Aug 8, 2015

3 Recent Buys

After change of a month I'm usually busy buying stocks. Beginning of August has been no exception. Here is the report of three first purchases. I have added to my position in Avista Corporation (AVA), Emerson Electric (EMR) and Textainer Group Holdings (TGH).

Buy in USD - Avista Corp (AVA)
Trade Price: 32.85
Shares: 3
Commission: 0.35
Total: 98.90
Sector: Utilities - Electric & Gas
Yield: 4,0%
Payout Ratio: 70%
Dividend Increase Streak Years: 13
DGR 3-yr: 4,9%
P/E trailing 12-month: 18.1

I was able to lower my cost basis a bit with this purchase. I would say AVA is rather typical utility. Slowly but steadily crawling forward, and that's perfectly fine with me. Valuation could be more compelling, definitely. However I wanted to drag September dividend upwards with this one, and I didn't want to speculate whether or not I can get better price before next ex-divy date. September dividend has not been declared yet, but I expect it to be in line with previous $0.33. Hence this buy will add $0.99 towards my September dividends. Now my AVA position's weight is in upper middle-class in my portfolio, would I say. My feeling is that I will buy more during rest of the year only if I can get significantly better price.

Buy in USD - Emerson Electric (EMR)
Trade Price: 51.40
Shares: 3
Commission: 0.35
Total: 154.55
Sector: Industrial - Electronic Equipment & Components
Yield: 3,8%
Payout Ratio: 50%
Dividend Increase Streak Years: 58
DGR 3-yr: 7,0%
P/E trailing 12-month: 13.6

Averaging down again. According to A Frugal Family's Journey EMR was the most bought stock amongst dividend bloggers in July! So I guess we are very familiar with this company already. Going through a little bit rougher times right now, it has been punished by Mr. Market. Good time to buy this company which has been around for ages and has raised dividend for 58 straight years, have many DGI people been thinking. EMR will go ex-dividend next week, 12th August. This purchase is going to add $1.41 towards my September dividends. Now I have a middle weight position in EMR. If the share price remains below or around 50 bucks, I will be interested in buying more during rest of the year.

Buy in USD - Textainer Group Holdings (TGH)
Trade Price: 22.60
Shares: 3
Commission: 0.35
Total: 68.15
Sector: Industrial -Transportation Services
Yield: 9,7%
Payout Ratio: 65%
Dividend Increase Streak Years: 8
DGR 3-yr: 13,7%
P/E trailing 12-month: 6.4

Speaking about punishment from Mr. Market. Textainer has received more than fair share. It's like the company would be in imminent crisis, but Q2 results didn't confirm that. Revenue and EPS were down a bit from last year, but can't recognize a crisis here. So, I was able to buy in way lower than my cost basis, but still after my purchase the shares crashed through the floor. Now the price has recovered a little, but still those P/E and Yield look almost ridiculous. Still, no doubt, this is one of my riskiest investments, and I intend to keep the weight low. Well, that should be easy if the stock keeps on crashing... HAH! Anyways, TGH has also ex-dividend date next week 12th August, and payment will occur already during this month. Hence this purchase will add $1.41 towards my August dividends.Textainer's dividend growth numbers above look rather nice, but actually the dividend has remained the same $0.47 already for 9 quarters. If I'm correct they have only one chance left to raise dividend, or they will be deleted from Mr. Fish's CCC-list. Too bad if that happens, but at this kind of yield for me it will be enough if they are able to maintain that dividend.

So, here are the first trades of August 2015 and there is more to come! My portfolio page has been updated to reflect these buys.

Have you been shopping lately? What do you think about these purchases?

Disclosure: Long AVA, EMR, TGH 

10 comments:

  1. Nice grabbing EMR at around 50 here. It's really taken a beating in the face of market headwinds and looking like a steal here. I also own AVA which has been good to me so far. Keep up the great work.

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    1. Hi Captain, thanks for your comment.
      Yeah, I would like to see EMR sticking below 50, so I could add more shares later.
      Great to be a fellow shareholder with you in AVA. It has been a reliable dividend payer for me, and I don't expect that to change.

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  2. Nice purchases, DL.
    Dont know much about avista - I will have to check them out. Great purchase price for EMR. Havent evaluated TGH in a while - but on the surface looks like a good price

    R2R

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    1. Thank you, R2R.
      If you have time to check out AVA, please do, it would be interesting to know what you think.
      Love that price of EMR, like many other dividend bloggers too.
      TGH looks like a bargain right now. But it has been a wild ride. Is there something going on that we regular investors don't know? Anyways, I took a risk here with small 3 shares purchase.

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  3. Keeping busy with some solid buys. I like EMR despite their headwinds in the near term and AVA was added to my watch list a few weeks ago but I most likely won't be initiating any new positions in the near term rater focus on averaging down on my current holdings. Thanks for sharing. Congrats on the new buys.

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    Replies
    1. Hi Keith and thanks.
      Yes, I have really been busy buying. Small buys but many. Taking full advantage of my low commissions here.
      EMR has been extremely popular amongst DG bloggers recently. Nice to hear that you have added AVA to your watch list.
      Thanks for stopping by!

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  4. Hi Divedend Lord,
    How come you pay such a small Commission for your transactions?

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    1. Hi Moh E. Those are the commissions my brokerage Interactive Brokers charges from me.
      A little bit funny perhaps, I'm able to buy US stocks much cheaper than my homeland's stocks.
      Thanks for your visit and comment.

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  5. Thank you for your reply. I have an IB acount also and I pay a lot less for US stocks than my homeland Danish stocks, but the min. fee I pay IB is 1 $ for each transaction. still a lot cheaper than Nordnet or Nordea, but more than double of what you pay.

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    Replies
    1. OK, that's interesting. Which pricing structure do you have? I have "Tiered".

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