Dec 19, 2015

3 Recent Buys - ABT, ADM, CSCO & 1 Sale - COP

Big news! For the first time since August I have started a new position. And not just one but two of them! I'm talking about Abbott Laboratories (ABT) and Archer-Daniels Midland Co (ADM). Then I nibbled a little bit more Cisco Systems Inc (CSCO). But I have also sold all my shares at one company: ConocoPhillips (COP).


Buy in USD - Abbott Laboratories (ABT)
Trade Price: 45.01
Shares: 18
Commission: 0.70*
Total: 810.10
Sector: Healthcare - Medical Appliances & Equipment
Yield: 2,3%
Payout Ratio: 31%
Dividend Increase Streak Years: 2
DGR 3-yr: -20,1%
P/E trailing 12-month: 15,1
*consists of two trades

Buy in USD - Archer-Daniels Midland Co (ADM)
Trade Price: 34.90
Shares: 15
Commission: 0.33
Total: 523.83
Sector: Consumer Goods - Farm Products
Yield: 3,2%
Payout Ratio: 39%
Dividend Increase Streak Years: 40
DGR 3-yr: 13,6%
P/E trailing 12-month: 11,9
  
Buy in USD - Cisco Systems Inc (CSCO)
Trade Price: 26.22
Shares: 3
Commission: 0.36
Total: 79.02
Sector: Technology - Networking & Communication Devices
Yield: 3,1%
Payout Ratio: 45%
Dividend Increase Streak Years: 5
DGR 3-yr: 60,2%
P/E trailing 12-month: 14,3

Sale in USD - ConocoPhillips (COP)
Trade Price: 50.00
Shares: -16
Commission: 0.35
Total: 799.65

What a crazy December! I have made more trades than ever before during a single month. I closed out my position in COP. I must admit that when I initiated position in the company I thought that price of oil "can only go up". If oil were $100 today, COP would be doing amazing business, no doubt. But it's far from that. I'm concerned about the sustainability of their dividend, and Kinder Morgan's example doesn't increase my trust in oil&gas companies. My loss with COP is about $250, but like with KMI this goes to tax loss harvesting.

Reducing risk is the name of the game here. At least that's what I think about switching from KMI to ABT and from COP to ADM!  From oil to healthcare and consumers sectors. No secret that these are my favorite sectors. Of course lower initial yield is one thing I must accept here. But I accept it now after watching these companies for quite a long time.

ADM's dividend growth numbers are amazing. Couldn't wish for better. On the other hand these numbers don't do justice to Abbott. ABT/ABBV split in 2013 ruined their dividend streak, but I believe that the company is building impressive streak again. In fact ABT just increased quarterly dividend from $0.24 to $0.26 equivalent to 8,3%. 

These are just the first purchases in ABT and ADM. When thinking about my foreign stocks, I intend to lift ABT to TOP 5 and ADM to TOP 10 in weight. So I guess I could call these cornerstone positions. 

My Portfolio page has been updated to reflect these trades.

Disclosure: Long ABT, ADM, CSCO 
 

2 comments:

  1. Nice pickup with ADM and it looks like they are due for a dividend raise next quarter. Best of luck.

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    Replies
    1. Captain, that's right. They tend to announce a raise in February. I'm aiming to own at least 30 shares before that.
      Thanks for dropping by!

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