Recent Stock Purchase II January 2017

Sometimes you cannot help making buys when certain stocks you are watching are just screaming, “Buy me, buy me!” Such was the case with my recent pick up. I was happy to start 2017 with a couple buys last week adding to my Kimberly-Clark Corporation (KMB) and General Mills, Inc. (GIS). It’s no secret that I have been watching many of the consumer staples as they are presenting us relatively good buying opportunities when compared to just a few months ago and anytime you can pick up a solid dividend stalwart yielding over 3% with a sustainable payout ratio you should go for it or at the very least nibble a bit. While this latest buy is not a consumer staple it is still a consumer oriented stock. With that being said, let’s take a look at my recent stock purchase.

 

I have added to my ROTH account 15.7884 shares at $50.66 for a total investment of $799.84 in V.F. Corporation (VFC). With this recent purchase my ROTH account holdings in VFC now totals 40.1134 shares for a value of $2,065.44. I also hold 55.2184 shares in my taxable account with a market value of $2,843.20.

 

I have been nibbling on VFC for the last few months as the price decline brought its yield to well over 3%. Earlier this week when the stock tumbled to the $50s my buying finger was triggered and I nibbled on the stock. If prices continue to stay depressed I would happily consider adding to this position in my ROTH account again.

 

Going forward it is possible that VFC could benefit greatly in the coming months and years as talk of a U.S. dollar that’s too strong is starting to circulate along with inflationary mentions popping up as well. Should the dollar weaken considerably, it would only help many U.S. corporations, VFC included. In fact, the strong dollar is one of the main headwinds currently facing this company.

 

What do you think about my recent buy? Does VFC have a place in your portfolio? Please let me know below.

 

Disclosure: Long KMB, GIS, VFC

40 thoughts on “Recent Stock Purchase II January 2017

  1. I just picked up some VFC today via a put option that was in the money. My cost basis is around $53.50 per share which is pretty good. I’ll probably sell calls on this since I have another open put with a $50 strike and that will let me lower my cost basis via the option premium. Definitely one of the few values out there right now.
    JC recently posted…Decisions, DecisionsMy Profile

    • Hi JC,

      Congrats on your pick up of some VFC. With this stock yielding over 3% and its dividend history and current payout ratio we should be seeing many more years of dividend growth in this name. Happy to be a fellow shareholder with you. Thank you for commenting.

  2. Good buy DH. I bought mind a little early at 53.5 like JC, but I’m not regretting it. I’m always a day early these days. It will be an interesting 4 years for the dollar. If GDP ramps up over 4% interest rates will hike. I wonder who would win in a fight between the economy and central feds.

    • Hi TBDI,

      You got in at a good price too. I have been nibbling on this stock since the high $50s in recent months but when I saw it around $50+ a few days ago I just had to pick some up. It’s all a long term hold. I plan to keep this stock in my portfolio ‘indefinitely.’ Time will tell if the dollar will weaken going forward. I have a feeling it will. It’s all part of an economic cycle. Currencies strengthen then weaken then strengthen again. Economies expand and retract. No doubt a weaker dollar will help VFC among many other U.S. consumer stocks. As always, I appreciate your comment.

    • Hi DD,

      Bit by bit I’ll keep adding to this stock as long as it remains at these depressed levels. VFC is definitely a stock that belongs in a long term dividend growth portfolio. Thank you for stopping by and commenting.

    • Hi Doug,

      Thanks for the support. VFC has been a popular stock among our fellow dividend investing peers for many weeks now. It’s for good reason with an attractive current yield, sustainable payout ratio and much better valuation when compared to just last summer. As always, I appreciate your comment.

  3. Personally, I’m hesitant about apparel companines. Perhaps it’s been all the child labor and apparel documentaries I’ve seen. Apparel has high margins, but it’s a very competitive market.

    VFC does diversify with numerous brands and outdoor apparel which is traditionally more reliable. You’ve done your research so you know what your doing, but I usually stay away from anything apparel due to the lack of sustainable profit demand.
    Wallet Squirrel recently posted…Side Jobs That Millennials Can Do WeeklyMy Profile

    • Hi WS,

      You have a legitimate concern regarding the apparel market as it can be very fickle in terms of trends and potentially questionable manufacturing processes. However, I’ll answer you as I have others in the past regarding VFC. I would suggest that VFC is more of a ‘fashion staple’ type of company that is less sensitive to the fickle nature of consumers or short lived trends. VFC is very different from companies like ANF, URBN, AEO or AROPQ that live and die with the latest trend. VFC products serve both form and more importantly function. Thank you for commenting.

  4. Solid buy! Very good addition to a DGI portfolio. We are also checking in on VF Corp. especially because of their magnificent wide moat position and their currently price/fair value ratio.

    • Hi Divnomics,

      Your comment highlights the reason I decided to nibble on VFC at this time. With prices declining for some time, VFC is trading at much better value and yield too. It’s been with me since I became a dedicated dividend growth investor and I plan to keep this name in my portfolio for the foreseeable future. Thank you for stopping by and commenting.

    • Hi D4F,

      Sales come and go all the time but it has been a long, long time since VFC has traded at such attractive levels. A good time to pick up this dividend stalwart. Happy to be a fellow shareholder with you. Thank you for commenting.

    • Hi Jay,

      VFC is a popular name among our investing peers for good reason. It’s been a long, long time since VFC has traded at such attractive levels and seeing a yield well north of 3% is enticing many. VFC definitely has a solid dividend history and with a sustainable yield going forward still has room to grow its dividend too. It is worth a consideration. Thank you for sharing your thoughts.

    • Hi Roadrunner,

      That’s exactly right. VFC is a long term hold for me. It’s been in my portfolio since 2007 with no plans to sell it for the foreseeable future. As long as I can continue to pick up shares at better values and higher yields I’ll continue to nibble and add to my position. I do agree that, ‘…VFC looks good in any portfolio.’ Thank you for commenting.

  5. I really love KMB at these levels. It has been super stable and It is definitely serving as a nice base to start some upward growth this year. I have been wanting to add more to my current position but their have been so many amazing opportunities without enough money to buy them all! I have also been watching VFC but I feel the company is still currently in a downtrend and I’ll be keeping an eye on the bottom to form.

    • Hi DD,

      No arguments from me. There have been quite a few better buys in recent weeks in the consumer oriented stocks. Many are trading at much better levels when compared to just a few months ago. Long term, it’s hard to go wring with KMB, VFC, GIS, UL and the like. Thank you for stopping by and commenting.

    • Hi DI,

      VFC is the popular stock these days. All for good reason as you already know. Better, value, price, yield and a stellar dividend growth history. The company still offers a very comfortable payout ratio which should ensure a safe dividend, with room for growth, going forward. As always, I appreciate your comment.

  6. I find consumer staple companies such als General Mills and Kimberley-Clark paricularily interesting, offering a nice entry price for very solid businesses.
    VFC too looks attractive. You get a piece of a business with iconic brands, strong fundamentals and a compelling dividend history.
    Nice buys!
    Cheers

    • Hi FS,

      The last several weeks we have been seeing many of our fellow dividend bloggers buying consumer oriented stocks such as, UL, DEO, GIS, VFC, KMB and PG among others. In fact, I bought every name I just listed except PG since late last year. The consumer staples, while not cheap, are cheaper when compared to metrics of a few months ago which is why they seem more popular these days. As long as prices remain depressed and values look compelling I’ll continue to nibble on this sector. Thank you for sharing your thoughts.

    • Hi DC,

      My main concern is always buying a company that has a sustainable payout ratio. After all, I’m buying primarily for dividend income. Then I look at value and yield of course, too. VFC is a long term hold for my portfolio and barring the near and mid term swings in price I feel confident that ten years, or more, down the line I’ll be happy with this buy. Thank you for commenting.

    • Hi IH,

      I just read that on your blog. As I mentioned, nothing wrong with holding 200 shares in such a high quality stock. If you plan to keep this long term you got in at a pretty good average price. Of course, covered calls can always enhance your position too. Thank you for stopping by and commenting.

    • Hi BHL,

      Thank you for the compliment about my portfolio. Bit by bit I am continuing to add as many high quality dividend paying stocks as I can. Of course, VFC fits that bill. Thank you for stopping by and commenting.

    • Hi easydividend,

      I guess you are a believer in VFC too owning 200 shares yourself. Picking some shares up via options is not a bad way to build up a nice size position in the stock. Do you plan to sell covered calls on your holding or just keep the shares? Thank you for commenting.

    • Hi DT,

      VFC is definitely a great company to own for the long haul. Sure, it’s facing some near term headwinds but that’s usually the best time to buy a stock. Thank you for stopping by and sharing your thoughts.

  7. Good buy at a good price.

    With my annual IRA contribution coming up, I’ve been keeping an eye out for places to put it, and VFC is on my short list. I love this time of year when I can make a significant increase in my future dividend income streams.

    • Hi Jack,

      Thanks for that vote of confidence with my recent buy. VFC has been on a downward spiral for some time now and its price, value and yield are continually getting better. This is a “forever” hold in my portfolio and I’ll gladly wait out the current storm while collecting a safe yield well north of 3%. The time to buy is when others are selling. As always, I appreciate your comment.

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