Recent Stock Purchase October 2017

With four weeks of October under our collective belts it was getting time for me to pull the trigger on my monthly dividend stock buy. As I always say, there is never a perfect time to buy. You just have to look at your portfolio, see what’s missing or needs to be bulked up, look for good relative value and a safe yield and just go for it. Too often we try to “out think” the market as if we, or anyone else for that matter, has a clue as to what will happen in the near term. I’m perfectly content making my monthly buys knowing full well we’ll see the market continue to rise for many more years or fall dramatically within days. As long as my passive income keeps rising on an annual basis it does not matter to me. With that being said:

 

I have added to my taxable account 26.5723 shares at $30.11 for a total investment of $800.09 in Hormel Foods Corporation (HRL). With this recent purchase my taxable account holdings in HRL now totals 86.5618 shares with a market value of $2,629.75. I also hold 9.0 shares of HRL in my ROTH account with a market value of $273.33.

 

Of course, this stock purchase shouldn’t really be a surprise to most as it has been a very popular name as of late. The shares continue to look weak driving up HRL’s yield to historically high levels and there still appears to be sufficient cash flow to cover the dividend. In my book, that’s a buy. While HRL has been an active name among our dividend income community, I cannot help but think of several other names that continue to look attractive as this market continues its melt up. Names like Cardinal Health, Inc. (CAH), General Mills, Inc. (GIS), General Electric Company (GE) and HCP, Inc. (HCP) among others. Clearly, there are many names being left behind this rally.

 

What do you think about my recent buy? Have you been buying in October as well? Please let me know below.

 

Disclosure: Long HRL, CAH, GIS, GE, HCP

36 thoughts on “Recent Stock Purchase October 2017

  1. Always a big fan of HRL, especially at these levels. Funny you mention all those stocks. Every single stock on this post is in my portfolio. And I could easily average down on every single one at these levels. Just need the capital to do so first. But at least I am collecting and DRIPing dividends in the mean while at these lower prices. Thanks for sharing.

    • Hi DD,

      When fresh capital is not available you always have the benefits of DRIPing. Just one of the reasons that makes dividend growth investing so worthwhile. HRL definitely has its share of fans these days. It’s looking very attractive with a price point around $30 and a yield over 2%. I’ll continue to nibble on that stock if it remains at current levels. Thank you for sharing your thoughts.

    • Hi John,

      Good for you! Happy to be a fellow shareholder with you in a stock that has been a very solid long term producer. I’m continuing to watch HRL at current levels and may buy more in November. As always, I appreciate your comment.

  2. Hey DH,

    nice addition!! – I’ll take a closer look at Hormel once more…i don’t own a lot of consumer stocks despite VFC and PEP, so Hormel would fit in nicely.

    In October i was pretty busy shopping stocks:-)…it was PepsiCo and Welltower (i posted this purchase on my blog) and a new post is on the way – i added 55 shares to my position of Royal Dutch Shell.
    Despite from that i like AT&T at these levels and Realty Income. Maybe i pull the trigger one last time before november…

    Cheers,
    DividendSolutions

    • Hi DS,

      HRL is one of the solid long term consumer staple plays that exists. Of course, it’s no without its share of near term headwinds but I think they will be able to adapt and evolve to the changing consumer tastes. Looks like you have been quite busy with many solid buys yourself. I like the PEP pick up and also HCN. The health REITs have been looking pretty weak in recent months and seems to be good long term bets. Thank you for sharing some of your dividend stock action.

    • Hi singledadmoney,

      I usually build off my current positions, especially if I can average down. It’s rare that I add a new company to my portfolio. For now, HRL still looks attractive to me which is where I’ll continue to look. Thank you for stopping by and commenting.

  3. HRL kind of fell off my radar recently, but seeing it down at $30 sure does look interesting. I’ve been helping them out by purchasing their Hormel Natural Choice snacks (meat, cheese and dark chocolate covered fruit/nuts) and I have to say they’re a pretty damn good quick snack. I just might be joining you as a HRL owner next week.

    • Hi JC,

      HRL has been on the minds of many among our DGI community. It’s not really loved these days but I think they can continue their turnaround story over the long haul. They are making the right moves by going towards “fresh” and “natural” which is what many consumers want these days. Hope to see you as a fellow shareholder one of these days. Thank you for commenting.

    • Hi MDD,

      It was a good price to buy but I don’t split hairs over a dollar or two more or less. For me, it’s about finding good value, a sustainable dividend that has room to grow and an attractive current yield. That’s why I decided to pick up some HRL. I’m still liking it in November even though it’s a drop higher. It’s a solid name that’s definitely unloved. Thank you for commenting.

    • Hi dividendgeek,

      There’s a lot of uncertainty with GE these days but I think it’s looking compelling no matter what happens to that dividend. If GE goes back to the teens this month I think we’ll be reading many “Buy” posts among our DGI community in that stock. Thank you for sharing your thoughts.

    • Hi ED,

      CAH still looks interesting but I felt more comfortable going with a staple stock instead. I’m watching CAH in November too but it’s not my top pick for the month. For now, HRL and GIS look interesting to me and I’ll continue to like HRL with a 2%+ yield. As always, I appreciate your comment.

    • Hi DG,

      Never looked at SON before. That’s a name you don’t come across much in the DGI community. For now, with HRL yielding over 2% I’ll continue to buy and consider going forward. There’s a lot to like at current levels. Thank you for stopping by and commenting.

    • Hi DD,

      You said it. What’s not to like about a growing dividend, higher current yield, better value and a good price? With HRL at a 2%+ yield I’ll continue to nibble. As always, I appreciate your comment.

    • Hi DS,

      Glad you like this recent pick up. Seems like many are going with HRL at current levels. I’ll continue to like it with a yield of 2% or more. That’s my magic number. The dividend is still quite safe with room for growth which is why HRL continues to remain popular. Thank you for stopping by and commenting.

    • Hi Passivecanadianincome,

      That’s the plan. As long as that yield is over 2% and I can average down my cost HRL will be a top pick of mine each month. I don’t follow CVS nor Walgreens so I could not give you a worthwhile opinion though I have been reading about some CVS buys among our DGI community. I don’t care for the retail sector all that much even though those stocks you mentioned could be considered health stocks to an extent. As always, I appreciate your comment.

  4. Hi DH

    I like the purchase of HRL, I personally own some shares too. Unfortunately I’m down 20% on it. I’m considering buying more soon, but we’ll see.

    This month I’ve made a few purchases, including SNA and MIXT!

    -CD

    • Hi CD,

      Thanks for sharing some of your picks ups. I always like to average down on positions in my portfolio that I plan to hold long term. HRL definitely fits that bill 🙂 Keep “Collecting Dividends!”

    • Hi DI,

      You and I are not alone in adding this solid dividend payer. Always happy to be in good company. Buy when others are selling, right? Thank you for stopping by and commenting.

  5. Well, I’m a fan of HRL. It was one of the last stocks I added to my portfolio. The company is not just popular in the DGI community generally, it’s also quite a common name recently as many investors are either establishing new position in the company or adding to their existing portfolio. In any case, HRL has a very strong dividend history and an impressive economic moat, and I think it’s a worthy investment for the long term.
    Dividend Portfolio recently posted…Introducing Inspirational Quotes Of The MonthMy Profile

    • Hi DP,

      Actually, HRL is pretty popular as of late as many in the DGI community have bought or are considering buying this aristocrat. The dividend is still quite safe and the growth rate remains high. As long as the yield continues to track north of 2% I will be considering this name. As always, I appreciate your comment.

  6. Divhut,

    Another blogger jumping on the HRL train. I loved it when Lanny purchased share sand I’m loving this purchase even more. Congrats on adding a nice Aristocrat to your portfolio. I’ll be adding as well if prices continue to stay this depressed when some extra cash becomes available.

    Bert
    Dividend Diplomats recently posted…Bert’s Q3 2017 Goals ReviewMy Profile

    • Hi DD,

      Many have jumped on the HRL bandwagon, that’s for sure. All for good reason. There is a lot to like about the stock at current levels. I still say that HRL yielding over 2% is a compelling buy. They are slowly adapting to changing consumer tastes and the dividend is still quite safe and growing nicely. What’s not to like? Thank you for commenting.

  7. Good company, good buy. A lot of the consumer staples (like GIS and HRL) have been left behind in this market due to the belief in their slow reaction to changing consumer preferences. I think they will figure it out and they will turn out to be good investment when we look back in a few years. Tom
    Tom @ Dividends Diversify recently posted…Get Your Motor Runnin’My Profile

    • Hi DD,

      I totally agree with you. Given enough time I think that many of the beaten down consumer staples will be able to figure things out and adapt to changing consumer tastes and trends. These companies have been through many different cycles and always seem to come out ahead once the ship has been righted. Thank you for stopping by and commenting.

    • Hi IH,

      Seems like many are liking this buy and continue to like the stock this month too. As you already know, it’s about staying consistent and making my monthly buys like clockwork to build up that passive income stream. As always, I appreciate your comment.

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