Recent Stock Purchase – September 2015

After a quiet August, in terms of new buys as I only made one purchase the whole month, I started September off on a much stronger note making several buys in just these first few days. After witnessing the market swoon in such dramatic fashion I couldn’t help but pick up some names from my recent September stock considerations post as better prices, value and yield were being offered in many great names that just a few short weeks or months ago were deemed untouchable. It seems that troubles in China, the overall collapse of all commodities from gold, silver, copper, oil, steel, coal, wheat, corn and more to Fed interest rate hike fears have given rise to a market that’s extra volatile and slightly better valued. Why not take advantage of this market volatility and get some fresh capital earning some decent yield right away. After all, while the market is very unpredictable, dividends are foreseeable. With that being said, let’s review my recent buys in the month of September.

 

Sticking with my September stock considerations I have decided to buy into the Canadian banks once more as well as an industrial giant.

 

I have added to my ROTH account 20.6239 shares at $38.79 for a total investment of $800.00 in The Toronto-Dominion Bank (TD). With this recent purchase my ROTH account holdings in TD now totals 166.8442 shares for a value of $6,541.96.

 

I have added to my ROTH account 14.8176 shares at $53.99 for a total investment of $800.00 in Royal Bank of Canada (RY). With this recent purchase my ROTH account holdings in RY now totals 68.0400 shares for a value of $3,705.46.

 

I have added to my ROTH account 10.6285 shares at $75.27 for a total investment of $800.00 in Caterpillar Inc. (CAT). With this recent purchase my ROTH account holdings in CAT now totals 27.9174 shares for a value of $2,078.45. I also have a CAT position in my taxable account.

 

It’s no secret that I have been liking the Canadian banks for a while and that each of these purchases all offer yields around 4% which makes them extra attractive from a dividend perspective. Sure, near term headwinds abound for these companies, but it’s those headwinds that are beating up stock prices giving us all better buying opportunities.

 

What do you think about my recent buys? Are you buying into any Canadian banks or other industrial names that have recently sold off? Please let me know below.

 

Disclosure: Long TD, RY, CAT

34 thoughts on “Recent Stock Purchase – September 2015

    • Hi D4s,

      Just look at the wild price swings the first four days of this month have brought. The market is certainly behaving differently than it has in the last several months and I guess all we can do is pick out names that can continue to pay out their dividends, are trading at good to decent values and have attractive yields while we wait for the market to “normalize,” whatever that means. Thank you for your comment.

    • Hi R2R,

      As you have noticed I am a stock nibbler and not a gorger. Slow and steady small buys each month allow me to enter into a position with ease and not cause me great concern about wild market price swings. Slowly but surely is the motto. My real concern is whether or not I can continue to receive dividends like clockwork every quarter. Stock price swings matter less to me. As always, I appreciate the comment.

    • Hi Tawcan,

      As I commented to R2R, I like to nibble on stocks. Typically my purchases are around $800 a piece. My commission is $2 so it’s not expensive for me to build a position over time rather than a few larger buys. Canada and much of the world is facing some serious near term headwinds. To me that says, buy the high quality dividend payers. Thank you for stopping by and commenting.

    • Hi DH,

      I happen to agree with you that more buying opportunities will be coming up. Of course, trying to time and pick when the best time to load up on stocks is nearly impossible. But, as you mentioned, the remedy for that is to simply keep buying quality assets which is what I intend to do. My only concern is that every company in my portfolio continues to pay out a dividend. If that continues like clockwork I’m a happy camper. Thank you for commenting.

    • Hi DC,

      I actually like all five of the large Canadian banks with TD, BNS and RY being in my portfolio. I still like BNS and think that the yield, value and safe dividend is compelling at these levels. Sure, Canada is facing some major near term economic headwinds based on the commodities collapse and weakening Canadian dollar but that just makes for better buying opportunities for us. Both TD and BNS are my largest holdings in my ROTH so that should give you an idea of what I think about them. While history does not guarantee future results, the large Canadian banks have a very strong dividend legacy. Thank you for stopping by and commenting.

    • Hi Steph,

      Glad you like my recent purchases. When looking at price, value, current yield and the safety of continued dividend payments, the Canadian banks seem to make the grade. Looks like we are continuing to get better buying opportunities in September as the market continues to swoon and gyrate unpredictably. Of course, one thing that is very predictable is dividend distributions which is really all I care about going forward. Thank you for your comment.

  1. Great purchases, DivHut! I’m hoping to dollar cost average down into CAT as well. I’m trying to free up some capital by divesting myself of some Apple shares by selling covered calls. So far I’ve just managed to collect quite a bit of premium but haven’t sold any shares yet, not the worst problem in the world to have! Take care!
    Scott recently posted…A Few Comments About the MarketMy Profile

    • Hi Scott,

      I guess that’s a dividend growth investor’s constant “problem.” Trying to free up cash every month to continually make fresh buys. For a few months now I have been focusing on my current holdings and not really looking to add any new stocks to my portfolio which is why, like you, I like to average down on what I already own, especially at these prices, value and yield. I know some energy names have nosebleed yields these days which is also tempting me a bit but for now I think I’ll be sticking to my consumer, industrial and financial names. Thank you for commenting.

  2. DH,

    Way to get September started off with a bang. I love it! 🙂

    Great companies here. I like all of them. Too many opportunities for me and my limited capital, which is a problem I’ve been dealing with since I started. Such is life. Just gotta pick them off one at a time and keep it moving.

    Enjoy that big boost to your dividend income.

    Cheers!

    • Hi DM,

      After a relatively quiet July and only one small buy in August, I had some extra cash in the coffers which was quickly put to use after the market swoon. It’s been a long, long time since we have seen such a large variety of names worthy of investment. I remember not that long ago when every DGI blogger was lamenting the market highs as finding value plays was hard to come by. Not these days! Lots of great financial, industrial, energy, materials and even consumer staples on sale. The pickings are getting good again. Thank you for stopping by and commenting.

    • Hi DD,

      Well, in fairness I had only one small buy in August which left me with extra fire power going into September and after that great late August swoon I just jumped right in. Love Bert’s buy and yours too by the way. I have other names I’d like to average down first, but MMM and JNJ are always in the back of my mind too. I could see myself adding to both sometime soon if prices keep falling. As always, I appreciate your comment.

  3. At this rate you might own 5% of canadians banks by the end of the year =).

    I like the CAT buy. 4% and people freaking out is always a great thing. I see CAT making headway in Europe because of QE and I am hearing that Europe is suffering from mass housing shortage from mass immigration.

    • Hi TBDI,

      It wouldn’t be bad thing to own 5% of the Canadian banks 🙂 Quality companies with a long dividend friendly history. CAT became a compelling stock for me in recent weeks as that yield approached 4%. Not that I’m a yield chaser but when you see such a high quality name go on sale and sporting a yield that is sustainable at those levels you have to jump on board. It’s been in my portfolio since 2007 and I have no plans to sell that one any time soon. Thank you for your comment.

  4. Great purchases, DivHut. Now is such a great time to capitalize on the drop in stock prices. I noticed one of your comments that your commission is $2 per trade. If you don’t mind me asking, which brokerage do you use?

    • Hi ACI,

      As I mentioned in another comment, after the late August market swoon and making only one small buy in August, I had some extra cash in the coffers so I just decided to jump on board now especially when some high quality names are sporting such attractive yields. As for my commission, I use Sharebuilder which had a promo with Costco that allowed for Costco members to make automatic trades for $2. I believe that program ended September 1st but all accounts created prior were grandfathered in at the $2 rate. Have you taken a look at Loyal3 or Robinhood? Thank you for stopping by and commenting.

    • Hi GRB,

      That’s a large sum you are putting to work. That will surely yield some nice added income within the next three months. Happy to see a fellow BNS buy too. Sometimes it seems like I’m the only one adding to my Canadian bank holdings. So far September has started off on a wild tangent. I have a feeling we’ll be seeing a lot more good buying opportunities in the near term. Thank you for commenting.

    • Hi FF,

      I think that these days many DGI bloggers have a growing watch list as more and more value is being found in the market as prices have swooned. The Canadian banks have a long history of paying dividends and raises that goes back well over 100 years. TD, BNS, RY, BMO and CM are great names to consider if you are looking for some financial sector exposure. Thank you for stopping by and commenting.

    • Hi HHaWG,

      Glad you like my recent buys. The Canadian banks are offering some great yield these days as their stock prices have been beaten down. Same with many industrial names and even some consumer staples. It’s been a long time since CAT was yielding around 4% which is why it’s on many watch lists these days. Look forward to seeing what stock you buy that’s on “sale.” Thanks for the comment.

    • Hi R2R,

      I expect to see many more buys in the Canadian banking sector as prices continue to fall. With their yields well over 4% and their dividends covered it seems like a “safe” buy from a dividend perspective at least. Regarding CAT, I have owned that name since 2007 and have seen it rise and fall through several business cycles including the great recession. I definitely like CAT as a long term hold and will continue to add if prices, value and yield still look attractive. Thank you for stopping by and commenting.

  5. Nice move on CAT. It’s cyclical nature will make this a great payoff when the economy picks up.

    Just make sure you don’t become overweight in Canadian banks. Isn’t their housing market supposed to be crashing soon? I’m not one for timing the market, but make sure you save some capital and portfolio space for that eventuality.

    Sincerely,
    ARB–Angry Retail Banker
    ARB recently posted…The Nasty Customer That Got To Me TodayMy Profile

    • Hi ARB,

      Glad you like the CAT buy. I’m not afraid of investing in cyclical businesses. I have held CAT since 2007 and have seen it rise and fall dramatically during all those years. As long as the dividends are safe and rising I’m a happy camper. Regarding the Canadian banks I still feel comfortable adding to those positions. The three banks, TD, BNS and RY collectively are about 9% of all my portfolio holdings. But you are right. There is a danger of overweighting my portfolio in the sector if I keep buying and the Canadian economy definitely is facing some near term headwinds with a weaker currency, lower commodity prices and a potential real estate/mortgage pop. I probably should be adding to some great industrial names selling at much better prices and value like CAT and EMR for example. Thank you for sharing your thoughts.

  6. Keep Grinding sir. I have yet to spend a lot of time looking at the Canadian banks, but perhaps I should. Nice pick up with CAT down over 30% from its 52 week high :-). You have some fantastic % returns in your portfolio damn, keep at it and you will reach your goals in no time! I’ll be sure to stop back!

    Great effort!
    Andrew
    SHM

    • Hi Andrew,

      I appreciate your kind words and support. My goal is to “never” sell any of my high quality dividend payers as long as they continue to create that ever increasing passive income stream for me. By holding my stocks through market highs and lows I have been able to achieve some great capital appreciation as well as dividend income. Of course, my primary goal with my portfolio is dividend income rather than capital appreciation, but it’s still nice to see your stocks go up in value over time. Thank you for stopping by and commenting.

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