Recent Stock Purchase II April 2017

I usually end my ‘stock considerations’ posts the same way by saying that Mr. Market always has the last word and that sometimes stocks that I’m not considering in a particular month may suddenly become attractive once again because of a serious sell off (usually after poor earning reports and guidance).

 

While I added to my General Mills, Inc. (GIS) last week as near term headwinds are affecting the stock keeping prices depressed I didn’t expect to make another buy so quickly but decided to continue to nibble on positions as they falter. With that being said:

 

I have added to my taxable account 2.0 shares at $195.07 for a total investment of $390.14 in W.W. Grainger, Inc. (GWW). With this recent purchase my taxable account holdings in GWW now totals 8.5577 shares with a market value of $1,671.75. This was a free trade.

 

I have added to my taxable account 6.0 shares at $72.51 for a total investment of $435.06 in Cardinal Health, Inc. (CAH). With this recent purchase my taxable account holdings in CAH now totals 27.2724 shares with a market value of $1,977.79. This was a free trade.

 

I have added to my taxable account 6.0 shares at $122.00 for a total investment of $732.00 in Johnson & Johnson (JNJ). With this recent purchase my taxable account holdings in JNJ now totals 44.2609 shares with a market value of $5,371.95. This was a free trade.

 

In total, I put $1,557.20 of fresh capital to work. As you can see my buys in each position was small as I was able to take advantage of commission free trades credited to my account. I’m sure it’s no surprise that I bought GWW or CAH for that matter, as many of our fellow dividend peers have been buying up those same names after their recent double digit sell off the other day. I’m all for taking quick advantage of a sudden price drop if cash permits.

 

What do you think about my recent purchases? Have you been buying these same names after their big price drop? Please let me know below.

 

Disclosure: Long GIS, GWW, CAH, JNJ

31 thoughts on “Recent Stock Purchase II April 2017

    • Hi MH,

      April has been a very sideways market so far which means you really have to wait for those individual stocks to falter in the near term and swoop in to take advantage of better pricing, value and yield. Like you, JNJ is my favorite long term hold among my recent buys but I sure wish it was much cheaper than current levels. In the meantime, the nibbling will continue. Thank you for commenting.

    • Hi Jay,

      As long as I have those free trades credited to my account I’ll continue to take advantage of making multiple smaller buys. I think we’ll have more ‘surprise’ opportunities next week with many companies reporting. Any misses should give us some great knee jerk reactions to the downside enabling some better pick ups of solid dividend paying companies. Thank you for sharing your thoughts.

  1. Solid picks Keith, I own all except GWW. If I wasn’t in the middle of selling a house, moving, switching jobs and hoarding all of our cash…I would have doubled or tripled up on CAH with the drop. Seeing all of that cash sitting in savings and not pulling the trigger was definitely a test of will power. Lol
    Chad

    • Hi ODOT,

      Wow, it sure seems like your hands are full in the near term. I think it’s OK to hold some cash, get your life back in order and then focus on investing once again. The market and dividend stocks will be waiting for you. I think we’ll be seeing some more big price moves next week as many companies will be reporting their quarterly earnings. You will be tested again 🙂 Thank you for stopping by and commenting.

    • Hi DD,

      It was no surprise to read about so many CAH buys this past week. I think we are all itching for that magic correction to take place so we can pick up some quality stocks at better prices. Of course, in the meantime, we have to pick and choose individual names as they falter in the near term. As always, I appreciate your comment.

  2. Good picks overall, I’m a big fan of JNJ.

    I’m currently looking into packaged/processed food companies like GIS. I have a question for you; aren’t you concern about GIS revenue trend (down for the past 5 years)? It seems that healthier choices seem to become more popular. I’m not sure how companies like GIS will react to this trend. Several other companies are in the same boat at the moment (KO, PEP, MCD, K, etc). What do you think about that?
    Cheers,
    Mike
    DivGuy recently posted…Canadian Banks Are Your FriendsMy Profile

    • Hi DG,

      I think every dividend investor is a big fan of JNJ. I sure wish they were cheaper though. As to your question about GIS and other ‘unhealthy’ stocks I’m not too concerned over their prospects long term. One thing I have witnessed as a dividend investor for about ten years and being a general stock investor since the late ’80s is that many ‘old guard’ companies selling products that are ‘not with the times’ survive by changing and adapting to current consumer tastes and trends. While declining revenues make it tough to invest in these stocks that sport pretty rich valuations I still believe in a long term turn around. 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. HRL buying companies like Applegate: Natural and Organic Meat, Justin’s: Natural and Organic Nut Butters, Muscle Milk: Protein Shakes and JENNIE-O® Turkey among others is another example. KO and PEP with H20, coconut water, vitamin water and other ‘health’ oriented beverages are doing the same. MCD used to serve their burgers in Styrofoam which became a big ‘no-no’ several decades ago and shifted to paper. Their menu has also been totally transformed over the decades to represent ever changing consumer tastes and trends. So in a nutshell, I’m sticking with all the ‘old guard’ companies for the foreseeable future. Can one eventually fail? Sure, but that’s why I don’t put all my eggs in one basket. Thank you for commenting.

    • Hi DG,

      I’m looking forward to next week as many companies will be reporting and as usual I expect severe knee jerk reactions to any ‘misses’ in earnings which should give us some good chances to pick up solid dividend paying stocks at better prices. Thank you for stopping by and commenting.

  3. dam man, thats another nice purchase. I just finished reading a article by sure dividend about grainger. seems like a nice pullback for a buy. I have never heard of them before tho. j and j and cardinal health are 2 other great companies! nice buys, let that money flow!
    passivecanadianincome recently posted…Canadian Dollar ConversionMy Profile

    • Hi passivecanadianincome,

      GWW has been a great company to invest in for a long, long time. Just take a look at their long term price chart and dividend growth and you’ll see why. There is chatter about AMZN starting to encroach on their space by offering the same products as GWW which raises a longer term red flag in my head but I’ll continue to hold for the foreseeable future. While GWW is a solid company/stock, I don’t plan to ever make it a large portion of my portfolio. Of course, JNJ is another story. I’d happily add to that name again and again and again. Thank you for sharing your thoughts.

    • Hi DD,

      Awesome!!! You trying to pump me up some more? This is how you continue to build up a passive income stream… by buying quality companies, diversifying and not selling because you feel the market is too high or that a ‘crash’ is coming, etc. I would only sell when I no longer like the long term prospects of a particular company. That’s it. I always say, DOW 30K, DOW 10K… I’m buying something, larger or small, every single month. Thank you for commenting.

  4. Nice with the JNJ, I continue to be impressed by them.

    When I first started dividend investing, they were around $92. I had no idea if that was good or not, but they continue to do better and better. I thought about waiting till they get back below $100 to buy more, but they again do better and better. I love consumer staples like this and there isn’t much of a bad price for this stock.

    Nice job!
    Wallet Squirrel recently posted…How I made $1.88 Selling Stock Photography in 10 days as a new Shutterstock ContributorMy Profile

    • Hi WS,

      JNJ is one of those names that just perform over the long haul. Sure, there will be bumps along the way but overall JNJ is a rock star performer. I remember, not that long ago, when JNJ was in the $60s after those Tylenol recalls, etc. It’s always tough to pull the trigger when a company is facing hard times but that’s exactly the best time to buy. MCD was in the high $80s a couple years ago. No one liked them. They were an ‘old guard’ restaurant serving up foods ‘not with the times.’ Everyone dumped on that stock and touted PNRA or CMG as the go to stocks. If it’s a quality company, buy when others are selling. As always, I appreciate your comment.

  5. GWW looks interesting because the share price has been on a slide for a while now. The big dip in CAH sure caught my eye and I need to seriously consider looking at them here. I just checked out their dividend history and I think the first week of May should be pretty telling as to how management sees things over the next few years. They’ve typically announced a dividend increase the first week of May so we’ll have to see how that goes.

    I can’t remember, how do you get these free trades because that’s something I can definitely get behind.

    • Hi JC,

      If you look at how GWW performed over the last decade plus you’ll see a a very, very strong performance from a dividend and capital appreciation perspective. There are rumblings of an AMZN infiltration into their space which is valid but I’ll continue to hold the stock as it’s not a large portion of my overall portfolio. CAH, on the other hand, really seemed to catch the eye of many of our fellow investors as I read about quite a few CAH buys being made in the last few days. Those free trades come to my account via ‘complaints’ I have with Sharebuilder. For a while, my message center was not working and I couldn’t get specific stock info. To keep me happy, I was credited a dozen free trades in each of my accounts. That’s why these buys were all on the small side. Thank you for commenting.

    • Hi DFG,

      Seeing a quick double digit price drop in GWW was enough reason for me to nibble a bit on the stock. GWW has been in my portfolio for a long time and, while I don’t plan to ever make it a ‘core’ holding, I do plan to keep this stock for the foreseeable future. Thank you for stopping by and commenting.

    • Hi At,

      GIS continues to stay beaten down and still offers a pretty impressive yield that’s safe. I think one of my favorite sayings is appropriate when talking about GIS.

      “The safest and most potentially profitable thing is to buy something when no one likes it.”

      Howard Marks, CFA – Co-Chairman, Oaktree Capital

    • Hi DL,

      I have been reading about quite a few buys in GIS the last several weeks and for good reason. It still offers a safe dividend and a pretty juicy yield too. I think they will turn around eventually as they are making smart acquisitions in the natural, organic and fresh markets. Thank you for commenting.

  6. I love all your recent purchases: GIS, GWW, CAH, and JNJ. Did JNJ have a recent pullback or was there another reason you added to JNJ? But then again, JNJ is such a great company to own that anytime is a great time to buy that company; the stock price always seems to move up with JNJ.

    Which trading platform do you use to get free trades? Are you still using Sharebuilder?

    Thanks for sharing.

    • Hi ACI,

      All are well known solid dividend names that I added to recently because of sharp or pretty sharp pullbacks. JNJ experienced a modest decline from about $126 to $121 which is why I decided to nibble a bit there. I’m still with Sharebuilder. I usually have a bank of free trades because of my birthday or customer complaint when something on the site is not working. If I am ever unhappy all I have to do is ask a customer rep to make me happy and usually I get between two and five trades credited to my accounts. I’ll take those free trades whenever I can get them. Thank you for stopping by and commenting.

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