After a rocky May it appears June will finish on strong footing. Of course, these days looking at any short term trading range is meaningless as we have witnessed extreme volatility the last several months. Up a few hundred points one day, down a few hundred the next. Where can we find stability? I’ll tell you… with our dividend growth portfolios. Wild market gyrations are no match for the diversified power of dividend paying stocks. Even with a cut or two the overall trend for passive income is up. This is why I continue to make at least one monthly purchase no matter what the financial markets are doing. It is that consistency that allows one to build up an ever increasing passive income stream over time. With that being said and sticking to my June stock considerations:
I have added to my ROTH account 17 shares at $67.30 for a total investment of $1,144.10 in AbbVie Inc. (ABBV). With this recent purchase my ROTH account holdings in ABBV now totals 61 shares with a market value of $4,270.00. I also hold 203 shares with a market value of $14,210.00 in my taxable account making ABBV one of my largest holdings overall. I continued to like ABBV at any price under $80 and after it’s dramatic tumble this week with the Allergan plc (AGN) acquisition it was time to pounce, even though ABBV is already a large portion of my portfolio. Sometimes these huge bio-techs need to shake things up to simply move their needle. Now with a large AGN pipeline in the mix ABBV can be well positioned for years to come.
What do you think about my recent buy? Are you looking at ABBV or other health stocks? Seems like the entire sector is falling out of favor these days. There are still quite a few high quality high yielding names out there. What are you buying? Please let me know below.
Disclosure: Long ABBV
I have to say I like it. I added on the drop also usually I’m out of money when these drops happen but not this time. I don’t think they will have the dividend growth for a few years but that’s okay they will still raise it and in a few years the dividend growth will return. General Mills also had a 5 percent drop on Wednesday so I added some also. Great week all in all.
Doug recently posted…O Dividend Increase
Hi Doug,
Nice to see you and a few others in the DGI space adding to ABBV after the big drop. Look how much it has recovered already. No doubt that decline was way overdone. Even with markets at the highs there are still some good individual choices out there.
Yes, I there myself also on ABBV at a price of $67. I think they will be fine eventually. There may be a bumpy road ahead, even a freeze is likely. So we need to sit on our hands the coming years. ?
Hi Dividendcompounder,
ABBV does have a lot of new debt now but I agree that long term they should be fine. I’ll be OK with a dividend freeze or small increase going forward. The yield is already very generous at current levels.
The biotech and healthcare sector could be in for a rocky 2020 due to elections. It’s going to be a hot topic for presidential candidates. This could put pressure on healthcare… although, CVS and ABBV are towards the top of my buy list.
Hi FF,
I go for quality companies selling at good rates. Of course, now that ABBV has increased its debt load it will be interesting to see how they handle it going forward. Elections don’t mean anything over the long haul. I remember reading several DGI bloggers selling their holdings or not making any buys prior to the 2016 election. Fear over an election makes no sense when investing. If you like a stock and the numbers look good then buy. Most DGI invest in companies that have been through every economic and political climate going back decades if not a century or more. One thing any good business can do is adapt.
I like ABBV at recent prices, Keith. It’s on my short term buy list. Even with the market at all-time highs, stocks like ABBV, PM and IBM look compelling to me. Tom
Tom @ Dividends Diversify recently posted…Philip Morris Dividend Stock Analysis
Hi DD,
The markets may be at all time highs but there are still some nuggets out there selling at good values and yields. ABBV grabbed a lot of attention with that acquisition and huge drop. Why not pick up some solid discounted shares?
I had a feeling you’d make another purchase of ABBV after that drop. Great to see you continuing with your plan.
JC recently posted…Recent Buy (2) – Roth IRA
Hi JC,
You know my plan. At least one buy every single month. Truth be told, I was hoping to add to another stock instead of ABBV, even though it was one of my June considerations but after seeing that sale price I went for it.
Nice job buying ABBV after the drop. I am in “wait and see” mode on adding to my position in ABBV. But then again, with the market really high right now I am in a “wait and see” mode on most stocks, lol. I am willing to be more patient for opportunities, especially as I am in the process of re-balancing my portfolio a bit. Thanks for sharing DH! 🙂
My Dividend Dynasty recently posted…Recent Sell – SRLP (Sprague Resources)
Hi MDD,
I can understand the “wait and see” approach but it doesn’t work for me. There is just no way to time a perfect buy. I would rather be in the game and “see” from the inside instead of the sidelines. The future, no matter how much we look at macro trends, balance sheets, income statements, etc. is one big guess, especially short term. Who could have known ABBV would react like it did after the announcement?
DHut,
I think your’e sitting on a goldmine! Ludicrous overreaction by the market, which works for you.
– Gremlin
Hi DG,
I always say time will tell if this was a good buy or not. After a huge overreaction like we saw I think the odds are in my favor.
Hut –
Nice work on buying stock, period. I haven’t bought for over 4 weeks. WOOF.
-Lanny
Hi DD,
Keep saving that stash. Your day will come for that next buy. Seeing that ABBV dip was too hard to ignore.
DH,
I added ABBV also around $71 in last 2 weeks,missed adding at 65.
Hi desidividend,
Love it. You still got in at a good price. In my posts I always state that I like ABBV under $80. We’ll see how the company deals with its new debt load going forward. Thanks for sharing.