Recent Stock Purchase II January 2016

With a volatile January behind us I was able to make several small purchases in my accounts as I wanted to use up free trades that were credited and set to expire at the end of the month. I managed to scrounge up a few hundred dollars per trade and figured at zero commission I might as well take advantage and put even small dollar amounts to work earning passive income. With that being said, I’d like to highlight my recent small buys.

 

I have added to my taxable account 11.0000 shares at $35.12 for a total investment of $386.32 in Archer-Daniels-Midland Company (ADM). With this recent purchase my taxable account holdings in ADM now totals 101.4118 shares for a value of $3,584.91.

 

I have added to my ROTH account 6.0000 shares at $61.53 for a total investment of $369.16 in Caterpillar Inc. (CAT). With this recent purchase my ROTH account holdings in CAT now totals 50.8596 shares for a value of $3,165.50. I also hold 71.2854 shares of CAT in my taxable account.

 

Finally, I added to my IRA account 13.0000 shares at $29.87 for a total investment of $388.30 in Care Capital Properties, Inc. (CCP). With this recent purchase my IRA account holdings in CCP now totals 20.0991 shares for a value of $601.77.

 

As you can see, each of my purchases were rather small as I simply wanted to take advantage of my free trades which were expiring in each of my trading accounts. Nevertheless, small orders or large, the end result is the same. Putting money to work and enabling that dividend snowball to grow further.

 

What do you think about my recent buys? Are any of these names on your current watch list? Please let me know below.

 

Disclosure: Long ADM, CAT, CCP

32 thoughts on “Recent Stock Purchase II January 2016

  1. Love the small capital investments when coupled with free trades. I’d love to DCA into positions with much smaller purchases but don’t have that option with my brokerages due to commission costs. Maybe with the next portfolio I start. All 3 of those companies appear to be significantly undervalued. CCP is kind of a borderline holding for me because I only own 5 shares and they overlap with OHI in operations. But I’ll be giving them a year to see how they operate as a standalone company and how they approach dividend growth.
    JC @ Passive-Income-Pursuit recently posted…Weekly Roundup – January 30, 2016My Profile

    • Hi JC,

      Typically my buys are at least $800 with a $2 commission. But with these trades the cost was zero so why not take advantage before the trades expire. Since I don’t currently have OHI in my portfolio I felt comfortable adding a small amount to my CCP holding. Sure, it’s still a very new standalone company but so far looks appealing from a dividend perspective and future potential growth. I admit that I’ll be adding much more to my other health REITs, HCP, HCN and VTR instead as they have a much longer track record to compare. Thank you for stopping by and sharing your thoughts.

  2. Hey Keith. Thanks for sharing. Big or small purchases , can’t go wrong with commission free trades. Glad you were able to make use of them. Keep it up bud and it’s nice to make purchases no matter what size. Feels amazing always to be purchasing quality companies. Cheers and thanks for sharing bud.

    • Hi DH,

      As you said, you can’t go wrong with a commission free trade. I’d rather use it up for a small purchase than let it expire. With these recent buys I was able to average down my costs on some quality names I plan to hold for a long time. As always, I appreciate your comment.

    • Hi AA,

      As we all know industrial stocks are notoriously cyclical and CAT is no different. I’ll take that 5% yield and get paid to wait while things shake out. Their payout ratio might be getting a little high but still safe based on current cash flow with room for an increase as well. Thanks for stopping by.

    • Hi DD,

      ADM is still looking attractive despite a recent run up towards the end of the month. I really just wanted to use up my free trades and was happy to be able to find a few hundred to invest in these dividend payers. I’m still considering ADM going into February. Still lots of great names on sale. Thank you for stopping by and commenting.

  3. I’m not familiar with CCP. Is that another healthcare REIT?

    You got good values on CAT and ADM right now. With the former, I always see the Caterpillar and Deere vehicles driving around, which is great because I own both CAT and DE. Always good to see your businesses out there doing their thing.

    Sincerely,
    ARB–Angry Retail Banker
    ARB recently posted…Yanking My Chain!? I’ll Choke You With It!My Profile

    • Hi ARB,

      CCP is another health REIT that was spun off from VTR several months ago. It is a standalone skilled nursing facility business very similar in operations to OHI as no other medical type of real estate is owned by them like hospitals or medical office buildings for example.

      I tend to follow the value and yield with my buys and these days it’s all about beaten industrial names as well as those Canadian banks for me. Like you, I too am happy when I see CAT machinery at building/construction sites. Thank you for commenting.

    • Hi Harry,

      I use Sharebuilder, now CapitalOne Investing, under a grandfathered partnership they had for Costco members. Under those terms, real time trades are $5.95 and automatic batch trades are $2. Thanks for your question.

  4. Great purchases! I own those three as well and am looking to add more. I only have a small bit in CCP from the VTR spinoff. Since it was held in my Roth I had no extra capital. Hoping to transfer some funds into the Roth pretty soon.

    The $2 commissions sound great! I pay $8.95 at Schwab but am hoping to see if they can reduce that. Can’t hurt to ask!
    Scott recently posted…Investing for Total ReturnsMy Profile

    • Hi Scott,

      This was my first small addition to CCP since it was spun off from VTR. Since I do not own OHI (yet) I thought it would be OK to add to this stock that is essentially identical in business to OHI. Of course, CCP does not have much of a history behind it but its yield and value seemed fine to add to at these levels. $2 commission are my regular fees. These trades were all free which is why they were small. Thank you for commenting.

  5. Interesting purchases, DivHut. I really like the ADM purchase at this level. CAT – I havent really looked at it closely.

    CCP – I have a few shares from the spinoff and am undecided if I should add more or sell the shares I got. I think the fundamentals are ok and the folks who went from VTR have the experience in running it well.

    R2R
    Roadmap2Retire recently posted…Chatter Around the World – 133My Profile

    • Hi R2R,

      All names mentioned are selling at some good value and current yield. This was my first add to CCP since the spin off from VTR. In general I like to invest in stocks that have a long dividend history but made an exception this one time since CCP is the offspring of a REIT I already like. It also is in the same business as OHI which I do not own so it will be my pure play skilled nursing REIT. Thank you for sharing your thoughts.

  6. DivHut,
    I have a free purchase that I need to use soon too, so I am in the same boat. Love the ADM purchase, and I like the CAT one too. I think both are in a tough spot at the moment, but that will be temporary and those companies will be able to overcome their problems. With all the snow we got in DC this past January it has been nice watching all of the CAT and Deere (DE) wheel loaders being used to help get rid of the snow. Their equipment just has so many uses, they will always be in some sort of demand, because someone is always building or destroying something. If they are demoing, its usually to make something better and newer.
    – Gremlin
    – Long DE
    Dividend Gremlin recently posted…January, Review / February, 2016 PreviewMy Profile

    • Hi DG,

      Well said. I agree that for the foreseeable future we’ll need the products of CAT and DE as we are always building and demolishing even if mining sectors shrink and other industrial demands are weakened. It’s always nice when your brokerage throws you a few bones to encourage buys, in part I guess. I’ll always take advantage of a free trade and put some dollars to work. Let’s see how February unfolds. If January was any indication I have a feeling we’ll be seeing many more great buying opportunities. Thank you for stopping by and commenting.

    • Hi vivianne,

      Like you, I plan to be long CAT for a long time. I have not read those articles talking about a dividend cut or freeze. If you could point me to where you read that I’d be appreciative. The fact is CAT has enough free cash to continue to pay its dividend in 2016 though a raise might be minimal. I doubt they would cut their dividend at this point in time but I always say that dividends are not rights and anything can happen. That being said, I’m still confident in CAT through 2016. Thank you for commenting.

    • Hi DGJ,

      Exactly. It’s nice to be able to put large amounts of fresh capital to work but even small amounts can move that dividend snowball and why not take advantage of commission free trades when you get the chance. Thank you for stopping by and commenting.

    • Hi FV,

      I know you always speak highly of ADM each time I mention a buy, large or small. Curious to know why you have not jumped on board ADM, especially since it has been beaten down quite a bit the last year. Thank you for sharing your thoughts.

    • Hi DB,

      ADM is suffering these days. It’s one of the main food suppliers of the world and has a very, very long history of operations not to mention dividend raises. Because of lower commodity prices, a strong U.S. dollar and weaker demand from overseas customers in Asia and Europe, ADM’s earnings are taking a hit. Of course, these are the times when you want to add to an otherwise solid company. I feel comfortable adding to ADM as their dividend still is quite safe with room to grow. In fact, they just raised their dividend 7.1% marking 41 consecutive years of dividend increases. Thank you for stopping by and commenting.

    • Hi BSR,

      Not that long ago CAT was under $60. A big drop, to say the least, from it’s highs last spring. As long as that dividend is safe and continues to be paid I’ll be happy to take a 5% yield on that investment. Thank you for stopping by and commenting.

    • Hi Tristan,

      I took three small steps but steps nonetheless. Any time my broker wants to give me some free trades I’ll gladly put them to use and increase my current holdings. Thank you for stopping by.

  7. I recently bought NA on a dip for more dividend income. I’m in the beginning phase of developing a dividend paying portfolio and now have 9 positions, 3 dividends each month for 3 months, that’s handy. It’s great to see a dividend come in every few weeks or so. Makes me feel good.

    • Hi Ashley,

      Congrats on growing your own dividend income portfolio. Building up positions over time gives you the luxury of not rushing into any stocks in a hurry and really allows you to focus on finding quality companies sporting sustainable and growing dividends. I built up my portfolio over eight plus years. The stock market is not going away any time soon. NA is one Canadian bank I do not own. For now I am focused just on three, TD, BNS and RY. Enjoy those dividends rolling in. Thank you for commenting.

Leave a Comment

CommentLuv badge