Recent Stock Purchase April 2016

As with the month of March, I saved my monthly buy for the end of April. Of course, there’s good reason for my infrequent buys as of late, as values and good yield are that much harder to come by. Don’t get me wrong, it’s a wonderful feeling seeing your portfolio value rise week after week but as we all know the consequence of this recent market “melt up” is fewer good buys with more expensive stocks and lower resulting yield. Not a good situation to be in if you are still accumulating assets to grow your passive income stream.

 

Of course, there are always some relative values and good yield that exist at any given time in addition to finding positions in your portfolio that enable you to average down in cost. This was the case with my recent buy along with a free trade that was expiring hence the lower total investment. With that being said:

 

I added to my IRA account 14.4816 shares at $34.53 for a total investment of $500.00 in HCP, Inc. (HCP). With this recent purchase my IRA account holdings in HCP now totals 88.2943 shares for a total value of $3,022.31.

 

Sticking with my April Stock Considerations I decided to average down on this health REIT as many industrial stocks such as Emerson Electric Co. (EMR), Caterpillar Inc. (CAT), Dover Corporation (DOV) and even Archer-Daniels-Midland Company (ADM) really rocketed higher in the last couple of months. My other long time favorite sector, the large Canadian banks, also followed suit as The Toronto-Dominion Bank (TD), The Bank of Nova Scotia (BNS) and my March purchase of Royal Bank of Canada (RY) rebounded along with the price of oil. It will really be interesting to see if the “Sell in May and go away,” adage will hold true in 2016. With our recent run up, I think some think it to be very possible in 2016.

 

What do you think about my recent stock purchase? Have you been putting on the brakes with your new purchases in recent days/weeks because of a “more expensive” market or are you remaining consistent with your buys making purchases at least once a month? Please let me know below.

 

Disclosure: Long EMR, ADM, DOV, CAT, TD, BNS, RY, HCP

22 thoughts on “Recent Stock Purchase April 2016

  1. Hey Keith, nice buy, even if it’s a small step, it’s great you have made another purchase. You must be building quite the arsenal waiting for more buys to come along. I look forward to seeing what you unleash on.

    Tristan

    • Hi Dividendsdownunder,

      The last couple of months my buys have been infrequent and relatively small. This buy at $500 was because of a free trade I had that was expiring. Might as well make use of it and put some money to work. Every dollar towards creating a passive income stream helps. Thank you for commenting.

    • Hi DH,

      The hustle continues every month for me. The market is up, the market is down, I have a lot of money to invest or little money, I make my monthly buys. Would love to get some better deals though. Another month in the books. Let’s see how May unfolds. Thank you for stopping by and commenting.

    • Hi Tawcan,

      There are a lot or great names to potentially add but current values and yield are looking less appealing each week. Will we sell in May??? I think many dividend bloggers would like to see a sell off. As always, I appreciate your comment.

  2. Nice buys. I do follow your reasons.
    I tipped my toe in the water with a second DGI stock.
    I have lately demonstrated some “market timing behaviour” by deviating from my monthly buy process. It looks to be turning out right, when looking at the markets today. Yet, as an indexer, it should not be the behaviour to demonstrate.
    ambertree recently posted…When not thinking about finances…My Profile

    • Hi ambertree,

      Timing accurately for any reasonable length of time is an impossibility. As long as you continue to make buys in individual stocks that present good value and yield you should do well long term. This holds true for buying into an index fund as well. I just want to keep adding funds into my stocks every month in all market conditions and grow out my portfolio without trying to find the “best” time to invest. As always, I appreciate your comment.

    • Hi ARB,

      The health REITs really bounced back quite a bit from their February lows after the HCP earnings debacle. Most names came back from their lows while HCP is still underwater. I like OHI too and have them on my watch list. I may not pull the trigger on that name just yet as I feel I have enough diversity within the space. Thank you for stopping by and commenting.

    • Hi R2R,

      Glad you like the recent buy. It was small, but still a step in the right direction. RY was my buy last month and I would like to add more to my other Canadian banks but will wait for now until there is a little pullback. Seems like all the large Canadian banks roared higher in the last couple of months. I know we’ll have better buying opportunities going forward. The market will have to take a breather at some point. Thanks for commenting.

  3. Nice buy to end the month. Rising markets do indeed cause conflicting feelings, it gives a nice feeling to see the total portfolio value go up but lower yields are the flip side of this. In the healthcare REIT segment I recently added some to my OHI position. I also bought some more Diageo shares.

    • Hi DaC,

      I like to make at least one monthly buy and remain consistent in that manner no matter the market conditions. This way I don’t fall into the market timing trap and continually build up my positions and increase my passive income flow. Nice buys on your end with OHI and DEO. While I do not own OHI (yet), I do have DEO in my portfolio and plan to keep it for many, many years. Than you for sharing your thoughts.

  4. Divhut,

    Not bad! And smart to have in the Roth of course. Smooth moves. I agree with how the market has been, we saw some pullback on a few companies towards the end of the month such as Apple and Starbucks. Keep it going!

    -Lanny

    • Hi DD,

      As you know, there are always some stocks that look relatively attractive even when the market overall has climbed a lot. I have been making at least one monthly buy since I became a dividend growth investor in 2007. By following that mantra, I don’t attempt to time the market and simply build my passive income stream each and every month. I’m still liking SBUX but do not own it yet. Thank you for commenting.

  5. So far just continuing to steadily buy as I am able. Although I do hold off a little bit if the stock*(s) I am looking up shoot up a bunch unexpectedly.

    Health REIT’s seem pretty solid to me, I’v been thinking of adding one to my portfolio as well. Great income and demand for their properties!
    Dividend Wisp recently posted…March 2016: Income & ExpensesMy Profile

    • Hi DW,

      Nothing wrong with steady buying. This is what I have been doing for many years making at least one purchase each month no matter where the market is. I never try and time the market for the “best” buys. Among all the REIT plays that exist I like the health sector the best. I also like some apartment plays like EQR and AVB and perhaps even some industrial/warehouse plays too. Thank you for stopping by and commenting.

    • Hi TEI,

      My purchases the last two months have been on the light side. I continue to make buys each month, as I have since 2007, but finding good values and yields are getting tough to find. This month, I’ll continue to look at HCP and the large Canadian banks as my top picks, unless the market really takes a major dump. Thank you for your comment.

  6. Hi Keith,
    The “sell in may and go away” seems to repeat itself every year (almost) and if we take a look at the current DJIA chart, it really looks like there will be a nice plunge…. but hey, it’s technical analysis and we all know that past is not a good predictor of future.

    Anyhow, I’m currently 10% cash mainly because of a lack of interesting opportunities. So I hope that the “sell in may and go away” is going to happen once again this year!

    • Hi Allan,

      I wrote an article a while back talking about the various market axioms titled, “Seasonal Stock Market Investing.” Of course, it seems more often than not that the “sell in May and go away,” holds true but I wouldn’t place too much stock in any of these market sayings. I know you are not alone in shoring up a cash position as many dividend growth investors are doing the same expecting a market sell off any day now. All you can do is keep investing a little bit each month and keep growing that passive income stream and try not to time the market. As always, I appreciate your comment.

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