Recent Stock Purchase January 2016

With two weeks of 2016 pretty much in the books I am happy to announce my first purchases for the new year. Of course, these buys come at precarious times as the financial world seems to be sitting at a tipping point between total collapse and the slow “melt-ups” we have been experiencing. As one who does not time the market I simply take these dramatic declines as buying opportunities and feel comfortable nibbling on my current positions at more attractive prices, value and yield. That’s not to say that one shouldn’t be cautious with their buys, rather one should simply look to where the current value and attractive yield is being paid today and simply slowly build out a position. After all, no one knows what tomorrow brings, no matter their credential. With that being said, let’s take a look at my recent stock purchases.

 

Sticking with my January 2016 stock considerations I have decided to buy into the Canadian banks once more as well as an industrial giant.

 

I have added to my taxable account 18.1379 shares at $44.11 for a total investment of $800.00 in Emerson Electric Co. (EMR). With this recent purchase my taxable account holdings in EMR now totals 76.6915 shares for a value of $3,391.30. I also hold 53.6104 shares for a value of $2,370.65 in my ROTH account.

 

I have added to my ROTH account 20.9919 shares at $38.11 for a total investment of $800.00 in The Bank of Nova Scotia (BNS). With this recent purchase my ROTH account holdings in BNS now totals 148.2546 shares for a value of $5,620.33.

 

It’s no secret that I have been liking the Canadian banks for a while and that each of these two purchases all offer safe yields over 4% which makes them extra attractive from a dividend perspective. Sure, near term headwinds abound for these companies, but it’s those headwinds that are beating up stock prices giving us all better buying opportunities among a stewing of general panic.

 

What do you think about my recent buys? Are you buying into any Canadian banks or other industrial names that have recently sold off? Please let me know below.

 

Disclosure: Long EMR, BNS

40 thoughts on “Recent Stock Purchase January 2016

  1. I’m ready to pounce on BNS and RY. Would mind if TD were a bit cheaper. Not a bad time to buy Canadian banks, very cheap at the moment. Good purchase. I also bought EMR last week. BNS might be next.

    • Hi $25000 dividends,

      Looks like we are on the same page in terms of finding the values and good yield. Besides EMR and BNS I have my eye on other names that have been beaten down quite badly. As you know it’s impossible to time the market and buy at the low. All you can do is make sensible buys at present and nibble on positions instead of gorge. Thank you for stopping by and commenting.

  2. Like both of these buys. I wish I had some free cash to be able to add to my BNS and TD holdings. I’d really like to build both of those up some more. This dip to start off 2016 is starting to open up some value which is good for long term investors.
    JC @ Passive-Income-Pursuit recently posted…Jackpot!My Profile

    • Hi JC,

      No question 2016 is starting off on a downtrend which simply allows long term investors to buy at much better prices, value and yield. As we all know, our portfolios might have shrunk in the near term but dividend income remains stable if not growing. I have a feeling you’ll still have plenty of time to add to your Canadian banks. I don’t see an impressive rebound in those names any time soon. As always, I appreciate your comment.

  3. No doubt you liking them. QQ: which of the 3 banks has most exposure to oil? I love the numbers on RY and do hold all 3…looking to add 1 more….

    • Hi Harry,

      I like all five of the major Canadian banks but have focused on three for now. I have CM and BMO on my watch list but will wait to pull the trigger on those at this time. For now my focus is exclusively on my current holdings. Regarding your question:

      BNS’s direct oil and gas exposure is C$12.8 billion, or 2.9% of total loans.

      RY has an energy portfolio valued at C$9.6 billion, which amounts to 2.1% of the bank’s total loans.

      BMO’s oil and gas portfolio is estimated at C$5.9 billion, or 1.9% of total loans.

      CM’s oil and gas portfolio is valued at C$5.2 billion, or 2% of total loans.

      TD’s, energy exposure, including pipelines along with oil and gas, is put at C$3.6 billion or 0.7% of total loans. Source: WSJ

      Thank you for stopping by and asking your question.

    • Hi Tawcan,

      I have a feeling we’ll be reading a lot more ‘buys’ in the Canadian banks among our fellow DGI bloggers in the coming days and weeks. Seems like there is a lot of interest at these levels among the big players. Even at these depressed levels and exposure to oil, weakened currency and other headwinds, the Canadian banks still offer safe dividends at current levels. Thank you for commenting.

  4. DivHut,
    I like EMR. I like ETN a little better, but both provide a similar stream of industrial manufacturing, one that is hard to go wrong with. I plan on acquiring EMR sometime in the future to be ETN’s counterweight.
    BNS – who else?! I love the Canadian Banks, but I think no one loves them more than you. All of the big 5 or 6 depending on which you include are remarkably well run money making machines. I want to add another Canadian Bank this year to my accounts, and I lean between BNS and TD.
    Nice update,
    – Gremlin
    Dividend Gremlin recently posted…December, 2015 Review / January, 2016 PreviewMy Profile

    • Hi DG,

      I have been reading a few posts here and there about ETN. No doubt, a solid industrial player with a juicy yield that has been hammered as of late. I added ETN a while back to my watch list but have not pulled the trigger on it, yet. An ETN/EMR combo is a solid dividend combo that should do nicely in any long term portfolio. Looking at the Canadian banks, it seems that TD might be the “safest” as it has minimal exposure to oil relative to the others and a large exposure to the U.S. market. Look forward to seeing where you deploy your cash. Thank you for sharing your thoughts.

    • Hi Vivianne,

      With such a weak start to 2016 and oil heading even lower, the Canadian banks really have taken it on the chin. Of course, all this means is some pretty safe and attractive yield coming from the sector. It’s one thing when high yield is unsafe, but I feel the Canadian banks have plenty of wiggle room regarding their dividends and can afford to pay them at current levels. Thank you for stopping by and commenting.

    • Hi MDP,

      Same page indeed. It’s nice to see these high quality names on sale. I know we’ll be reading about many more buys in these names. Seems like oil can’t find a base and it’s taking everything down with it. So far 2016 has given us many great buying opportunities. Thank you for stopping by and commenting.

  5. Thanks for sharing Keith. I bought some BNS this morning as well. The Canadian banks are offering good value right now. Happy hunting and have no fear as always bud. Cheers and enjoy the he family.

    • Hi DH,

      You and many others are jumping on the Canadian bank bandwagon. I know we’ll be reading about many buys in the sector in the coming days and weeks. I just hope that our fellow DGI bloggers ‘buy with temperament’ and not get too excited and go all in as with energy only to find themselves heavily overweight in a sector that’s plunging. Nibble, nibble… never gorge. Thank you for commenting.

    • Hi FV,

      Might not be a bad time to save up some extra cash for these discounted Canadian banks. Of course, no one knows what the future will bring but at current levels they are all selling at some pretty compelling prices, value and yield. As always, I appreciate your thoughts.

    • Hi Dipu,

      Happy to be a fellow shareholder with you in some great companies. As long as that dividend is safe I’ll be happy. It’s funny how our portfolio values can rise and fall on a market whim but it’s the dividends that remain “constant” and reliable. Thank you for your comment.

  6. Great time to jump on some bargains Divhut. Buy things when they’re cheap not when they’re expensive right? Long term, you have to bet on the Global/Western/Canadian economy to go back to growth and the banks will ride that wave (and pay bigger dividends than they are now).

    I think this buy will definitely work out for you in the long run.
    Tristan @ Dividendsdownunder recently posted…Dividend update: December 2015My Profile

    • Hi Tristan,

      Long run is my time line for sure. I can wait out the lows of the Canadian banks these days as numerous headwinds are beating down the sector. I see the dividends as being quite safe despite the massive sell off which is my primary concern. The large Canadian banks have been paying dividends for well over 100 years. They have been through many economic cycles and somehow managed this impressive streak. I’ll continue to nibble on the sector as long as it’s depressed. Thank you for stopping by and commenting.

    • Hi TCF,

      I never like to gorge on a stock. I’d rather nibble into positions over time as long as the stock is sporting a good yield and decent value. I still have my sights on TD, BNS and RY going forward. Of course, other industrial names are looking enticing as well like CAT, EMR and DOV. Seems like oil has taken no prisoners and brought down many sectors and companies with it. Thank you for stopping by and sharing your thoughts.

    • Hi NNL,

      Canadian stocks are a pretty good buy these days because of the strong dollar. For the foreseeable future I’ll be sticking with my individual holdings but have no issue with investing in ETFs and the like. I have contemplated VNQ for a while to get broad real estate exposure but started with individual health REITs for now. Thank you for stopping by and sharing your recent buys. Always interesting to see where other investors park their money.

    • Hi Dividendniche,

      With oil and the market in a seeming free fall it seems that we’ll have plenty more chances to buy into some high quality names at much better prices and value. The Canadian banks all got hammered in 2015 and so far this year it looks like nothing has changed. As you know I hold TD, BNS and RY and plan to keep those names through all this ugliness. Nice pick up on EMR as well. CAT is looking attractive as well though a little riskier than the other names mentioned from a dividend perspective. Of course, that’s to be expected any time you see a CAT yield of around 5%. Thank you for commenting and sharing your recent buys.

    • Hi B,

      Some banks it seems are more stable than others. American banks seem to be doing relatively OK when compared to the large Canadian banks. I like the Canadian banks because they are all suffering from major headwinds in the form of a weakened currency, low oil prices and a potential debt/real estate crisis within their borders. As long as those dividends are safe I’ll continue to add to my Canadian banks and ride out the storm. Thank you for stopping by and commenting.

    • Hi DD,

      The start of the new year has given us some great opportunities to load up on some otherwise expensive, high quality dividend stalwarts. No one knows when the bottom will be reached in this market so all you can really do is nibble on some positions that are currently selling at great prices, values and yields and the Canadian banks and a few aristocrats are at those attractive levels. As always, I appreciate your comment.

    • Hi Untemplater,

      Well, if the rest of 2016 turns out to be as bad as the start, all that will mean is much better buying opportunities for those looking to load up on dividend paying stocks. I have been here before and witnessed my entire portfolio go deep in the red during 2008 and 2009. What did I do? I kept buying every month as I always have. Averaging my costs ever lower while sticking to only the highest quality names that could continue to pay a dividend. The companies purchased, even at current levels sport a very safe yield and that’s my primary concern. I just want those dividends to continue to be paid. Both EMR and BNS are quite popular stocks among the DGI community. Might be worth checking them out. Thank you for your comment.

    • Hi Dp,

      The Canadian banks are continuing their slide as markets and oil specifically seem to take down names in this sector. No doubt, a lot of great value is being offered to us these days. The question is will even better values come in the weeks ahead? No one knows. Thanks for stopping by and sharing your buy with us.

    • Hi Dividendsfordummies,

      Indeed. We always talk about buying when there’s blood in the streets but it takes a lot of fortitude to actually pull the trigger when everything is seemingly falling on a daily basis. To make myself feel more comfortable during times of uncertainty I prefer to nibble on stocks instead of gorge. It’s easy to initiate or add smaller dollar amounts to stocks that are falling than one large chunk. This way, should the stock drop further you have cash to average down your cost. I have been through 2008/09 and witnessed my entire portfolio go deep in the red. All I did was continue buying every month bit by bit as I always have. When you make investing automatic and decide to stick with a plan of buying only quality names with safe dividends in the long run you’ll be OK. Look at my portfolio today after all these years of investing, going through the Great Recession, flash crash, oil meltdown and more. Thank you for commenting.

    • Hi HHaWG,

      Buys tend to be a little lighter in the first quarter of the year as many dividend bloggers estimate and pay taxes for last year. As long as you can commit some fresh capital it’s all good. EMR is still looking attractive to me along with all the Canadian banks. It seems the bleeding in that sector is far from over. Thank you for stopping by and commenting.

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