Recent Stock Purchase II September 2015

With the market continuing to climb and fall dramatically, attractive price points are being offered to the patient long term dividend growth investor. After a very quiet August with just one purchase, September has opened up with a bang as I have added to my ROTH additional shares in The Toronto-Dominion Bank (TD), Royal Bank of Canada (RY) and Caterpillar Inc. (CAT). Getting close to maximizing my full ROTH allowance of $5,500 for the year, I looked towards my taxable account to see where I can deploy some fresh capital, especially with a free trade that was expiring. With that being said, let’s review my second batch of September buys.

 

I have added to my taxable account 11.6260 shares at $59.87 for a total investment of $696.05 in Dover Corporation (DOV). With this recent purchase my taxable account holdings in DOV now totals 31.2371 shares for a value of $1,884.53.

 

With a current yield of 2.78% and a very, very long dividend raise history, I took advantage of the recent market turmoil to average down my position in this dividend stalwart. With lower prices come better value as DOV is trading at a PE of 14.8 which is slightly lower than its five year average PE of 15.7. No doubt, oil prices have been dragging this stock down.

 

I have also added to my taxable account 16.0237 shares at $43.69 for a total investment of $700.00 in Archer-Daniels-Midland Company (ADM). With this recent purchase my taxable account holdings in ADM now totals 26.4335 shares for a value of $1,138.23.

 

ADM is another name that has been dragged down in recent weeks and is sporting a healthier yield and value as a result of all the volatility. With a current yield of 2.60% and a current PE of 11.9, ADM is also trading at a much lower than average five year PE of 15.4. Long term dividend investors always love picking up some solid companies at better values. Who says a market decline should be scary?

 

What do you think about my recent purchases? Are either names above in your portfolio and/or watch list? Please let me know below.

 

Disclosure: Long TD, RY, CAT, DOV, ADM

31 thoughts on “Recent Stock Purchase II September 2015

  1. Keith,
    I owned ADM in the past, before I simplified my life by using index investing. Ah, the simple days of youth. Anyway, I am going to research ADM after reading your post. Not sure why it would be on the bargain rack, but I like looking there.
    Thanks,
    KeithX

    • Hi KeithX,

      I had a very small position in ADM for a long time. With all the recent volatility in the markets ADM’s stock price has been dragged down which made it pop up on my radar once again. Of course, being able to average down on a quality company with a better value and yield doesn’t hurt either which is why I made my recent buy. As always, I appreciate your comment.

    • Hi DH,

      That’s the name of the game… momentum or as I like to call it, consistency. I invest in all markets through the ups and downs and by doing so I have been able to build up a quality portfolio of strong dividend payers. I think if more people had this straight attitude and not succumb to the sensationalized and panicked nature of the financial headlines we’d have a lot more people better off financially. Thank you for your continued support. Enjoy the weekend as well!

  2. DH,
    Very nice. I love the sectors those 2 are in as well. There are a lot of places one can find value right now, and it is great to keep adding to your collection. Also those are your first non-ROTH buys you’ve made in a while, have you maxed out your ROTH? I am planning to start doing that, but I need to get my wife on board with passive income in a stronger way first.
    – Gremlin

    • Hi DG,

      As we all know the market has been giving us a lot of new buying opportunities not seen in many sectors nor individual stocks in some time. While I still have some fire power left in my ROTH for another buy or two, I am close to maxing out my 2015 contribution. That fact along with a free trade expiring coaxed me into looking at my taxable account for this recent buy. Good luck getting your wife on board the passive income train. For a peaceful home it’s important that both entities are on the same financial page. Thank you for stopping by and commenting.

    • Hi Untemplater,

      Both ADM and DOV are long term dividend payers and raisers. Judging the comments it seems that many other bloggers are liking these names as well and already own them or at least are considering them for their own dividend growth portfolio. I just took advantage of the recent volatility to average down my buy price on each name while also getting in at a better price, value and yield. Which ETFs did you pick up? I’m not one to invest in any ETF but always curious to know what others are buying. Thank you for commenting.

    • Hi DFG,

      It’s all about taking these “baby steps” with each buy we make getting us that much closer to FI. Happy to have brought these names to your radar. So far, September has proven to be quite a wild ride and I think we’ll be seeing more volatility ahead which just means more buying opportunities. I’m still waiting for many consumer staples to go on sale. As always, I appreciate the comment.

    • Hi ACI,

      Always appreciate the continued support. The last month or so has really given us a lot more buying opportunities in different stocks and sectors besides energy which is nice as more balance can be added to our portfolios. DOV and ADM are two solid names that for a while seemed fairly valued if not slightly overvalued. With their recent declines I decided it was time to nibble some more on each and average down my buy price at these more attractive levels. Thank you for stopping by and commenting.

  3. I forgot all about ADM! I’ll have to average down on them once I get the capital (if they are still at the levels they are at). DOV is another nice company that I’m going to have to initiate a position in one day.

    Good to see something other than the Canadian banks being purchased. Keep it interesting………..and diversified!

    Sincerely,
    ARB–Angry Retail Banker
    ARB recently posted…Why You Should Have An Account With An Online BankMy Profile

    • Hi ARB,

      I’m getting close to maxing out my ROTH for 2015 which means I have to start looking at my other accounts for potential buys. I still have one or two buys left in my ROTH for the year so I may save it for a later date. In any case, I still have plenty of other names I can average down and buy up at better value and yield. ADM and DOV seemed to fit the bill for this most recent buy. Of course, I still have my eye on many consumer staples but they still seem a bit pricey for my liking. Who knows? We may get better pricing in that sector too in the coming weeks. Thank you for stopping by and commenting.

    • Hi DD,

      Thank you for your words of encouragement. The way I see it, a dividend growth investor must always remain consistent making buys in all market conditions and making sure to only buy high quality names that can continue to pump out dividends in any economic climate. It’s all about growing that dividend snowball. Thank you for stopping by and commenting.

    • Hi DD,

      As long as ADM is trading at around these levels it will continue to look compelling to me. It’s still a relatively small portion of my overall portfolio so I feel comfortable adding to it. I know it may seem like a departure from my usual Canadian banks stocks but those are on my radar too. The truth is that many great names are pretty beaten down with EMR and CAT looking the most bruised in the industrial sector. As always, I appreciate your comment.

    • Hi R2R,

      I have been maximizing my ROTH for about six or seven years now. If nothing else, I know that I’ll be contributing at least $5,500 a year towards my long term dividend growth portfolio. Of course, I’d like to add a lot more than that in a calendar year to help push that dividend snowball further down the hill. I have about one more purchase left in my ROTH before I max out. Not sure if I’ll go for a Canadian bank or some other beaten down industrial like EMR or CAT. We’ll see. Thank you for commenting.

    • Hi DfS,

      Glad you liked my recent buys. I think DOV will remain pretty beaten up as long as oil prices stay down. The reality is that low oil prices are not only giving us better buying opportunities in energy but also in many industrial companies as well. CAT is still looking good to me as well as EMR. The value and yields that are being offered haven’t been seen in a while. Thank you for sharing your thoughts.

  4. Hi DH,

    great purchases of great companies! I’ve everyone of them, except RY, on my watchlist, but didn’t pulled the trigger yet. Hopefully, I’ll get a new opportunity and won’t miss the train with these quality businesses.
    Thanks for sharing and good luck to you!
    DivRider

    • Hi DR,

      Happy to be a fellow shareholder with you in some very high quality companies. I think you’ll have enough time to jump on board RY as the Canadian economy is facing some serious near term headwinds which should keep the Canadian banks beaten down for a while. Thank you for stopping by and sharing your thoughts.

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