Finding relative bargains in the stock market used to be a real challenge in months past as nearly every stock and asset class was deemed overvalued by historical measures. Sure, certain sectors presented better values than others as financial stocks, including many bank and insurance stocks, presented relative bargains. Even some energy names popped up as dividend income investors sought out relatively high yields and low PE names. However, with the recent market turmoil it seems that bargains are being found in other sectors as well. Names such as DE and MAT have become quite popular along with UTX as many dividend bloggers have been adding or initiating positions in those companies, industries and sectors. The real standouts have been the names in the energy sector as oil and other commodities seem to be falling into the abyss. Names that are falling along with them include, BP, TOT, XOM, CVX, SDRL, ESV and of course many more.
In my October Stock Considerations post I started looking at a few closed end funds that were primarily focused on stable public utilities in the oil and gas sector, as well as electric, water and telecom industries. While all invested in boring stable sectors, their yield offering was quite juicy as DNP Select Income Fund Inc. (DNP) offered a 6.2% yield and Reaves Utility Income Fund (UTG) offered a 6.3% yield to start. While not traditional dividend growers you were being offered a great starting yield which could potentially juice initial returns.
Of course, Mr. Market also has a way of goading your investment decision process by giving you opportunities to average down on newly initiated stock positions in your portfolio. Such was the case this month as several of my new holdings all incurred losses of about 8% in one month and as a result I have opted to average down those positions instead of initiating new ones.
Sticking to my October stock considerations list:
I have added to my ROTH account 16.4711 shares at $48.33 for a total investment of $800.00 in The Toronto-Dominion Bank (TD).
I have added to my ROTH account 13.0442 shares at $61.33 for a total investment of $800.00 in The Bank of Nova Scotia (BNS).
What do you think about my recent stock purchases? Please let me know below.
Dosclosure: Long TD, BNS