Recent Stock Purchase II – December 2014

It’s the middle of December and the headlines are still screaming lower oil prices and energy names. A few days ago I wrote a post about pure play iron and steel companies that are also experiencing the same sell off as oil. It seems that quite a few commodities are in a current free fall which seemingly presents great buying opportunities but I’m not convinced of it yet. I tend to be more cautious and conservative with my long term dividend portfolio as I’m still on the sidelines regarding many of the potential energy names to invest in from my watch list.

 

Looking to remain consistent and continue my monthly stock buying and build upon my own dividend snowball I made a second purchase, albeit smaller, for the month of December. Last week I added to my General Electric Company (GE) and Bemis Company, Inc. (BMS) holdings and with that being said, I’d like to share my recent stock buys.

 

I have added to my taxable account 9.0621 shares at $91.49 for a total investment of $829.05 in Caterpillar Inc. (CAT). With this recent purchase my taxable account holdings in CAT now totals 68.6827 shares for a value of $6,136.11.

 

I also have added to my taxable account 7.2279 shares at $114.84 for a total investment of $830.05 in Diageo plc (DEO). With this recent purchase my taxable account holdings in DEO now totals 34.2167 shares for a value of $3,888.04.

 

What do you think about my most recent purchases? Is CAT and/or DEO in your dividend income portfolio? Please let me know below.

 

Disclosure: Long GE, BMS, CAT, DEO

36 thoughts on “Recent Stock Purchase II – December 2014

    • Hi OBFW,

      I fully agree with the way the media portrays everything. It’s all about ratings. Rising oil is bad, ruining the economy, consumer, companies profitability… falling oil prices, bad for economy, world stability. You can’t win. No matter what happens the news is always bad. I tune all that noise out like you. As long as a company has decent to good growth prospects or at the very least a very, very stable business model (utility) I buy in. My measurement for any of my investments truly is in decades. Thank you for stopping by and commenting.

    • Hi AG,

      It’s been a while since I added to my GE and hovering around $25 seemed like a decent entry point especially with the current yield. I’m happy to get paid to wait while GE seemingly should have a brighter future. Thanks for commenting.

    • Hi Seraph,

      I think with all the chatter of global slowdown CAT has dropped from its recent highs. Nevertheless, I still feel confident holding this company for many, many more years. The same holds true for GE. Now the talk is that falling oil prices will impact GE’s renewable businesses. For my money, I’d be happy to be paid to wait with both GE’s and CAT’s current yield. Thanks for sharing your opinion.

    • Hi Tawcan,

      You said it. The market has been on a crazy ride since the wild swoon of October when every sector was being hit. Now the news is all about oil, energy, iron ore, wheat, Russia, etc. The volatility of many markets has grown wildly. Continuing to add to these solid dividend payers softens a lot of the market turmoil which is why I selected these recent stocks this week and last. As always, I appreciate your comment.

  1. DivHut,

    Solid buys. I am always a big fan of heavy equipment – CAT, working in construction settings from time to time I see they make nice stuff along with DE. Their stuff is always needed.

    Also DEO is nice because that is always in demand. People will always need some good libation and the like. I’ve been adding UL myself, which you could argue with their ice cream lines is also a treat for the consumer; notably Ben and Jerry’s Cinnamon Bun flavor. However, holiday shopping for a big family is cramping my style so I’ve just make small buys on Loyal3.

    Keep up the buying,
    – Gremlin

    • Hi DG,

      Large buys or small buys matters not. The key to being a dividend growth investor is consistency. As long as you make monthly contributions you are accelerating your dividend snowball. I have added UL to my portfolio a few month back. I’d like to add more to my holdings as I like its defensive nature a lot. I know that a few months back DE was the talk among the dividend bloggers as share price and valuations have dropped considerably. I decided to go the CAT route and have been happy with the results so far. Thank you for commenting.

    • Hi FtFF,

      It’s been a long time since I added to my CAT position. Looking at relative values and yield made me decide to add a little more this month. As a cyclical stock it always experiences good times and bad as economies grow and contract all over the world. It has come down a lot from recent highs too which made it more attractive to me. Thank you for commenting.

  2. DivHut,

    The CAT purchase seems really solid. I regret not buying shares late last year when it was in the low 80s. I doubt it gets that low again, but if it does I will probably initiate a position. I probably will go with BA on the industrial side pretty soon. BA just gave a great raise and is yielding close to 3%.
    My Dividend Pipeline recently posted…Weekly Sharebuilder PurchasesMy Profile

    • Hi MDP,

      Judging by the comments a lot of other dividend bloggers are liking the CAT buy. I’m keeping an eye on it as well and if prices decline from here I may add even more. I have to say your BA consideration is solid too. I never bought into the company even though it is a very solid long term dividend payer as well. The recent increase was no small gesture either as was the recent MMM increase too. Good luck with your decision. I also have been looking at UTX but feel I have enough industrial exposure. There are literally dozens and dozens of solid dividend payers out there. I can’t imagine why people deal with derivatives, penny stocks and the like. Thank you for stopping by.

  3. DivHut,

    Nice purchases. Both are very solid companies.

    DEO is one in particular I’d like to add to my own portfolio at some point here. A lot of great brands there.

    I, like many, missed CAT in the low $80s. But it’s fairly cyclical, so we may get there again. I wouldn’t mind a small position in CAT. They have an excellent operational history.

    Keep it up. You’ve had a busy December. Should bode well for 2015. 🙂

    Best regards.
    Dividend Mantra recently posted…Recent SaleMy Profile

    • Hi DM,

      I still am sitting on some 2014 “left over cash” and figured let’s end the year with a bang which is why I am a little busier this month with my buys than in previous months. All good, as these end of year buys sets us up for a stronger first quarter of 2015 dividends. With several more trading days left I still may make another purchase if something is really calling out to me.

      DEO was a great buy for my portfolio way back. I plan to keep it very, very long term as their stable of well known brands seem to ride out economic highs and lows relatively well. With CAT, I’m sure better buying times will come. It’s still on my radar if I see it dip into the $80s again. Thanks for stopping by and commenting.

  4. I have a small position in GE, and I bought BMS in my son’s account. Like you, I’ve been more up on CAT than DE which seems very popular lately. Haven’t created a position yet, but hope to soon. DEO is also on the watchlist

    • Hi DH,

      It seems like we are on the same page with many of the stocks in our portfolio or under consideration. BMS has really done quite well in 2014 especially towards the end of the year. It is one of those high quality names that doesn’t seem to get much recognition among the dividend bloggers even though it has an outstanding history of rising dividends. Sure, it may be a bit overvalued but sometimes quality comes at a steeper price. I remember when it was in the low $20s not that long ago either. Keep watching CAT and DEO. Though also considerably more than I paid for them a while back I found they offered some decent relative value that wasn’t an energy name. Thank you for sharing your positions and considerations.

  5. Thanks for sharing. I too have been buying stocks this month. I had not considered CAT, but it sounds interesting and I’ll definitely be giving them a look. As for DEO, I had never heard of it, but I’m guessing I’ve heard of their brands.

    The news is almost pure crap as far as I’m concerned. People let it swing their moods and so the stock market also swings. However, as DGI’s it’s of little concern right? Just keep investing and reinvesting the dividends, that’s the name of the game.

    – HMB

    • Hi HMB,

      Sometimes it’s easier said than done regarding tuning out the financial media. The reality is that no matter how much conviction we have in a particular stock the media noise does influence us in some manner. But, as you said, you have to really filter out the noise and stick to your own game plan which is investing in super high quality names, reinvest those dividends and let the magic of time and compounding do their thing. I remember when my entire portfolio was in the red during 2008/09. Believe me, there were times when I questioned what I was doing seeing all my stocks lose money but I simply held on and added even more during those dark days.

      I’m happy my recent buys are giving you some consideration at the very least. CAT is a worldwide name that everyone sees and knows while DEO is a company name that many do not know of but their brands are very, very familiar. If you ever had an alcoholic drink then there is a high chance you imbibed on a DEO product. Thank you for stopping by and commenting.

  6. DivHut,

    You’ve been busy! Nice purchases – I like DEO and I saw that it actually peaked below my entry price – trying to see if more fits into my portfolio, love their brands. CAT is a giant and will do well in the long run for you easily.

    Great job!

    -Lanny

    • Hi DD,

      Indeed, December has been a busier month than in the past. I am trying to deploy much of my cash I have for the month and start off the first quarter of 2015 with an extra bang. After all, it’s these end of year purchases that will reap us rewards in the coming months. Happy you like my recent buys too. Both CAT and DEO have been with me for a long time with CAT being one of my larger positions. I plan to keep them very long term. Thank you for commenting.

  7. Hi Keith,

    I’d like to add CAT and GE to my portfolio eventually. Those are both great businesses. I don’t know DEO but will take a look.

    I might finaly sell my ARCP shares… things are getting worse and worse as I thought they would go and I feel like if I were the last of the mohicans. I could allocate my my money at better places. There are some nice options right now.

    I’ll think about it during the week-end I guess.

    Thanks
    Allan recently posted…101 ideas to make moneyMy Profile

    • Hi Allan,

      CAT and GE are both larger holdings in my portfolio and seem like good long term picks for any dividend growth portfolio. Though you might not have heard of DEO you surely know their products. It’s another great long term stock though smaller holding in my portfolio.

      I know that some have already sold out of their ARCP positions. The reality with that stock is that there are still a number of unknowns that may surprise people to further downward pressure on the stock. I think your money might be better off in a more stable and reliable dividend paying company. Of course, these accounting anomalies could technically happen to the best of breed companies too. I guess that’s why we diversify. Thanks for stopping by and commenting. Look forward to see how you’ll move forward regarding ARCP.

    • Hi TS,

      If you have been following my blog for a while you already know that I do not own any energy names, and tech for that matter, as I do not like the added volatility that comes with those sectors. While I’m not against energy names at all, as many are on my watch list, I am still standing on the sidelines for now and waiting for some sort of relative calm to prevail. I agree that oil and energy names will bounce back down the road it’s just that for now I prefer my industrial, consumer or even financial names instead. Thank you for stopping by and commenting.

    • Hi FIUK,

      I have held DEO in my portfolio for many years and plan to make it a long term holding as well. Though not one of my bigger positions it does give me some added diversity in my portfolio. The company owns many of the top selling brands across many categories. Any company with that strong brand recognition and sales belongs in a dividend growth portfolio. Thank you for commenting.

  8. Hello DivHut:

    I like your december purchases but I think CAT is more cyiclical than others so I think unless you have a big portfolio, I prefer blue chips companies.

    I am studying General Electric for my next purchase in your USA market but I am waiting for a correction in “the most hated rally in the history”. Further, the weakness of the euro against the dollar (following the finish of your Q3) make more complicated to buy shares in dollar (but it is better for me because I receive USA dividends in euros).

    By the way, I can see you buy almost every months… Congratulations, it is very important for the growht of your “snowball”.

    Congratulations and greets from Spain.

    • Hi CC,

      Though CAT is a cyclical stock, it is a major industrial player that still has lots of international growth in its future. Though the rest of the world may be in a little slump in the near term, I am happy to hold and add to my CAT shares and get paid to wait with a pretty generous dividend.

      GE is a another long term holding of mine and even though it hasn’t done much in terms of stock price movement the last couple of years, it too pays a very healthy dividend which I am happy to receive while I wait. As a dividend growth investor I find that the key to success is to be consistent with your investments. I try to invest every single month if possible and manage my portfolio in all markets, high, low or stagnant. Thank you for stopping by and commenting.

  9. Nice buy I also like CAT too, but have not purchase yet. I might make a move on it next month or so. Yeah energy stock is getting beat up right now, but I’m keeping my eye on (XOM) & (BP) on my watch list right now. Might pick some up later on.

    • Hi J,

      I’m still on the energy sidelines watching what’s going on in the oil market and the energy stocks. It’s a little too volatile for my taste at current but I have added quite a few oil patch names to my watch list, BP and XOM as well as others. CAT has come down a lot from its recent highs and I thought it was a decent time to add to this nice yielding core holding of mine. Thank you for sharing your thoughts.

    • Hi DL,

      Ever since CAT dropped from its recent highs it has become more enticing to a lot of dividend investors. With the yield well north of 3% entering CAT at these levels is a lot more palatable. DEO is another great long term dividend payer and is a very solid consumer staple name. Owning many of the number one worldwide brands in many respective spirit categories their diversity and brand power is very strong. Thank you for stopping by and commenting.

    • Hi TSW,

      I’m a huge fan of consumer staples for any long term portfolio. It’s my largest sector and I plan to keep it that way for the foreseeable future. It’s been a long time since I added to that sector as valuations simply got way too high for my liking which is why I continued to add to my Canadian banks and other names instead. Of course, these days it looks like we are being offered some better buying opportunities across many different sectors as the market began to swoon. Thank you for stopping by and commenting.

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