Recent Stock Purchase III November 2016

Here’s an event that doesn’t occur often… my third tranche of buys in a single month. In fact, the last time I made three separate buys in any of my portfolios in one month was back in September 2015. I guess this just illustrates my take on certain individual stocks and the better buying opportunities we are seeing in many solid dividend payers, despite the fact that the market as a whole keeps making record highs. Of course, we already know that the records we are seeing in the DOW and S&P are not inclusive of every sector as several have been left behind since the “Trump Bump” began. All this means to me is that sectors that were once beaten down are looking less desirable these days while other sectors that have been notoriously expensive are suddenly looking a lot more compelling from a price, value and yield perspective. With that being said, two sectors really seem to stand out in terms of appearing more attractive from an investment point of view, the REITs and the consumer staples. It’s no secret that every dividend investor loves the consumer staples sector for their “boring” reliability and predictability with their businesses as well as their dividend distributions which is why:

 

I have added to my ROTH account 17.0000 shares at $38.82 for a total investment of $659.94 in Unilever PLC (UL). With this recent purchase my ROTH account holdings in UL now totals 102.5645 shares for a value of $4,010.27.

 

This recent purchase will be my last in my ROTH retirement account as I have contributed the maximum $5,500 for 2016. Any new buys in the remaining five weeks or so of the year will have to be made in my taxable account.

 

What do you think about my recent purchase? This is my third nibble on UL in as many weeks. Clearly, this company is offering us much better buying opportunities than in months past. With continued weakness in the consumer staples I wouldn’t mind making additional buys in the sector.

 

Happy Thanksgiving to everyone.

 

Disclosure: Long UL

37 thoughts on “Recent Stock Purchase III November 2016

  1. Another nice buy of UL Keith. I’ve been looking at it closely myself and trying to figure out where I want to buy or if I want to go the put option route or possibly even a combination of the two. After the election UL still sells many staples of every household so nothing has really changed for the company.

    Happy Thanksgiving!
    JC recently posted…A Flurry of Options ActivityMy Profile

    • Hi JC,

      Your comment says it all… “…nothing has really changed for the company.” So true. The world will still continue to buy UL’s product line no matter who is in the White House, where the Brexit movement stands or where U.S. interest rates head. The time to buy these solid companies is when they appear weak and in recent months UL, DEO and other U.K. based stocks have faltered. Why not pick some up at better prices, value and yield. Sure, UL still appears to be a little expensive today but when compared to just last summer it is selling at a nice discount. Happy Thanksgiving and thank you for commenting.

    • Hi DD,

      Building a massive position can occur with one or two huge buys or with several nibbles over time. Either way, buying a solid dividend paying stock with a juicy yield is a sure way to continually increase your passive income stream. This has been a busy month for me in terms of buys. I guess I am looking to finish 2016 on a strong note. Happy Thanksgiving to you as well and thanks for the comment.

    • Hi BSR,

      Well, November 2016 has been my busiest month in well over a year. My mantra is to make at least one buy every single month no matter where we are in an economic cycle. Consistency with investing in dividend paying stocks is a sure way to continually grow your passive income stream. Thank you for commenting.

  2. Hi Keith,

    I see a lot of DIG investors buying UL and I’m not sure what the draw is.

    Their EPS is $1.73, the same as 2008 and there payout ratio is now @76% and in 08 it was at 39%. The book value is also at $5 per share.

    I’m probably missing something in my quick look at UL.

    I hope it turns out well for you as it might be a good buy after the drop.
    Divi Cents recently posted…THE BEST DIVIDEND STOCKS FOR NOVEMBERMy Profile

    • Hi DC,

      When share prices started to hit $40 and below many dividend investors started seeing better value and yield in the stock. The dividend is still very safe and with a lot of Brexit noise going on I think it has helped bring down many prominent U.K. domiciled stocks. DEO is another consumer staple that has been dragged down in recent months. Sure, could valuations come down a bit more, definitely as could valuations in many other prominent consumer staples. Long term, I’ll be happy to hold on to my UL shares and ride out any near term price swoons. Thank you for sharing your thoughts.

    • Hi IH,

      I was thinking the same thing as you about waiting till after the holiday weekend to make my UL buy. The reality of the market and the recent volatility though is that we could see a nice pop next week or drop. There’s just no way to know what will happen. All I do know is that when I made my purchase at $38.82 it was a price I was happy to pay. Of course, should weakness continue with UL’s price I’ll be happy to nibble some more. As always, I appreciate your comment.

    • Hi DL,

      Thanks for those well wishes. Since I opened my ROTH several years ago it has been my goal to fully fund it every year and so far I have managed to do that.

      REITs and consumer staples are both looking good these days and I still may consider adding to my existing REIT holdings in my IRA. The truth is, I favor the consumer staples a lot more than REITs which is evident as that’s the largest sector overall among all my portfolios. Nothing against REITs, clearly, as I own several, I just like the relative safety of consumer staples today. Thank you for stopping by and commenting.

    • Hi DD,

      I’m not sure why you haven’t nibbled on UL either. It seems like every dividend investor out there is picking up some shares as prices went below $40. As long as the stock trades at these levels or lower I’ll consider adding to my position. Thank you for your support and comment.

    • Hi DDU,

      Thanks for your continued encouragement. The plan is to keep UL “forever” and hopefully enjoy rising dividends for many, many years to come. Thank you for sharing your thoughts.

    • Hi DK,

      I like UL at any price under $40. It will be interesting to see where it finally levels off after making its bottom. Many of our fellow dividend investors are liking this stock these days. As always, I appreciate your comment.

  3. Great buy!
    We are checking to average down on this one ourselves too, as it’s currently trading at such low prices. Like Investment Hunting we checking how things work out over the next few days or weeks. And maybe we choose to buy something else, if something nice will cross our paths.

    • Hi Divnomics,

      Keep checking until you find an investment that you are comfortable making. These days there’s no shortage of solid dividend payers selling at discounted prices. While the financial and industrial stocks might have run away, consumer staples, REITs and many health stocks are trading at better prices, values and yields. Thank you for commenting.

    • Hi ARB,

      Nothing wrong with more of the same, especially when it’s selling at a discount. I definitely am not alone in making recent UL buys. Thank you for commenting and enjoy your holiday weekend.

    • Hi DaC,

      UL has been on my radar for a few weeks now. Ever since it hit $40 and below I have been nibbling on this solid consumer staple. I plan to keep this name “forever” in my portfolio and don’t mind making it a larger position among my current holdings. Thank you for sharing your thoughts.

    • Hi DS,

      I agree. It definitely looks like everyone has been pulling the trigger on UL in recent weeks. The magic number for the stock seems to be $40 and below and as long as prices remain at those depressed levels I think we’ll still be reading about more buys in this stock. Thank you for stopping by and commenting.

  4. Dang, I had this one in the back on my mind now and again but it had been off my radar for a bit. Then I read this, look at the chart and wow! Wanna get in!

    The low Canadian dollar is causing me to hedge on buying it though as its’ been dropping for a long time now, thus making the purchase more expensive. Low UL price, low Canadian dollar… can I wait for both to be timed right or will that never happen?

    • Hi Ashley,

      Trying to time and find the “perfect” moment to invest is an impossible feat. If you have the cash and find a stock that meets your investment needs by trading at the “right” price, value and yield then go for it. As you know, currencies are in constant flux and gain and lose value every few years. Not that long ago the CAD was stronger than the USD. You may get your wish, one day, where the CAD and GBP are trading at favorable rates for you to make a purchase, but the question of when that will happen arises and that’s really anyone’s guess. As always, I appreciate your comment.

    • Hi MM,

      Part of blogging is lending a certain amount of transparency in what you do. I’m always happy to share my recent stock buys and portfolio updates. UL is a solid stock to hold for the long term all the while allowing you to sit back and collect those juicy dividends. Thank you for stopping by and commenting.

    • Hi Brian,

      Thanks for those kind words. While I’m happy to have made the maximum contribution to my ROTH, it kind of restricts me from making any new purchases should we see a dramatic swoon occur in the market. Either way, it looks like my next buys will be in my taxable account. Thank you for sharing your thoughts.

  5. Unilever certainly created a buying opportunity recently. I have an in the money put option as a result of that.
    I would not mind to own the stock, nevertheless, I will try not to own it. Why? No capital gain tax on Belgium and 30 pct dividend tax and on top of that, foreign country tax…
    ambertree recently posted…New Meetup – AntwerpMy Profile

    • Hi ambertree,

      UL is a great company to own no matter the reason. As you have seen it has been quite popular recently as many are jumping into this name at discounted prices. Thank you for sharing your take on UL.

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