With September off to a volatile start, we have been given several new buying opportunities not seen in a while. After all, volatility often equates to opportunity and with that comes the chance to nibble or gorge on stocks at much better prices, values and yields. As many of you have noticed my recent buys have been on the small side as I continue to diversify my dividend income stream by adding to some of my smaller positions in my portfolio. I do not want a top heavy dividend income portfolio as I see that as potentially dangerous to my overall income stream should one of those larger positions falter.
Besides adding to my current smaller holdings, I have been looking to initiate new positions as well to add further diversification to my portfolio. Looking at my September stock considerations list I had mentioned that I was looking to potentially start a new position in Cardinal Health, Inc. (CAH), T. Rowe Price Group, Inc. (TROW) and The Travelers Companies, Inc. (TRV) as their prices have come down and started to look a lot more compelling from a yield perspective. With that being said:
I have added to my taxable account 5.0000 shares at $75.25 for a total investment of $376.25 in Cardinal Health, Inc. (CAH). This is a new position in my portfolio.
I have added to my taxable account 5.0000 shares at $66.95 for a total investment of $334.75 in T. Rowe Price Group, Inc. (TROW). This is a new position in my portfolio.
I am continuing to nibble on positions as my free trades permit. Going forward I wouldn’t mind significantly increasing my stake in CAH as I like the health sector a lot longer term and wouldn’t mind growing old with that name. TROW on the other hand has a place in my portfolio though I do not see it as becoming a very large position. Time will tell of course.
Has the recent decline whetted your appetite to nibble or gorge on some stocks too? What do you think of my recent additions? Please let me know below.
Disclosure: Long CAH, TROW
I’ve been wanting to buy some new stock here recently. Lately I have only been increasing my current holdings of mutual funds as I have had a limited amount of income to invest and felt it was a better “bang for the buck.” I want to take a look at Cardinal Health as it is on the list of several PF blogs.
Josh recently posted…Things to do in Hilton Head with a baby
Hi Josh,
Nothing wrong with adding to your mutual funds. Investing is all about personal preferences. I happen to like individual stocks and will gladly nibble on positions as they start to look appealing from a price, value and yield perspective. CAH is a dividend stalwart by almost every measure. It has a long history of distributions and dividend growth, low payout ratio and pretty decent yield too. Thank you for commenting.
I appreciate the emphasis that you place on diversification for your personal portfolio. My portfolio is definitely a lot more concentrated than yours and I’m looking to further diversify in the immediate future.
Hi FC,
In the last two years or so I have seen many portfolios become too overweight in one sector or another. For example, when oil prices started dropping in 2014 it seemed that everyone piled into every oil major, refiner, pipeline company, etc. only to have their portfolios very much overweight in energy. While achieving a perfect balance is impossible as prices and weights shift daily, it is possible to even out ones portfolio and dividend income stream to an extent. Thank you for sharing your thoughts.
What more can I say about adding to a position in CAH?? Just bought them myself and initiated a nice position. A little pissed that you were able to buy at a lower price than me haha Also, Lanny is all over TROW as well. Great, great stocks added to your portfolio!
Bert
Dividend Diplomats recently posted…Recent Buy – Cardinal Health, Inc. (CAH)
Hi DD,
CAH is the word! When I read your potential picks and recent buy in CAH I felt like you were talking directly to me. Clearly, this is a solid dividend payer that has a lot more room for future dividend growth going forward. You took a big bite of CAH while I decided to nibble. Either way, I’m happy to be a fellow shareholder with you and be able to diversify my own portfolio even more. Looks like TROW might be the other stock in play among our fellow DGI bloggers. Thank you for stopping by and commenting.
Nice buys Keith, I was wondering if you would pick T Rowe. If we were American we’d be taking bites of those 2 as well 🙂
Tristan
Dividends Down Under recently posted…Listed Investment Companies vs Index Funds in Australia
Hi DDU,
Thanks for the kind words. From a dividend perspective (payout ratio, yield, dividend growth rate) both of these stocks look very compelling. With the recent price declines their value has also become more attractive. For now, I am content to nibble and initiate small positions in each and see where things go from here. As always, I appreciate your comment.
nice buy on the trow,i added trow few weeks ago.
desidividend recently posted…Weekly Buys and sell Sept 11th – sept 18th
Hi desidividend,
Always happy to be a fellow shareholder in a name like TROW. What’s not to like about a nice yield and a sustainable and growing dividend? Thank you for sharing your thoughts.
TROW is getting a lot of attention in the DGI blogosphere right now. And with good reason! I think it’s a great stock and, compared to a lot of other stocks, it’s pretty fairly priced at the moment.
I’ve been taking to the comments to point out that BEN and EV are also asset managing dividend champions with great balance sheets. The yields are a bit lower, which is probably why they don’t get as much attention, but I think they’re worth a look as well.
Hi catfishwizard,
With the recent price decline in TROW we are presented with a much better value and yield than in recent weeks. Couple that with an amazing dividend history and growth rate and you can understand why many of our fellow DGI bloggers are liking this stock. I have never taken a look at either BEN or EV in earnest. Perhaps it’s time I should. BEN is a fairly common name among our dividend peers as I have seen it in several portfolios unlike EV. Thank you for commenting.
Not year, actually looking for a bigger drop to start to nibble on a few positions. Good buys though for you, DH. Slowly but surely increasing those positions.
Hi TCF,
Truth be told, I’m also waiting for a much bigger drop as I think everyone is. The problem with waiting for the “big drop” is that no one has any idea when it will occur. It may be weeks or months even. In the meantime, I’ll gladly nibble on stocks and slowly build up positions over time without trying to time the market. Thank you for stopping by and commenting.
Sounds like some solid additions to your portfolio. Still have to wait a few weeks in order to gather enough cash, but some companies sure look interesting. Hopefully the big drop will come at a time everybody has enough resources to build up some positions.
Hi Divnomics,
I like the added diversity to my portfolio and plan to keep these new buys for a long, long time. I plan to make CAH a much larger holding than current levels but I’m not sure how big I want TROW to get. I like the added financial diversity as I already own insurance companies, banks and now an asset manager so there is sufficient diversity within the financial sector in my portfolio already. We’ll see as time goes by. Thank you for stopping by and commenting.
Ever thought about buying some XIV or something, ie. buying volatility (or it’s inverse) directly?
Hi MrSLM,
I have never given thought to buying XIV or any ETN long, short or inverse for that matter. I plan to only stick to individual stocks. Thank you for sharing your thoughts.
These are some great additions DH. I looked into CAH a few months back but decided on a different healthcare play. I may need to look into them again. I have noticed TROW popping up a lot lately but I haven’t looked into them yet. Keep up the good work and thanks for sharing!
Hi MD,
Thanks for that vote of confidence with my recent buys. Both CAH, TROW and other names like WFC have been coming up on many screens as of late. It’s all for good reason. These are all solid dividend payers with low to moderate payout ratios and enticing value and yield. I started with a nibble on these two positions and we’ll see how much I grow them over time. As always, I appreciate your comment.
Hey good pick up with Cardinal but I’m not too confident with T Row. Financials just make me a bit uneasy with all the baking of books, and risky investments they tend to do. I like healthcare, consumer goods, and Utilities in my future.
EL @ Moneywatch101 recently posted…Why is Time Important
Hi EL,
The health sector is one that I really like long term and plan to add to my holdings as values and yields start to make sense. Regarding TROW, I can understand your hesitation with that sector but the reality is that there are many solid names in that space that have returned very solid performances in terms of dividend and capital appreciation over many, many decades. The reality is that any company can appear solid until it isn’t. Look what happened to many of the energy stocks over the last two years. As you saw from my recent buys, both were very small. While I like both companies long term, I do not plan to make TROW a huge portion of my portfolio. I’ll feel comfortable adding to my current holding but not a huge amount. Thank you for commenting.
Nice buys! Especially like the TROW purchase. We have a limit order set and hope to be a fellow shareholder soon! Thanks for sharing your recent buys…best wishes and continued success! AFFJ
A Frugal Family’s Journey recently posted…Retirement Accounts (Update) – Sept 2016
Hi AFFJ,
TROW and other names are getting a lot of attention these days. We are all so starved for yield that when a name like TROW starts to sell at better prices and value many tend to jump on board. Hope to see you as a fellow shareholder too. I think TROW can provide a nice passive income stream for many, many years to come. Thank you for stopping by and commenting.
Great job! Every little transaction adds up toward your financial independence!
BeSmartRich recently posted…Restructuring my portfolio and changing investing style
Hi BSR,
I couldn’t agree more. Large buys, small buys, they all add up to an ever increasing passive income stream. Thank you for stopping by and commenting.
DivHut,
I really like the TROW purchase. I haven’t really looked at CAH so thanks for bringing it to my attention. I love your continued methodical purchases. Keep them coming!
MDP
My Dividend Pipeline recently posted…Dividend Beasts — XOM & KO
Hi MDP,
Large buys or small buys, I make sure to put some fresh capital to work every single month no matter where the market is. TROW seems to be pretty popular as of late among other names like WFC and CAH. Seems like lower prices are enticing us as better values and yields come about. It’s a marathon for sure. Thank you for stopping by and commenting.
Congrats on the stock purchases. I am a huge fan of dividend stocks. Especially those that increase their yearly dividend each year 🙂 I’ve recently been looking at CHD, CALM and DIS but am hoping to pick them up if they pull back just a little bit more. If stocks tank after the election, I am hoping to gorge with some cash that I have been saving.
Mustard Seed Money recently posted…Why a Dividend with a DRIP is the Best
Hi MSM,
For my long term investment dollars I favor dividend paying stocks as a great way to generate an ever growing passive income stream. You mention some good names as potential picks for a dividend portfolio. Regarding CALM, if you have the stomach for wild commodity price swings then it can definitely be an interesting dividend play though their yield largely reflects the previous quarter results. As egg prices rise so does the tendency for CALM’s yield. But, as you know, any commodity play can be very volatile and the yield for CALM swings both ways. True, eggs are a staple that can be found in almost every single home in North America yet prices can vary wildly from quarter to quarter and so can its dividend. I prefer the steady dividend growers instead. Thank you for sharing your thoughts.
I like your CAH and TROW purchases. Those are also two companies I might be interested in, but currently there are some other companies I would like to own first considering there’s only so much capital to invest with at any given time. Not as familiar with CAH, but I’ve come across a few articles about this company recently. I need to do a little more research about CAH.
Thanks for sharing.
A Christian Investor recently posted…Monthly Report: August 2016
Hi ACI,
Both of these buys have been quite popular among our fellow dividend bloggers recently. For good reason too as lower prices have given rise to better values and yields for these two dividend stalwarts. CAH is a great play for anyone looking to increase their stake in the health sector. It’s a stock that I would like to add to down the road. As always, I appreciate your comment.
DH,
I like the purchases, especially CAH, though I would not mind owning both. Even with the market perhaps getting a little carried away with itself there are definitely still bargains out there right now. One I am looking at right now, looking for a big dividend grower, is WLK. Thinking about adding that for the space it has in growing its dividend in the future.
– Gremlin
Dividend Gremlin recently posted…Recent Buys, Sept. 2016
Hi DG,
There are quite a few names in various sectors that are selling at much better prices, values and yields despite the general market still being, “a little carried away with itself.” Names like TROW, CAH, VFC, WFC, GWW and more have been popular as of late among our fellow dividend bloggers. Even TGT has been seeing some good action. It’s all about picking and choosing from a sea of stocks. Thanks for sharing your potential new pick, WLK. This is the first time I ever heard of this name. Always happy to learn about a new investment potential. Thank you for stopping by and commenting.
TROW will definitely be on my watch list for next month. I’m just waiting till I can add some more capital into my account. Solid purchases man. Keep up the great work.
Hi DD,
I’ll keep buying as long as I can pick some decent values and yields. The start of September has given us some new buying opportunities and the WFC debacle has really hammered that stock price as of late. There are still some good buys out there. Thank you for commenting.
Nice buy I like Trow also. Never heard of CAH before so don’t know much about it. Keep up the good work.
Jay @ the expat investor recently posted…September 2016 net worth
Hi Jay,
TROW is quite a popular name among our fellow dividend bloggers. From a dividend perspective it has been a machine for multiple decades with an amazing dividend growth rate. Of course, the payout ratio is more than manageable too which means TROW is a safe dividend bet going forward based on current cash flow. CAH is another dividend stalwart in the health sector. It too, has a stellar dividend growth history with a sustainable yield that should continue to rise going forward. As always, I appreciate your comment.