Recent Stock Purchase II February 2018

Looks like I decided to make another buy in February as quite a number of stocks still remain severely beaten down even though the general market is on an uptrend. By now you all know the sectors and specific stocks that many of us have been buying as of late as interest rate hike fears have gripped the REIT and utility sector in earnest. My last several buys have been in the health REIT space as I picked up Ventas, Inc. (VTR), LTC Properties, Inc. (LTC) and Welltower Inc. (HCN) over the last couple of months on seemingly much better valuations and yields when compared to just last summer. For this recent purchase I decided to venture away from the REITs and pick up another struggling stock in the consumer staple space. With that being said:


I have added to my ROTH account 17.4569 shares at $51.27 for a total investment of $895.02 in General Mills, Inc. (GIS). With this recent purchase my ROTH account holdings in GIS now totals 36.8684 shares for a value of $1,870.70. I also hold 112.6969 shares of GIS in my taxable account with a market value of $5,718.74.


What do you think about my recent buy? I know GIS is not a popular stock among many of our DGI peers but I still think the dividend is quite safe and that a turnaround for this beaten staple is in the works. Another staple that recently caught my eye was The Kraft Heinz Company (KHC) which has fallen from grace as of late and is starting to sport a juicy yield that’s getting too hard to ignore.


As you can see with this recent buy there are still many stocks one could add to a DGI portfolio even though the market continues to grind higher. It’s all about finding those unloved sectors and stocks and buying when others are selling.


Disclosure: Long VTR, LTC, HCN, GIS, KHC

28 thoughts on “Recent Stock Purchase II February 2018

  1. We must be dividend twins. KHC is on my watch list and I own all the others.

    I read that Welltower and LTC took a beating not just from rising interest rates drawing away income investors…. but from flu season picking off our elderly customers too. It’s definitely a rough moment for healthcare REITs, but I don’t think it will last.

    I think it is a great time to buy General Mills. I’ve written on my own blog about all their natural and organic brands- and how hopefully they will overcome the slump in the baking and yogurt sectors.
    Meow recently posted…Meow’s Dividend Journey: February 2018My Profile

    • Hi Meow,

      The health REITs are having a tough time in 2018 as are the utilities. No doubt many factors are contributing to the sell off which simply gives us much better buying opportunities going forward. I agree with you that this is all a temporary rough patch and won’t last over the long haul. GIS is a stock that is going through a rough patch as well as they struggle to improve their product offerings to match changing consumer tastes. Thank you for stopping by and sharing your thoughts.

  2. Looks like a good buy to me DivHut. I think the fact that it’s not a popular stock is what makes it a great buy for the long run – especially if it’s a company likely to stand the test of time, which General Mills seems to be.

    I’m always far more drawn to stocks that have been beaten down and aren’t popular, although many of them aren’t likely to be as durable as some of your US companies. I’ve been looking hard at the struggling retail sector here in Australia, but it’s a bit of a minefield…
    Frankie recently posted…The Tipping Point On Transaction CostsMy Profile

    • Hi Frankie,

      GIS is a stock that is very much unloved these days which is why I continue to consider this name for my portfolio. Buying when others are selling, while not a guarantee, usually offers the best potential returns. I think GIS is making strides to improve their brand offerings to adapt to changing consumer tastes and trends which are skewing towards fresh, natural and healthy. As always, I appreciate your comment.

    • Hi P2F,

      I still like GIS near $50 give or take. Total debt to total equity stands at 48 for KHC. I think they have managed their debt in recent years much better. Thank you for stopping by and commenting.

  3. Hi Keith, I own both KHC and GIS as well and plan to continue holding for the forseeable future. I have been keeping an eye on GIS as well. Not only has the traditional food sector been taken down, GIS got beat up the past few days based on the announcement of acquiring a higher end pet food company. This area may give them new growth potential, but the market consensus is they are overpaying for the company.
    Tom @ Dividends Diversify recently posted…So What’s With These Model Portfolios?My Profile

    • Hi DD,

      GIS has been an unloved stock for a long time. I still think they are going through a rough patch these days and will come out ahead over the long haul. Buying Blue Buffalo definitely is in step with their plan to expand into healthy, fresh and organic offerings catering to changing consumer tastes. Getting into the pet food business will help expand their general reach as well. GIS is a long time holding for me too! Thank you for stopping by and commenting.

  4. Got to love Mr. Market’s overreactions. I really admire your ability to consistently purchase shares almost on a weekly basis. I can’t wait until we can get rid of our non-mortgage debt so we can start investing regularly again. I’m hoping we can get to 2 sizable purchases each month, but at a minimum it should be 1.
    JC recently posted…One Raise at a Time | Banking On Higher DividendsMy Profile

    • Hi JC,

      You said it. The market is full of overreactions which usually creates some better buying opportunities for us. It may seem like I buy every week but I don’t. I make sure to make buys every month… sometimes twice a month so it seems like I am buying more often. The bottom line… I remain consistent with my buying. I don’t care where the market is, where it’s going… new highs/new lows I just make sure to make at least one buy in a month. It all averages out over the long haul. Keep plucking away at that debt you have. Money invested will better serve you but you already know that. As always, I appreciate your comment.

    • Hi dividendgeek,

      I think that a lot of the interest rate hike pricing is already baked in however it seems that any mention of future rate hikes, whether they come or not, drives the entire sector down. As you know, the market is very fickle and though we know rate hikes are coming sensationalist news headlines always stoke further fears. It’s kind of strange to say… but I don’t even bother following financial news any more. Everything we read online or see on TV is all about sensationalism and very little news facts about what happened. A lot of “what ifs” in news these days. The future ain’t what it used to be -Yogi Berra.

  5. My view is that both stocks are good buys. General Mills is a well-managed company with a broad group of products and a strong/loyal customer base. KHC has caught my eye recently as well. It looks like a good buy at current prices.

    My focus will be on utilities and REITs for the foreseeable future, and as I get new capital I will deploy in those sectors, as long as they remain undervalued. Once my portfolio is built out there, I will take another look at these consumer stocks.

    Thanks for calling attention to a couple of overlooked but strong stocks.

    • Hi DF,

      I don’t blame you for looking into the REITs and utilities. No doubt 2018 has been a tough year for both sectors and many stocks in those spaces are trading at much more attractive levels and higher yields. My March buy will most likely be in the utility space. I’m looking at SO and D for now. Of course, my favorite sector overall is the consumer staple space which is why I’ll always look for good deals there. Thank you for stopping by and commenting.

    • Hi Passivecanadianincome,

      Agreed. GIS is doing a good job diversifying their brands and getting into the health, organic and fresh space in earnest. Nice to see GIS is already a nice portion of your portfolio. I hold it in my taxable and ROTH account and even baby DivHut has a few shares. Thank you for stopping by and commenting.

  6. DHut,

    I own KHC and have been happy with them. I have been keeping an eye on GIS, not my #1 pick right now, but it is plain to see they both will have a strong future. They have been acquiring and are developing brands that will purchased for a long time. Also I like GIS’ recent acquisition of Blue Buffalo, but they are paying for it a bit through the nose at this point – long run its a good play.

    – Gremlin
    Dividend Gremlin recently posted…One Eye on the Future, the Other on the Crystal BallMy Profile

    • Hi DG,

      GIS is definitely trying to diversify their brands into fresh, organic and healthy these days and the Blue Buffalo pick up, though in pet foods, resonates with their approach to changing consumer tastes. GIS still looks like a good buy in March but I think I may go the route of utilities as the whole sector has been beaten down pretty bad in 2018. As always, I appreciate your comment.

  7. Hi divhut. GIS is a nice buy. Its on my list as well. Yield is nice p/e is bellow 20. Althpugh balace looks a bit weak with equity of 20% and leverage of ~4. Damm share repurchases :/ I went for PG and PFE instead letely. They are less leveraged and has more equity then GIS but are also a bit flat or even slightly dow at their top and bottom lines. But GIS is also ok 🙂

    • Hi P2035,

      What can I say… I like the PG and PFE pick up on your end too. Both are in my portfolio as well. GIS is looking OK at the moment. It’s not super cheap but I wouldn’t consider it expensive either. The dividend is still covered quite nicely though sales could look a lot better going forward. I still think GIS is a good long term hold and is simply going through a rough patch these days. Thank you for sharing your thoughts.

    • Hi MR,

      Seems like you either like GIS or hate it. I know that stock comes with very differing opinions. I still am in the camp that they will turn things around going forward. No doubt the company is facing many near term headwinds but is making strides to improve their brands and businesses they operate in to adapt to changing consumer tastes. Thank you for commenting.

  8. Good buy DH. I don’t own either GIS and KHC, neither are on my list currently so thanks for pointing this out. I am still buying REITS and Utilities and some more.

    GIS looks good here 🙂 growth may be much less than in past but recently they are trying to get into pet food business too so the new space will bring some growth they need.

    Good Luck,
    The Dividend Karma recently posted…Dividend Income – JanuaryMy Profile

    • Hi TDK,

      The REITs and utilities are still looking good this month. It’s amazing to see how far both sectors have been beaten down in 2018. For now it seems that my next buy might be in the utility space. SO and D are looking like my front runners at the moment though some staples look good too like GIS still and HRL, PEP and KMB. As always, I appreciate your comment.

  9. Great stuff Divhut. Although I wouldn’t buy just based on dividend yields, doing some further research into why the yield is so high can save you from losing capital if the share price continues to tumble. I’m sure you know what your doing, you’ve been killing it for the last few years!

    • Hi MP,

      I never make my buys solely on dividend yield. Of course, when I see a stock with a historically high yield, especially a long term dividend payer and raiser, it can signify “blood in the streets” and may be a good time to pick up shares when others are selling. Thank you for sharing your thoughts.

    • Hi DP,

      I’m still liking GIS, HRL and even PEP and KMB in the staples space. I know GIS is not a popular stock these days but it still offers a sustainable dividend and is making strides to further diversify their holdings. Thanks for stopping by and commenting.

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