Recent Stock Purchase June 2018

With three weeks of June in the rear view mirror it is time, once again, to highlight my recent stock purchase. As market volatility remains the flavor of the day we are being presented with some pretty good buying opportunities if you can stomach these wild swings. Of course, if you have a long term horizon for your investment plan then over time these wild gyrations will be smoothed out and these daily ups and downs should not be much cause for concern. Keep investing, stay diversified and try not to get shaken out of the market when things really do dive. I always state that I make my monthly buys no matter what’s going on in the market or the world for that matter and this month is no exception. With that being said let’s take a look at my June stock buy. Sticking to my June 2018 Stock Considerations:

 

I have added to my ROTH account 19.4444 shares at $44.85 for a total investment of $872.08 in General Mills, Inc. (GIS). With this recent purchase my ROTH account holdings in GIS now totals 56.7259 shares with a market value of $2,565.15. I also hold 113.9594 shares of GIS in my taxable account with a market value of $5,153.24.

 

I realize that GIS is a very much out of favor stock with a lot of near and mid term headwinds facing it but I still believe that they will find their footing once again as continued acquisitions in the healthy, fresh and organic segments can potentially fuel future growth.

 

For some perspective, it wasn’t that long ago when there are so much negative news about the ABBV pipeline and Humira patents expiring and blah, blah, blah. Look at ABBV today. I tend to ignore all news and negative headlines for the most part. “Analysts” and “experts” dumped on GWW not long ago too when AMZN was eating its lunch. Now it’s at all time highs. They dumped on MCD and YUM as bad, unhealthy fast food was so yesterday and it was all about fresh, organic and healthy fare. Give me a break. They dumped on energy too. It was all about wind, solar, electric cars, batteries etc. Not yet. Now, staples are dumped on. Give me GIS, KHC, HRL, PG and the like for the long haul. GE is in the cross hairs too. Of course, there is no guarantee anything will rebound but I’ll diversify and take my chances and stick with dogs in the near to mid term. More often than not things work out for the better and if I get saddled with a true stinker, so what? Life isn’t all about success. There is failure too. My portfolio is diversified and continually providing me with a ever growing income stream. What’s not to like about that?

 

What do you think about my recent buy? Is GIS on your radar too? Please let me know below.

 

Disclosure: Long GIS, ABBV, GWW, MCD, YUM, KHC, HRL, PG

37 thoughts on “Recent Stock Purchase June 2018

    • Hi FV,

      If you are waiting for a time to pick up some GIS when sentiment has turned against it, looks like these are days to do so. There is a lot of negativity surrounding GIS and I can understand why as falling sales does not bode well for the company long term. That being said, falling stock prices created a juicy yield that still appears to be safe which is why I decided to nibble on some shares at this time.

  1. Your sentiments echo mine. Most of my purchases this year have been stocks at 52 week lows, the notable exception of ABBV that I add little bits on dips.

    • Hi DWC,

      It can be tough buying stocks when sentiment has turned negative and seemingly everyone is selling but that’s usually the best time to pick up some shares. We’ll see over time how this buy plays out.

    • Hi MDD,

      Seems like T is the flavor of the day with many of our fellow DGI peers buying or thinking of buying that stock. I went with GIS and know that it is very unpopular these days but feel that they can turn things around over the long haul especially with their recent acquisitions in the healthy, fresh and organic space over the last few years.

  2. Hi Keith, I have owned GIS for a number of years and continue to hold for the long term. I don’t have any great conviction to add on at this point, but I think they will figure it out and be a fine investment over the long term. Diversification is key as you indicate. You tend to have a knack for picking the low point in stocks, so maybe GIS will go up from here. Tom
    Tom @ Dividends Diversify recently posted…Faster than the BearMy Profile

    • Hi DD,

      I think I might be done adding to my GIS for now as it has grown to a nice size of my portfolio. I still believe that they will be able to turn things around over the long haul and realize that there are a lot of headwinds facing this company these days. Enjoying that nice yield in the meantime can’t hurt, especially since it still appears to be safe. Not sure what my batting average is regarding finding the lows for any stock I buy as I have bought enough shares “early” in my investing life. Of course, I do have a long term horizon which can help smooth out any near term volatility.

  3. Very nice pickup Divhut. I’ve watched them closely over the last few months, and it can’t ever hurt to pick up another great consumer staple company! That is a very solid yield as well. Enjoy and I’ll think of you in the morning when I’m eating some cereal 🙂

    Bert

    • Hi DD,

      People on my blog seem to be a lot more receptive to this recent GIS buy as opposed to the comments I’m reading on Seeking Alpha. I know GIS is very much disliked these days but the dividend still appears to be safe and that yield is a little too juicy to ignore. I think I might be done nibbling on the stock as it has already grown to a nice size in my portfolio.

    • Hi R2R,

      You said it best 🙂 though after reading some Seeking Alpha comments about my recent buy it seems like I made a terrible mistake putting that capital to work in GIS. I guess time will tell. Thank you for stopping by and commenting.

    • Hi Passivecanadianincome,

      I think I might be in the same position as you regarding GIS going forward. It’s already a nice size position in my portfolio and I’m thinking about hitting pause on new buys there for now. In the meantime, I’ll keep “stacking those dividends.”

  4. Hi DH,

    I’m a long time reader of your blog and I’ve been waiting for the day you give up on GE but I guess it won’t come anytime soon. I don’t have anything to say about GE that you haven’t know already but man I’m surprised you still haven’t change your mind. It’s almost like you’re in love with GE 🙂

    • Hi anonymous,

      Appreciate your continued readership. Thank you. Regarding GE, I’m definitely not in love with the stock as it has been such a poor performer as of late. That being said, it does take a lot for me to consider selling a stock. I’m not against selling as I have bought and sold many stocks over my investing life but since going the DGI route, I admit that for me to make a ‘sell’ decision will take a lot.

    • Hi DI,

      Thanks for that vote of confidence. Many really don’t like this buy (at least on Seeking Alpha) and see GIS as a very troubled company with little hope for a turnaround.

  5. Nice pick-up, I don’t know why their buyout of Blue Buffalo pet foods was not received well. But I see it as a positive for continued growth when you combine the new product with GIS distribution capabilities. As long as the market continues to discount I say buy buy buy 🙂
    Ken K recently posted…Recent Buy PRUMy Profile

    • Hi KK,

      Your comment about GIS is definitely not presenting a common sentiment about the company these days. I agree, with you and think that GIS is shifting more towards, fresh, healthy and organic offerings with their recent acquisitions over the last few years. I think most don’t like the BB pet food buy because it was perceived to be too expensive. Time will tell if GIS can turn it around. In the meantime, the dividend still appears to be safe and that juicy yield because of depressed prices is hard to ignore.

  6. I scooped up a box of Cheerios this week, but not the stock. I have been wanting to add more shares, but T ended up winning this week. I do like the pick up though! Still love the company. Also, I like how ABBV is dropping now because of “analysts” bringing up a Humira scare again. Old news.
    Money Hungry recently posted…Dividend Income May 2018My Profile

    • Hi MH,

      T has been a very popular pick as of late. I can understand you going that way instead of GIS. You got the point of my rant as negative news bombards us every single day about the market in general, individual stocks, political and the general world economy. We may be at DOW 50,000, unemployment at 0%, affordable housing for everyone, living wages for all, homelessness down to 0, N. Korea denuclearized, calm in the Middle East, Ebola gone, famine curbed, etc. etc. and I guarantee negative headlines will persist. So, why not nibble on a disliked stock 🙂

  7. DH –

    I agree. GIS is still going to be a major player in the food/consumer industry. I would say GIS and CAH are both/have been two out of flavor stocks lately. Thoughts on CAH? Congrats on adding more to your position!

    -Lanny

    • Hi DD,

      Sometimes I feel like I’m the only one going against the grain with this recent GIS pick up. It is really not liked these days, almost on par with GE. But hey, both will remain in my portfolio for now. As for CAH… interesting you mention it as I just picked some up and will post about it tomorrow. I still like it for now and think these depressed levels are presenting us some good buying opportunities.

  8. I think you made a solid purchase, although I’m a bit biased as I have GIS in my portfolio. I also tend to ignore the noise and what I do is simply contribute a minimum amount to my portfolio on a monthly basis.
    Dividend Portfolio recently posted…I’m BrokeMy Profile

    • Hi DP,

      If you read some of the comments on Seeking Alpha about my recent buy you’d think I just made the worst investing decision of my life. I know GIS has a lot of crap going against it but that’s why I’m comfortable nibbling a bit at these depressed levels. Too often we see solid companies go on sale and experience extreme negativity only to rebound over time. I know this is not guaranteed but I’m willing to risk it in my portfolio.

  9. I really like the company too. I have been leary about adding to my position though. If I am recalling correctly, they issued a press release suspending the stock buyback program for a couple of years and said they would be maintaining the current dividend. I don’t know if that was to imply that they wouldn’t be cutting the dividend or that they wouldn’t be raising the dividend for a couple of years. Despite that they have showed back up on my radar because the share price has gotten very cheap compared to my cost basis. Good buy DivHut!
    More Dividends recently posted…Recent Buys from DGI Bloggers – Week of 6/11/2018My Profile

    • Hi MD,

      I understand your hesitation about not wanting to add more to your GIS at this time. I may be done adding to this stock too as it is starting to become one of my larger positions. There are still many other stronger names in the staples space that deserve some attention too. Thank you for commenting.

    • Hi PIV,

      I know there is a lot to dislike about GIS these days but that’s exactly why I’m nibbling at this time. We’ll see if a real turnaround can be made with this company.

  10. Keith,

    I am a fan of the consumer staples stocks, and GIS is among the best values out there. It probably will have a few rough years ahead, but I still see a long and profitable future for them.

    – Gremlin

    • Hi DG,

      I share that exact sentiment. Seems like my post on Seeking Alpha generated a lot more negativity with my recent buy. As I stated, I’m willing to wait and I may be wrong with this buy, but, so what. That’s why I have a portfolio of stocks and not just one 🙂

  11. Haven’t seen any GIS buys in a while. As you know I also own them and will hold long term. But not sure if I could buy more right now. Seems like everything hit GIS all at once. But if history shows us anything, they have a tendency of overcoming the short term and should be successful again. Just a lot of other value in the market I have my eye on. One day I will add more to my GIS position.

    • Hi DD,

      I might be going against the grain with a GIS buy right now but I’m OK with it. It’s probably one of my last buys in the company as it’s already growing to a large part of my overall portfolio and there are many other staples and other sectors still on sale. As always, I appreciate your comment.

  12. I opened a position in GIS a few weeks back and like your purchase at these levels, and like you I couldn’t pass up that yield for a company that I think will weather the storm. I’ve got a 4.64% YoC, which I like, but as they are properly weighted in my portfolio now I probably won’t add more for awhile.

    • Hi DD,

      I’m with you. Of course, the general sentiment is that we’re crazy for buying shares of GIS at these levels. Time will tell. It’s never a popular idea to buy stock when it’s in trouble but that’s usually the best time to reap the highest returns.

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