Recent Stock Purchase May 2018

With three weeks of May in the rear view mirror it is time, once again, to highlight my recent stock purchase. As market volatility remains the flavor of the day we are being presented with some pretty good buying opportunities if you can stomach these wild swings. Of course, if you have a long term horizon for your investment plan then over time these wild gyrations will be smoothed out and these daily ups and downs should not be much cause for concern. Keep investing, stay diversified and try not to get shaken out of the market when things really do dive. I always state that I make my monthly buys no matter what’s going on in the market or the world for that matter and this month is no exception. With that being said let’s take a look at my May stock buy. Sticking to my May 2018 Stock Considerations:

 

I have added to my taxable account 3 shares at $117.53 for a total investment of $352.59 in The Clorox Company (CLX). With this recent purchase my taxable account holdings in CLX now totals 17.2268 shares with a market value of $2,050.16.

 

I have added to my taxable account 4 shares at $97.60 for a total investment of $390.40 in PepsiCo, Inc. (PEP). With this recent purchase my taxable account holdings in PEP now totals 29.6316 shares with a market value of $2,948.64. I also hold 16.0922 shares with a market value of $1,601.33 in my ROTH account.

 

In total, $742.99 was invested. Both trades were commission free which enabled me to make two smaller buys.

 

Looking forward, the staples still seem to be under pressure along with the REITs and utilities. While it may be scary to nibble at any of these sectors one must realize that the best potential gains are made when stocks and entire sectors are out of favor. These two buys also allowed me to further diversify my portfolio as both positions were relatively small compared to some of my other holdings. I always say that it’s important to create an income portfolio that is not dependent on just a handful of stocks for the majority of your dividend income. The more equality you can achieve in dividend income generated from each stock you hold the stronger your overall portfolio will be when it comes time to depend on that income.

 

What do you think about my recent buys? Are you also looking at the staples these days? Please let me know below.

 

Disclosure: Long CLX, PEP

31 Comments

  1. Keith,

    Those are two exceptional companies, and I would like to own more PEP and start a position in CLX. It is interesting watching the market attempt to value stocks; often leaving the door wide open for long horizon investors to take advantage.

    – Gremlin

    1. Hi DG,

      Well said. These prices, values and yields we are seeing in the staples are definitely offering those with long term horizons a chance to buy into some great companies at a discount. What’s not to like about that? I was happy to nibble to PEP and CLX as the market dumps on those stocks.

  2. I’m a fan of consumer goods like CLX, they’ve been in my portfolio for quite some time now. I’ve shied away from Pepsi and KO but they’re also both solid companies, KO’s been a mainstay in Buffett’s portfolio for decades now.

    1. Hi JW,

      The staples are my largest sector holdings among my portfolios. I’ll gladly take advantage of better prices, values and yields as everyone dumps on the sector. PEP is well diversified and still has room for international growth especially with their snack foods. Happy to be a fellow CLX shareholder 🙂

  3. I like the buys. Both companies are on my watch list. Lots of value in the market right now. Still trying to decide what to buy with the little bit of free cash flow I have. Thanks for sharing.

    1. Hi DD,

      No need to rush into a purchase. As soon as you have the cash I’m sure there will be many choices still available to allocate your dollars. The staples, REITs and utilities are still pretty beaten down offering up some good buying opportunities.

  4. We are on the same page. Bought PEP twice now last week. Also added to CLX in my SEP…
    We should be well rewarded on the long term ?!

    1. Hi Stepstofi,

      Talk about being on the same page. Nice to see I’m not the only one buying into these beaten down names. I agree that over the long haul both companies should reward us well.

  5. Two great companies right there. Certainly both are at the higher end of the quality spectrum in the consumer staples space. I bought shares in PepsiCo last week and have been thinking really hard about Clorox. I may make a purchase soon.

    1. Hi MGUK,

      Happy to be a fellow PEP shareholder. I like both PEP and CLX long term and seeing both names beaten down along with many other staples makes it a bit too hard to ignore when deciding where to allocate your money.

  6. Nice choices, Keith. I have these on my watch list as well.

    As of now, I only hold 1 individual name: T (related to the post linked below). I’m 10 shares from an even 400, so I’ll likely be looking to add to other names in the near future.

    Thanks again for the post. – Mike

    1. Hi BD,

      That’s a nice position you have built up in T. I’ll continue to nibble on individual stocks for my portfolio as values and yields look attractive. Glad you like my recent pick ups.

  7. Keith,

    Excellent purchases. Talk about some powerhouse companies in the consumer staples market. PEP was my last purchase and I have an eye on CLX, so I couldn’t agree more with your purchases. Keep on adding great companies to your portfolio with brands that will continue to pass the test of time.

    Bert

    1. Hi DD,

      We have been waiting for these quality staples to trade at much better levels and now, after many years, we are getting a chance to nibble on companies with powerful brands at better prices, values and yields. What’s not to like?

    1. Hi desidividend,

      Seems like many of us liked PEP at $100 or below. The staples continue to look good in June too.

    1. Hi ED,

      It’s been a while since I added to my PEP as well and seeing both of these stocks trade at such attractive levels was too much for me to ignore so I nibbled on each.

  8. Hmm none of these are in my watchlist 🙂 CLX and PEP produces good producta tough that I sometimes use so they are a good buy from that perspective 😉

    1. Hi P2035,

      Like you, I love to use the products of the companies I own and both CLX and PEP are in my household as well as millions of households all over the world. Last month they both traded at such attractive levels it was too hard for me to ignore.

  9. Hi Keith, We think a like. I added to CLX on 5/14. I also like PEP below $100 but have not added to that holding in a while. You bought in at good prices in my opinion. Tom

    1. Hi DD,

      Sometimes the timing of my buys work out and sometimes it doesn’t. As you know, I never time the markets, I simply buy when I have cash. Happy to see you add to your CLX.

  10. I also recently added shares of PEP so definitely agree with that buy. 🙂

    CLX is on my watch list but so far I haven’t pulled the trigger yet in favor of other stocks.

    1. Hi MR,

      As we have seen, the staples are still very much out of favor and are still offering some good buying opportunities when compared to just a few months ago. A lot of good choices these days.

    1. Hi Passivecanadianincome,

      PEP is very popular among our DGI peers these days. CLX is a quiet performer just doing its thing year in and year out. You have to love both for the long haul.

    1. Hi Dp,

      CLX is one of those silent long term winners. You rarely hear anything exciting or dramatic about its business rather it just performs year in and year out seemingly well during all market conditions. It’s not a get rich quick stock but does offer incredible stability.

  11. […] to June my plan is to stick with the beaten staples once again as I did in May. Last month I picked up shares in The Clorox Company (CLX) and PepsiCo, Inc. (PEP) and seeing both yield well over 3% each stock […]

  12. I like the purchase, when making a decision are you looking strictly at fundamentals? I noticed you said you don’t make decisions based off the movement of the market or stock, correct?

    1. Hi JB,

      I look at fundamentals a lot when choosing a stock as well as some technical indicators. I don’t put too much stock in any one investment decision as the market has a mind of its own. You can find the greatest stock on paper and some even from left field will send it crashing or to the moon. I don’t get caught up in the daily financial headlines rather take a long term approach to all my holdings which affords me a lot of latitude as I don’t really care what the market is doing on any given day.

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