see if I have that stock included and what my screener says about those stocks. And for example UNP wasn’t in my watch list. So I added it and my screener says that it is valued at fair price as of today, increased dividend for 8 years and its average 5 yr growth is 17%, impressive! Good buys man! Thanks for sharing!

     
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    1. My Dividend Growth

      Hi there! You and me both, Martin. I get a lot of great ideas from this dgi blogging community. It’s very reassuring to see others buying the same businesses and coming to the same conclusions on where the values are at. Thanks for stopping by and I wish you lots of continued successes investing 🙂

       
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  6. Vivianne

    I’m short on dividend this year, so stocks paying more than 3% is a bonus. REITs have become more attractive these days. I’ll probably add some at some point. Thanks for sharing!

     
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    1. My Dividend Growth

      Hope all is well, Vivianne! I agree and REIT’s are great for retirement accounts. It’s hard to find such high current yield and growth. I’ll probably always keep them less than 10% of the overall portfolio though.

       
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  7. Dividend Diplomats

    MDG,

    DAMN! Talk about deploying capital and grabbing a ton of forward looking income – that is INCREDIBLE. Pretty astonished at the rate you just added to your portfolio – about $190 in forward income added, right? Just awesome, congrats!

    -Lanny

     
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    1. My Dividend Growth

      Thanks for that, Lanny. It was really nice having some cash left over from May where I struggled to find values. Once it really started piling up I just decided to move, better to get it invested as soon as possible and get more forward dividends. This should help a ton, and I’m excited to keep it rolling with one more possible purchase this month. You’ve been making incredible strides in your portfolio yourself and it’s been fantastic to watch. Hope all is well with you and thanks for the support!

       
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  8. Dividend Diplomats

    I was s pumped to read the artick when I noticed the title had a “S” at the end of buys. Once again, you failed to disappoint and picked up some great dividend paying stocks this week. Keep up the great work and keep on putting your capital to work. You will be hitting financial freedom soon at this rate!

    Bert

     
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  9. Dividend Gremlin

    Ryan,

    Damn that is a haul, and in such a short time too. Just an astounding amount of money you put to work and now you sport and excellent forward dividend total. Enjoy that.

    -Gremlin

     
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    1. My Dividend Growth

      Thanks Gremlin, I think I’ve got one more purchase coming this month. TROW is looking very solid here, I’m inches from pulling the trigger. Hope all is well for you and take it easy!

       
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  10. dividendkid

    This line should sum it up for most if not all.

    “…now it’s as if I’ve picked up two shifts a month without doing any work and the tips just keep getting bigger.”

    The snowball is growing and nothing is going to stop it!

    Great purchases. I noticed we share some as well! Glad to see that I am picking up on the right cues in the market and continually finding value as you are!

    Div

     
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    1. My Dividend Growth

      Hey there, Ken. Hope all is well and thanks for the support. I just initiated a position in TROW, and have a tiny bit moving into loyal3. It should be a great month for investments and forward income. I hope you have some fun buying too. Make sure you look into Baxter, the cutoff date for the spin-off was the 15th and you might be better off waiting to invest soley in BXLT. Cheers!

       
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