Oct 24, 2015

6 Recent Buys - EMR, GILD, NSC, OHI, OKE, UN

After closing out my position in BioMed Realty (BMR) I had some capital without work. My portfolio consists of several small positions, so I thought that more than opening a new position I should add to my existing positions. And that's exactly what I did here. So I bought more Emerson Electric (EMR), Gilead Sciences (GILD), Norfolk Southern Corporation (NSC), Omega Healthcare Investors (OHI), ONEOK Inc (OKE) and Unilever N.V. (UN).


Buy in USD - Emerson Electric (EMR)
Trade Price: 47.75
Shares: 3
Commission: 0.35
Total: 143.60
Sector: Industrial - Electronic Equipment & Components
Yield: 3,9%
Payout Ratio: 51%
Dividend Increase Streak Years: 58
DGR 3-yr: 7,0%
P/E trailing 12-month: 13.4

There are 17 Dividend Kings in the world EMR being one of them. Another dividend raise is most likely just around the corner. So, what can I say, it feels great to be able to increase my ownership in this company. This purchase adds $1.41 on quarterly and $5.64 on annual basis to my dividend income.

Buy in USD - Gilead Sciences (GILD)
Trade Price: 101.50
Shares: 2
Commission: 0.35
Total: 203.35
Sector: Healthcare - Biotechnology
Yield: 1,6%
Payout Ratio: 14%
Dividend Increase Streak Years: 0
DGR 3-yr: 0
P/E trailing 12-month: 11,4

This was already second GILD purchase this month. I continue to like investing in healthcare sector, and if I had to name one undervalued stock in my portfolio, it has to be this one. Should be exciting to see earnings report on Tuesday and what the market reaction will be. This purchase adds $0.86 on quarterly and $3.44 on annual basis to my dividend income. 

Buy in USD - Norfolk Southern Corporation (NSC)
Trade Price: 80.90
Shares: 2
Commission: 0.35
Total: 162.15
Sector: Industrial - Railroads
Yield: 2,9%
Payout Ratio: 40%
Dividend Increase Streak Years: 14
DGR 3-yr: 10,2%
P/E trailing 12-month: 13,8

Railroads are facing some decent headwinds, not least with collapsed commodity prices, and shares are far from 52-week high. Anyways, I believe that soft period is a good time to buy more. Had a chance to average down my cost basis in NSC, so I took it. This purchase adds $1.18 on quarterly and $4.72 on annual basis to my dividend income. 

Buy in USD - Omega Healthcare Investors (OHI)
Trade Price: 36.75
Shares: 3
Commission: 0.35
Total: 110.60
Sector: REIT - Healthcare Facilities
Yield: 6,1%
Payout Ratio: 77% of FFO
Dividend Increase Streak Years: 13
DGR 3 YR: 9,2%
P/FFO:  12,7

And second OHI purchase this month! I wasn't supposed to, but it was natural to put part of that capital from BMR sale to other REIT. As you probably know already, OHI recently announced dividend increase. Another quarterly raise pumped dividend from $0.55 to $0.56. This purchase adds $1.68 on quarterly and $6.72 on annual basis to my dividend income.   

Buy in USD - ONEOK Inc (OKE)
Trade Price: 37.25
Shares: 2
Commission: 0.35
Total: 74.85
Sector: Utilities - Gas
Yield: 6,7%
Dividend coverage ratio: 1.18
Dividend Increase Streak Years: 13
DGR 3-yr: 31,1%
P/E trailing 12-month: 25,7

One of my riskiest investments like the yield tells. Second highest yield in my portfolio. So, I didn't want to place big money here, but just a small addition to average down and keep the dividend sum going up. By the way, OKE just announced dividend increase of 1,65%. Not a huge percentage but combined with that monstrous yield I can't complain. This purchase adds $1.23 on quarterly and $4.92 on annual basis to my dividend income.

Buy in USD - Unilever NV (UN)
Trade Price: 46.15
Shares: 2
Commission: 0.35
Total: 92.65
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: 21,1

Also Unilever saw two purchases during October.  I continue to like the sector and the company, but honestly speaking I didn't like the price I had to pay here. Perhaps I overpaid a little, but I just wanted too badly nice round number of 20 shares before ex-dividend date! This purchase adds $0.69 on quarterly and $2.75 on annual basis to my dividend income.

All right, OHI and OKE purchases increase my November dividends and the rest December dividends. I still have some plans to increase those December dividends, but mostly focus will turn towards January dividends from here! 

My Portfolio page has been updated to reflect these trades.

Disclosure: Long EMR, GILD, NSC, OHI, OKE, UN

4 comments:

  1. Great purchases DL. Keep up the great work with those regular purchases.

    R2R

    ReplyDelete
    Replies
    1. Hei R2R, thanks. I definitely intend to continue regular purchases. When month changes to November I will have some capital for buys again.
      Thanks for your visit and comment.

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  2. Someone's been busy buying up some solid names. Like the EMR buy. I added some last month as well as industrial names CAT and DOV this month. Nice current yield too with many of the names above. Congrats on growing that dividend snowball.

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    Replies
    1. Thanks Keith. Yeah, that BMR sale really led to exceptional amount of buys this month. Hopefully we can congratulate ourselves on Emerson's dividend raise soon!
      Thanks for stopping by.

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