It’s been a while since I posted a ‘recent stock purchase’ blog post. In fact, almost one month has passed since my latest acquisition. Sometimes that happens when being a dividend growth investor. No worries on my end though. I have been doing this since 2007 and have not missed a single month of buys. I always say that consistency is one of the key ingredients to successful long term investing. It’s important to have that cash working for you at all times in every market and economic cycle. Sometimes you buy on the high end and sometimes you buy on the low end. In the end it all averages out while you get paid to wait.
October has been a relatively “mild” month in terms of volatility when compared to August and September. Many prices of beaten down industrial names such as Caterpillar Inc. (CAT), Emerson Electric Co. (EMR) and Dover Corporation (DOV) rebounded quite nicely in the last few weeks only for us to see new potential buying opportunities in newly beaten down stocks International Business Machines Corporation (IBM), Wal-Mart Stores Inc. (WMT) and Yum! Brands, Inc. (YUM) to name a few. It’s commonly said that we do not invest in a stock market rather than a market of stocks and these examples just highlight the fact that even when “markets” are climbing or falling, there are always individual stocks that can offer a potential bright spot for investing.
Coming into October, my focus was squarely upon adding to existing positions in my portfolio. Looking back at my October Stock Considerations, my attention zeroed in on the downtrodden industrial stocks, CAT, EMR and DOV as well as the large Canadian banks for my fresh capital. With that being said, let’s take a look at my recent stock purchases.
I have added to my taxable account 13.0783 shares at $61.17 for a total investment of $800.00 in Dover Corporation (DOV). With this recent purchase my taxable account holdings in DOV now totals 44.3154 shares for a value of $2,742.24.
I have added to my ROTH account 16.4542 shares at $70.68 for a total investment of $1,163.00 in Caterpillar Inc. (CAT). With this recent purchase my ROTH account holdings in CAT now totals 44.3716 shares for a value of $3,091.37. I also hold 70.5101 shares of CAT in my taxable account. With this recent purchase in my ROTH account I have fully exhausted my $5,500.00 annual contribution. With two more months to go in 2015 my focus will now shift towards my taxable account and potentially my IRA account which holds a cash balance from a recent rollover. What does this mean? No more Canadian stock buys till at least January 2016.
What do you think about my recent buys? Are any of the names mentioned above on your watch list? Please let me know below.
Disclosure: Long CAT, EMR, DOV, YUM
Solid buys. I’m hoping to finally start getting good cash flow coming in to let me start investing again. I was hoping to see the industrials continue to remain beaten down but that hasn’t happened. EMR still looks decent here and as always ETN. I finally took a more in depth look at DOV and I like what I see there. I still need to do some more research but I expect to have an analysis up not too long from now.
JC @ Passive-Income-Pursuit recently posted…Taxes!
Hi JC,
DOV has climbed back quite nicely in recent weeks along with many of the other industrial names mentioned. It seems that the sell off was a bit overdone. I’m not saying that happy times are here again. Clearly, the world is still on shaky economic ground in the near term but you often see overreactions in stock prices to the upside and downside when nothing really has changed fundamentally for the company. I guess these overreactions just give us better buying opportunities for the long term. Thank you for stopping by and commenting.
Nice buys Hutman! If it wasn’t for the currency issue, I would have been tempted to buy some CAT and WMT. Keep it going. Nice looking portfolio!
Monsieur Dividende recently posted…How I deployed 20K$ into the Market
Hi MD,
Glad you like my recent buys. It’s all about adding to quality names when they get beaten down especially when the business as whole has not fundamentally changed. I can understand your issues with currency exchanges when buying American stocks. I guess the only thing to do is wait for the inevitable exchange rates to turn favorable once again. I’m sure we’ll see a future with a weakened U.S. dollar as we have seen in the past which will hopefully translate into more foreign buying of American stocks. Thank you for your kind words and commenting.
WMT looks increasingly attractive but I’m wary of falling knives. I’m trying to pick a point to start writing cash secured puts on Wally World.
Financial Velociraptor recently posted…Write puts Chicago Bridge & Iron Company N.V. (CBI)
Hi FV,
Beware the falling knife. We all must watch out for any falling knife. I think many in the DGI community caught a bunch in the energy sector in the last year. While WMT does look compelling at these levels, I’m still not interested. Not because I think it’s a bad company or stock, I just don’t care for retail. Thank you for sharing your thoughts.
Both of them are excellent purchases. I love it! I am seeing a lot of attractive buys lately as you said YUM, IBM and WMT. I purchased WMT before drops but thinking of averaging down a bit as it is a really solid company that will get through this tough time. Thanks for sharing!
Cheers!
BSR
BeSmartRich recently posted…September 2015 Dividend income Update: $697.50
Hi BSR,
Seems like we are seeing crazy price moves both up and down these days in many high quality “less volatile” names recently. I mentioned YUM, IBM and WMT on the downside and look at MCD yesterday to the upside. When I first started investing, price moves of 1% or more were rare. Now, that price swing, and more, is the new normal. I still may make another industrial buy before October is over but it looks like my November stock considerations may have to be in another sector as prices have climbed considerably in the last few weeks. Thank you for commenting.
Hi Divhut,
Thanks for sharing your recent buys. It looks like you found some great opportunities to add to existing holdings. CAT is on my wish list and I initiated a position in EMR last month. I’ll probably look to add a Canadian bank in November. Cheers
Dividendniche recently posted…Canadian and Global Foundation Watchlist
Hi Dividendniche,
For the last several months I have been adding to existing holdings rather than initiate new positions. There were many great deals on companies that I still like very much long term and the price, value and yield looked too compelling to pass up. These deals were mainly found in the industrial sector as well as finance (Canadian banks). Congrats on your initiation of EMR. It, along with CAT, have been with me since 2007 and I have no plans to sell for the foreseeable future. Thank you for commenting.
Solid buys DivHut. Way to inject more money into the dividend portfolio.
Hi Tawcan,
You know the drill. Every purchase buys that much more personal freedom and when yields topped 4% on CAT and EMR it was just too much for me to pass up. DOV too was beaten down a lot in recent weeks only to climb nicely the last few days. Buy when other are selling, right? Thank you for stopping by and commenting.
That’s nuts! You have bought a stock every month since 2007? Holy cow. You aren’t kidding, that’s a huge key to your success and growth in dividend income over the years. While it is unfortunate that prices have appreciated since September, there are still a few diamonds in the rough. It looks like you were able to stumble on those and added some solid companies to your portfolio! Congrats on the pickups. We may have to create a name for your monthly streak. What if we start calling you a Dividend Growth Investing Aristocrat haha
Have a great weekend.
Bert
Dividend Diplomats recently posted…Lanny’s October Watch List
Hi DD,
I always believed, that among several factors in being a successful dividend growth investor, consistency was key. Sure finding value is as important as finding sustainable yield but I find that consistency is probably one of the most important factors. It “forces” you to make purchases no matter how scary high or low the market is. It goads you into making buys in high quality names even when the “experts” are saying the sky is falling. Now, to be fair, some months I may invest between $2K – $3K and some months it may be only $800 but the fact remains the same, I invest every single month, even during the worst possible times in 2008 and 2009, I kept nibbling.
I’m happy I was able to pick up some solid industrial names at better prices but kind of bummed that I cannot add to my Canadian banks in my ROTH till 2016. Not too bad though as 2016 is just two months away. At least I maxed out my 2015 contributions. Thank you for stopping by and commenting and please just call me DivHut 🙂
Nice buys, DH! I like both DOV and CAT. I also recently bought another industrial: EMR. These stocks have rebounded quite nicely. Keep racing!
Race2Retirement recently posted…Recent Stock Purchase II – October 2015
Hi R2R,
The industrial names have bounced back quite nicely in the last couple of weeks. Nice EMR buy on your end. I added some last month as well. Buy when others are selling, especially if it’s a high quality name that hasn’t fundamentally changed. Just look at MCD. A year ago it was left for dead. Now, it’s at an all time high. Many in DGI community have been buying quality when others are selling. Look at IBM, WMT and YUM in the last week or so. Now VFC fell off a cliff. These are all top names in their respective industry. As always, I appreciate your comment.
So nothing really new to report as you are buying the same companies you reported in your last few acquisition articles.
But that’s the secret, isn’t it? And I’ve for CAT and DOV on my watch list right now.
So keep up those “same ol’ ” articles about the same companies. Because consistency is the key.
Sincerely,
ARB–Angry Retail Banker
ARB recently posted…The Bank Is NOT The Best Place To Order Checks!
Hi ARB,
Sometimes just sticking to the stocks you’ve had for many years is the best long term bet going forward, especially when those high quality names have fallen on hard times and are selling at better prices, value and yield. I have quite a few new names on my watch list which I update about every month or so but after the recent sell off since the summer too many great values were being offered that I could not pass up. I appreciate your comment.
DivHut,
Solid moves. I like both of those companies at their current valuations. I really like DOV, ETN, and a bunch of other industrial companies at current valuations. I hope the market continues to offer us nice chances to buy at good prices.
I also like that you said no more Canadian Banks next year!
– Gremlin
Dividend Gremlin recently posted…Loyal3 Buys, October 2015
Hi DG,
The industrial names have come back pretty strong from their recent lows however, good value and yield still persists in the sector. So far, October has proven to be a pretty solid month in terms of gains. Regarding my Canadian banks I have to wait till 2016 to buy as my ROTH is maxed out for 2015. I still am very much interested in adding to my current holdings. Thank you for commenting.
I too have bought some Walmart (sold my NEM holdings) and CAT as I think with the bad news lately has affected the stocks price negatively. I’m slowly starting to learn that you should buy whenever great companies run into a bump in the road and consider it as a sale. Keep up the good work and keep that snowball rolling!
DividendLiberty recently posted…Walmart Plunges Nearly 10%
Hi DL,
You are definitely not alone in buying WMT after its stock got hammered recently. We have been seeing a lot of shares falling dramatically only to rebound sharply in the following days. YUM, VFC, CAT and EMR are several examples that have followed that pattern. As you stated, “…you should buy whenever great companies run into a bump in the road…” So true! Why do most people want to buy at the highs rather than the lows? Thank you for stopping by and commenting.
I’m not too familiar with DOV; I need to do some further research on the company. I like your purchase of CAT as that is a company I would like to own in the future. I already own EMR and WMT, and have a very small investment in YUM on Loyal3 which I’m hoping to increase my holdings in. I’m probably interested in owning IBM as well, but at a much later time since there are other companies I would like to own first.
A Christian Investor recently posted…Bought On Loyal3: DNKN
Hi ACI,
Thanks for sharing many of your holdings and recent buys with us. DOV might be worth a consideration for a long term dividend growth portfolio. They have come on to some hard times because of low oil prices but have many other sectors that they operate in that are doing relatively well still. The stock really roared back from its recent lows a couple weeks ago so it’s not the same bargain as it was just a few short trading sessions ago. Keep building your own dividend snowball. YUM will be interesting in 2016 as a spin off is planned for next year. I wonder if it might be worth loading up on some of those shares going forward. Thank you for commenting.