Recent Stock Purchase August 2016

It’s been a full month since I last posted a ‘recent buy’ article, which just goes to show that I’m having a tough time deciding where to put my fresh dollars to work. Of course, I do not think I’m alone in feeling this way as the market remains at all time highs and valuations and yields for many stocks I’m considering remain less than attractive or decent at best. Still, as many of you already know, I continue to follow my investing mantra by making sure I make at least one buy every single month and put some amount of dollars to work no matter how rich the market or certain stocks are valued. After all, being a long term dividend growth investor means I am better off not timing the market and putting money to work each and every month rather than sitting as cash. With that being said, and stocking to my August stock considerations:

 

I have added to my taxable account 2.0000 shares at $50.31 for a total investment of $100.62 in Wells Fargo & Company (WFC). With this recent purchase my taxable account holdings in WFC now totals 40.8132 shares for a value of $2,058.21.

 

I have added to my taxable account 2.0000 shares at $61.30 for a total investment of $122.60 in V.F. Corporation (VFC). With this recent purchase my taxable account holdings in VFC now totals 35.7726 shares for a value of $2,202.16.

 

Granted, the above purchases are not huge but they do represent a leveling of my dividend income as I seek to make my passive income stream less reliant on just a handful of stocks. We all have those few large positions in our portfolios that generate the bulk of our dividend income. Once in ‘retirement’ you ideally want a portfolio that provides a more equitable stream of passive income for additional safety in case of a dividend cut or elimination.

 

What do you think about my recent buys? Do you own or have you considered WFC or VFC for your dividend portfolio? Please let me know below.

 

Disclosure: Long WFC, VFC

36 thoughts on “Recent Stock Purchase August 2016

    • Hi TCF,

      For me it’s all about remaining consistent with my buys. As long as I’m putting some money to work each month I’ll be happy and these days it’s more about picking relative good buys and yield as the real value is hard to come by. Thank you for stopping by and commenting.

    • Hi DDU,

      That’s my sentiment exactly. Every little bit helps. We add to our passive dividend income stream dollar by dollar and over time, even small buys can add up to a very respectable sum. As always, I appreciate your comment.

    • Hi PID,

      For all the times I bought into the Canadian banks, I figured it was time to level my financial stock dividends a bit and add to my American bank, WFC. In our current market it presents a good yield and value so why not nibble a bit? Thank you for commenting.

    • Hi Jay,

      WFC seems to be the de facto American bank in recent weeks. I have seen quite a few buys in that name among our fellow dividend investors. I’m already relatively heavy in the Canadian banking space so I figured it was time to juice up my WFC position ever so slightly. Thank you for sharing your thoughts.

  1. I own WFC now, but not yet VFC. It looks interesting, though!

    Thanks for sharing. Like you, I’m finding it hard to find discounted stocks. Last month, I rounded out some positions to 100 shares each by paying a premium to fair value. Don’t like doing that, but I’m hoping to make up the difference with option trades.

    I like that you’re buying at least one stock per month… I try to do that too!
    FerdiS recently posted…Monthly Review: August 2016My Profile

    • Hi FerdiS,

      I’m a big fan of VFC and have held that stock since 2007. It never really goes on deep sale relative to other stocks and I see it as a clothing staple rather than a fickle fashion play which is why I’m OK paying up a slight premium on that stock. Ideally I’d like to see it under $60 though. I still haven’t jumped aboard the options train yet but have noticed a lot more of our fellow bloggers utilizing options to increase monthly income. Options are the hardest way to make easy money 🙂 As you already know, I just want to remain consistent with my buys and slowly build up positions over time. I won’t time the market by attempting to find the “best” time to buy, rather I’ll just continue to make small or large buys each month and watch it all average out in the end. Thank you for stopping by and commenting.

    • Hi IH,

      Indeed, every share does count. I think we sometimes forget that even many small buys over time can build up to a substantial passive income stream. It doesn’t always have to be ‘go big or go home.’ I guess these days all we can do is just try and pick and choose from among those stocks that present a decent value and yield among the many high priced stocks out there. I’m still watching GILD and AMGN too. Both have been on my watch list for a few months. Thank you for stopping by and commenting.

  2. I like both of those companies for the long term and own a decent chunk of WFC and a very tiny bit of VFC. VFC looks like a decent value compared to many of the well known DG companies and I like the huge amount of brands they have under them. I would think they should be a bit insulated from growing online retail since they produce the goods instead of sell them.

    • Hi JC,

      Your comment highlights some of the reasons I’m a long term fan of VFC. I see it as a clothing staple company and not a fashion play like ANF, AEO or formerly Aeropostale to name a few. They have many brands that they own which serves specific niches that are function as well as form. Like you said, they are not a retailer but a producer of product so remain insulated from the online onslaught. Thank you for commenting.

  3. I like your purchase of VFC. Of course, I may be biased as I have a very small position in VFC as well. I think it’s good that you are making one buy every month, since no one can time the market. Thanks for sharing.

    • Hi ACI,

      I still wonder why VFC isn’t found in more DGI portfolios as it has been such a solid performer in the past from both a dividend perspective and a capital appreciation perspective too. I guess the current yield isn’t too exciting and VFC rarely goes on sale either. I always say, that sometimes you have to pay a premium for a quality stock. One of my “rules” for being a long term dividend growth investor is to be consistent with my buys. For me that simply means making at least one purchase every month. It may be a big buy or small buy but every month I’ll be putting some fresh cash to work. I don’t believe in selling winners and shifting to cash etc. as others have been doing. As long as those dividends are being paid each quarter and continue to grow I’m satisfied. Thank you for sharing your thoughts.

    • Hi FS,

      For my long term portfolio I would only consider two American banks, WFC and USB. Besides those banks I also like the large Canadian banks and hold three of them in my ROTH, TD, BNS and RY. Sure, WFC had its share of issues back in 2008/09 but so did other blue chip companies like GE which had to slash its dividend too. Sometimes, cuts just happen to even the bluest of blue chips. As you already know, WFC conducts business in a very conservative manner which has served them well all these decades. As always, I appreciate your comment.

  4. DH,
    Every share does count I been buy both of those in the last year few shares at a time myself.
    I love the power of compounding. Glad to be fellow shareholders in both amazing companies with good management team.

    Happy hunting..

    DP

    • Hi Dp,

      The hunt continues indeed. As we both know every share does its job adding to our passive income stream and whether we buy many shares at once, or just a handful it all adds up in the long run. Always happy to be a fellow shareholder with you as well. Thank you for commenting.

    • Hi DI,

      As I commented above, WFC has certainly been a very popular trade in recent weeks. I guess it’s a combination of relatively high yield and good value that keep it in play while many other stocks just seem way overpriced. Normally, I have a minimum buy of $800 as my commission is a flat $2 a trade. This recent buy was a free trade which is why I was OK buying a very small amount. Thank you for stopping by and commenting.

    • Hi Dipu,

      I have not considered FLO at all for my portfolio. I have seen it on the buy list among many of our fellow dividend bloggers in recent months and on the surface it does look like an interesting play. It’s in a sector I like, the yield is quite juicy and appears sustainable and it’s trading at a relatively cheap value compared to its history. For now, I’ll be focusing on my current holdings with other potential new buys for September. Thank you for commenting.

  5. WFC shares are hot right now! I’m super happy with their overall performance and my dividend I just received! Do you use robin hood to trade since you purchase in such small blocks? I just saw how much I’ve spent already in trading fees and it makes me want to switch brokers!

    • Hi DD,

      WFC is hot indeed. It’s been one of the few go to banks in recent months as we all seek relatively juicy yield that is sustainable along with good to decent value in a market that has many stocks way overpriced. I use ShareBuilder (now CapitalOne Investing) to trade. This particular trade was commission free which is why it was a small buy. Normally I pay a rate of $2 a trade which was a grandfathered rate given to Costco members who use Sharebuilder. Thank you for sharing your thoughts.

    • Hi R2R,

      Like building a skyscraper brick by brick, dividend growth investing is a marathon and not a sprint and every little bit contributes to that ever increasing passive income stream. VFC is a great stock that I wouldn’t mind adding to, especially if it gets below $60. As always, I appreciate your comment.

  6. Nice with the WFC, I’ve been buying into them alot in the recent dip. Even when they went down to $47. I was a bit worried, but remembered they have established Brick & Mortor shops all around the US. As much as virtual banking is cool (yes I have a virtual bank), people still prefer actual people when dealing with money (I also have a Wells Fargo account too)

    Nice buys.
    -Wallet Squirrel
    Wallet Squirrel recently posted…Income Report – August, 2016My Profile

    • Hi WS,

      WFC has been very popular as of late among our fellow dividend growth bloggers. I always say that for my long term dollars I would only consider two American banks, WFC and USB. While having a large brick and mortar presence is nice, it’s their conservative business practices that keeps them financially sound decade after decade after decade. Thank you for stopping by and commenting.

  7. I own WFC, never considered VFC. My biggest WFC issue is they have too many branches in certain areas (like Texas – from acquisitions) that should be consolidated. Their Transfer Agent business (DRIP) is growing – recent win vs. Computershare over PG’s plan. I suspect the dividend growth will begin to slow once Warren gains approval to exceed 10% ownership. Once that occurs I would expect share buybacks to play an increasing role in investor return.

    • Hi Charlie,

      WFC definitely has a lot of branches at a time when I see many other banks shutting them down. Just within a few block of my place a Chase and Citibank closed which makes me wonder what the long term plan for branches within the WFC world is. In any case, it’s still a strong financial institution and one of only two American banks I’d consider for my long term portfolio. The other is USB. We’ll see how the dividend growth changes over the coming years. For now, it’s a keeper in my portfolio. Thank you for stopping by and commenting.

  8. I like both companies you’ve bought here. VFC is the best of breed in my mind in that area and their history of increasing dividends is a solid sign of future prospects – they own a bunch of solid brands although short term results may be spotty as can be seen by mediocre results of other companies in the industries like GIII. Still, I think VFC management can weather any short term results pretty well since they’ve done that in the past.
    timeinthemarketblog recently posted…August dividend updateMy Profile

    • Hi timeinthemarketblog,

      There’s little doubt that both companies are solid long term players. Of course, in the short term anything could happen with the stock price, etc. but in today’s market you have to find the best relative value and yield. VFC has been one of my best performers over the years and I’ll continue to like it long term. Thank you for stopping by and sharing your thoughts.

  9. Wells Fargo is the only one I know, but it has provided many investors with dividends for decades. Still one of Buffett’s bigger positions so looks like a good buy to me!

    • Hi Cedric,

      These days it’s all about finding good to decent value and yield. Believe me, I’d rather be buying many other companies but not at current valuations. WFC still looks attractive at current levels which is why I was comfortable with this small buy. Thank you for commenting.

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