Recent Stock Purchase January 2019

Here we go. My first purchase of 2019. I’m excited to get the ball rolling in the new year and with so many great buying opportunities out there the hardest part seems to be choosing which one or two stocks to add to my growing dividend-centric portfolio each month. We all know the names already that are yielding extra high juicy yields in the telecom, staples, health and tech space as many “buy” posts I read on our fellow DGI blogs seem to be centered around the same core group of stocks. Of course, I’m no different with my own stock considerations for January as I looked in the same pool of names. With that being said:

I have added to my ROTH account 27 shares at $48.22 for a total investment of $1,301.94 in Altria Group, Inc. (MO). This is a new holding in my ROTH. I also hold 34.5462 shares of MO in my taxable account with a market value of $1,655.11.

As you can see my total holdings in MO are still quite small relative to most of my other positions which leaves me the flexibility to add more should prices remain depressed. I do want to bring up one other name in the tobacco space as it recently grabbed my attention and I’m curious to know what you think about British American Tobacco p.l.c. (BTI). Shares seem very undervalued, cash looks to be more than sufficient for the dividend and that yield is just too enticing to ignore. For now, my tobacco exposure rests with PM and MO but BTI is a definite possibility going forward.

What do you think about my recent buy? Are you looking at MO this month as well? What are you buying? Please let me know below.

Disclosure: Long MO, PM

27 thoughts on “Recent Stock Purchase January 2019

  1. I’m eyeing MO myself and hope to pick some shares up and build that position up some more. I think the valuation is very compelling here. I still have my eye on V, BLK, BDX, VFC and AAPL as potential investments but haven’t quite pulled the trigger yet. I’d really like to add COST to my portfolio as well but need to update my valuation to see where it’s at now. If another bout of volatility shows up I should be able to put some capital back to work.
    JC recently posted…Net Worth Update – December 2018My Profile

    • Hi JC,

      That’s a nice long list of stocks you are considering. I would like to add to my VFC as well but not at current levels. For now, the high yielding stocks like T and MO are calling in February. Be patient, I’m sure another dip will occur in 2019!

    • Hi MDD,

      2019 was off to a strong yield start with my MO buy. I’m still liking the stock under $50 and may buy again in February. MO along with other names are offering yields too hard to ignore.

  2. Hi DH. Interesting buy. Altogh im a bit against tabaco, oil and unhealthy food companies, but im not that 100% if im will stay away. People smoked, used coal/gas ect for centuries, so it might be that transition will be long and thess companies are just to big to ignor the trend and will adapt. Now tha electronic cigarets are on the rise, later something else. So Mo might be here to stay for +50y 🙂 Same goes for XOM or KO 🙂

    • Hi P2035,

      Well said. Though some of these sectors might not be popular today, the reality is that over centuries people have engaged in their activities. What I like about MO is their adaption towards changing consumer tastes and trends by getting into vaping and cannabis. Time will tell if these are wise investments, of course, that’s why we diversify and spread our bets.

  3. Hi Keith, nice purchase! I also bought MO (two times) in December. Along with PM and BTI. Comparing historical valuation made me buy all three.
    I also bought TROW, FDX, CVS, V and T in December. I can’t remember buying this much in such a short time, but when opportunity knocks you’ve to open the door 😀
    DivRider recently posted…Annual Review 2018My Profile

    • Hi DR,

      I was thinking BTI would be a lot more popular among our DGI peers but really it has been more about MO. Looks like you bought a ton of solid dividend payers. Congrats on adding to your passive income stream. Those names should all be great long term holds.

  4. Keith,

    My wife so against smoking that I own no tobacco stocks. That being said, what a great investment! Ah the things we do for those we love… You’ll be kicking down the 10k door in no time.

    – Gremlin

    • Hi DG,

      Your wife isn’t alone with her feeling towards tobacco. I can understand not wanting to invest in that sector. For me, I’m more about the numbers and even at its current price the numbers still make sense for a buy. Keep on stacking those dividends elsewhere. Many great names to choose from.

    • Hi MSF,

      Nice to see you pulling the trigger on the major tobacco players. My MO is still quite small so I wouldn’t mind adding some more exposure here. I don’t see many taking advantage of BTI.

    • Hi passivecanadianincome,

      I agree with your sentiment. Clearly the move on cannabis is greater legality and acceptance. This should only increase the potential market size and help those companies that are in the space or invested.

    • Hi Doug,

      I wonder why more of our fellow bloggers haven’t pulled the trigger on BTI. The numbers look very compelling and that yield is a monster. Who knows?

    • Hi DI,

      Not a bad pick up for your portfolio. I still do not own any names in the energy sector though several do look good like, BP, TOT, CVX and XOM. All the majors basically 🙂

  5. I have been adding to my MO position consistently. The last time in December. MO is my second largest holding meanwhile. Despite the challenges in the tobacco industry, I consider MO being a high quality business. Good for us: it’s also trading at a significant discount. Hence a very good buy imo.
    Cheers

    • Hi Snugfortune,

      Well said. It’s hard to argue with their long term success despite never ending headwinds that always seem to be huge. I like how they are diversifying into other markets like vaping and cannabis.

    • Hi DD,

      I still like MO under $50. Not sure if we’ll see those lows again any time soon. I know we always want to buy at the bottom but that’s impossible to calculate.

    • Hi FF,

      I went in on MO in January. Now I hold it in my taxable and ROTH account. I’m still considering the stock in February among others. Many high yield names to choose from these days.

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