What a crazy August we just experienced. Volatility reared its head once again causing the market and many individual stocks to rise and fall seemingly on a whim. It was very difficult to make any sense of the market especially when trying to pick a stock to buy. Of course, the benefit of volatility is that new investment opportunities line up. Volatility enables us to potentially buy stocks at sale prices that we intend to hold for the long haul.
During the month of August I started to look at some potential new stocks to add to my portfolio especially since I started to sell some of my current holdings in an effort to “streamline” what I own. Looking back at my August stock considerations I was considering one of my old recent favorites, Altria Group, Inc. (MO) along with two newcomers Leggett & Platt, Incorporated (LEG) and LyondellBasell Industries N.V. (LYB) that have both been trading lower and thus offering some pretty compelling current yields. With that being said:
I have added to my taxable account 10 shares at $44.05 for a total investment of $440.50 in Altria Group, Inc. (MO). With this recent purchase my taxable account holdings in MO now totals 180 shares with a market value of $7,873.20. I also hold 35 shares of MO in my ROTH account with a market value of $1,530.90.
I have added to my taxable account 18 shares at $72.88 for a total investment of $1,311.84 in LyondellBasell Industries N.V. (LYB). This is a new holding in my account.
I don’t add new stocks to my portfolio often but when I do I tend to make them very long term positions. Looks like LEG has started to run the last couple of days in August too. Maybe that will be a September consideration of mine especially if it remains at around $37 or below.
What do you think about my August stock buys? Are you picking up shares during this volatile time period or sitting on the sidelines? Please let me know below.
Disclosure: Long MO, LYB
Nice pickups DH! I also added LYB to my portfolio this August. In fact, I bought it twice this past month, lol. Congrats on the new stock! 🙂
My Dividend Dynasty recently posted…August 2019 Dividend Income
Hi MDD,
Happy to be a fellow LYB shareholder. This was a new name for me and I’m happy I jumped on board when I did. I don’t expect LYB to be a core holding but it can provide a little more diversification for me.
Man, love that buy of MO down at $44 and that juicy 7.6% starting yield. I haven’t looked into LYB but I know there’s been a lot of chatter about them recently. August was a pretty busy month for me and we added shares of CSCO, MMM, ADM, MO, PFE and started a new position in BIP in the Roth. I’d love to add more MO, but I’ll probably need it to drop to $42 or less. It’s quickly become a relatively large position for me for dividends because of its high yield. I’m curious whether anything comes of the PM/MO merger.
JC recently posted…Recent Buy (15)
Hi JC,
You sure were busy buying up a lot of great names. MMM has been on the radar for many along with JNJ, MO and ADM too. Seems like over the last few weeks there has been no shortage of great names to pick up at sale prices. Keep up the good work!
Nice DivHut! I don’t own these companies, but have added them to my screener. Thanks for sharing!
Hi MR,
Always happy to share my recent pick ups. MO seems to be a DGI staple while LYB seems to be a support/diversification stock.
DH –
Loving it. Lot of yield right there : ) Your forward income totals are out of this world, 2019 has been busy for you!
-Lanny
Hi DD,
I don’t hide the fact that these buys were a yield play. Sometimes, yields become too juicy to ignore so you have to act. Seeing MO and LYB trading where they were and sporting those juicy yields justified the risk reward in my mind.
Great job Divhut. Those are some awesome names right there. You are putting your capital to work in stype and continue to crush it!
Bert
Hi DD,
Thanks for noticing 🙂 As I have commented to others it’s all about reaching a comfortable level with risk and reward. For those two names I felt comfortable nibbling. Sure wish I added to my LEG too at that time but I can’t complain about these two buys.
$1750 in new investment for the month sounds pretty stout, DivHut. Way to put some cash to work. I’ve looked at MO recently, but feel like my position is big enough at this time, so no action taken. I don’t own LYB, but instead own other stocks in that sector.
Both of your purchases sport quite a hefty yield.
Engineering Dividends recently posted…Monthly Dividend Income (Aug. 2019)
Hi ED,
No doubt I went after some yield with these two buys. Seeing both stocks depressed was too much for me to ignore. The risk reward was at a level I decided to jump on board. Don’t think LYB will ever be a core position but MO probably will.
nice hut. Putting the cash to work and getting a sweet yield at the same time.
keep it up
cheers
Passivecanadianincome recently posted…Passive Income – August 2019
Hi Passivecanadianincome,
Well said. That’s exactly as I see it. Buy when stocks are depressed and you feel comfortable with the risk reward ratio.
Keith,
That is a lot of fresh income you’ll be turning in. I especially like the LYB and their general competitors. There are a lot of undervalued stocks in that realm!
– Gremlin
Hi DG,
MO has been my go to stock for several months. Seeing LYB at its recent low was also too much for me to pass on. I sure wish I also initiated a LEG position at that time. Oh well, you can’t buy them all every time.