Jan 6, 2016

5 Recent Buys - RY, GIS, HCP, PG, T

What a crunchy start for 2016! We have enough frost here in the northern Europe, and on the first trading day Mr. Market decided to give a little discount on the stock prices. I wasn't against that and bought all kinds of stuff. I have added to my position in Royal Bank of Canada (RY.TO), General Mills (GIS), HCP Inc (HCP), Procter & Gamble (PG), AT & T (T).


Buy in CAD - Royal Bank of Canada (RY.TO)
Trade Price: 73.27
Shares: 3
Commission: 1.01
Total: 220.82
Sector: Financial - Banking
Yield: 4,3%
Payout Ratio: 47%
Dividend Increase Streak Years: 5
DGR 3-Yr: 10,5%
P/E: 10,8

S & P Credit Rating: AA-

Buy in USD - General Mills Inc (GIS)
Trade Price: 57.00
Shares: 2
Commission: 0.35
Total: 114.35
Sector: Consumer Goods - Processed & Packaged Goods
Yield: 3,1%
Payout Ratio: 73%
Dividend Increase Streak Years: 12
DGR 3-Yr: 10,9%
P/E: 23,6

S & P Credit Rating: BBB+

Buy in USD - HCP Inc (HCP)
Trade Price: 37.50
Shares: 2
Commission: 0.35
Total: 75.35
Sector: REIT - Healthcare Facilities
Yield: 6,0%
Payout Ratio: 72% of FFO
Dividend Increase Streak Years: 30
DGR 3-Yr: 4,2%
P/FFO:  12,4

S & P Credit Rating: BBB+

Buy in USD - Procter & Gamble (PG)
Trade Price: 78.30
Shares: 1
Commission: 0.35
Total: 78.65
Sector: Consumer Goods - Personal Products
Yield: 3,4%
Payout Ratio: 87%
Dividend Increase Streak Years: 59
DGR 3-Yr: 6,0%
P/E: 29,6

S & P Credit Rating: AA-

Buy in USD - AT&T (T)
Trade Price: 34.07
Shares: 2
Commission: 0.35
Total: 68.49
Sector: Technology - Telecom Services
Yield: 5,6%
Payout Ratio: 223%
Dividend Increase Streak Years: 32
DGR 3-Yr: 2,3
P/E: 36,8
S & P Credit Rating: BBB+

I thought that I would like to add credit rating by Standard & Poors to company details here. I should probably pay attention to debt situation in companies more. And one good way is to check credit rating by outside professional, like S & P. Basically it tells about company's capability to meet its financial commitments. I'm not going to set an absolute threshold, but of course 'A' looks better than 'B' here.

Actually all these purchases will add to my February dividends, so I'm well underway patching the hole left by KMI. I have not been buying GIS for a long time. I wanted, but it seemed overvalued. So I have been waiting for a better price. Price that never arrived. Now after a small decline I'm pleased that I finally pulled the trigger. It's nice to see Royal Bank officially in Canadian Dividend All-Star List now when it has 5 years streak of increasing dividend. I continue to build my position in the company.

Nibbled a couple shares of HCP. Hopefully company has good news in the end of this month in the form of dividend hike. AT & T on the other hand declared its dividend hike in December, and now it's time to enjoy that higher dividend. One more share of Procter & Gamble!  Company is struggling a little bit, and the payout ratio is certainly higher than I would like to see. But PG has been around and increased their dividend for ages, so I just hope they are able to figure out the situation.
 
Well, there you have Dividend Lord's first buys in 2016, but more is coming shortly. So stay tuned!

My Portfolio page has been updated to reflect these trades.

What do you think about these companies? Have you already made buys this year?

Disclosure: Long RY.TO, GIS, HCP, PG, T 

4 comments:

  1. Nice purchases, DL. Those are really strong companies and its good to keep buying small quantities regularly. Those are really low commission rates. Wish I had such low rates.

    R2R

    ReplyDelete
    Replies
    1. Thank you R2R. Yes, I like these fees very much. As long as I have such fees I keep buying small quantities regularly. That suits me perfectly.
      Thanks for your visit and comment.

      Delete
    2. How do I contact you? Can you get in touch with me either via social media (twitter.com/Roadmap2Retire) or email (info@roadmap2retire.com)

      Btw, you need a contact page on your blog :)

      Delete
    3. Hah, I guess you are right there:) I will send an email to you.

      Delete