Recent Stock Purchase II – September 2014

With some extra cash sitting in a money market fund earning close to nothing and one free trade in my ROTH account setting to expire in a few days I re-visited my recent blog post, “September Stock Considerations” and decided to act as several stocks from that blog post were trading much lower than in previous days.

 

For those who are regular DivHut readers, you know that I have been primarily adding to my financial holdings for the past five months among others that are not in the sector. I have been slowly increasing my positions in AFL, CB, WFC and initiated new positions in TD, BNS and RY. While my financial sector holdings are still considered light relative to my other holdings I could not pass up on some relative bargains that Mr. Market has offered in recent days.

 

Sticking to my September Stock Considerations:

 

I have added to my taxable account 30 shares at $50.67 for a total investment of $1,527.05 in General Mills, Inc. (GIS).

 

I have added to my taxable account 25 shares at $58.35 for a total investment of $1,465.70 in AFLAC Inc. (AFL).

 

I have added to my ROTH account 20 shares at $42.60 for a total investment of $852.00 in Unilever plc (UL).

 

The purchase of UL represents a new position in my ROTH account. What do you think about my recent stock purchases? This is my second purchase tranche for the month of September. Please let me know below.

 

Disclosure: Long AFL, CB, WFC, TD, BNS, RY, GIS, UL

37 thoughts on “Recent Stock Purchase II – September 2014

    • Hi FerdiS,

      Glad you like my recent buys. AFL and GIS are two popular dividend stocks, especially among many of the bloggers. The UL purchase, as I mentioned, was a new position for me as I was considering it for a long time but never pulled the trigger. After a nice decline I just decided it was time to start. Thank you for stopping by.

  1. Those are some very nice buys. AFL seems to be very popular lately among the bloggsters. I love GIS at this range but you can’t go wrong with any of the three. Your portfolio is rapidly expanding with these types of purchases.

    • Hi SAD,

      Certain stocks become popular in waves, it seems, among the dividend blogging community. About six months ago everyone was writing about and/or buying TGT. Today, AFL, though more volatile than other insurers because of yen risk, is popular because of its very low PE and very high annualized dividend growth rate. In a market with valuations so high it becomes more difficult to find bargains. AFL seems to be one of the best relative bargains these days. Thank you for commenting.

    • Hi MDP,

      It’s been a long time since I added to my GIS position as I was focused on the finance sector for several months and my consumer staples are already a large portion of my portfolio. But, after another earnings miss and seeing the stock get taken to the woodshed I just felt compelled to pull the trigger and add a bit more. AFL has become my largest holding in recent months as a result of my adding to the position for a while now. I realize the volatility AFL has especially with a weakening yen in recent weeks which could impact future earnings but it is a long term holding of mine and any future bumps in the road will compel me to add even more shares. Thank you for stopping by and commenting.

  2. DivHut,
    I too looked at GIS and AFL yesterday. Did not put the trigger, but I think there will be another opportunity before years end. People are really down on the GIS earnings, I need to take a closer look myself. I own some in both retirement and taxable account. Looking to add AFL to taxable (already in IRA). Nice nimble pick ups yesterday.
    -RBD
    Retire Before Dad recently posted…Investment Income Update – Sept 15th 2014My Profile

    • Hi RBD,

      Yesterday is the number one reason I am never fully invested in the stock market. You just never know when a buying opportunity will arise. I realize that my cash sitting on the sideline, earning close to nothing, loses value to inflation, but being fully invested doesn’t afford you an opportunity to pounce on a quick drop. The way the market has been behaving for the last decade, with its increased volatility, you may be very right in the assumption that there will be another buying opportunity before the end of the year. Sometimes it seems that when any official “sneezes” the market or certain stocks take a dive. Keep watching AFL and GIS. I think many like AFL under $60 but it is a “riskier” stock than other insurers because of its yen reliance and with a weaker yen earnings may be impacted. Thank you for stopping by and sharing your thoughts.

  3. I like the purchases, especially UL and AFL. I think under $43, UL is a nice pickup and AFL under $60 is pretty solid. UL being a new position should add an extra layer of diversification given the incredible product/brand mix they offer.

    • Hi w2r,

      Thanks for the encouraging words. I have been adding to AFL for several months each time buying at slightly lower prices than before. I know there is a yen risk, especially now since the dollar became much stronger, but as a long term holding I’m not too worried about currency fluctuations. As far as UL, I have been eyeing that since 2007. Just never pulled the trigger till now. I enjoyed my PG position and thought UL would be redundant but I no longer think that. Thank you for commenting.

    • Hi DGJ,

      Adding to your AFL periodically is the way to go. This is how I built my portfolio. Never going all in, one incremental investment at a time. This way you’ll always have cash to deploy should a new buying opportunity emerge. For my GIS, I have been looking to add to it for a while and after a disappointing earnings report I decided to buy some more. Thanks for sharing your thoughts.

    • Hi R2R,

      AFL and CB are definitely worth a look as good long term holdings. AFL is a bit more volatile than CB because of currency risk but also has an amazing dividend growth rate. Keep with your research as I’m curious to know if you’ll be pulling the trigger on either of these. Thank you for commenting.

  4. I used to own UL, but sold out of the position very early this year. This was before I was hip to the DGI concepts and didn’t really know what I had. Wish I would have not traded the stock and just held onto it, esp since I picked it up around $33. It’s been back on the watchlist since I’ve figured out what I’m doing now 🙂

    • Hi DH,

      As long as you look forward and have your DGI goals in mind you’ll be OK. It’s funny how many times you hear or read about stories from people that regretted selling out of some quality positions. I’m no different and have my own experience that I wrote about in a post titled, “Foolish Dividend Investing.” Thanks for stopping by and commenting.

    • Hi Tawcan,

      I think the sudden drop of GIS got many of the dividend bloggers interested in the stock once again. With a bad earnings report and possible future headwinds we may get further buying opportunities ahead. Thank you for commenting.

  5. Good buy DH,

    I bought 10 shares of AFL and started a new position in TIS with 25 shares. It’s my only consumer good at this moment because JNJ, KMB, and PG are way too high. I used my flip to buy more CORR.

    I agree with you on UL but I’m waiting for the scottland referendum. I expect UK stocks to crash pre vote and more if they do break away

    • Hi TBDI,

      Thanks for sharing your holdings and recent purchases. I have read about TIS on a couple other dividend blog sites and while it really does look like an interesting, high yield play, I’m not sure how comfortable I feel investing in small cap stocks. I’m with you about adding to JNJ, KMB and PG as well. I would love to add more to those core holdings but not at current valuations. We’ll see how things pan out towards the end of the year. As far as UL is concerned, I thought about the Scottish vote too but decided that yesterdays price drop offered a decent entry point for the stock. Thanks for commenting.

    • Hi KeithX,

      Good to know that I am in good company. Actually, these three companies seem to be staples in many dividend blogging portfolios. More power to us. Thanks for commenting.

    • Hi AFFJ,

      Thanks for the words of encouragement. I’m happy to pick up these stocks at relative bargain prices. Still, it’s tough finding some good value these days. I would imagine that I’ll be breaking the $2k mark for 2014. I know it’s a popular thing to do among the dividend bloggers to detail forward dividend income but I never did that. To me it seems like counting my chickens before they hatch. All we know are dividends received. Everything else is just speculation. Thanks for stopping by and commenting. Always love to hear from you.

  6. DivHut,

    Unilever is a great buy! Congrats on being a fellow shareholder. They were the second position I initiated in my (currently small) dividend portfolio. Lots of excellent and recognizable products and a strong play on the emerging markets.

    Cheers,
    NMW
    No More Waffles recently posted…First Dividend IncomeMy Profile

    • Hi NMW,

      I have been looking at UL for many years actually and I admit the shares did slip away from me. This was at a time when I was building my portfolio and was deciding between PG or UL. I ultimately chose PG. But now, I felt it was time to at least start a small position in UL and see where it goes. There is no doubt about its huge brand recognition worldwide and huge international exposure when compared to PG. Happy to join you as a fellow shareholder. Thanks for stopping by and commenting.

  7. DH,

    Well holy crap! That is essentially $3.8K you just infused with those 3 big blue chip companies. I’m always a huge fan of Aflac, and you’ll love their dividend increase in October. I’ve been trying to find the right valuation to scoop up GIS – glad you were able to get some now. I am sure that added a nice bump to your dividend income, so congratulations, that’s awesome! Great work buying more assets, that’s what it’s about. Talk soon, us diplomats should have our new watchlist soon.

    -Lanny
    Dividend Diplomats recently posted…Crushing $4,000 in Projected Dividend IncomeMy Profile

    • Hi DD,

      As I mentioned I had some cash sitting in my inflation losing money market account and was looking to deploy some of it. When I saw GIS drop almost 5% in one day after a poor earnings report I decided to jump in and take a nibble. AFL also dropped a decent amount and I just decided to pull the trigger there and get some additional shares to my current position. AFL is now my largest holding and I’ll probably wait to add more shares to that one unless something dramatic happens there. Look forward to seeing your watch list for the upcoming month. It’s always interesting to see where like minded dividend bloggers like us think to invest. Thank you for stopping by and commenting.

  8. Great list!

    I have bought a teenie piece of UL recently and a much larger purchase of GIS (second bite!) I added to AFL a bit ago, but I am pondering adding some additional funds to it. With my current time constraints, it is easier to add funds to the businesses I know that are trading at attractive values =)

    Take care!
    ILG recently posted…Recent Purchases: Sept 9th to 18thMy Profile

    • Hi ILG,

      Thanks for sharing your buys with us. UL is a new position for me as I literally have been watching it climb for several years and never pulled the trigger on it till now. I was very content with PG and other consumer staples that I did not feel the need to add UL to my portfolio. Times change and I wanted that extra layer of diversity so I bought. AFL is another great stock that has been with me since 2007. I know it has been very popular among many of the dividend blogs in recent months as their rapid dividend growth and low PE make it an attractive buy especially in this expensive market. Thank you for commenting.

    • Hi DD,

      More capital is a problem everyone has. If I won a million dollars today I’d invest it all in dividend paying stocks over time. Glad you got some inspiration from my recent post and buys. That’s one of the things I love about the dividend blogging community… the ideas and openness we share from our personal experiences and investments. Thank you for stopping by and commenting.

  9. DivHut,

    Great job putting some serious capital to work!

    I especially like the UL and AFL buys. AFL is trading at a pretty cheap price here, relative to value.

    I thought about buying GIS the other day. I have the capital for it, but I just didn’t feel comfortable. I’d like to see the stock even cheaper with some of their recent troubling reports. Great brands, but there definitely appears to be changing consumer tastes at play here. I like the Annie’s purchase, however.

    Cheers!
    Dividend Mantra recently posted…Think Like An Owner – Part 2My Profile

    • Hi DM,

      Thanks for the encouraging words. As you know I have been adding to my AFL for several months now for the same reason you mention, relative value. It seems that relative values are all we can find these days as PEs for many stocks we are considering are sky high. I had some extra cash sitting in my money market fund earning close to nothing and when GIS announced bad earnings and dropped around 5% I decided to jump in. It didn’t hurt that AFL and UL also had a decent drop the same day. September has been a big month for me in terms of adding fresh capital but I guess it all evens out. There were many months in 2013 when I invested $0. Thanks for stopping by and commenting.

    • Hi MOA,

      Happy to be a fellow shareholder with you in these companies. AFL has been the talk of the town in recent months as many dividend bloggers like the dividend growth and low PE. Some might say there is a currency concern with the yen but I’m not too worried about it going long term. Looking at the Canadian banks I am continually amazed at how they continue to operate. My only regret is not researching the Canadian banks sooner. I still have BMO and CM on my list but with four banks in my current portfolio I might be satisfied for now. Thank you for stopping by and commenting. Much appreciated.

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