Oct 11, 2015

3 Recent Buys - PG, GILD, T

And more buys! Beginning of October has been strong rise on the stock markets. I have seen my net worth going up nicely, since all investments including Nordic stocks, foreign stocks and some funds (purchased a long time ago, not listed on this site) have been rising. I don't try to time the market and usually stocks begin to decline right after my purchase, but looks like this time I had some luck. I have added to my position in Procter & Gamble (PG), Gilead Sciences (GILD) and AT&T (T).


Buy in USD - Procter & Gamble (PG)
Trade Price: 71.50
Shares: 2
Commission: 0.35
Total: 143.35
Sector: Consumer Goods - Personal Products
Yield: 3,6%
Payout Ratio: 85%
Dividend Increase Streak Years: 59
DGR 3-yr: 7,2
P/E trailing 12-month: 30,6

Three companies bought and all very different. AT&T high yield and slow growth stock, Gilead low yield and high growth (hopefully! this remains to be seen, since the company has declared only two dividends so far). Procter & Gamble moderate yield and moderate growth!? So, we know that PG currently struggles with growth, currency fluctuations and last dividend increase was modest, to say the least. On the other hand it's still an iconic consumer goods company which has increased dividend for 59 years in a row. There is no doubt that I want to own this kind of company, and now the price was about right to add more shares. This purchase adds $1.33 on quarterly and $5.30 on annual basis to my dividend income. 

Buy in USD - Gilead Sciences (GILD)
Trade Price: 97.50
Shares: 1
Commission: 0.35
Total: 97.85
Sector: Healthcare - Biotechnology
Yield: 1,7%
Payout Ratio: 14%
Dividend Increase Streak Years: 0
DGR 3-yr: 0
P/E trailing 12-month: 10,7

Slowly and steadily building my position in GILD. Recent decline in biotech sector made it possible to grab one more share well below my average cost. Wish I had had capital to buy some JNJ too! But this time I didn't have, and this cash had to go to GILD, because it's still one of my smallest positions and JNJ is one of the biggest. This purchase adds $0.43 on quarterly and $1.72 on annual basis to my dividend income.

Buy in USD - AT&T (T)
Trade Price: 32.45
Shares: 2
Commission: 0.35
Total: 65.25
Sector: Technology - Telecom Services
Yield: 5,6%
Payout Ratio: 184%
Dividend Increase Streak Years: 31
DGR 3-yr: 2,3
P/E trailing 12-month: 32,8

It was time to add a little bit of T again before ex-dividend date. Here even tiny purchases boost dividend income, because of that fat yield. Difficult to imagine Feb/May/Aug/Nov dividend income without T. And in December the company will announce that we are going to get one cent more again, or what do you think!? This purchase adds $0.94 on quarterly and $3.76 on annual basis to my dividend income.  

I consider PG to be about full position for now, so I'm not likely to buy more very soon. With GILD I'm going to continue building my position. Hopefully I have some capital already in November. Looks like T is approaching full position for me, but perhaps there is room for another tiny addition before next ex-divy date.

My Portfolio page has been updated to reflect these trades.

Any of these stocks on your shopping list?

Disclosure: Long PG, GILD, T, JNJ

2 comments:

  1. Hey DL,

    Congrats on the very solid buys!
    I am long both T and JNJ, but you managed to get them for a very attractive price.

    Hopefully they will bring us nice dividends for many years to come.

    Best wishes, DfS

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    Replies
    1. Hei DfS, thanks! I'm very long in T and JNJ too. I strongly believe that we are going to enjoy those dividends for many years to come.
      And already next week it's time to collect that fat dividend from T!
      Thanks for dropping by.

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