Recent Stock Purchase II November 2015

Here we go again. Market volatility seems to have come back in recent days as major indexes rocketed higher only to give back most of the gains the following day. We all know the mantra of increased volatility equals increased opportunities and this week seems to be no different. Of course, the challenge is to find which specific investments to add fresh capital to within a volatile market. It’s no surprise then, that REITs have continued to pop up on my radar, especially the health REITs, during this time. Once again, talk about rising interest rates have taken their toll on some otherwise very high quality and stable dividend payers in the sector. Last week I added to my positions in Ventas, Inc. (VTR) and Welltower Inc. (HCN) and this week I continued to see better price, value and yields offered within the same sector. With that being said, and still sticking to my November stock considerations:

 

I have added to my IRA account 13.5227 shares at $59.16 for a total investment of $800 in Welltower Inc. (HCN). With this recent purchase my IRA account holdings in HCN now totals 53.1344 shares for a value of $3,126.96.

 

I also added to my IRA account 23.8965 shares at $33.48 for a total investment of $800 in HCP, Inc. (HCP). With this recent purchase my IRA account holdings in HCP now totals 71.6133 shares for a value of $2,392.60.

 

Looking at my taxable account I also saw an opportunity to average down on recently beaten down Archer-Daniels-Midland Company (ADM) after announcing disappointing quarterly results earlier this month. ADM was actually an October stock consideration of mine and I’m happy that I was able to pick up some additional shares at slightly better prices after their recent earnings report.

 

I have added to my taxable account 41.1200 shares at $37.74 for a total investment of $1,551.87 in Archer-Daniels-Midland Company (ADM). With this recent purchase my taxable account holdings in ADM now totals 67.5535 shares for a value of $2,512.99.

 

What do you think about my recent stock purchase in the health REIT sector as well as adding to my ADM? Are any of the above names still on your November radar screens? Please let me know below.

 

Disclosure: Long VTR, HCN, HCP, ADM

52 thoughts on “Recent Stock Purchase II November 2015

  1. Great purchases at great prices. I just realized a couple of days ago that HCN was renamed to Welltower…and caught me by surprise – as I had not heard the news before…was wondering if it merged or something. Anyway, ADM looks very enticing and I am tempted to pick up more here.

    R2R
    Roadmap2Retire recently posted…Don’t Focus on Net WorthMy Profile

    • R2R,
      I read the documents when HCN changed their name to Wellpoint and it was basically made to develop the brand, not a result of a merger or acquisition. This quote sums things up:

      “Welltower is a brand that emphasizes wellness and positions us as an essential partner in the transformation of health care infrastructure,” said Thomas J. DeRosa, Chief Executive Officer. “To deliver better care at lower cost and promote wellness for an aging population, health care is evolving from a hospital-centric model to a networked model of lower cost, more consumer friendly outpatient, post-acute and seniors housing settings. This transition is only possible with the capital to support innovative solutions and investment in health care infrastructure. Together with our operating partners, Welltower is answering this infrastructure challenge.”

    • Hi R2R,

      Thanks for those kind words about my recent buys. Sometimes price, value and yield in some top names in sectors that have long term tailwinds are too hard to ignore. Such was the case with my health REIT buys and ADM was just a gift after a bad earnings report. Regarding HCN, it was just a name change and nothing more. No merger, buyout or anything of that nature. Thank you for stopping by and commenting.

  2. Very smart moves on such great yielding holdings. I too, am long HCN, VTR, and HCP. Was REALLY hoping that T would have stayed down and dipped to the $31.xx level so more of that could be scooped up, but looks like we’ll have to wait a bit on that one.

    We did pickup additional shares in TU yesterday and if only BCE would drop a few bucks – we’d be all over that one!

    Happy Investing!
    Dividends @ Affinity4investing.com recently posted…IBM or Microsoft?My Profile

    • Hi A4i,

      Happy to be a fellow shareholder in some of the biggest names in the health REIT space. No doubt we’ll be seeing more buying opportunities as panic sets in about interest rates rising. Be patient and better buys will come your way in the names you want. I’m sure T, BCE and others will present better buying opportunities down the road. Thank you for stopping by and sharing your thoughts.

  3. Keith,
    Mrs. X and I have finally gone the way of the DivHuts and purchased shares of RY and TD! The Canadian banks are just too good of a value, and I believe that the Canadian dollar doesn’t have much farther to fall relative to the US dollar. Could be wrong, but the risk/reward ratio appears to be very high right now. Thanks for all of your insight.

    Still like O and the healthcare REITs. We have OHI instead of HCP, but I like your choices.
    Regards,
    KeithX

    • Guess I should have waited a few minutes before posting. We had shares of HCP in the past, but sold them due to the ManorCare issues. With the stock at $33, however, any risk appears to be accounted for, no pun intended.

      Long O, HCN, HCP, OHI, VTR

      • Hi KeithX,

        I know many have feared the HCR Manor Care issues and HCP. No doubt, the DOJ investigations and huge reliance on HCR Manor Care for their overall income has been a drag on the stock prices as of late but much like your recent Canadian bank buys, the risk/reward ratios seem OK to jump in at current levels.

    • Hi KeithX,

      Congrats on jumping aboard the Canadian bank train. As discussed in our email, I think TD and RY are the safer picks among the large banks these days but the reality is that each presents good buying opportunities as well as long term growth. As you stated, there are no guarantees with any investment but the risk/reward ratio for buying into the banks at these levels are too good to pass up.

      I like OHI in the health REIT space as well. It’s on my watch list but for now I am focused on the big three in the space with the CCP spin off as well. Always happy to have these comments, questions and discussions about our dividend stocks. Thank you for commenting.

  4. Looks like great buys at those prices. I bought shares of HCP recently but don’t own ADM or HCN. I have cash for a single buy ($2,500)… and I’d like to target an existing holding to lower cost basis. Currently looking at MIC, STWD, TROW or WMT.

    • Hi FerdiS,

      I realize that prices may fall even further as interest rate hike headlines make an inevitable reappearance but I also realize that a good buy is a good buy too and at the current value and yield these REITs are offering, I decided to make November “REIT” month with four separate REIT buys. Among your choices for buys I’m liking TROW. I know many have jumped aboard the WMT train but I personally do not like retail all that much. Thank you for commenting.

    • Hi STM,

      Interest rates never concerned me when making investments. I know that REITs and utility stocks are both very sensitive to interest rate changes but the reality is that these businesses all operated under various interest rate environments and typically any added costs associated with their operations are simply passed on to the consumer. The reality is that, as you mentioned, the very talk about interest rates “going up soon” has given many long term investors much better prices, value and yield to enter these otherwise fine long term businesses. It’s no coincidence that my REIT buying activity has picked up in recent weeks because of this interest rate hike fear. I feel very confident that I’ll be happy with these buys in the next five or ten years. Besides, the reality is that interest rates will most likely rise at very, very small increments. Thank you for stopping by and commenting.

  5. Liked the buys earlier this month and still like them now. Hoping to nibble on some REITs as cash flow allows. Although there’s actually quite a bit of value that I’m seeing in some of the low yield high growth opportunities. And of course I’d love to add some more Champions like JNJ. It’s not too far from where I’d feel comfortable adding. I like ADM and will have to look at it again to see if it came down to where I like it. We all got to eat right?
    JC @ Passive-Income-Pursuit recently posted…Why Dividends Matter: The Calm in the StormMy Profile

    • Hi JC,

      I just commented that November looks like REIT month for me. It’s no surprise that I made four separate REIT buys this month as panic and fear over looming interest rate hikes have taken down many of these fine companies. Still, in the back of my head I really would love to add to my consumer staples but I have to go where the value and yield present themselves. In recent weeks, it’s all been in the REIT space. ADM is still a relatively new holding for me and I’m slowly building up a position in that stock as prices decline. Like the health REITs, I like the future prospects of ADM as worldwide population growth, growing appetites in Asia (China & India) present long term tailwinds for food related companies. As always, I appreciate your comment.

  6. These are great buys at current price level. I would love to have some US cash on hand to take advantage of these low prices. Right now it doesn’t make a whole lot of sense to convert CAN to US.
    Tawcan recently posted…Guilty pleasureMy Profile

    • Hi Tawcan,

      I fully understand your position regarding currency conversion at this point in time. No doubt, you are making the right call to hold off on these buys even though they are trading at great prices and value these days. Still, you might consider the Canadian banks going forward. They still are offering some pretty large yields and great value even on the TSX. As always, I appreciate your comment.

      • Same problem here in Europe, with the Euro plummeting compared to the US greenback, its not a great time to invest in US stocks for most Europeans. And considering the FED will likely increase the interest rate, and the EU central bank continuing to do QE, we don’t see this changing in the near future. We will therefore be focusing on EU stocks for the next little while. But perhaps the odd stock may still be a good pick, more homework to do!
        Team CF recently posted…October 2015 Dividend UpdateMy Profile

        • Hi TCF,

          It’s totally understandable to wait to invest in USD stocks when your home currency is significantly weaker. It’s all about waiting for the inevitable change in currency exchange rates to make your trades more favorable. Thank you for commenting.

    • Hi FTFF,

      Always appreciate your words of encouragement. As long term dividend growth investors we tend to follow certain themes and go towards the value and yield. These days, the (health) REITs are taking center stage as everyone is calling an end to the sector because of rising interest rates. I’ll take this fear in the form of lower prices, better value and higher yield and just sit back for the next decade or two and collect those distributions. Thank you for stopping by and commenting.

    • Hi DFG,

      I have been watching ADM for several months and as I mentioned had it on my October considerations list. Kind of glad I waited to pull the trigger on that one as prices have come down quite a bit since then with their poor quarterly performance adding another hard blow to the stock. It got to the point where I was ready to make my buy in ADM. Like my Canadian banks in my ROTH, the REITs go in my IRA. Why not maximise returns in tax advantaged accounts with those specific investments? Thank you for sharing your thoughts.

    • Hi SD,

      ADM is one of those names that doesn’t seem to get much attention from long term dividend growth investors. Not sure why as their dividend history and growth has been stellar and as you mentioned in your analysis, “Grains still need to be processed and transported, even during recessions,” which just highlights the recession proof nature of this business. The recent beat down in share prices this company has experienced just made it too compelling not to invest, so I jumped in. Thank you for commenting and sharing your ADM analysis.

    • Hi FV,

      Like the health REITs, the “food” theme definitely has long term tailwinds with ADM as one of the forefront companies set to take advantage and grow over the coming decades. No doubt, China and India will be adding a lot to ADM’s bottom line as meat consumption and more grows in that part of the world. Kind of like the “Big Corn” phrase. We’re so used to hearing about “Big Oil” it’s time for a new catchphrase. Thank you for stopping by and commenting.

  7. DivHut,
    I like the REIT moves you make a lot, as discussed before the healthcare REITs are especially nice plays. I like the other REITs mentioned by others above, especially O and a few others. They have a nice way to blend stocks and Real Estate.

    I also like ADM. Consumer Staples along with Financials and Industrials are my favorite sectors. I just see all them being useful in general for a long, long time. ADM fits that mold and is a very run company. Nice move, enjoy that income.

    – Gremlin
    Dividend Gremlin recently posted…Loyal3 Buys, November 2015My Profile

    • Hi DG,

      As long as fear persists about interest rates rising I know we’ll have many more opportunities to add to these otherwise fine businesses at much better prices and yield. I’m still open to other types of REITs besides health. I mentioned, AVB in the past and perhaps DLR. Another new name that looks compelling is STAG. We’ll see. One step at a time and I still may diversify more within health REITs as OHI and LTC also look good.

      Consumer staples continue to be my all time favorite sector but the best values aren’t found there. I would like to add health to your list of favorite sectors as well. For now, it looks like the REITs are compelling buys at these levels. As always, I appreciate your comment.

  8. Keith,

    Nice moves there. I’ve been really active around the healthcare REITs lately. OHI, VTR, HCP… tough to pass them up at these prices. Those combinations of yield, value, quality, demographic tailwinds, and growth are just really hitting my sweet spot. 🙂

    Cheers!

    • Hi JF,

      It’s amazing how fear about rising interest rates have gripped the investor psyche to such an extent. Hey, I’ll take it as the pre-Christmas sale for some top quality REITs. I still have OHI on my radar and the health REITs are still my go to sector. I think once I’ll be sufficiently invested in the big three health REITs I’ll consider diversifying even more. As you stated, the demographic tailwind behind these stocks are sure to provide us many, many more years of capital appreciation and dividend growth. Thank you for stopping by and commenting.

    • Hitting the sweet spot, indeed – Jason! I’m holding a large amount of OHI, but not adding at this time in favor of pickup up more VTR, instead. One thing that could go in OHI’s favor, but isn’t, is the analysts who cannot make up their mind. Yahoo shows them lowering EPS “trends” and growth estimates, yet EPS estimates are up for next year as are revenue estimates.

      “Mixed bag” for sure.

      Either way, it’s a good hold and the Fed raising rates should make it an even better opportunity in the months ahead. Happy Investing!
      Dividends @ Affinity4Investing.com recently posted…IBM or Microsoft?My Profile

      • Hi A4I,

        I have to agree that continued ‘opportunities’ in the health REIT sector will continue. I still need to make up my mind on OHI. For now I feel sufficiently diversified within the sector but I know there’s always room for one more.

  9. Great purchases and always great to see volatility in the market. I wish I could take advantage of it, but recent changes in my financial situation have forced me to halt all investing, though it’s for a good thing. But it always pains me when investment opportunities present themselves and I don’t have the capital to take advantage.

    Keep the dividend engine roaring, Keith!

    Sincerely,
    ARB–Angry Retail Banker
    ARB recently posted…The Pros And Cons Of Different Types Of Investing: Part 1 — StocksMy Profile

    • Hi ARB,

      The beauty of being a long term investor is that there will always be an opportunity to invest in something. So, if you cannot presently add fresh capital, know that one day you will be able. I guess that’s the good thing about being a dividend investor as well. Even without fresh capital added you always have the option to reinvest your dividends and compound in that manner. The November theme has definitely been in the health REIT sector, though ADM continues to fall and looks better almost every day. Thank you for stopping by and sharing your thoughts.

  10. Thanks for pointing out ADM. I hadn’t even noticed how beaten down it was. I’ll have to take a closer look again. I’m keeping REIT holdings light as I’m planning to buy more rental properties but it’s always great to see what others are buying.

    Keep up the good work!

  11. These look like excellent choices for REITs. I haven’t done much research on them yet but I will take a closer look to see how this type of equity could fit into my plans. Like Tawcan mentioned, I’m holding off on USD stocks for a bit. I’m going to focus on building up my Canadian bank holdings for now. Cheers
    Dividendniche recently posted…Recent Purchase TDMy Profile

    • Hi Dividendniche,

      The health REITs are my favorite investments within the sector. I also may, one day, add an apartment REIT like AVB or other sector specific REITs like DLR or STAG as well. For now, my focus will remain on the health sector as I still like OHI and maybe LTC as well going forward in the space. I understand your holding off on buying USD stocks at this point in time. Your patience will pay off when eventually the USD will weaken as it has done in the past relative to other currencies. As always, I appreciate your comment.

  12. Great buys, DH! With graying and growing population, you cannot go wrong on those healthcare REITs. I also added VTR and plan to add few more of HCP, OHI and WPC. Since energy companies have provided a lot of value, albeit with elevated risks, I continue to add them cautiously, however, going forward REITs will be big part of my buys. Any dividend targets for next year? Keep racing towards FI!
    Race2Retirement recently posted…Recent Stock Purchase III – November 2015My Profile

    • Hi R2R,

      As I have commented elsewhere, my favorite sector within the REITs continues to be the health space. No doubt, the space has a lot of long term tailwinds behind it. Nice pick up with VTR on your end. Seems like many of the DGI bloggers are picking up REITs these days. Looking into next year I don’t have any formal dividend targets except for wanting to beat my 2015 totals. Call me superstitious, but I don’t like to count my eggs before they hatch which is why I don’t tally my forward/projected dividend income. You just never know what will happen in terms of dividend freezes, cuts or something worse. I like to take it month to month and perhaps quarter to quarter at most. Thank you for stopping by and commenting.

    • Hi DD,

      I really like ADM’s future prospects and I’m just following the ‘buy when everyone else sells’ mantra. Once I saw ADM yielding a historic 3%+ yield I knew it was time to average down on that name and simply wait. Of course, the REITs have been great buys lately as well which is why I have been adding to those names earlier this month. As always, I appreciate your comment.

  13. I like your ADM purchase. I was considering that stock as well, and I think it was a good idea to average down your cost basis. I’m not too familiar with HCP or HCN so I’d need to do some research on those companies.

    Hope all is well with you and the family! Have a Happy Thanksgiving!

    • Hi ACI,

      After ADM put up some pretty bad quarterly results the stock got hammered even more. Once ADM began yielding over 3% it was time to nibble on it. The other stocks you mention are health REITs (Real Estate Investment Trust). They own health related real estate like hospitals, rehab centers, medical office buildings and skilled nursing facilities. Those health REITs are quite popular among long term dividend growth investors because of the long term tailwinds associated with those businesses as Americans are living longer and requiring these medical services more and more. Enjoy your holiday and thank you for commenting.

  14. Hi DivHut!

    Solid purchases! I have ADM on my watchlist and still doing more research on it and waiting for a good entry point.

    In the mean time, I’m still chipping away on the energy and retail sector. I’ve sold away my Canadian banks as i’m trying to go for a more aggressive approach. 🙂

    • Hi Jeff,

      ADM started to look very attractive once the yield started to climb above 3%. That’s a historically high yield for that name and it’s clear that near term depressed commodity prices are dragging ADM down these days. Longer term, I like the prospects of ADM and its dividend still appears to be quite safe with room for future growth too.

      It’s rare to read about anyone selling the Canadian banks especially these days. I think they still offer great value and pretty high current yield for anyone willing to wait for prices to recover. How much more aggressive do you want to be with many of the Canadian banks already yielding well over 4%. Thank you for stopping by and sharing your thoughts.

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