Recent Stock Purchase II November 2016

As the financial headlines and talking heads all discuss a “rotational shift” in the stock market, we are suddenly presented with new buying opportunities in whole sectors as well as individual companies that have not been available to us in a long, long time. We have already witnessed the entire REIT sector, especially health REITs, fall off a cliff in recent weeks giving us more attractive buying opportunities in some amazing companies such as LTC Properties Inc. (LTC), Ventas, Inc. (VTR), Welltower Inc. (HCN), Omega Healthcare Investors Inc. (OHI), HCP, Inc. (HCP) and more. Of course, the consumer staples have not been spared either as many traditionally expensive stocks have started to fall back to earth giving us some better prices, values and yields. Names like The Procter & Gamble Company (PG), Kimberly-Clark Corporation (KMB), Colgate-Palmolive Co. (CL), The Clorox Company (CLX) and many more are all down over the last month. I think it’s safe to say that as long term dividend investors we wouldn’t mind seeing these consumer staples continue to fall further as the sector as a whole rarely offers us “sales.”

 

I am continuing to watch several names within the consumer staples sector and have made a second buy in as many weeks this month. It’s been a while since I have made back to back purchases one week after the other but as we all know “Every Dollar Counts,” which is why I am continuing to put whatever cash I have to work for me in my dividend growth portfolios. With that being said let’s take a look at my recent stock purchase:

 

I have added to my ROTH account 15.0000 shares at $39.09 for a total investment of $586.35 in Unilever PLC (UL). With this recent purchase my ROTH account holdings in UL now totals 85.5645 shares for a value of $3,350.71.

 

UL was one of my picks in my November stock considerations and under $40 a share is a price I like and am willing to pay. This relatively small buy was commission free.

 

What do you think about my recent buy? Are you planning to rotate into the newly “hot” sectors or pick up some beaten down dividend stalwarts instead. Please let me know below.

 

Disclosure: Long VTR, HCN, HCP, PG, KMB, CL, CLX, UL

44 thoughts on “Recent Stock Purchase II November 2016

  1. I love Unilever, especially at the current prices. Right now I’m moving into the financial sector via a Vanguard ETF and also made a small NEE purchase as I think it become a bit oversold with other green stocks, while they have less to fear from a Trump presidency. I’ll probably also add HCP to my existing holdings.
    Until January I can also make some commission free purchases due to a broker change, so I’ll use this opportunity to make some smaller purchases to multiple companies.
    Roadrunner recently posted…What Trump Means for Your Investments?My Profile

    • Hi Roadrunner,

      I think UL will continue to be popular as long as it stays at $40 or below. We are seeing many great consumer staples starting to trade at better values and yields as their prices have come down. The REITs are also starting to look very attractive as they have all been hammered in recent weeks and are all well off their summertime highs. I think many fear a coming Fed rate hike which is just an overblown knee jerk reaction in my opinion. For now, I’ll continue to look at the consumer staples. Like you, I also have some free trades in my account which is why this recent purchase was on the small side. Thank you for commenting.

  2. Nice buy. I added to my position last week in UL and am watching it on this weakness. I also purchased some DEO. Loving the sell off in stocks on my long term buy list.

    • Hi Lynx,

      Both UL and DEO make great long term additions to any dividend growth portfolio. Happy to be a fellow shareholder with you in both names. I agree that it’s nice to see some weakness in the sector giving us much better buying opportunities in a space that rarely seems to go on sale. Thank you for commenting.

  3. I’m working on coming up with a plan to invest some of my 401k rollover assets and UL is on the short list of companies to invest in. It’s one of the low side of fair value consumer staples companies out there. This post election market rally has been interesting to see and it looks like some sectors are really leading the way and others are lagging far behind. It definitely hasn’t been a broad market rally.
    JC recently posted…Recent Option TransactionMy Profile

    • Hi JC,

      That’s very true. This has not been a broad market rally. Look at tech, consumer staples and REITs that have been left behind while industrial, material and financial sector stocks have roared ahead. Of course, this finally gives us a chance to add to some great consumer staples that rarely go on sale and always seem expensive. Sure, there is more downside possible for the consumer staples but their once lofty valuations are finally coming back down to earth making them all look attractive again. UL will continue to be a stock I watch going into next week. Thank you for sharing your thoughts.

  4. I picked up some more OHI recently with the huge drop. I don’t want to get too over-weighted with it in my portfolio, but I think it is very cheap right now.

    I will also be looking to add to my CLX and PG positions if prices stay low.

    • Hi John,

      Many REITs are selling at great prices and yields these days. I think people are still uncertain about a Fed rate hike occurring and worried about what that might do to the REIT sector. In the meantime, many great consumer staples have been falling back to earth giving us much better buying opportunities in some of the most solid long term dividend payers that exist. I like CLX, PG, KMB, VFC, UL and others in the consumer sector. Thank you for stopping by and commenting.

  5. I’ve had my eyes on Unilever for awhile now. KMB is looking like a great investment purchase right now along with the dividend yield. The cliff dive on the health sector does create a good buy in opportunity but I’m going to sit back from those for a bit because I’m not really sure on the certainty for the future.

    • Hi DD,

      Clearly, we have many more investing opportunities in the consumer staples than in the recent past. Like you, I continue to like an keep an eye on UL, KMB and other staples should weakness continue going forward. The health sector has been all over the place in recent weeks and may not display a clear picture about what’s going to happen in the future but the reality is that uncertainty in the market and in life is a constant and no one can figure out what will happen the next day. I don’t think it’s a reason to not invest should current prices, values and yields make sense today. Think about WFC. One of the most reputable and solid banks in the U.S. A great potential investment for years to come. Then, out of left field a scandal surfaces. Who could foresee that? No one. But, prior to the scandal surfacing WFC made sense. It was a good yielding, well valued stock with the potential of future interest rate hikes providing a long term tailwind. Thank you for sharing your thoughts.

    • Hi TDL,

      If you know my investing style and have seen my portfolio then you already know that I invest on the conservative side. UL fits that profile big time and as long as the stock continues to be weak I’ll have it on my radar. Thank you for commenting.

    • Hi EL,

      I like the names you mention as well. I added to my SO several weeks ago. I agree that if you are looking for juicer yield, those two names you mention are most likely a good long term bet. I plan to keep the buying going as long as I see good value and yield out there. Thank you for sharing your thoughts.

    • Hi easydividend,

      UL is such a huge, international consumer staple that almost every home in the world has at least one of their products at any time. I plan to make UL a “forever” stock in my portfolio. That’s the beauty of the solid consumer staples stocks. They are very, very reliable. Nice JNJ pick up too. I wouldn’t mind adding to that stock as well. Thank you for stopping by and commenting.

  6. DH,

    Nice purchase. I agree with you, the shift in the market has opened new opportunities and closed others. I would like to see those consumer staples continue to roll down the mountain so I can add a few to my basket. I like UL, long there as well, and I have thought adding more.

    Thanks for the update,
    Gremlin
    Dividend Gremlin recently posted…November, 2016 Brewery ReviewMy Profile

    • Hi DG,

      You know the saying, ‘When one door closes, another opens.’ So true with this recent rotational shift we have been seeing in recent weeks. Out go the industrial and financial stocks and in come the consumer staples, REITs and others. No complaints from me. I’m happy to see values and yields become more attractive in the consumer staples as it’s my largest and favorite long term sector to hold. I’m still looking at UL next week as well and maybe VFC again should weakness continue. As always, I appreciate your comment.

  7. Nice pickup with UL Divhut. I love consumer companies and have an eye on the giant as well. This market is crazy and there are some great REITs available at a discount. Too bad I just hit my Roth contribution limit….Thanks for the shout out as well. Now, let’s get those freaking dividend checks rolling in and continue to pump more money into the market!

    Bert

    • Hi DD,

      It’s nice, for a change, to have so many different investing opportunities in front of us. Not that long ago we were all struggling to find good value and yield among the dividend stocks out there. There are many consumer names that I’m looking at for next week as well should weakness continue in the sector. Names like VFC, KMB, CLX and the like are starting to pop on my radar. Let’s hope more people get the message of “Every Dollar Counts” too. I’m happy to share. Thank you for your comment.

  8. Hut –

    MAN!! Building up that position, just awesome. As Bert said – thanks for the mention, means a ton. Pumped you were able to add another 15 shares commission free, love it when there’s an opportunity to do just that, no expense related to buying stock in a company for some reason is awesome. Nice work and congrats again on the position/purchase.

    -Lanny
    Dividend Diplomats recently posted…Thinning Down on a Bare Bones BudgetMy Profile

    • Hi DD,

      Slowly but surely, large buys or small, we are all building up our positions and increasing our future passive income streams. Always love to mention a good article that just makes sense and the words, “Every Dollar Counts” means a lot. I think if more people actually embraced what every dollar means in terms of saving and investing we’d have more people in better financial situations today. Thank you for stopping by and commenting.

    • Hi IH,

      It’s amazing how in just a few short weeks we have so many great buying opportunities in front of us when as recent as this past summer the gripe among our fellow investors was that there was ‘nothing to buy.’ REITs and consumer staples are looking much better today and for now my focus will steer towards the staples rather than the REITs, though I can’t imagine how much of a rate hike would be proposed should an actual hike occur. Thank you for sharing your thoughts.

  9. REITs are getting attractive again, but until there is confirmation of rate increase, they won’t be too much off. Patience is key. But thanks for the heads up on great companies.

    Cheers!

    • Hi Vivianne,

      No doubt the REITs are all looking attractive these days. After the election they all tanked seriously and are well off their summertime highs. Like you, I am waiting to add to my REITs at this time and focusing more on the consumer stocks that have fallen quite a bit in the last couple of weeks. As always, I appreciate your comment.

  10. UL is a great company. Definitely money well spent there. I’m looking to initiate positions in either KMB, CLX, or NKE. Have to do some value research on them, but I’m liking these pullbacks and just hope the lower prices in consumer staples stock around for awhile (or even better, get lower).

    Sincerely,
    ARB–Angry Retail Banker
    ARB recently posted…Dealing With The Google Law ProfessorsMy Profile

    • Hi ARB,

      UL is a name I plan to keep for the foreseeable future and I would feel comfortable making it one of my larger positions overall in my portfolios. The three names you mention all look good to me as well. The consumer space has really started to fall back down to earth which is nice since it’s a sector that rarely seems to go on sale. Thank you for commenting.

  11. I agree with your REIT assessment. Lots of good companies on sale in the space right now. I am a big fan of OHI and O and I have owned them for quite some time. Two of my favs. Good luck with Unilever, I almost bought it 3 months ago but held off. I am building some cash up for my next purchase but I haven’t determined what it will be as of yet. Thanks for sharing !

    -Brian
    Brian recently posted…Golf Course Review: World Tour Golf Links, SCMy Profile

    • Hi Brian,

      It looks like the REITs will be shaky until we hear definite word about interest rates going forward. Personally, I think it’s all an overreaction and “knee jerk trading” that’s bringing the entire sector down. Long term the health REITs should be just fine but as we know the stock market trades on headlines and sound bites more than actual revenues and profitability. For now my focus will remain in the consumer staples, as it seems that they rarely go on sale, but I also have an eye on the REITs. Thank you for sharing your thoughts.

  12. Hi DivHut,
    Congrats on another UL purchase!

    I am curious now what UL product you buy / use the most? It’s probably Dove for our household; Magnum would have been first but we switched to a cheaper ice-cream brand since we buy so many! They have many famous brands that I recognize from the UK though, e.g. PG Tips and Jif.

    Best wishes,
    -DL
    Dividend Life recently posted…Simple thoughts on simple investingMy Profile

    • Hi DL,

      Thanks for the continued support. UL is a very popular stock these days and will remain so as long as we see prices at $40 or below. We have many UL products in our home. Dove, Lipton, Best Foods, I Can’t Believe It’s Not Butter, Suave and I’m sure others, but those pop out right away. It’s comforting investing your money with a company that has its products in almost every household in the world. As always, I appreciate your comment.

  13. Hey Keith,

    Great minds think alike. I too added some more UL to my portfolio this week. In addition, I made some buys in PEP and ED with these great stocks coming down in valuation.

    As always, Enjoy Life and have fun!

    Jim – MDP

    • Hi MDP,

      UL is the stock of the day with many of our fellow dividend investors initiating or adding to a position. No doubt, we are seeing many great consumer staples start to look a lot more attractive than in recent months. Nice pick ups with PEP and ED. Both have been in my portfolio for about eight years now and will remain with me for the foreseeable future. Thank you for stopping by and commenting.

    • Hi DFG,

      I think there are a lot more UL buys than you have seen. It has really become a very popular name in recent weeks as the price hit $40 and below. I think many dividend investors have been waiting a long time to add to a quality consumer staple play like UL and others, and now that price, value and yield look compelling many are jumping in. I am still keeping an eye on this name going into next week and think you did not miss the boat at all. Thank you for sharing your thoughts.

    • Hi DC,

      UL is one of those dividend paying stocks that seems to belong in every long term dividend growth portfolio. As long as prices remain depressed and value and yield look compelling I think we’ll be seeing many more buys in this name. As always, I appreciate your comment.

  14. Great to see you found a good entry point with UL! It is on my list of staples along with NSRGY and PG. I’ve just about got enough USD to make a move but will see if I can get a better entry point in the next week or so. Cheers, DividendNiche

    • Hi Dividendniche,

      The consumer staples are slowly coming back down to earth and I know there is a lot of pent up demand for names in the sector among our investing peers. I’m looking at UL still as well as VFC, KMB and others in the space. The consumer staples are my largest sector holdings by design. Thank you for stopping by and commenting.

  15. I like UL. I have a very small position that I’m using Loyal3 dividends toward. I don’t get the massive fear of slight interest rate hikes and REITs at this point. It would take quite a while to get anywhere near the 8 percent that OHI is yielding, or even the 4+ percent that you can get from O.

    • Hi Chris,

      As you know the market moves on headlines and sound bites and most of the volatility we have been seeing in the REIT space is just knee jerk reactions. Like you, I’m not too worried about their long term prospects, even with rates slowly nudging higher. In the meantime, my focus will remain on the consumer staples as they continue to lag the market. Thank you for sharing your thoughts.

  16. It looks like we’ve been buying up some bargains lately. I just picked up some UL yesterday and have been buying some utility stocks as well. Not sure how well Trump will do on growing the economy but I’m confident that my recent buys will perform well over the long term.

    • Hi MRtWaF,

      With a long term view, many utilities, consumer staples, health stocks and more should do just fine. I just picked up some more UL and as long as the price remains at $40 or below it will be a consideration of mine for future buys. Many of our fellow investing peers have been picking up UL recently and for good reason. Thank you for stopping by and commenting.

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