Recent Stock Purchase April 2017

Well, it’s been almost a full month since my last ‘recent stock purchase’ has been posted and it’s not for lack of finding stocks to invest in, rather, just watching the market move in a very aimless direction has made it a bit of a challenge in deciding where to make my buy. Another way of saying this is the market has been moving sideways in recent weeks and so have many of my stock considerations. Of course, if you have been following me for a while you already know that no matter what’s going on in the world nor the market (up, down and sideways), I still make at least one monthly buy staying consistent in building up my passive income stream.

 

Going into April I was looking to add to my health REITs again as the whole sector has been beaten silly the last five or six months. I love to buy any stock on weakness. Adding to my HCP, Inc. (HCP), Care Capital Properties, Inc. (CCP) and even initiating a position in LTC Properties, Inc. (LTC) in recent months looked like a sure thing this month as well but, alas, the health REITs really rebounded quite nicely from their lows and are looking less compelling to me these days. Where else can we find beaten down stocks in unloved sectors? Well, looking at my April stock considerations I also turned to the food staples. You all know the names, Campbell Soup Company (CPB), Kellogg Company (K), Hormel Foods Corporation (HRL), General Mills, Inc. (GIS) among others with some of these stocks hitting new lows seemingly every few days, causing yields (which are safe) to become ever more attractive. With that being said:

 

I have added to my taxable account 8.0 shares at $57.46 for a total investment of $459.68 in General Mills, Inc. (GIS). With this recent purchase my taxable account holdings in GIS now totals 101.9294 shares with a market value of $5,827.30. This was a free trade.

 

I have added to my ROTH account 8.0 shares at $57.47 for a total investment of $459.76 in General Mills, Inc. (GIS). This is a new position in my ROTH account and was a free trade.

 

I guess this recent buy shouldn’t be much of a surprise as GIS has been trending lower for a while offering us yields well north of 3% that is still considered quite safe. Yes, declining sales, a strong U.S. dollar, a barrage of downgrades from analysts among other headwinds like product offerings that are not ‘with the times’ are all contributing factors in driving share prices ever lower. Of course, seeing this does not cause me to run from the stock rather towards it. I’d rather nibble on positions when others are fleeing because I still believe that GIS, long term, will come out just fine. As HRL is changing with the times by recently acquiring Applegate: Natural and Organic Meat, Justin’s: Natural and Organic Nut Butters, Muscle Milk: Protein Shakes and JENNIE-O® Turkey among others moving towards current consumer tastes and trends so is GIS by buying Annie’s, Lärabar, Cascadian Farm and other natural and organic food makers. As with many ‘old guard’ companies, I believe GIS can successfully adapt to changing times.

 

What do you think about my recent buys? Are you also looking at the consumer (food) staples or other stocks in the month of April? Please let me know below.

 

Disclosure: Long HCP, CCP, LTC, HRL, GIS

51 thoughts on “Recent Stock Purchase April 2017

  1. my HCP still up from where I bought it last. I’ll keep an eye on it. I think Trump admin is threaten to cut funding medicare/medicaid maybe a part of health care reit going down.

    I’m also watching GIS to load up some more if it falls in the low $50s or even below $50. LOL 🙂
    Vivianne recently posted…Recent Buy – WFCMy Profile

    • Hi Vivianne,

      The health REITs still face an uncertain future in the near and mid term which is why I am sure there will be another sell off in the sector down the road. If GIS gets that low ($50)… I think you’ll see every dividend investor picking up some shares. Thank you for sharing your thoughts.

    • Hi dividendgeek,

      Buy on continued weakness, right? GIS is one of those solid names that belongs in every long term dividend growth portfolio. Of course, getting over 3% in the meantime doesn’t hurt either. Thank you for stopping by and commenting.

    • Hi passivecanadianincome,

      Glad you think this was a good buy. I like the company long term and will continue to enjoy many of their products as you do 🙂 Seeing a yield over 3% for such a solid dividend payer is no doubt causing others to take notice as well. As always, I appreciate your comment.

  2. I’m a big fan of GIS. Been looking at it a lot lately as well. Buying more at current price would certainty lower my overall cost basis for the position I have already. But with free capital bottlenecks, I don’t see myself making another purchase for at least for a week or two. But with just over a 3% yield this was a nice buy for you long term to add more passive income. Good choice.
    Dividend Daze recently posted…Dividend Update – MarchMy Profile

    • Hi DD,

      GIS, like HRL, has been pretty popular as of late. As the stock continues to fall giving us more attractive yields I think we’ll continue to see buying in this name. Truth be told, seeing that juicy yield really put me over the edge in deciding to nibble on GIS instead of HRL which also looks weak. Thank you for commenting.

    • Hi Jay,

      The staples have lagged for many months now as the financial and industrial names really took off. Personally, I’d like to see cheaper prices in many of the consumer staples like CL, CLX, KO, PG and others but I’ll take current value levels especially when the yield is north of 3%. Thank you for commenting.

    • Hi Doug,

      Save when you can and as much as you can for those future buys. As long as you can put money to work at any point in time it’s a good thing. Thanks for sharing your thoughts.

  3. Oh, I completely missed the sell off in GIS; thanks for pointing this out. If they could increase that EPS in the future, this would be a great entry level. I would personally prefer HRL, just wish the yield was a bit higher… I will definitely keep an eye on these companies as they were somehow out of my radar recently.
    HCP is also on my shopping list, I just believe that US bond yields will increase again soon and then I might have a chance to buy a bit closer to 30$ again.
    Roadrunner recently posted…Simple Ways to Analyze Dividend StocksMy Profile

    • Hi Roadrunner,

      I think you still have time to catch the fall in GIS. I think near and mid term the stock will continue to be weak. Like you, I also prefer HRL but that yield is a bit too small for my liking. I’d like to see it north of 2% which may come sooner than later. I’ll like HCP again under $30. It’s amazing how the health REITs really bounced form their recent lows. Thank you for stopping by and commenting.

  4. I think you will be just fine long term on GIS at this entry point. I will also do my best to support you with my late night cereal cravings and my son’s insane love of Annie’s mac and cheese 😉

    Also great to point out the brands this company is buying. Many people do not realize the scale and cash this company can generate to buy more brands in the future. Being such a large company with long history gives them a wider moat against other players so they can keep their spot as one of the top companies in their category.
    Save Splurge Deny Debt – Cameron recently posted…Benefits of Opening a Custodial Roth IRA for ChildrenMy Profile

    • Hi SSDD,

      Thanks for the Annie’s love. Much appreciated 🙂 I have a long term outlook for GIS which is why I feel comfortable nibbling on some stock at current levels. Clearly, I like the stock as it’s in my taxable and ROTH account now. The way I see it, many ‘old guard’ companies are adapting to changing consumer tastes. I already mentioned GIS and HRL but look at how MCD has changed over the years to adapt with the times as well. As always, I appreciate your comment.

  5. I think GIS is a great buy here. You have built up a nice position. I recently bought some GIS also. I would love to be able to add more if it continues to be below my cost basis. I have also started nibbling at a HRL position. I love reading about your new stock purchases. Nice article. Thanks for sharing.
    More Dividends recently posted…More Dividends Update From March 2017My Profile

    • Hi MD,

      I’m glad you enjoy these updates about my recent buys. It’s always fun to read where fresh capital is being deployed. I’ll continue to watch GIS and HRL as they struggle in the near term. Of course, when a company is facing near/mid term headwinds it’s usually a good time to nibble on some stock. Thank you for commenting.

  6. Another great pick Divhut. GIS is such a strong, but in some ways, invisible brand. One must go the store and look at the products to find it. I remember being amazed on how many products here in Norway that GIS owns. It´s crazy. Definitely a good buy.
    Stockles recently posted…Why Financial Independence?My Profile

    • Hi Stockles,

      GIS, like many other solid consumer staple plays in the U.S., owns many brands that consistently bring in a billion dollars or more in sales annually. They have a wide footprint that extends all over the globe and offers many staples that are consumed on a daily basis. It’s that stability that I like for my long term portfolio. Glad you like my recent pick up. As always, I appreciate your comment.

  7. Haven’t considered GIS yet. Right now, laser focused on HRL and HCP, two of your other considerations. So far, HRL seems to be the leading contender and may soon end up in my portfolio.

    That being said, I know you’re not supposed to only look at yield, but the fact that GIS had a higher yield is icing on the cake. Nice addition to your portfolio.
    Dividend Portfolio recently posted…Backup Your Blog – New Feature AddedMy Profile

    • Hi DP,

      Sometimes it takes that ‘icing’ to help make up your mind when deciding where to deploy that fresh capital. Sure, I like HRL a lot and it too, like GIS, is facing near and mid term headwinds but comparing a 2% yield to a yield that’s well north of 3% can sway any decision. I still like HRL a lot long term and will gladly add to my current holding should it fall further. HCP is another name I like long term but seeing it rise in the last few weeks has kind of caused me to push the pause button for now. Thank you for sharing your thoughts.

    • Hi DD,

      You already know the buying will continue on my end no matter what’s going on in the market or world for that matter. Nibbling on a high quality consumer staple like GIS at current levels just demonstrates my long term commitment to this stock and dividend investing in general as near and mid term headwinds could cause some “price turbulence” but won’t shake me out of the stock. Thank you for stopping by and commenting.

    • Hi FS,

      You have the right idea. When quality companies are looking more attractive it’s time to run towards them instead of away. Some see falling prices in this sector as a bad thing but as long as the dividends are covered I’m willing to weather the storm in the near to mid term and nibble on high quality names when they go on sale. Thank you for sharing your thoughts.

    • Hi TI,

      The food staples are really in a funk these days which is giving anyone willing to bite better prices, values and yields. I’m sure you have noticed many of our fellow dividend bloggers nibbling on both of these names in recent weeks. It’s for good reason as quality companies are trading at more attractive levels. Thank you for stopping by and commenting.

  8. I love financial analysts. General Mills offers products that are “not with the times”? What do they want them to do? Develop Cheerios 2.0 and update it every year with new features? Sell the brand to Apple so it can be re-released as i-Cheer Cereal, compatible with the iPhone 7? Are they supposed to release a Cheerios mobile app. Oh my God, they have it, don’t they? Tell me they don’t f***ing have it!

    My Cheerios don’t fit in my pocket! I can’t eat them without Wi-Fi! OH MY–seriously, do these financial analysts even know what they’re talking about?

    Sincerely,
    ARB–Angry Retail Banker
    ARB recently posted…Picking The Right Membership Billing Software For Your BusinessMy Profile

    • Hi ARB,

      Financial analysts rang the death knell for MCD many times too as a company that just doesn’t ‘get’ the current consumer trends and tastes and pointed to CMG and PNRA as examples of restaurant 2.0 while MCD was barely a restaurant 1.0. They changed, they adapted, many, many, many times over their multi-decade long history. GIS is no different as is HRL in my example. You don’t stay in business for almost 100 years without changing and adapting. So GIS has fallen into a funk these days. That’s why I’m buying. Better prices, value and yield. What’s not to like? As always, I appreciate your comment.

    • Hi TFR,

      I think getting into HRL at a 2% yield is a fine entry point. Having a long term horizon for this stock is necessary as in the near to mid term HRL will continue to face several headwinds. Don’t discount the moves GIS is making towards the healthy, organic and fresh sector with its acquisitions of Annie’s, Lärabar, Cascadian Farm and other natural and organic food makers in recent years. Thank you for commenting.

        • Hi TFR,

          I’m with you. Nothing against GIS, HRL and the like. I’m down with both long term and agree that it is not cheap but merely selling at better value and yield these days when compared to levels seen just a few months ago. Basically, I’ll continue to look at GIS as long as it stays under $60. Thanks for the reply.

    • Hi BHL,

      The last few months have not been super clear as to where one should put their fresh capital. So far in April the market is still trading sideways not making the decision any easier. Despite this, you can still find pretty good ‘relative’ value and yield in may of the food staples and other consumer staple plays. The key is to remain consistent with your buying, having a long term outlook and not trying to over think about where to invest. As always, I appreciate your comment.

  9. Hut,
    I agree, the market has been in an odd state of late. Slowly, but surely some quality companies are becoming more and more affordable. Your analysis of the analysts (as with ARB above) is spot on, they did not just happen to become giants by accident. They will adapt and overcome challenges in time.
    -Gremlin
    Dividend Gremlin recently posted…Recent Buys, April 2017My Profile

    • Hi DG,

      While the market has been trading in a sideways manner for several weeks now, “deals” can still be found on a relative basis. I realize that GIS may still not be considered cheap but it is a lot more attractive these days when compared to just a few months ago. I have a long term horizon with that stock and feel they will be able to continue to adapt to the changing consumer tastes and feel comfortable buying when others are selling or not interested. Thank you for stopping by and commenting.

    • Hi FV,

      I think if we see GIS at $48 you’ll be reading about many, many more buys than we are seeing today. The only way I see GIS at that price is if the whole market tanks big time. In the meantime, without trying to time the market, I’ll continue to put money to work each month wherever I can find (relative) good value and yield. Thank you for sharing your thoughts.

    • Hi Stockles,

      I never looked at Compass Minerals before though I have seen it in a few dividend portfolios online. I know POT is a name that’s in the same space and it has dropped quite a bit the last several months. Definitely a commodity play which can be tough. Thank you for your suggestion.

    • Hi Jack,

      Thank you for those kind words. When a quality dividend paying stock goes on sale I’ll nibble. It may be GIS as it is on a near term decline or CAH or GWW that experienced a sudden price drop that will cause me to pull the buy trigger. In any case, I like to buy when others are selling. Thank you for stopping by and commenting.

    • Hi DDU,

      GIS has/is making the radar screens of many of our fellow DGI peers. It continues to look weak, offering up a pretty juicy and safe yield and better value too. What’s not to like? The best time to buy a company is when everyone else has turned sour on it. As always, I appreciate your comment.

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