Oct 7, 2015

4 Recent Buys - RY, CSCO, OHI, UN

I have been doing a little bit of shopping again, which probably doesn't surprise anyone... hah! Well, anyways, here is the summary of four recent purchases. These all add to my existing positions: Royal Bank of Canada (RY.TO), Cisco Systems (CSCO), Omega Healthcare Investors (OHI) and Unilever N.V. (UN).

Buy in CAD - Royal Bank of Canada (RY.TO)
Trade Price: 73.50
Shares: 3
Commission: 1.01
Total: 221.51
Sector: Financial - Banking
Yield: 4,3%
Payout Ratio: 48%
Dividend Increase Streak Years: 4
DGR 3-yr: 10,9%
P/E trailing 12-month: 10,9

I don't know about you, but to me Royal Bank doesn't look expensive. This is great because I'm only in the beginning of accumulation with this stock. I was able to lower my cost basis and diversify towards Canada, so I got to be pleased about that. This purchase adds C$2.37 on quarterly and C$9.48 on annual basis to my dividend income.

Buy in USD - Cisco Systems Inc (CSCO)
Trade Price: 26.14
Shares: 1
Commission: 0.35
Total: 26.49
Sector: Technology - Networking & Communication Devices
Yield: 3,1%
Payout Ratio: 46%
Dividend Increase Streak Years: 5
DGR 3-yr: 60,2%
P/E trailing 12-month: 15,6

My last purchase report was about Cisco, so this is a little bit unexpected. But when last month was coming to an end, my commissions were well below $10 monthly minimum and I had just something like $30 dollars on my account. Plus ex-dividend date was just around corner, I decided to take one more bite of CSCO. This purchase adds $0.21 on quarterly and $0.84 on annual basis to my dividend income.

Buy in USD - Omega Healthcare Investors (OHI)
Trade Price: 35.15
Shares: 6
Commission: 0.34
Total: 211.24
Sector: REIT - Healthcare facilities
Yield: 6,2%
Payout Ratio: 77% of FFO
DGR 3 YR: 9,2%
P/FFO:  12,7

I guess this is one of the most bought stocks among DGI people in the year of 2015. I have also been buying OHI in several small batches. Yield, growth, valuation. All this remains too attractive to resist. I missed the best bargain prices, again, but still I was able to average down a tad. This purchase adds $3.30 on quarterly and $13.20 on annual basis to my dividend income. And perhaps these numbers will correct upwards very soon when the company declares next dividend!?

Buy in USD - Unilever NV (UN)
Trade Price:39.95
Shares: 2
Commission: 0.35
Total:80.25
Sector: Consumer Staples - Personal Products
Yield: 3,0%
Payout Ratio: 69%
Dividend Increase Streak Years: 0
DGR 3-yr: 0
P/E trailing 12-month: 19,3

I recently discovered Unilever branded mustard at the local shop, and of course I made a purchase immediately:) I just love to see the U-brand in various products at my home. Wish I bought more the stock when it visited below $40. Now the price seems to run away again. I'm looking to add at least a couple shares again in November. UN doesn't appear on David Fish's Dividend Champions list since dividends are determined in euros and then converted to dollars for shares in NYSE. But on Euro Dividend all-stars list Unilever has 14 year streak of increasing dividends. This purchase adds $0.66 on quarterly and $2.63 on annual basis to my dividend income. 

My Portfolio page has been updated to reflect these trades.

Disclosure: Long RY.TO, CSCO, OHI, UN

4 comments:

  1. Nice purchases, DL. All great companies - cant go wrong over the long run.

    Best
    R2R

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    Replies
    1. Hey R2R, you really found my post quickly:) Yes, I think so too. Hard to go wrong with these babies, since I plan to hold them for very many years.
      Thanks for dropping by!

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  2. All very solid buys. Any reason why you picked UN over UL? I thought UL is more tax efficient?

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    Replies
    1. Thanks Tawcan. About UN and UL, they withhold 15% of that dividend (Netherlands based tax). I'm quite happy with that, as it's same percentage as in my US and CAN holdings. To my understanding UL withhold to me would be 0%, so yes more efficient in one way, but on the other hand the whole tax (25,5% to me) will just transfer to final taxation.
      So, owning UN instead of UL reduces my final tax bill a little bit. I just feel like this suits me, even though it may not be 100% efficient.
      Thanks for your comment. DL

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