Jul 11, 2015

5 Recent Buys and 1 Sale

What a business week! Greece's endless debt negotiations, market crash in China, trading halt at NYSE! Crazy stuff. Still I was just doing my normal thing: buying stocks. Unfortunately I had to make a sale too. I noticed that one of my holdings is not quite doing its job any more. Thus I sold my position in Chambers Street Properties(CSG). On the buy side, I added to my position in Omega Healthcare Investors (OHI), Norfolk Southern Corporation (NSC), AT&T (T), Realty Income (O) and Emerson Electric (EMR).



Sale in USD
Chambers Street Properties (CSG)
Shares: -130
Per share: 7,30
Total: 948,67 (Fees deducted)
In the beginning of July CSG announced an unimpressive merger with Gramercy Property Trust(GPT). Shares of CSG immediately tanked some 7-8%. What this merger has in store for CSG holders, is reduced dividend and probably payment cycle change from monthly to quarterly. The company seemed to be losing grip already before this announcement. If I had to name one REIT expert in the world, that would be Brad Thomas. Brad sold his CSG shares in April. Considering all this, finally it was easy to make sell decision. In dollars I made a loss with this one, but in Euros I made a small profit. I would have liked this as a loss, because I could have deducted it from earlier profits. But from Finnish taxman's point of view I made profit, which means of course that I must pay taxes for this sale. Damn currency fluctuations!

Buy in USD
Realty Income (O)
Shares: 4
Per share: 46,54 (incl. fees)
Total: 186,15
So I closed out my position in one monthly paying net lease REIT. Part of that cash I wanted to allocate something similar, but better. It's hard to avoid O in this case. Their logo already tells that the company is highly committed to monthly dividends. Additionally O tends to raise dividend on quarterly basis. According to company web site they have raised dividend consecutively for 71 quarters. And Mr. Fish's CCC-list shows 22-year dividend raise string. So, hopefully after couple of years we have a new Dividend Champion here! Thanks to this purchase O became 3rd largest position amongst my foreign stocks. Definitely one of my core positions. Anyways, I'm quite happy with these 32 shares now, and probably won't add soon.

Buy in USD
Emerson Electric (EMR)
Shares: 2
Per share: 54,93 (incl. fees)
Total: 109,85
Increased my position with couple of shares in this manufacturing and engineering name. EMR has 5 specific areas of expertise: Process Management, Industrial Automation, Network Power, Climate Technologies, and Commercial & Residential Solutions. The company is a global operator with strong presence in North and South America, Asia Pacific and Europe. With 58-year dividend raise streak EMR is a rarity. I'm very pleased that I got a chance to average down here. Still my position is only medium-sized, and I'm looking to buy more before next ex-divy date.

Buy in USD
Norfolk Southern Corporation (NSC)
Shares:6
Per share: 86,81 (incl. fees)
Total: 520,84
Railroad companies continue to get pressure from Mr. Market and that suited perfectly for me. I was able to lower my average cost in this company which serves the eastern part of US. Norfolk is about to declare dividend soon, and I'm excited to see if there will be increase or not. NSC has a habit to raise dividend twice a year, but on the other hand during 2012-2013 dividend remained the same four quarters. In any case NSC is Dividend Contender with 14-year streak. I will collect September dividends with my 10 shares. I'm looking to buy more in October-November.

Buy in USD
Omega Healthcare Investors (OHI)
Shares: 11
Per share: 35,80 (incl. fees)
Total: 393,85
Healthcare is one sector where I'm a bit light in, and have been looking for new ideas for long time. Certainly OHI is officially a REIT, but I think I could count this partially as a healthcare purchase. They have it in their name, so this can't be too far-fetched, right?:) I just initiated position in the beginning of July, and now bought more. Valuation, growth, yield, it's still all there. I'm looking forward to dividend declaration, perhaps and hopefully it will occur next week. I'm going to collect August dividends with my current shares, and looking to buy more in October.

Buy in USD
AT&T (T)
Shares: 4
Per share: 35,61 (incl. fees)
Total: 142,43
Few more shares of this big telecom to pump up August dividends. Averaging down my cost basis was long time coming, but finally I had to average up since the price jumped just before ex-divy date. Oh well, can't win 'em all. AT&T has been rising dividend slowly but steadily during last years, now sporting a 31-year streak. Looks like my position size in T is now in upper middle-class. No hurry to buy more, but possibly in November before next ex-divy date I will be shopping again.

In the end of June I compiled a "shopping list for July". Now I can state that I have made all purchases on that list except Procter & Gamble (PG). Still would like to buy, but that price just doesn't look too appealing. Then on the other hand this is a general problem in consumer staples sector. That is perhaps the most difficult sector to find good deals! Well, it looks like I could still make one purchase during July. We'll see what happens.

You can see all my direct stock holdings on my portfolio page. I have updated the page to reflect these transactions.

Disclosure: Long O, EMR, NSC, OHI, T, PG.

8 comments:

  1. Never heard of CSG. Some excellent purchases in quality companies though. Congrats on adding these names to your portfolio.

    regards
    R2R

    ReplyDelete
    Replies
    1. Thanks R2R,
      Yes, moving away from CSG towards these companies. I think I got lower yield but higher quality. So gotta be pleased about that.
      Cheers!
      DL

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  2. Nice buys Dividend Lord. I like the frequency and thus intensity. Way to add to that passive income stream. We recognize 3 of the 5 buys you've made. EMR, OHI and T are all in our family's dividend stocks portfolio. Glad to hear we are fellow shareholders.

    Cheers to continued growth and dividends. AFFJ

    ReplyDelete
    Replies
    1. AFFJ, thank you!
      Great to be a fellow shareholder with you in EMR, OHI, T. I believe we will enjoy a reliable income stream for years to come with these companies.
      Let's keep dividends rolling. Thanks for stopping by!
      DL

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  3. That's a lot of recent activity. Looks like EMR is getting quite popular as it dropped quite a bit in recent weeks. It's current yield certainly looks a lot more enticing. I'm still looking at adding to my Canadian banks and maybe REITs if they drop further. Thanks for sharing.

    ReplyDelete
    Replies
    1. Keith, you are right, a lot of recent activity. I need to calm down during rest of the month:)
      Yes, we can see many EMR purchase reports these days. Hopefully it stays at these levels, since I'm still looking to buy more.
      Thanks for dropping by!
      DL

      Delete
  4. Hi Dividend Lord,

    Great buys!
    Happy to welcome you as a fellow shareholder for OHI & T.
    O is still on my watchlist, but I don't want to depend on too much REITs at the time.

    Best wishes, DfS

    ReplyDelete
    Replies
    1. Hei DfS, thank you for the support.
      Absolutely, OHI and T should guarantee us nice looking dividend income in August:)
      I hear you there not wanting to become too heavy in REITs. After selling CSG I got some room for new REIT buys in my portfolio.
      Thanks for stopping by!
      DL

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