Sometimes the market gives us better buying opportunities when we least expect it. Though the market in general has been trading at or near all time highs for some time, there are still dozens of great individual buys trading at much better levels when compared to just a few months ago. We all know the names as they have been popping up in our ‘buy posts’ in recent weeks. Stocks like General Mills, Inc. (GIS), Hormel Foods Corporation (HRL), V.F. Corporation (VFC), QUALCOMM Incorporated (QCOM) among others. Of course, when the market decides to take a nosedive, as we have witnessed this week, even better buying opportunities can present themselves in many quality companies. With that being said:
I have added to my taxable account 3.0 shares at $173.87 for a total investment of $521.61 in W.W. Grainger, Inc. (GWW). With this recent purchase my taxable account holdings in GWW now totals 14.5577 shares with a market value of $2,522.85. This was a free trade and my second GWW purchase this month.
I have added to my taxable account 18.0 shares at $27.22 for a total investment of $489.96 in General Electric Company (GE). With this recent purchase my taxable account holdings in GE now totals 184.6093 shares with a market value of $5,073.06. This was a free trade.
In total, I put $1,011.57 of fresh capital to work with this second tranche of buys in May. While GE was not in my May stock considerations post, seeing it continue to slide to current levels was too hard for me to ignore. In fact both GWW and GE are starting to trade at the higher end of their historic yields as are the other names I mentioned above. I’ll gladly continue to nibble on stocks that are trading at or near their historic yields, especially if the dividend is perceived to be safe. While not a rule, it often signifies temporary near term headwinds a company is facing that should subside over time.
What do you think about my recent purchases? Have you been buying these same names after their big price drop? Please let me know below.
Disclosure: Long GIS, HRL, VFC, GWW, GE