Aug 15, 2015

4 Recent Buys

Here are rest of the buys I made in early August. I consider my portfolio rather diversified already; therefore I'm not anxiously adding new positions. However now I wanted one stock too much. So here we are: Gilead Sciences (GILD) is a newcomer in my portfolio, which now consists of 47 different stocks! Other buys add to my existing positions: Enbridge Inc (ENB.TO), Unilever NV (UN) and Main Street Capital (MAIN).



Buy in CAD - Enbridge Inc (ENB.TO)
Trade Price: 56.90
Shares: 6
Commission: 1.02
Total: 342.42
Sector: Energy - Oil & Gas Pipelines
Yield:3,4
Payout Ratio: 78%
Dividend Increase Streak Years:19
DGR 3-yr: 12,6
P/E (current/Q2 earnings): 23,3

Looks like here is my energy bet for August. There is a lot of tempting value in energy companies, but I'm hesitant to invest there. Pipelines however are less impacted by oil prices, and I also like that ENB brings geographical diversification and renewable energy exposure to my portfolio. I had only small starting position in ENB, so it was natural to add more shares. I'm looking to buy more during this year if price stays at these levels or lower.

Buy in USD - Gilead Sciences Inc (GILD)
Trade Price:118.50
Shares: 3
Commission:0.34
Total: 355.84
Sector: Healthcare - Biotechnology
Yield: 1,5%
Payout Ratio: 14%
Dividend Increase Streak Years:0
DGR 3-yr: 0
P/E trailing 12-month: 12,1

Kind of surprising purchase here. My lowest entry yield ever. Also GILD lacks track record when it comes to dividend increases, since it has declared only two dividends so far. But then about everything else about the company looks very good. Many analysts and commentators have praised Gilead's strong Q2 results. Still the share price hasn't taken off, which is great. My portfolio has been lacking low yield-high growth kind of stocks. I'm definitely expecting GILD to be one. I'm looking to buy more shares soon.

Buy in USD - Unilever NV (UN)
Trade Price: 45.44
Shares: 2
Commission: 0.35
Total: 91.23
Sector: Consumer Staples - Personal Products
Yield: 2,8%
Payout Ratio: 69%
Dividend Increase Streak Years: 0
DGR 3-yr: 0
P/E trailing 12-month: 20,2

Unilever is a company which I would like to see as my core holding, but that valuation is killing me! Well, a typical consumer staples stock in that sense. At these prices I was able to pull the trigger for only two additional shares, making UN a lower middle-class stock within my portfolio. That's far from where I would like it to be. Since my purchase the price has come down a bit so I'm eyeing for more shares, but I think that I won't have capital for this very soon. 

Buy in USD - Main Street Capital (MAIN)
Trade Price: 29.95
Shares: 2
Commission: 0.35
Total: 60.25
Sector: Financial - BDC
Yield: 7,3%
Payout Ratio: 93%
Dividend Increase Streak Years: 5
DGR 3-yr: 8,5
P/E trailing 12-month:11,5

I would say that I'm not a big fan of BDC companies in general. Their business model is perhaps a bit beyond my understanding. But MAIN has been an excellent dividend payer for me. Yield is high already, and recently they announced 2,85% increase to their regular monthly dividend. Since the share price responded with a decline, I decided that I want more. I didn't have many dollars left at my account so this is a tiny buy, but every little bit helps. I 'm rather pleased now with my number of MAIN shares, so probably I won't add any time soon.

My Portfolio page has been updated to reflect these trades.

Disclosure: Long ENB.TO, GILD, UN, MAIN.

 

2 comments:

  1. Great purchases, DL. You are picking some of the companies that I have been eying myself.

    ENB, GILD and UL have perpetually been on my watchlist - just havent pulled the trigger.

    MAIN - I own this one but have been thinking of adding more. That 7%+ dividend sure is tempting

    Best wishes
    R2R

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    Replies
    1. Hei R2R and thanks.
      I don't see many DG investors to own MAIN, but great to have you as fellow shareholder. Surely helps you to boost your income with monthly payments plus special dividends.
      Enbridge and Unilever yield much less, but solid companies in my books, very pleased to own them.
      GILD is kind of wild card at this point. Have to see how it goes, but I have a good feeling.
      Thanks for stopping by!

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