Recent Stock Purchase February 2017

I usually end my ‘Recent Buys’ posts with the caveat that Mr. Market can always spring up some new opportunities not outlined in my monthly considerations posts. Generally speaking my ‘considerations’ posts offer a pretty solid road map for potential purchases I’d like to make in the upcoming month, and since I have started blogging I have stuck to my own recommendations almost all the time, February being no exception.

 

I started the month looking at my usual consumer oriented stocks as many have been trading at much better levels in recent weeks when compared to just last summer. You already know the names, Unilever PLC (UL), The Coca-Cola Company (KO), Kimberly-Clark Corporation (KMB), The Procter & Gamble Company (PG), General Mills, Inc. (GIS), Diageo plc (DEO) and V.F. Corporation (VFC). Of course, some of these names have run up from their recent lows and are looking less attractive today. KMB and DEO come to mind. Besides for the consumer names I also considered adding to my health REITs, HCP, Inc. (HCP), Welltower Inc. (HCN), Care Capital Properties, Inc. (CCP) and a potential new pick from my watch list, LTC Properties, Inc. (LTC). I still think there is some good long term value in this sector as it has been beaten down pretty handily for several months now. We all know a rising interest rate environment is not friendly to REITs in general but I still like the sector (health REIT) longer term. So where did I invest my fresh capital for the month of February? Let’s take a look below.

 

I have added to my taxable account 16.3973 shares at $48.67 for a total investment of $798.06 in The Southern Company (SO). With this recent purchase my taxable account holdings in SO now totals 62.3448 shares for a market value of $3,058.01.

 

I have added to my taxable account 11.1084 shares at $71.84 for a total investment of $798.03 in Dominion Resources, Inc. (D). With this recent purchase my taxable account holdings in D now totals 45.2169 shares for a value of $3,317.56.

 

I have added to my ROTH account 16.3704 shares at $48.75 for a total investment of $798.06 in V.F. Corporation (VFC). With this recent purchase my ROTH account holdings in VFC now totals 40.6954 shares for a value of $2,047.79. I also hold 55.2184 shares in my taxable account with a market value of $2,778.59.

 

It’s been a while since I bought into the utilities. It’s not really a large portion of my overall portfolio (around 7% of my taxable account and much less when looking at my total portfolio value including, taxable, ROTH and IRA) but still offers some good current yield especially when compared to levels seen last summer and I think it’s a sector that belongs in any long term dividend growth portfolio.

 

What do you think about my latest buys? Are any of the names mentioned on your watch list for February or are you looking elsewhere? As always, Mr. Market has the last say and new opportunities for investment may come up out of left field.  Please let me know your thoughts below.

 

Disclosure: Long UL, KO, KMB, PG, GIS, DEO, VFC, HCP, HCN, CCP, D, SO

54 thoughts on “Recent Stock Purchase February 2017

  1. I haven’t looked at the utilities although eventually I want to get some added to my portfolio. Utilities might not be fast growers but they are typically have higher yields and have a continued march higher with their dividends. I guess my big concern with the utes is their power generation mix namely how much is coal vs ng vs solar vs wind … because I personally think a transition to more renewables is coming, although not likely under the current administration, and that could potentially be a huge cost for the utilities to have to cover. I missed out on adding some DEO to my portfolio. For some reason I kept skipping over them when I went to look at the markets and now a lot of the value has been sucked out with the run up in price. All in all it looks like some solid purchases and I might be adding some more VFC to my Rollover IRA depending on what the share price does after earnings on Friday. I currently have an open put option with a $50 strike so we’ll see how that goes. Hope you enjoy the rest of your weekend.
    JC recently posted…Weekly Roundup – February 11, 2017My Profile

    • Hi JC,

      Like you, I haven’t given much thought to the utilities for a long time but in recent weeks they started to look a lot more attractive to me and by adding to my current holdings I was able to further diversify my passive income stream which is something I’m trying to do. A lot of the major utilities have interests or own renewable energy sources. Renewable energy still requires a lot of equipment and infrastructure to get up and running as well as maintain so I wouldn’t classify as renewable energy as totally choking off the traditional utilities for a long, long time. I think you may get another chance to add to your DEO. Brexit is still in the news and all it takes is another media panic to drive those shares down and maybe UL too. Will be interesting to see what happens to VFC in the coming days. You may be getting some shares your way. Thank you for stopping by and commenting.

    • Hi DS,

      I like all three utilities in my portfolio (D, SO, ED). There’s nothing wrong or something I dislike about ED. It’s still a consideration of mine this month. I just made the decision (available cash at the time) to go with SO and D and VFC instead of SO, D and ED. With more than half of February still in front of us I may be bale to make another buy this month and it may very well be ED. Thank you for sharing your thoughts.

    • Hi DD,

      Keep paying those gas bills. I thank you in advance 😉 It was nice to pull the trigger on some utilities. It’s a sector that I haven’t touched in a while so it felt good to diversify my passive income stream a bit with these buys. VFC under $50 got my attention very quickly. It’s definitely a company that is stumbling these days but I am confident they’ll find their footing once again. For me, and most of us really, it’s all about that dividend payment coming in more so than stock price. Thank you for commenting.

  2. Im eyeing as well to add some more VFC. Currently I hold 50 pieces but with them I’m some 10% in minus. I think for the long term it’s a rock solid investment nevertheless

    • Hi Boekel,

      I agree that VFC is a good long term hold. The company is facing some near term headwinds, not least of which is a super strong U.S. dollar, but further down the road I’m sure the company and stock will turn around. In the meantime, I’ll be happy collecting their safe dividend and hopefully watch VFC continue to make annual dividend raises as it has been doing for decades. Thank you for stopping by and commenting.

  3. You came up with some solid names (and buys!). I don’t know all of them, but just makes it more fun to read these kind of articles.

    We’ve added to stocks just recently, so have to wait a bit until we have enough capital to buy more. We do have our eyes on VF Corp, amongst others.

    • Hi Divnomics,

      It’s been a while since I added to my utilities and I’m happy to be able to continue diversifying my passive income stream with these purchases. I don’t ever want to become too reliant on just a handful of stocks for the majority of my dividend income. With VFC yielding well over 3% many of our investing peers have been buying into that stock. Of course below $50 was just too tempting to resist another nibble. As always, I appreciate your comment.

  4. Awesome buys with a good amount of cash. Odd how the market is doing so well yet a few of the companies you mentioned are being oversold and are at somewhat of a low, such as KO.

    Best,

    • Hi 5-0F,

      Appreciate those words of encouragement with my recent buys. No doubt, the recent market run up the last several months has not brought up every sector. Many REITs, consumer stocks and others have been left behind. I still like KO a lot long term but would wait to see that stock at $40 or below before I add to it. It really hasn’t done much in the last couple of years but as long as those dividends continue to be paid out and raised every year I’ll be happy. Thank you for sharing your thoughts.

    • Hi DOD,

      You said it. The utilities are looking better these days when compared to just a few months ago which is why I looked into the sector this month. I know many of our investing peers up north hold Canadian utilities. I’m really not that familiar with any so I have been sticking with the U.S. utilities like D, SO and ED. While the growth in their dividends may be slow, they do offer a pretty solid current yield that should continue to be paid out for many years to come. Thank you for commenting.

    • Hi TDP,

      My goal has been to make at least one buy every single month no matter where we are in an economic cycle. As long as I have cash to invest every month I’ll be putting it to work in my dividend growth portfolio. Happy to be a fellow shareholder with you in both VFC and SO. Both are good long term holds. TGT is another name that has been very popular as of late among our investing peers for good reason. Thank you for stopping by and commenting.

    • Hi Jay,

      I agree. It’s always interesting to see where our fellow investing peers put their fresh capital to work. Usually, we tend to buy similar names in waves as they become beaten down. SO is a solid utility based in the southeast U.S. It has been paying and raising dividends for many years and should be considered for a dividend growth portfolio in my opinion. Thank you for commenting.

    • Hi DI,

      Thanks for that vote of confidence with my latest buys. I know the utilities aren’t that popular among our peers because their dividend growth rates are pretty dismal. Still, they offer relatively high yield that’s pretty safe by utility standards. As always, I appreciate your comment.

  5. Nice buys. I have been looking into the Utilities sector myself lately. Currently, they are only a small portion of my portfolio which I would like to see get bigger for diversity purposes. And they tend to pay a nice dividend which is always a good thing. Always like reading about your buys and what is on the radar for the future.
    Dividend Daze recently posted…A New Take on TaxesMy Profile

    • Hi DD,

      The utilities will never be one of my largest sector holdings but do deserve a spot in my portfolio. I think I’ll always have the consumer staples as my largest sector though. It’s been a while since I added to any utilities and these two buys looked pretty favorable when compared to stats of just a few months ago. Glad you enjoy these updates. Thank you for stopping by and commenting.

  6. Hut,
    I like VFC a lot, and have added this month to my Loyal3 position. Of the 2 utilities I like SO the most just based on fundamentals, but my house is serviced by Dominion. I have to say they are reasonable, even when crap weather strikes – like it did today with 60 mph winds. Better than the other services in the DC area. I used to own Nevada Energy (NVE) a few years back, but they got bought out by Warren Buffet and I just never replaced the utility group. I would like to have at least one position in the future.
    – Gremlin
    Dividend Gremlin recently posted…January Review / February Preview, 2017My Profile

    • Hi DG,

      VFC has been making the rounds among our fellow dividend investors because the stock has really faltered for a few months now giving us much better buying opportunities. Seeing it under $50 was just too tempting to not jump on board. As I have been commenting to others, it’s been a while since I added to my utilities which is why these recent buys were nice to further diversify my passive income stream. I only hold three utilities, D, SO and ED and I think that’s enough diversification for me in that sector. Thank you for sharing your thoughts.

    • Hi dividendgeek,

      Congrats on the buy. Just curious to know why it’s against your investment philosophy? I have held VFC since 2007 with no complaints. It’s been a very solid performer and I added it to my ROTH several months ago too. VFC yielding well over 3% is not a bad time to get in nor average down. Clearly, the company is having near term issues and I think most of it is related to a strong dollar. Thank you for commenting.

  7. Some good buys.

    I’ve been looking to put my recent 401k rollover to use with some dividend stocks. Utilities are on my radar, but as always, I’m looking for good long term prospects as well as a good price. Most of all, I’m looking forward to the increase in my dividend income after the investment!

    • Hi Jack,

      One of the fun aspects of adding fresh capital to any dividend portfolio is the added income your new money will bring you. I think D and SO are trading at pretty good levels. I’ll admit, like with the consumer stocks, they are not great bargains, rather just trading at more attractive levels than in the recent past. As always, I appreciate your comment.

    • Hi IH,

      Looks like we are on the same wavelength with these two utilities. Buying on relative weakness. The utilities are not that loved these days but I plan to keep them for a long, long time in my portfolio. In the meantime, let those dividends roll in. Thank you for stopping by and commenting.

    • Hi R2R,

      You already know that I buy every month no matter where the market is. Why not pick up some great current yield from pretty solid, known and stable utilities? The race definitely continues… Thank you for commenting.

  8. I like PG obviously. VFC seems to be quite popular. I quite like HBI as an alternative, especially after the price drop. Don’t have any exposure to utilities yet, but working on closing some holes in my portfolio this year.

    • Hi DT,

      Some pretty good relative values coming in these days. Yes, many stocks might seem expensive but a lot look more attractive these days than several months ago. VFC, your HBI, some utilities and many other consumer related and REIT stocks too. As always, I appreciate your comment.

    • Hi MDD,

      I have been watching VFC for a while now as it started to drift from just over $60 to where we are today. All along I have been nibbling on the way down. I think everyone can relate to being low on funds from time to time. Sometimes, I invest just a few hundred dollars in a month while other months I can invest more. The key is to be consistent with your buying and try and put as many dollars to work for you as you can. Still, even without adding fresh funds it’s nice to see those dividends hit your account. Thank you for stopping by and commenting.

    • Hi DaC,

      Clearly, VFC at these levels have gotten many of our fellow investors’ attention. For me, seeing VFC yielding over 3% got me to start looking. Nice pick up of BMY near its low. With the market at all time highs there seems to be no shortage of companies trading at much more attractive levels. Thank you for commenting.

    • Hi MD,

      There’s no doubt that the utilities, and REITs especially, are not getting the love these days. It’s understandable as rising interest rates don’t favor these sectors and a shift towards industrial and financial stocks really took hold over the last several months. But, like you said, when times aren’t favorable for a stock or sector, that’s usually the best time to ‘move in.’ Thank you for sharing your thoughts.

    • Hi ARB,

      I think there’s good reason you are seeing quite a few SO buys as of late. In terms of solid utility plays that are offering extra high yield SO is probably one of the best. Thank you for stopping by and commenting.

    • Hi WS,

      The REITs, especially health REITs, continue to look shaky. Real estate in general doesn’t like rising interest rates and there are still big question marks in front of the whole health industry with the new administration. I still think that longer term these properties will do just fine. They still have long term tailwinds at their backs with the changing demographics. I’m still watching LTC. As always, I appreciate your comment.

  9. DH,

    The only company on my actual portfolio is KO. I know you said you like the sector health REIT, but what do you think of Realty Income? In any case, good selection of stocks.

    • Hi Dl,

      My favorite sector of all is the consumer staples for its steady, consistent and reliable income generation. Among the REITs I like the health REITs the best long term. I know O is a very popular REIT among our investing peers and I think it’s probably a pretty good stock to hold but I have not really looked into that name in depth. Thank you for commenting.

    • Hi ACI,

      I always create a “road map” for the upcoming month to see where I will potentially invest and after seeing both D and VFC tumble I just felt compelled to pull the trigger. Seeing D yielding over 4% and VFC well over 3% should get any long term dividend growth investor to notice. The utilities are not my favorite sector but I feel they deserve a spot in my portfolio nonetheless. Keep sticking with those solid dividend payers as you have been. Thank you for commenting.

  10. Hi Keith,

    One of my first acquisitions to my newly formed DGI portfolio last year was AEE, my local utility provider. Today it hit a new all time high and and has already raised the div.

    I too am a fan of good solid utility stocks, and have the usual DUK, SO, PPL, and ED that I bought when they pulled back a bit.

    My latest Utility buy was SCG, Scana Corp, and has the basic fundamentals I required. Also done well in the last few months with GXP in the Roth. Still watching D and OGE for a small pullback before I buy into.

    Hope this helps with a few ideas on good utility stocks.

    Jim – MDP

    • Hi Jim,

      Looks like you are into the utilities in earnest. For now, I plan to keep just three ED, SO and D for the foreseeable future and perhaps might add DUK one day too. I like the sector for its very consistent and reliable dividend payments but not so much for their dividend growth. I guess every portfolio needs a few lower growth, solid dividend payers as well as some lower yielding higher growth stocks too. Thank you for sharing your recent picks and thoughts about utilities in general.

  11. Hi DH,

    Just curious what brokerage you use for all your purchased since you’re able to do so many each month? Fee wise per transaction?

    • Hi Goran,

      I make all my purchases through CapitalOne Investing (formerly Sharebuilder) and pay a grandfathered commission rate of $2 per trade under a promotion Sharebuilder had for Costco members. My normal trades are $800 and up so as to minimize my commission percentage. Orders that are less than $800 occur from time to time when I have free trades available to me. Thanks for your question.

    • Hi DDU,

      A lot has changed since I made those buys last month. You already know the common gripe many of us have these days about how difficult it is to find decently valued stocks. I’m still watching those utilities but will probably go in another direction in March. I still have not made any buys this month but I definitely will. Thank you for commenting.

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