Recent Stock Purchase II – October 2014

With the incredible market swings of the past few weeks some investors might feel more comfortable waiting on the sidelines for calmer waters before jumping in. My investment philosophy has always been to be consistent with my investments no matter what the market is doing. As long as I contribute to my portfolio at least, once a month, I am on track to achieve my goal. That being said, October has presented us with some great buying opportunities which have not been seen for many, many months. As always, many dividend growth investors are faced with the question of initiating a new position or take advantage of new lower prices and average down current positions. I chose the latter.

 

I have added to my ROTH account 25.0421 shares at $39.78 for a total investment of $996.17 in Unilever plc (UL).

 

This brings my total holding of UL to 45.0421 shares at an average cost of $41.12. October has been a great month for adding some shares at discounted prices. My earlier purchases this month included additional shares of The Toronto-Dominion Bank (TD) and The Bank of Nova Scotia (BNS).

 

What do you think about my recent stock purchase? Have you been initiating any new positions, averaging down current holdings or both? Please let me know below.

 

Disclosure: Long UL

41 thoughts on “Recent Stock Purchase II – October 2014

    • Hi R2R,

      Your comment raises a great debate among dividend growth investors. Is it better to always be fully invested or is it better to always have a stash of cash on the sidelines for opportunities that arise as we have seen this month. I know you can make an argument for each side and the statement, “time in the market is better than timing the market,” comes to mind as well. The best bet is probably some happy medium between the two. Keep raising cash and watch for new opportunities as they inevitably always come up. Thank you for your comment.

      • Hi Morrigan,

        If you are just starting out as a dividend growth investor then I think Loyal3 is a great way to begin. They offer many great dividend paying companies and with a $0 commission your investments can be very small. Many stocks offered by Loyal3 are in my portfolio and had they been around when I started building my portfolio I definitely would have started with them.

        On a similar note I just wrote about Acorns which allows you to invest your spare change whenever you buy something. This totally takes the “thinking” out of investing and allows you to build a small nest egg to start. One thing I didn’t like about it was their fee structure, but it still is an interesting way to build a portfolio with ease. Thanks for stopping by and asking your question.

        • Thanks for replying. I looked into Accorn but didn’t like their fee structure either. I might as well buy fee-free at loyal rather pay something at accorn.

          • Morrigan,

            My thoughts exactly. Acorns seems to be for young people who really have no investment knowledge and want the easiest, thought free way to get into the market. It’s an interesting concept at best. Good luck with Loyal3 and let us know what you are buying.

  1. Good afternoon Divhut,

    I too recently bought 50 shares of UL when it dipped below $40. I wanted to add another name in my consumer staples holdings. This is a complementary holding to PG as UL is significantly bigger in emerging markets.

    keep up the good work on your blog,

    Georgek

    • Hi Georgek,

      Your comment echoes my portfolio as I see my UL as a PG complement as well. I think UL has become quite popular in recent weeks as the price dipped below $40 and many saw it as an opportunity to initiate or add to existing holdings. Happy you enjoy the blog and as always I appreciate your comments.

    • Hi Tawcan,

      That’s one of the issues with retirement accounts. Too bad annual contributions are so limited. It can be tough to allocate a finite amount of cash in a retirement account for a whole year. I understand we are all eager to deploy cash into dividend paying stocks as opposed to just sitting on it but when months like October roll around and the market gives you a buying opportunity it can be equally tough to sit on the sidelines and not invest. Thank you for stopping by and commenting.

    • Hi MDP,

      UL has been popping up on the radar screens of many dividend investors, especially when the price dropped below $40. I have literally been watching UL for close to seven years and only in recent months have pulled the trigger. I was very happy with my PG purchase and other consumer staples like CL and CLX that I did not feel the pressure to add another stock in the same sector. But, as you mentioned UL will complement my consumer staples in my portfolio.

      I understand your enegery buy as well this month. With oil in a major decline many oil majors and drillers have fallen dramatically. BP, TOT, CVX, XOM, SDRL, ESV, etc. to name a few. Makes sense to me. Thanks for commenting.

  2. DivHut,

    Nice purchase. I see UL has become quite popular lately. I purchased shares not long ago myself. I may even add to my position in November, capital warranting. November might be a little light for me as I deployed almost $5k this past month. Always happy to go shopping when there are sales. 🙂

    Best regards.
    Dividend Mantra recently posted…Recent BuyMy Profile

    • Hi DM,

      As I always mention… it’s the ebbs and flows of dividend investing that I always find interesting among the dividend bloggers. What’s the hot stock of the day/month that gets our attention? Well, UL was no different after declining from summer highs to under $40, the stock seemed to pop up on many DGI radar screens.

      It will be interesting to see what many of the dividend bloggers decide to do with ARCP after the major decline today. I wonder how many will be averaging down and/or initiate new positions in that REIT. As always, thanks for stopping by and commenting.

      • Hi Divhut,

        nice buys here as usual. I made the mistake to be short on cash at the wrong time! I’ve been able to add 9 Exxon shares to my portfolio but with so many great stocks on sale I felt like a kid in a candy shop with no money in my pockets… 🙁

        You always keep adding to your TD position and every time I read you I’m telling myself I should add too! 🙂 TD is a great bank and I’ll eventually buy some of its shares too. So many stocks… so limited capital to invest…

        As per ARCP … whoa… I was stunned today about what happened there. I don’t know yet what I’m gonna do with my shares. It’s true that five years from now we probably won’t think about that anymore and that rent will still be paid and buildings still be there but I also know that when such things arise it’s often just the tip of the iceberg… when specialists will start digging and digging we might hear more bad news… Time will tell.

        I’ll try to be positive and not sell out of emotions. They fired some people… We’ll see what’s happening from there but I’m definitely not adding for now.
        Allan recently posted…9 Wide Moat Aristocrats That Could Boost Your Dividend Growth!My Profile

        • Hi Allan,

          Your comment and others who have commented on this post echoes the need to never be fully invested. I believe it is wise to always have some cash on hand for buying opportunities that always seem to pop up when you least expect them. While it can be very difficult to time your buys accordingly the reality is that the most important thing in dividend growth investing is the ability to remain consistent. Invest at regular intervals, whether weekly, monthly, quarterly or whatever. Always remain consistent and never go all in. I know many other bloggers like to always be fully invested but then you find yourself in situations where the market offers you great buying opportunities and you cannot act.

          Keep looking at TD. I think it’s a great Canadian bank along with BNS, RY, BMO and CM (though I don’t own the last two currently).

          ARCP was the news of the day for sure and I know it is a holding among many DGI bloggers. Time will tell how that plays out and really this type of news came out of left field. Reminds me of the energy stalwart BP. A stable and reliable dividend grower for many, many years until the explosion occurred resulting in death and pollution. Who could have guessed it? I guess that’s why we remain diversified among many companies as these types of events can really blindside you when you least expect it. It will be interesting to see what happens next to ARCP. As always, thank you for stopping by and commenting.

          • DivHut,

            “Invest at regular intervals, whether weekly, monthly, quarterly or whatever. Always remain consistent and never go all in. I know many other bloggers like to always be fully invested but then you find yourself in situations where the market offers you great buying opportunities and you cannot act.”

            Your comment is interesting because I’m basically all in all the time, yet I also regularly and consistently invest because I’m cash flow positive every month. I don’t think this is something where it’s “all or nothing” where you’re either fully invested or you have a bunch of cash on the sidelines. I usually have just about everything available to me invested and working for me, but I continue to invest thousands of dollars every month, thus naturally catching the ups and downs of the market and opportunities when they present themselves.

            Best regards.
            Dividend Mantra recently posted…My Watch List For November 2014My Profile

            • Hi DM,

              As you know nothing in the investment world is ever black and white. We all follow general investing guidelines that differ from one person to the next which ultimately reveals our individual tastes for risk, types of investments we make and overall investing style. While my comment might suggest that I always have a huge pile of cash on the side it is definitely an amount that is not written in stone.

              While I always like to have some cash on the side I do not follow a rule of holding X% in cash. I do firmly believe that “time in the market (especially if you are a dividend investor) is better than timing the market,” one cannot discount the value of always maintaining some percentage of a portfolio as cash for buying opportunities that always seem to pop up especially at times when you are low on cash.

              You frequently comment about how much you enjoy buying shares at lower prices because now you can purchase a greater number of shares which in turn will provide you with a greater dividend income. Imagine, building up a reserve pile of $5,000 or more over the months, while still investing regularly each month and have the ability to pounce on big market swoons. To me always being fully invested suggests that little or no action can be made if a large market decline occurs. As others have commented they must “watch from the sideline” rather than take action. I just want to make it clear that I fully agree with you in the approach that any investing style or decision is never, as you said, “all or nothing.” This is true with cash holdings in a brokerage account as well. Looking at my account some might say I’m too invested in the market while others such as yourself might say I’m not invested enough. Again, it is a subjective matter that each individual subscribes to. Thanks for raising this point. Have a good weekend.

  3. Another Unilever purchase! 🙂
    I’ve been clicking the buy button for Unilever in my Loyal3 account quite a bit myself. The dip below $40 was irresistible.

    Looks like you had a great month!
    Seraph recently posted…Recent BuyMy Profile

    • Hi Seraph,

      Every DGI blogger got the warm fuzzy feelings when UL dipped below $40 a share. I know many have been adding or initiating a position with this great diversified company. Seems like IBM is another popular pick this month too. Thanks for stopping by and commenting.

  4. Keith,
    I’ve been long UL for about a year. My average cost is only $37.66 so I haven’t had a chance to average down, but I would do so in a heartbeat if given the opportunity. I may pick up more shares if it stays below $40 even though that would be averaging up. Hey, averaging up a great stock can still be a sweet move.

    I picked up more shares of Visa today because I love the long term outlook. On the value side, I bought shares of IBM and UTX recently, and added to my position in GE. We may have more opportunities to buy now that QE is ending. We can only hope.
    Be blessed,
    KeithX

    • Hi KeithX,

      If you are in the position to only be able to average up then you have done quite well. I can’t complain either. If you look at my taxable account I have only been averaging up for a few years. While in my heart I don’t like the idea of having to pay more for a stock, my brain knows that this is a good thing. UL at $40 or below seems like a good price to jump in plus the yield at those levels makes the stock even more attractive.

      IBM seems to be a popular pick for October as well. Guess after that decline they experienced got many DGI bloggers interested in it again. Thanks for sharing your recent buys and commenting.

    • Hi DGJ,

      Your purchase of Unilever echoes a lot of my reasoning for adding to it instead of PG. On a valuation and yield basis Unilever looks a lot better than PG. Not to bash PG too much… it has been a great stock in my portfolio for many years and I’ll continue to hold onto it for years to come but just not at these prices. Thank you for sharing your purchase and stopping by.

    • Hi MSF,

      Seems like every DGI blogger has been adding or initiating a position in UL this month. I guess the magic number for that stock is $40 to get our attention. The high yield doesn’t hurt either. Keep averaging into your position with Loyal3. Thank you for stopping by and commenting.

    • Hi LAH,

      Thanks for the words of encouragement. UL is definitely a stock that that is a favorite among many in the DGI community. It’s a good feeling to be in the company of many while owning this stock. Thanks for the comment.

  5. Would love to add to UL and I like the purchase here. I’ll be adding them to my Loyal3 portfolio later this week to slowly build up the position over time and if the price is right later then make bigger purchases again in my brokerage account. Great product and geographic diversification all in one company!
    JC recently posted…Weekly Loyal3 PurchasesMy Profile

    • Hi JC,

      It’s a stock that seems to have faster growth prospects when compared to PG, especially in the emerging markets. The yield, coupled with a more reasonable PE and share price that dipped below $40 got many dividend investors excited. While their debt may be on the high side, earnings seem to be stable enough to cover. CLX is another great dividend stock with a relatively high debt load and has been a great long term investment. Sometimes when most of the numbers make sense you just have to pull the trigger. Good luck with the Loyal3 UL purchases. Thanks for commenting.

    • Hi MDG,

      Thank you for the kind words. As I have commented to others, UL definitely seems to be very popular at the $40 and below mark and many DGI bloggers have been adding to their positions. The attractive share price, generous yield and low PE make for a good non-energy investment these days. Plus I was able to average down my current position. Thanks for commenting and happy to be a fellow shareholder.

    • Hi DWC,

      The more I read about UL from the comments left here or on other blogs the more I get the sense of $40 as being the magic number people like to get invested. Seems that any price below $40 gets us excited. With great emerging market growth, high yield, low PE and attractive price what’s not to like. Happy you have stopped by commented.

    • Hi Alexander,

      Just by judging the comments and reading many of the dividend blogs it seems that UL is very popular these days. As you mention, the yield is very nice, good exposure to emerging markets as well and a decent PE. It’s true we are all yield hungry but must also be careful not to chase yield either. Thank you for stopping by and commenting.

  6. Nothing wrong with picking up some additional shares of UL. I’m up to over 22 now in my Loyal3 portfolio after adding some shares this month. I will likely continuing adding over the next couple months provided the price stays depressed. Not only am I getting a great company with no cost, but I’m juicing my first year returns with the credit card rewards. A heck of a deal in my opinion! (Responsibly used of course!)

    Looking forward to future updates!
    writing2reality recently posted…Wait, More Spreadsheets? Hello, Dividend Growth PortfolioMy Profile

    • Hi w2r,

      Glad to hear you’re upbeat about the UL purchase. It is quite popular as you can see among the DGI community. Something about that high yield, low PE, decent stock price that excites us all. I have been thinking about Loyal3 for myself as well. It seems very highly regarded by many of the people who use it. Of course, credit card rewards are just an added bonus to the free stock purchases made. Quite frankly, the key reason I have not started with them yet is for my own simplicity. Just the idea of having another stock account doesn’t excite me. I like to keep things simple. One bank account, one stock brokerage account, etc. In any case, happy to be a fellow shareholder with you and thanks for stopping by.

    • Hi ILG,

      You and practically every DGI blogger too. I’m amazed at how popular it is these days as it seems everyone is scooping up shares at around the $40 mark. Happy to be a fellow shareholder with you. For me, UL is a very new holding in my account and I’m looking to make it a very long term position. Thanks for commenting.

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