Recent Stock Purchase March 2018

It’s been about three weeks since my last purchase was made and sticking to my rules of consistent monthly buying I felt it was time, once again, to pull the trigger and add to my long term dividend growth portfolio. After all, the market has been giving us no clear indication of direction as we are witnessing volatile pops and drops in the major averages every few days and essentially remaining flat for the last few weeks. Of course, these day to day fluctuations do not concern me as I have a very long term outlook for all my portfolios. I’ll admit, it can be difficult at times to “invest with blinders on” and just stay on my path but after a decade or so of investing in this manner I have grown accustom to simply “staying the course” and not let any of the financial sensationalism we are bombarded with on a day to say basis affect my strategy. With that being said let’s take a look at my March buys. Sticking to my March stock considerations:

 

I have added to my taxable account 18.2825 shares at $43.76 for a total investment of $800.04 in The Southern Company (SO). With this recent purchase my taxable account holdings in SO now totals 148.4285 shares with a market value of $6,499.68.

 

I have added to my taxable account 11.6862 shares at $68.46 for a total investment of $800.04 in Dominion Energy, Inc. (D). With this recent purchase my taxable account holdings in D now totals 80.6919 shares with a market value of $5,530.62.

 

As we all know the utilities along with REITs are performing quite poorly so far in 2018. No doubt, interest rate hike fears have gripped both sectors in earnest which is providing us with some pretty good buying opportunities for those willing to hold on for the long haul. In the meantime, the dividends still appear to be quite safe based on current cash flow and while I’ll admit we may not have seen the bottom yet for the sector I’m comfortable nibbling on positions and not try to convince myself that I can successfully time when the exact bottom will hit.

 

What do you think about my recent buys? Are you looking at the utilities as well? Please let me know below.

 

Disclosure: Long SO, D

40 thoughts on “Recent Stock Purchase March 2018

    • Hi MDD,

      I tend to make my buys via nibbles. No one can ever know the true bottom for any stock but by making consistent nibbles I am able to create one large bite over time. For now, SO and D look attractive to me based on current numbers. Can they both drift lower? Sure. But I’m not in the crystal ball game. I’m in the increasing my dividend income game and I think we forget that sometimes as we try and find the “perfect” time to buy our stocks. As always, I appreciate your comment.

    • Hi FV,

      Well said. I think many overlook D’s exposure to the natural gas market. It’s an interesting way to play the space via a utility holding. Thank you for sharing your thoughts.

    • Hi DI,

      That’s the plan. My dividend machine is ever hungry and I’ll continue to feed it every single month. Seems like many of our DGI peers are liking utilities these days. Of course, it’s for good reason as yields have really come up as of late as stock prices have fallen. Keep an eye out in the sector. Thank you for stopping by and commenting.

    • Hi dividendgeek,

      We are seeing good opportunities in many different sectors these days. Utilities and REITs continue to remain depressed. Many staples are trading at lower levels and tech has recently been trending downward. No shortage of stocks to choose from, that’s for sure. Thank you for commenting.

  1. I think they are both solid buys Keith. I have added to D (twice) and SO once this year. D as recently as last Friday and now I see you picked it up at a lower price this week. I picked up SO at roughly the same price as you a few weeks back during the correction.

    There could be more weakness in the utility sector as interest rates move higher, but at some point the dividend will put a floor under these prices. We should be happy a few years out with these stocks as we collect the dividends in the interim. Thanks for the update. Tom
    Tom @ Dividends Diversify recently posted…A Teaching MomentMy Profile

    • Hi DD,

      The reality about these two companies is that nothing changed fundamentally for their business. The lower prices we are seeing is almost exclusively the result of interest rate hike fears. I’m not sure why there is so much panic in the space as both D and SO have operated in higher interest rate environments in the past and have fared OK. In the meantime, all we can do is take advantage of these better prices, values and yields and simply hold on while we get through these near term headwinds. Thank you for stopping by and commenting.

    • Hi DD,

      Still not too late to keep buying into the utility space. Looks like they will remain depressed for a while longer with interest rate hike fears dominating the headlines for the foreseeable future. I know many are liking the D and SO pick up but I wonder why more aren’t liking the REITs, especially the health REITs like VTR, WELL, LTC and more that have also been hammered. As always, I appreciate your comment.

    • Hi MH,

      Saving cash for a trip sounds like a worthwhile endeavor to me. You are talking to a guy that loves to travel and seeing and exploring new and old places alike are right up my alley. Looks like D has the seal of approval from most in our DGI community. Take advantage of those buys when you can. Thank you for stopping by and commenting.

  2. Nice additions DH. I have been thinking about adding to my position in SO as well. Much like you stated I don’t think we are at a bottom yet so I have decided to wait for now but I could easily see a purchase in the near future. Purchase on the way down and enjoy the wave on the way up. Thanks for sharing DH!
    More Dividends recently posted…Top 5 Podcast – 2018My Profile

    • Hi MD,

      Finding the bottom can be very tricky and while I think the utilities still face a lot of near and mid term headwinds I nevertheless decided to nibble at current levels. Seeing D and SO trading at these prices and yields was too hard for me to ignore. Is this the bottom? Will interest rate hike fears drive these stocks and sector even lower? It’s anyone’s guess. All I can do is go with the information I have today. As always, I appreciate your comment.

    • Hi Passivecanadianincome,

      No doubt we are seeing a lot more opportunities these days when compared to just a few months ago. Hey, I’ll take it and continue to make my monthly buys as always. After all, the best time to buy is when others are selling. I know it can be a challenge when the world is seemingly falling apart but things usually work out given enough time. Thank you for stopping by and sharing your thoughts.

  3. I like both of these buys. Added to them myself once or twice this year so far. Utilities are getting hit hard now so good time to buy. Also, what do you think of GIS lately? Lowest I have seen them go since about 2013. Potential buying opportunity if they can overcome a few of their issues.

    • Hi DD,

      With the extra volatility in the market we are getting some good opportunities to pick up some out of favor stocks at much higher yields. I’ll continue to look at the utilities in April as well as some staples like GIS. I plan to hold on to all my GIS and may even add more. Hard to ignore a 4%+ yield on that stock with a modest payout ratio and much lower forward PE. If you can stomach the near term rough seas I think you can experience smoother sailing longer term. Thank you for commenting.

    • Hi vivivanne,

      I think we are all loving the higher yields many of these stocks are offering us these days. I have been reading many D buys as of late along with SO and GIS too. I guess that’s the silver lining to a falling stock price… higher yields. As always, I appreciate your comment.

    • Hi DP,

      Thanks for that vote of confidence with my recent purchase. SO has been in my portfolio since I went the DGI route about ten years ago and seeing it at these depressed levels is too hard to ignore. Looks like the utilities might be good buys going into next month as well. Seems like interest rate hike fears are really dragging many stocks and sectors down. Thank you for commenting.

    • Hi Willem,

      Continue growing that dividend machine is the name of the game. Happy to be a fellow shareholder with you in SO and GIS. No doubt, both companies are facing some serious near near term headwinds but I still like them long term and will continue to hold and nibble if prices remain depressed. Thank you for stopping by and commenting.

  4. Excellent Buys, I have recently added D as well (yet to post though) I am also looking to add CVS KHC D and XOM. Great stuff DH, I have been adding Utilities and REITs myself lately as well since they are taking the beating due to rising interest rates.

    Good Luck,
    TDK.

    • Hi TDK,

      Seems like most of us are buying the same names as it has become too hard to ignore the bloodbath in the utilities, REITs and some staples too. We are seeing much better prices, values and yields in some traditionally solid long term dividend payers. Why not stock up? Thank you for sharing your thoughts.

    • Hi timeinthemarket,

      Indeed. It’s all about consistent buying no matter what’s going on in the world, markets, etc. I’m no market timer and in the near term who knows what will happen. I’ll take my chances buying for the long haul 🙂 Thank you for stopping by and commenting.

  5. DHut,

    I like both your moves, and am long D (I would like to add SO in the future). You are right, utilities and REITs have been hammered, and it appears a lot of people are going cash in anticipation of a drop or going into treasuries. Fine with me, nice to get great values on great companies that will be around doing their thing for a long time.

    – Gremlin
    Dividend Gremlin recently posted…Recent Buy, March 2018My Profile

    • Hi DG,

      Fine with me as well. The best times to buy are when others are selling and certain stocks and sectors are totally out of favor. Seeing these juicy yields in the utility space and REITs just makes it too tempting to ignore. Every stock and sector experiences an ebb and flow. These days, it’s the utilities, REITs and some staples too. As always, I appreciate your comment.

    • Hi BM,

      I like to buy under performing stocks/sectors as it generally provides us with cheaper share prices, higher yields and better value for long term holders. Seeing some of these juicy yields in the utility sector, among other sectors too, seems too hard to ignore. As always, I appreciate your comment.

    • Hi DD,

      We all tend to gravitate to similar stocks and sectors as they fall out of favor. It’s amazing to see how many high quality stocks have gone down the tubes in 2018 which simply affords us better buying opportunities. Happy to see you pick some D up too!

    • Hi DP,

      Seems like many in the DGI community are liking the utility stocks these days. Definitely, a high yield out of favor sector that may not be sexy but is very predictable. Thank you for commenting.

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