Recent Stock Purchase January 2017

With two weeks of 2017 already in the books I am happy to announce my first purchases for the new year. I might have taken a bit longer to make my buys than some of my fellow dividend investing peers but I was comforted to see that as 2017 started we have collectively been ‘buying as usual’ and not succumbing to the panicky titled financial headlines that could scare anyone out of stocks, bonds, real estate, precious metals or any other asset class depending on the day. As one who does not time the market I simply continue to make my monthly buys by nibbling on my current positions as more attractive prices, values and yields present themselves. 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 2017 stock considerations:

 

I have added to my taxable account 7.0161 shares at $114.02 for a total investment of $799.98 in Kimberly-Clark Corporation (KMB). With this recent purchase my taxable account holdings in KMB now totals 43.1609 shares for a market value of $4,945.81. I also hold 7.3778 shares for a value of $845.42 in my ROTH account.

 

I have added to my taxable account 13.2283 shares at $60.48 for a total investment of $800.05 in General Mills, Inc. (GIS). With this recent purchase my taxable account holdings in GIS now totals 93.3142 shares with a market value of $5,699.63.

 

As you can see by my recent purchases I have decided to go with the consumer staples. It has been a very long time since I added to either of these stocks in my portfolio and I am happy to be able to continue to nibble on these shares and even out my dividend income stream further. Of course, I still have my mind on other consumer staples like The Procter & Gamble Company (PG), The Coca-Cola Company (KO) and the very popular consumer discretionary play, V.F. Corporation (VFC). We’ll see how the rest of the month plays out.

 

The media would like us to believe that next week will be very eventful but I have a feeling it will be be business as usual. The sun will rise the next day, we’ll have political, social and financial turmoil but life will go on and our favorite dividend paying companies will continue to do what they do best during depressions and recessions, World Wars, inflationary and deflationary times as they have been for decades on end no matter who is president or which party controls Congress. Just keep investing.

 

What do you think about my recent buys? Are you also looking at the consumer staples or other consumer related stocks? Please let me know below.

 

Disclosure: Long KMB, GIS, PG, KO, VFC

45 thoughts on “Recent Stock Purchase January 2017

  1. Excellent picks! I especially like KMB because one of my best friend’s dad’s used to work for them in Wisconsin. Great company. You know you have a good product when people say “Kleenex” to refer to any tissue!

    I’ve made a couple purchases in my Roth already too and will be providing an update on that soon.

    Thanks for the update!
    Two Investing recently posted…2016 Year-End Performance & Goal ReviewMy Profile

    • Hi TI,

      KMB is trading at much better levels in recent weeks which is why I decided to nibble on that stock. It’s been a long time since I added to that name which just goes to show how ‘hot’ its been over recent years. Perhaps, getting a little too ahead of itself and earnings. Asking for a Kleenex is akin to wanting a Coke or Band-Aid which just goes to show the serious and real power of branding. Look forward to reading about your recent purchases. Thank you for commenting.

    • Hi FerdiS,

      Nice list of consumer staples in your portfolio. I used to own RAI a long time ago before I became a dedicated dividend income investor. It was a solid stock for me but did not make my cut for my current portfolio. The nibbling will continue month in and month out no matter where the market stands. As always, I appreciate your comment.

  2. Only 2 weeks past, and you are already buying stocks. Strong start of the year!
    Both KMB and GIS looks like good buys. Were checking out the healthcare sector as well, since there is enough potential there left.

    • Hi Divnomics,

      It seems like many of us have been buying since the first trading day of the year which is nice to see as ‘business as usual’ should be the theme of every long term investor. We’ll always have short/mid term shakeouts but the key is to keep on investing. I like the health sector a lot too and have an eye on ABT, ABBV and JNJ, if it ever drops a bit. Thank you for stopping by and commenting.

    • Hi BHL,

      I am happy to be reading many ‘buy’ posts among our fellow investing peers. Seems like the financial headlines aren’t scaring anyone off. Whatever happens going forward is beyond my control but as long as I can continue to diversify among dozens of solid dividend paying stocks I’ll be OK. Hope to read about a buy on your end soon. Thank you for commenting.

  3. Great companies. I’d love to get involved with consumer staples, but think they are still a bit rich given their growth prospects. Hopefully they will come down a bit more. One thing we know for sure is that we can never know for sure! Glad to see we’re all keeping on in 2017. 🙂
    Dividend Ten recently posted…Jan WatchlistMy Profile

    • Hi DT,

      No doubt. Most of the consumer staples appear rich given their future growth prospects but it is a sector that rarely goes on sale. For me, I always believed in the saying that the consumer staples is a sector that comes with a premium. Sometimes you have to pay up for quality. Barring some major, major meltdown I doubt we’ll see “great” value in the sector. At best, relatively good value which is why I nibbled on these two names. Both are trading at PEs below their historic average and both have their dividends well covered. Like you, I am quite pleased to see so many of our fellow dividend investing peers making buys in earnest at the start of the year. Thank you for sharing your thoughts.

    • Hi desidividend,

      Both are solid long term plays from a dividend growth perspective and both are trading at much better levels than in weeks past. KMB is currently trading at a much lower PE when compared to its five year average and the TTM payout ratio is a comfortable 66.2% which leaves room for future dividend raises. VFC is also trading at more attractive levels as the stock price has dropped. A nice TTM payout ratio 51.2% makes the dividend safe based on current cash flow and it’s trading at a lower historic PE as well. With both stocks yielding over 3% they sure look compelling. Thank you for stopping by and commenting.

    • Hi timeinthemarketblog,

      It’s been a long, long time since I added to my KMB which goes to show that the stock has been quite hot for several years. It’s still not the cheapest stock out there but it is trading at much more attractive levels in recent weeks. It’s currently trading at a much lower PE when compared to its five year average and the TTM payout ratio is a comfortable 66.2% which leaves room for future dividend raises. Thank you for commenting.

    • Hi dividendgeek,

      Nothing wrong with VYM. Instant diversity and immediate return via a pretty generous current yield. I never had anything against ETFs and the like though it’s often a hotly debated topic among long term investors about going the route of individual stocks or buying several diverse funds. As always, I appreciate your comment.

    • Hi Doug,

      Any time you buy into a dividend stalwart in the consumer staples sector you know the odds are in your favor to see stable and reliable gains for many, many years. Thank you for stopping by and commenting.

    • Hi At,

      That’s a solid name. I used to own BUD back in the day before it was bought out. Adding a staple like that to any portfolio is a good thing. Thank you for sharing your thoughts.

    • Hi D4F,

      Long term dividend growth investors love consumer staples for good reason. Sure, they may not be the most exciting or highest growth stocks but they do offer tremendous stability during all economic cycles. Thank you for commenting.

    • Hi DL,

      Thank you for the well wishes with this recent buy. Happy to be a fellow shareholder with you in two dividend stalwarts that should continue to generate an ever increasing passive income stream for us. As always, I appreciate your comment.

    • Hi Jay,

      I am the first to admit that the consumer staples are not “cheap” but they are a group that rarely goes on sale. That being said, these buys represent better prices, values and yields than in months past and are expected to remain in my portfolio ‘indefinitely’ which is why I am nibbling here. Thank you for sharing your thoughts.

    • Hi IH,

      Both solid names from a dividend income perspective. GIS and VFC yielding well over 3% will get the attention of many long term dividend growth investors. Looks like you are going heavy into VFC. Of course, the best time to buy is when it’s out of favor. Thank you for stopping by and commenting.

  4. great purchases! Consumer staples are on my mind a lot lately as well and I may be adding some more shares in PG this week (Hint hint). KMB was a final consideration as well and I am thinking of saving enough money to make one large purchase of the company. Love their products, love what they do. Great buy and congrats on adding another Aristocrat to your portfolio!
    Dividend Diplomats recently posted…Lanny’s Final 2016 Goals UpdateMy Profile

    • Hi DD,

      Finally the solid consumer staples are starting to grab our collective attention. As you already know it’s a sector that rarely goes on sale and for now all we can hope for is better relative value and yield, which we are seeing. PG, KMB and the like belong in every long term dividend growth portfolio and I’m always happy to be a fellow shareholder with you and others in these quality stocks. Thank you for sharing your thoughts.

    • Hi DI,

      I do agree with you that KMB couldn’t be classified as ‘cheap’ but, as you mentioned, ‘it is valued much better than a couple of months ago.’ KMB is currently trading at a much lower PE when compared to its five year average and the TTM payout ratio is a comfortable 66.2% which leaves room for future dividend raises. As always, I appreciate your thoughts.

  5. Keith,

    “The media would like us to believe….Just keep investing.” More people should read and reread this last paragraph. So many people are glued to the media and react to the zaniest things. This is almost like the “dotcom: days…well not quite but it certainly seems that way sometimes.

    I do not own KMB or GIS. Definitely know of the companies but have not done a recent thorough analysis. Will look at them in due course.

    I own PEP, HSY, and CHD. Working on posts re: HSY, CL, and CHD but am awaiting the release of FY 2016 results to do a proper job. Will post them on https://financialfreedomisajourney.com/ and on Seeking Alpha shortly after Jan 26, 27, and 31 respectively. At least that is my intent. You know, this retirement gig keeps me busy. I don’t want work to get in the way of fun.

    • Sorry…also own CL and KO.

      I just realized KO and PEP will be releasing their FY 2016 results Feb 7 and 9, respectively. I guess I had better put those reviews on my “TO DO” list.

    • Hi Chuck,

      You may not own KMB or GIS but sure have a stable of solid dividend payers yourself in the consumer staples space. As I mentioned in the post, “Just keep investing.” We like to think that we can predict what the future holds and try to adjust our investments accordingly. The truth is that no one knows what tomorrow brings no matter their credential. Of course, media sensationalism helps pay their own bills which is why during the best of times and the worst of times there are always alarming headlines. All we can do as long term dividend growth investors is pick known solid companies that have sustainable yields, be consistent with our investments to average into positions and stay diversified because even the most stable, solid, dividend paying stalwart can falter on some news from left field. Just look at WFC in recent weeks. Thank you for sharing your thoughts.

  6. Nice buys. Great way to start off the new year. I recently bought some GIS myself. Was considering buying more because the price is right but I may hold off for now. KMB is also a quality pick up as well.
    Dividend Daze recently posted…2017 GoalsMy Profile

    • Hi DD,

      Nice pick up on GIS yourself. The consumer staples are showing better numbers in terms of values and yields when compared to just a few months ago. While not cheap, they are, on the whole, cheaper these days so why not nibble a bit? Thank you for stopping by and commenting.

  7. GIS is probably a great buy right now. The financial took off and fly away. The consumer staples doesn’t have a big swings when the market crash or corrected. What a great finds! You’re always have the right keys for all sort of market condition. Thanks for sharing.

    • Hi vivianne,

      I tend to buy where the best value and yield lay which usually means it’s in a sector that’s not too popular and the consumer staples are definitely a sector that was left behind the “Trump rally.” Thank you for commenting.

    • Hi Brian,

      Not a bad way tot start the year indeed. I’m always happy to pick up some additional shares in the consumer staples space. You have to go where the best values and yields are. Thank you for stopping by and commenting.

    • Hi easydividend,

      The consumer staples have really lagged the general market and I’ll be happy to pick up some quality shares at better prices, values and yields, (which are both over 3%) and hold for the long run. As always, I appreciate your comment.

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