Recent Purchase – SCHD

Following the sale of BAX and BXLT, I was looking for an opportunity to deploy that capital as soon as possible. I ended up buying Schwab U.S. Dividend Equity ETF (SCHD). I already hold position in SCHD and mentioned my reasoning here. I decided to add to the position since the ETF is very close to my investment goals. Though I have few ETFs in my portfolio, they form a small percentage of my overall portfolio. In fact, I haven’t purchased an ETF in a long time.

My previous purchase of SCHD was in January 2014 at a price of $35.20. Of course, this ETF being a dividend ETF doesn’t have much capital appreciation, but the dividends have been growing steadily over the last couple of years I have held this ETF.

I purchased 53 shares at $36.40 on 2/8/2016. With commission, the total cost comes to $1,936.20. With a quarterly dividend of roughly $0.2775/share, the yield comes to 3.05% and this purchase adds $58.83 to my forward annual dividends.

With recent dividend cuts from COP and KMI as well as the sale of BAX and BXLT, this projected dividend increase was nice.

This purchase increases my total annual projected dividends to $3,291.24.

The portfolio page will be updated soon to reflect this purchase.

 

Recent Purchase – Unilever (UN)

In addition to my Wells Fargo purchase on Monday, I also placed an order to add to my Unilever position. I had initiated position in Unilever back in October 2014 at $38.06/share. I really like the stock especially for its consistent performance. Since my purchase, the stock increased over 20% to a high of over $46.00. With the choppiness of the last few days, the stock dropped back to below $40 levels and I used this opportunity to add to my position.

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Recent Purchase – Wells Fargo (WFC)

Apart from my weekly sharebuilder purchases, I try to make big purchases here and there in order to meet my goal of investing $35,000 this year. I have been behind in that as witnessed in the recent goals update. The last big purchase was towards the end of May when I initiated a position in Exxon-Mobil.

So on Monday when the market dropped, I used the opportunity to make another purchase. Of course, it is impossible to time the market and I made the purchase at the middle of the day after it had recovered. But the market continued to drop yesterday as well and not sure how it is going to behave in the near future. Maybe I could have waited, but you never know.

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Recent Purchase – Exxon Mobil (XOM)

Apart from my weekly sharebuilder purchases, I try to make 1 or 2 big purchases a month in order to meet my goal of investing $35,000 this year. The last big purchase was towards the end of April when I added to my NOV position.

After almost a month, I had another big purchase. I don’t want to say much about Exxon Mobil. The company is one of biggest oil companies in the world and has been a consistent performer. The oil sector continues to be weak and most predictions state that the oil price will be weak for the next couple of years. We will have to wait and see. The big companies have already braced for this by cutting capex in order to save the cash flow. But the oil price will definitely have an impact on the EPS like witnessed in the recently quarterly results from the oil companies.

Exxon’s recently quarterly EPS was $1.17 compared to $2.10 in same quarter in 2014. Revenue too has dropped by a third compared to the same quarter of 2014. But with the Capex cuts, the EPS should improve a bit in the next couple of quarters even with lower revenues.

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Recent Purchase – National-Oilwell Varco, Inc (NOV)

It has been just over a month when I initiated a position in NOV on 3/24/2015. I had purchased 30 shares at $49.00 a month ago. Since then I have been looking to add more to the energy sector and was looking at stocks like XOM and CVX.

Apparently, the stock increased by over 10% since my purchase last month. I didn’t want to pursue it at that price and was looking at XOM and/or CVX for my next energy purchase. But early this week, NOV announced their quarterly numbers and even though the company exceeded the expectations, the stock took a beating due to lower outlook as well as lower backlog of orders.The stock dropped back to the $50 range on Tuesday after the results and I used up the opportunity to add more to the stock at reasonable levels.

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Recent Purchase – National-Oilwell Varco, Inc (NOV)

It has been over 3 months since I made any big energy related purchase. The last ones were in November and December when I purchased ConocoPhillips. Since then the energy sector has been range bound and continues to be weak and hasn’t come out of the woods yet. These COP purchases are still in negative territory. But the energy sector still provides one of the most attractive valuations in these market conditions. So I ended up coming back to energy sector with this purchase.
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Recent Purchase – PM

The market dropped close to 1.5% yesterday (3/6/2015) and this caused almost all the stocks to drop irrespective of the sector or size. I have been eyeing to add to my position in Philip Morris (PM) for a while now and was waiting for the price to hit 80 and it did on Friday.

I purchased 19 shares of PM at $80.35 on 3/6/2015. With commission, the total cost comes to $1,533.65. With a quarterly dividend of $1.00/share, the yield comes to 4.96% and this purchase adds $76.00 to my forward annual dividends. The current price was below my average price and hence also enabled me to average down on the stock.

PM stock is under lot of pressure primarily due to the strength in dollar.  PM does all its business outside US and therefore a strong dollar will negatively affect its earnings. But I feel that in spite of this, the stock is a good investment for the long term and pays a nice dividend while it rebounds. My previous purchases in PM are listed below.

As you can see, the stock has been dead money since my initial purchase and was below my average price, but as I mentioned I am hoping the stock is a good investment for the long term as the currency issues go away.

Morningstar has a fair value of $92.00 for the stock and it is rated 4 stars.

While I have been making weekly purchases regularly, this is my first big purchase for the year. I hope the market continues to be under pressure thus providing some good buying opportunities.

The portfolio page will be updated soon to reflect this purchase.

Disclosure: Long PM

Image courtesy: http://www.pmi.com/

Recent Purchase – COP

The oil price continues to slide down and this is putting pressure on oil and energy stocks. This has open up buying opportunities in this sector.

COP is one of the stocks that I purchased when I first started investing back in 2009. I still hold it, even though it is not a lot of shares. Since then, COP spun off PSX and I continue to hold that too. Also, in the past few months, I have invested in other stocks in the Oil/Energy sector like CVX, KMP and BP. But I always wanted to add more to my COP holdings. Few months back, I almost placed an order for COP at around $67.00, but instead purchased CVX. Since then COP went from $67.00 to about $87.00 in a span of few months. I was kicking myself thinking that I would never be able to get more COP at $60s.

But like they say – Never say never. The oil price decline has bought the stock back to high 60s for now and I didn’t want to miss this time.
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Recent Purchase – UN

The market has been volatile the last few days and this presents opportunity to add/initiate positions. I have been missing Unilever in my portfolio for a while now and when I noticed that the stock has dropped close to 10% in the last one month and is closer to the 52 week low, I initiated a position. With the market continuing to be volatile, the stock can drop even more, but given the growth and consistency that is Unilever, I am ok to initiate a position now. I hold PG which is belongs to the same sector. I am long on PG too though I would like to add to my PG position in the near future.  Continue reading