Recent Stock Purchase – June 2015

New month, new buys. Can you believe the calendar is already showing June? It literally seems just like yesterday we were all writing our 2015 goals and looking forward to the new year, and now almost half is gone. I guess this is a lesson that demonstrates how fleeting time is and whether you are employed, self-employed, retired or somewhere along the spectrum in between these states, always make the most of your time… The one commodity that we freely squander.

 

Back to the point of this post. As I recently wrote in my June stock considerations I had mentioned that, surprise, surprise, the Canadian bank stocks were at the top of my June buy list. I had essentially narrowed those buys between The Bank of Nova Scotia (BNS) and The Toronto-Dominion Bank (TD). As many of you already know I still favor the Canadian banks a lot for several reasons, not least of which is a very robust and long dividend history. Of course, with the market at all time highs and many consumer staples trading at sky high valuations we often are left with few choices in terms of fresh capital deployment. Where does that leave most investors… typically in energy and financial sectors. I know I am speaking in generalizations as a handful of consumer, industrial and other sectors offer a few hidden gems but overall I see the most value in energy and financial names which includes, banks, insurance, REITs and asset managers. With that being said, let’s review my recent buy.

 

I have added to my ROTH account 18.2026 shares at $43.84 for a total investment of $798.00 in The Toronto-Dominion Bank (TD). With this recent purchase my ROTH account holdings in TD now totals 104.9213 shares for a value of $4,584.01.

 

Baby DivHut Portfolio Update

On a side note, I officially made my first buys for baby DivHut’s long term dividend growth portfolio too. Born in March, a custodial account opened in May and his first buys come in June. I realize that the markets are at all time highs and that reasonably priced stocks are hard to come by but I do believe that “time in the market is better than timing the market” and while a downturn will occur one day, it may still be long down the proverbial road. After all, baby DivHut isn’t getting any younger.

 

With that being said I have added to baby DivHut’s custodial account account 8.0116 shares at $99.61 for a total investment of $798.00 in Johnson & Johnson (JNJ). This is a new purchase.

 

I also have added to baby DivHut’s custodial account account 13.1629 shares at $60.63 for a total investment of $798.00 in Emerson Electric Co. (EMR). This is a new purchase.

 

What do you think about my recent Canadian bank buy as well as baby DivHut’s first stock purchases? I welcome any suggestions for future buys for baby DivHut’s portfolio. Are you buying any of the names mentioned? Please let me know below.

 

Disclosure: Long TD, BNS, JNJ, EMR

36 thoughts on “Recent Stock Purchase – June 2015

    • Hi R2R,

      Glad you you like these new buys. I know it may seem old that I’m buying the Canadian banks over and over but the reality is that I see them as a great long term value with relatively high current yields and I’m afforded the opportunity to average down on my buy price.

      Regarding JNJ, while I love my parents very much and had a great upbringing, I sure do wish they had the same foresight for myself as I do for baby DivHut. Imagine if every parent put in a modest amount of money at birth for each of their children and just let it compound for two decades. Everyone would be in a lot better financial shape to say the least. As always, I appreciate your comment.

    • Hi DM,

      Don’t we all wish we could have a dividend growth portfolio started for us at birth. The reality is that most don’t get started till much later in life and even the ones with true foresight to invest in this manner only start in their 20s. I hope by the time baby DivHut is 20 his portfolio will already be generating a nice monthly income.

      It’s a pleasure to use JNJ products knowing that dividends will be rolling in soon. Thank you for stopping by and commenting.

    • I would have been happy to have been a shareholder of JNJ a decade ago, let alone as a baby. Baby DivHut sure is a lucky kid!

      Good choice with TD. I can tell you that no one seems to like or trust the American banks anymore. The Canadian banking industry seems to be much better run than the American banking industry and yet gets no mainstream love. Oh well. Just keep watch over the Canadian housing bubble as they keep saying it’s supposed to pop. But honestly, as long as the banks you invest in are well prepared and ready to handle a crisis, macroeconomics matter so little that it’s amazing that dividend investors even talk about them.

      Best to you and Baby DivHut.

      Sincerely,
      ARB–Angry Retail Banker
      ARB recently posted…Just Got A Promotion Today!My Profile

      • Hi ARB,

        I think anyone of us would have been happy holding JNJ a decade ago or even longer for that matter. We hope to give baby DivHut a good start to his financial future and I look forward to teaching him about stocks, investments and the value of dividends and growth over time. Of course, by the time he is a young adult I would hope the concept of passive income will be very clear to him.

        Regarding the Canadian banks, I couldn’t agree with you more regarding the relatively little love given to them by many mainstream U.S. investors. I think every Canadian born individual knows the extreme value and solid nature of their banking system. I have heard about the rumblings regarding the potential Canadian housing bubble and when you think about it the Canadian banks had a lot more to deal with in more recent time with a currency that dropped dramatically as well as lower oil prices which no doubt contributed to the Canadian banks faltering a bit since last summer. In any case, I’ll keep watching TD, BNS and RY with a new eye towards BMO. Thank you for your well wishes and continued support.

  1. Ive been noticing the same thing that financials are offering better values and my purchases have reflected that as I’ve been adding REITs. Would love to see the consumer staples get cheaper but that might be awhile. TD looks interesting and I might add some to my portfolio to get some more CDN bank exposure. I only own BNS right now. Like the purchases you’ve made on behalf of baby divhut.
    JC recently posted…Recent BuyMy Profile

    • Hi JC,

      I think everyone would love to see consumer staples getting cheaper but I think we may have to wait a while for that to happen. Believe me, I want to load up on UL, CL, CLX, KMB, PG, DEO and the like but not at current valuations. Where does that leave us? With energy and financial names which is why you are noticing a lot of buys in those sectors. As I mentioned in the article, there are some names out there that are decent buys in other sectors but the reality is that many are buying into the REITs and other financial names and energy instead. Follow the value and safe yield. Right? I’m still considering adding BMO to my Canadian bank holdings. For now I’m focusing on my big three TD, BNS and RY.

      It will be interesting to see how the baby DivHut portfolio behaves over the years. This will be a real world example of what can be achieved using a DGI strategy from birth. As always, I thank you for stopping by and sharing your thoughts.

  2. “After all, baby DivHut isn’t getting any younger.” Yes, I did laugh out loud when I read that.

    I like your buys even though the only one we hold is JNJ. JNJ and PEP are the only holdings my wife and I have that are 4% of the total portfolio, and I think JNJ is a good valuation here. Especially for someone with their whole life ahead of them.

    For Baby DivHut, you are probably already thinking similar thoughts, but I like DIS, HSY, NKE, and SBUX. Unfortunately, none of them are real bargains today. One that may be is UNP. I just added Union Pacific after the price fell about 20% off the highs. The dividend is a solid 2.2%, but even better it has almost doubled in the last 3 years. Imagine having a stock that doubles the dividend every 3 years for say eight or nine decades. Could make life a whole lot easier.
    Best wishes,
    Keith

    • Hi KeithX,

      Glad I could give you a laugh. Baby DivHut is on his dividend growth journey. I chuckle with my wife when I think that he’ll have a tax bill for 2015. He can’t even roll over and already owes taxes (which we’ll pay of course).

      Thank you for your suggestions regarding his portfolio. From the names you mention I like DIS and SBUX the best but as you know there really are a lot of great names out there to invest in for the long term. I also like YUM for it’s Asian growth prospects over the coming years. We’ll see how things pan out over the coming months as we build out his portfolio. As you know it’s all about dividend growth and when you have the luxury of time to allow for compounding you can see some serious results. If we can make his financial life a little easier we’ll be that much happier for him. Thank you for stopping by and sharing your suggestions.

  3. Great that you are starting DivH Jr so young! JNJ is a good pick (strike that, great pick) but if I was investing with a 50+ year window, I’d build a portfolio that was Insurance heavy. The div growth tends to be slower but the combined growth of distributions and book value accumulation can be very strong for an insurer with good underwriting discipline. Upon FIRE, an insurance heavy portfolio can be converted to an income centric one by writing covered calls. If called, cash is free to redeploy to div growers and (my favorite right now) municipal bond closed end funds.
    Financial Velociraptor recently posted…Write Puts on Big Cheap Tech – Part 2 of 5My Profile

    • Hi FV,

      Thanks for your input regarding portfolio picks for baby DivHut. Any specific insurance names you like? I have AFL and CB in my portfolio and while I plan to accumulate more in those two names over time I do not expect to write covered calls on those positions. I understand that extra income can be generated with this tactic but I’d hate for my shares to be called away especially if I was dependent on that dividend income. I have invested in closed end funds in the past but I think I’d like his long term portfolio to be filled with more simple investments. Thank you for stopping by and commenting.

  4. Nice moves for papa and baby DH! I continue to be a big fan of financials and healthcare at today’s valuations. I like the idea of finding a few names that stay discounted for a good while like the Canadian banks and building up large positions until something else comes around, then rinse and repeat. You’re doing a great job of it!
    Ryan recently posted…Recent Buy: May 28th, 2015My Profile

    • Hi Ryan,

      Thank you for the nice words. It seems that we are kind of painted into a corner in terms of where our next buys will be as only a handful of sectors, and stocks for that matter, are providing us with decent buying opportunities. In any case, I’ll continue to buy new positions in holdings I already have for now. I know there are other names out there that look interesting but for now I feel that my portfolio is large enough and will look to simply increase my current holdings. As always, I appreciate your comments and input.

  5. New buys are always good. I am considering buying Legal and General shares this month but am waiting to see if the share price will dip a little to make them more affordable. Baby Divhut will never have to work at this rate. I wish my parents had bought me high yield dividend stocks when I was a baby. Speaking of which my little one is due soon but I think I will just save cash initially in a Junior tax free account.
    Laura recently posted…My RateSetter Peer to Peer lending Monthly Summary for May 2015My Profile

    • Hi Laura,

      Thanks for sharing your potential buy with Legal and General. Quite honestly it’s a company that I do not know about which is why it’s great reading blogs from other countries as you get exposed to potential new buys you might not have ever considered.

      Regarding baby DivHut, as I commented elsewhere, if every parent simply made a modest contribution for their child born in a few dividend growth stocks we’d all be better off financially. Like you, I wish my parents had the foresight to do something like this for me. It looks like you also have the right idea for your little one. I guess a kid born to a dividend growth investor and or saver is a blessing for the child. Thank you very much for stopping by and commenting.

    • Hi Adam,

      Perhaps others will read this blog and take heed. If nothing else, I find this to be an interesting real world experience as well to see what a dividend growth portfolio can look like and potentially do for a newborn till adulthood. In about twenty years we’ll have real proof, not theory, that dividend growth investing works and is best when started at birth. As always, I appreciate your comment.

  6. DivHut,

    Great pickup on TD. We put a small limit order in yesterday that missed by a nickel. Live and learn I guess. Congrats on the baby DH purchases! You can’t go wrong over the long haul with EMR and JNJ. Looking forward to future updates on both of your portfolios. Thank you for sharing.

    All the best.

    FD
    Forward Dividends recently posted…May 2015 Passive IncomeMy Profile

    • Hi FD,

      We are all guilty of quibbling over a dollar or two every now and then and sometimes it comes down to just five cents too. Price really matters if we are serious day traders holding stocks for hours or minutes even but when investing for ten, twenty or even thirty years down the road the dollar or two extra that’s paid really doesn’t matter.

      Regarding baby DivHut we are both excited to see how his portfolio and passive income stream will pan out over the next twenty years. If only my parents did this for me. Oh well… better to wake up late than never at all. Thank you for stopping by and commenting.

  7. DH,

    Great job! I like the Canadian banks and looks like others are buying as well. Nice work adding to the little one’s portfolio, wish I had received stock instead of teenage mutant ninja turtle toys! Would be worth a few bucks I’d say in today’s dollars : ) Also, like how you’re even keeled with the 798/per purchase there. Great additions to the div income and congrats again.

    -Lanny
    Dividend Diplomats recently posted…Lanny’s May Dividend IncomeMy Profile

    • Hi DD,

      The Canadian banks have been steadily popular over the last year I’d have to say with many of the bloggers buying some or all of TD, BNS, RY, BMO or CM. They continue to rank high for the rest of June as I may make another buy in the same space. I’m sure we’ll be buying plenty of toys for our little one but I hope that when birthdays come around or other milestones and he receives a cash gift he’ll want to invest it rather than spend it. I’d like to teach him to spend the interest/dividends and not the principal. Hopefully he’ll understand that the more he invests the bigger the dividend payments become. Regarding the $798 buy my order is for $800 but there is a $2 commission. Thank you for your continued support. It’s much appreciated.

  8. Good buy.

    I own the all 5 major Canadian Banks (CM, BNS, RY, BMO, TD). They offer North America and international exposure to your porfolfio.

    • Hi StM,

      That’s awesome. I have seen a few other dividend bloggers that own all five as well. I think it’s a serious testament to the stability and reliable dividend payments that these companies provide. I still have BMO and CM on my watch list as my positions grow in the three I already own and will want added diversification. Thank you for sharing your holdings.

    • Hi Ashley,

      Welcome to DivHut! I’m happy you are enjoying my posts as well as follow along my real world dividend portfolios. I use Sharebuilder for my long term dividend growth portfolios which allows me to buy whole shares, if I specify a particular number of shares I want to buy, or fractional shares, if I specify a dollar amount I want to invest. With my recent purchase, I specified a dollar amount, $800 to be exact, with a $2 commission which is why my total dollar amount invested was $798 and the number of shares purchased was fractional. Hope this answers your question. Please feel free to comment or ask anything else again. Thank you for stopping by.

  9. DivHut,
    Great buys as usual. I love those Canadian banks, but I find it awesome how your giving your son a head start. JNJ and EMR may seem small now, but when he reaches 18 I am sure he will think those small moves are huge!
    – Gremlin

    • Hi DG,

      The Canadian banks continue to remain popular among the dividend bloggers as many portfolios have one, two or sometimes all five of the large banks. Regarding baby DivHut we plan to continue making purchases for him in the near term exclusively in dividend growth stocks and simply reinvest all dividends automatically. If only every parent would contribute some modest amount for their own kids as well. I think we’d have many more young adults in a lot better financial shape. Thank you for stopping by and your continued support.

    • Hi DfS,

      Glad you like my current buys. Bit by bit we’re all building up our passive income portfolios. The plan for baby DivHut is to continue to invest whatever we can and reinvest all dividends automatically. It will be very interesting to see where that account will be in a couple decades and see how much passive income it generates. If nothing else it can supplement his cost of living. Thank you for stopping by and commenting.

    • Hi DG,

      Thank you for the kind words and support. Being born to a dividend growth investor has its perks I guess and I hope to pass on these investment concepts to baby DivHut as he gets older. It will interesting for myself as well to see what a real world dividend growth portfolio can look like from birth to adulthood. As always, I appreciate your comment.

  10. DH,

    Just wanted to thank you for taking the time to comment on my blog, especially with words of encouragement.

    Also, congratulations on Baby DivHut!

    FM

    • Hi FIM,

      It’s my pleasure to leave comments on FI/DGI blogs. I always love finding new blogs and reading about other real world portfolios and journeys towards financial independence. Thank you for the kind words regarding baby DivHut. He has been a blessing for us. Thank you for stopping by and commenting.

  11. DH,

    You know I’m Long TD as it’s a great company. My YOC on the shares is over 8% from where I picked them up during the financial crisis. Gotta be happy with that.

    I also hold JNJ as a staple in my portfolio. The sentiment shift regarding JNJ over the past few years has been significant. I remember during the recall issues just a few years back while the company stagnated in the $60s that commenters seemed to hate the company.

    Now that the company is up around $40s, it’s a market darling again. Funny how that works. I held fast through the recall issues which I viewed as temporary and have been benefiting from rising dividends and a share price that has followed suit (though, if I was planning to add more shares I wouldn’t be a fan of this).

    Take care,
    Ryan

    • Hi GRB,

      Awesome results with TD. This is why we invest in solid dividend growers. That yield on cost is a definite ‘sauce sauce’ to this investing style. Congrats. I remember when everyone was poo-pooing on JNJ with those recall issues. I swear, if we could go back in time and read the stories or watch the talking heads you’d think it was the end of JNJ. Personally, I can’t stand all that media sensationalism. It’s not about reporting news at all. It’s all about creating hype, drama and asking the ‘what if’ game instead of just reporting what happened. Their job is to gain viewers and sell ads not report. But I digress 🙂 Hold strong with any stock you have through thick and thin and always ask if your investment is in a broken stock or a broken company. If it’s a broken stock hold and buy more… if a broken company consider a sale. Thank you for stopping by and commenting.

Leave a Comment

CommentLuv badge