Recent Stock Purchase December 2018

Volatility behind us? Not a chance. Looks like December is picking up right where October and November left off. Of course, being a dividend growth investor means we have an opportunity to take advantage of all this volatility and pick up some traditional, solid paying dividend payers on sale. These days there’s no shortage of names to choose from as sagging stock prices are pushing up yields towards historical highs. Sticking to the short list from my December 2018 stock considerations:

I have added to my taxable account 18 shares at $53.26 for a total investment of $958.68 in Altria Group, Inc. (MO). With this recent purchase my taxable account holdings in MO now totals 34 shares with a market value of $1,792.82.

As you can see my total holdings in MO are still quite small relative to most of my other positions which leaves me the flexibility to add more should prices remain depressed.

With two weeks left in the trading year juicy yields are still to be found depending on your risk appetite. Seeing AT&T Inc. (T) with a yield approaching 7% or General Mills, Inc. (GIS) over 5% may be too tempting to ignore. The Kraft Heinz Company (KHC) is another high yielding play for those who dare. In other words, there is no shortage of traditional dividend paying stocks sporting historically high yields. I wouldn’t mind making another purchase before the year is up but I must also watch my cash position towards the end of 2018 and beginning of 2019. I’m sure many of you feel the same squeeze around the holidays. If this does end up being my last 2018 purchase I’ll be happy. My 2018 dividends have already surpassed my totals from last year. Perhaps it’s time to start relaxing from investing/finance for the next two or three weeks and focus on 2019 in due time.

What do you think about my December buy? Are any of the stocks mentioned here on your December buy list? Please let me know below.

Disclosure: Long MO, T, GIS, KHC

20 thoughts on “Recent Stock Purchase December 2018

    • Hi DI,

      Debt should always be a concern when looking at potential stocks to buy. T and KHC both come to mind in that realm. For now, I’m really liking the steps MO has been taking to adapt to changing consumer tastes as they dip their toe in the vaping and cannabis markets more earnestly. Will be interesting to see how it plays out in the coming years.

  1. I’m tempted to pick up some more MO shares here. It looks really attractive with that yield up over 6%. GIS is tempting too although I think they warrant a deeper dive before I’d commit some more capital to that position. I’m over here salivating at the opportunities that are starting to be unlocked but unfortunately there’s no free capital to be had at the moment.
    JC recently posted…One Raise at a Time | Realty Income Becomes A ChampionMy Profile

    • Hi JC,

      Right now I’m looking to add to my MO rather than GIS. Seems like MO is really setting itself up for the future as it adapts to meet changing consumer tastes with vaping and cannabis. Kind of reminds me of all changes MCD has gone through over the last few decades.

  2. nice hut!

    i dont own mo but nice buy. Those sin stocks tend to do well in bad times. I was really tempted to buy t this month but canadas lack of healthcare stocks forces me to debate jnj or abbv…

    Ill probably lean to abbvie. Im on the fence about this jnj stuff. There maybe a lot of law suits starting to appear….

    cheers!
    Passivecanadianincome recently posted…October 2018 – Passive IncomeMy Profile

    • Hi Passivecanadianincome,

      I like both JNJ and ABBV and don’t concern myself with lawsuits or bad publicity. People have very, very short memories (remember tainted Tylenol) and as long as JNJ has a strong consumer presence and a healthy drug pipeline things should blow over in the coming years. In the meantime, you get to potentially add to a solid stock at a discount. Keep looking for those values out there.

  3. Nice buy in MO I have also added that to my portfolio as well as T every time T falls below 30 I can’t help but add another 10 shares.
    Since all dividends are reinvested in our portfolios we are automatically buying stocks on sale which will automatically increase forward div income. It used to scare me when the market sold off but now seeing the power of reinvesting dividends in sound companies that are on sale only increases compounding faster. Looking forward to read your posts in 2019. Keep up the great work

    Wayne LI

    • Hi Wayne,

      Now you can see that by automatically reinvesting your dividends your portfolio will only compound over time. During market swoons you’ll pick up more shares and when the market is riding high you’ll pick up a little less but all the while you’ll be growing. Like you, seeing T below $30 seems to trigger something in my head to pick up more. Keep looking for those ‘sale’ stocks out there.

    • Hi DD,

      Swollen yields abound!!! Seeing KHC, GIS, T, PM, MO, BTI and many others offering up historically high yields should be making every dividend investor out there salivate. I know I am. Only wish I had much more cash to deploy.

    • Hi PIV,

      As you stated many formerly expensive stocks are now looking a lot more reasonable and rewarding us with much higher yields too. We definitely have many great options these days ever since the market started going all over the place in October.

  4. Hi Div – MO was on my short list for Dec but it was beat out by AVGO — I’ll likely pick it up in the next few months depending on what the market does — T I own and have been tempted to double up on but haven’t done so yet and GIS along with SJM are on the radar but not the top end.

    Good pick up
    Divs4Jesus recently posted…One Year – Portfolio ReviewMy Profile

    • Hi D4J,

      Every name you mention is a solid pick especially at these depressed levels. I still don’t hold any tech though I was considering MSFT and AAPL at one point. Like the AVGO pick up. Keep the buying coming!

    • Hi MDD,

      Thanks for that vote of confidence with this buy. I’m still willing to risk capital on MO and T as both remain small parts of my portfolio. We’ll see if those vaping and cannabis stakes will pan out for MO in the coming years. I have a feeling it will.

    • Hi DG,

      MO, TD, GIS and many others are all offering up some outsize yield. Sometimes a stock hits a yield point that’s too hard to ignore and that’s what I see with MO. Another tobacco name, BTI is looking interesting too. Thoughts?

  5. I just added to my MO position last week, and yesterday made a small buy of GIS.

    I am happy to see the announcement from Altria re: their new stake in Juul, and looking at that on the heels of Cronos, I really like how management is positioning them for the future. They have paid a steep price but they generate cash like crazy so am not overly concerned.

    Keep adding to those stacks!
    DivvyDad recently posted…Shuffle Up and Deal :: Tweaking the Dividend PortfolioMy Profile

    • Hi DD,

      I like the MO pick up. I think they are taking several right steps to remain relevant in the face of changing consumer tastes for tobacco products. If all goes well those stakes in vaping and cannabis should pay off nicely down the road.

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