Feb 7, 2016

5 Recent Buys - ENB, ADM, GILD, MMM, NOK

One week into February. Overall market seems to continue in nervous mode it adopted in January. I didn't let that distract however. I have initiated two new positions! They are 3M Company (MMM) and Nokia Corp (NOK.HE). Additionally I have bought more Enbridge Inc (ENB.TO), Archer-Daniels Midland Co (ADM) and Gilead Sciences Inc (GILD).


Buy in CAD - Enbridge Inc (ENB.TO)
Trade Price: 47.51
Shares: 3
Commission: 1.01
Total: 143.54
Sector: Energy - Oil & Gas Midstream
Yield: 4,5%
Payout Ratio: 113%
Dividend Increase Streak Years: 20 
Annualized Dividend Growth 3-yr: 18,1%
P/E (ttm): 25,3
S&P Credit Rating: BBB+

Well, what a notorious sector in this purchase, and I kind of didn't want to make this buy. But, it's time to build up my March dividend income. CAD is quite cheap against EUR and I wanted to take advantage of that. Additionally I didn't want to start a new TSE Exchange position at this time, so I didn't really have a choice but buy more Enbridge. In December the company declared 14 percent increase in its dividend, pumping quarterly distribution from C$0.465 to C$0.53.  

Buy in USD - Archer-Daniels Midland Co (ADM)
Trade Price: 34.43
Shares: 2
Commission: 0.35
Total: 69.21
Sector: Consumer Staples - Farm Products
Yield: 3,5%
Payout Ratio: 39%
Dividend Increase Streak Years: 40
Annualized Dividend Growth 3-yr: 17,0%
P/E (ttm): 11,4
S&P Credit Rating: A

In December I started position in ADM with 15 shares, and the goal was 30 shares before dividend announcement. This purchase completes that goal. The dividend announcement, and raise, arrived Tuesday  Feb. 2. Quarterly dividend was increased from $0.28 to $0.30 or by 7,1 percent.  

Buy in USD - Gilead Sciences Inc (GILD)
Trade Price: 82.00
Shares: 1
Commission: 0.35
Total: 82.35
Sector: Healthcare - Biotechnology
Yield: 2,1%
Payout Ratio: 14%
Dividend Increase Streak Years: 0
Annualized Dividend Growth 3-yr: 0%
P/E (ttm): 7,2
S&P Credit Rating: A

Gilead has had a rough year so far, shares down some 15% YTD. Latest plunge due to fears of tightening competition in hepatitis C treatments. Then in turn GILD once again reported strong earnings beating estimates. I have no problem in buying more at these prices. Dividend in Q1, payable in March, will be in line with previous, $0.43. But in Q2, payable in June, it will be increased to $0.47 or by 9,3 percent. They initiated dividend in Q2/2015 and now there is first raise. Naturally this was very important news for me and all DGIs who have invested in GILD.   

Buy in USD - 3M Company (MMM)
Trade Price: 148.47
Shares: 4
Commission: 0.70 (consists of two trades)
Total: 593.88
Sector: Industrial - Diversified Machinery
Yield: 3,0%
Payout Ratio: 53%
Dividend Increase Streak Years: 57
Annualized Dividend Growth 3-yr: 20,2%
P/E (ttm): 20,2
S&P Credit Rating: AA-

3M Company, finally found its way to my portfolio! I have wanted to own it for a long time, but there didn't seem to be right time, place and money. But now, when February started and dividend raise was most likely coming, I thought that it's now or never! And dividend raise arrived: quarterly dividend was increased from $1.025 to $1.11 or by 8,3%.

3M is a diversified business. Segments from biggest to smallest in net sales 2015: Industrial, Safety & Graphics, Healthcare, Electronics & Energy, Consumer. The company also operates globally: products are sold in nearly 200 countries. And that dividend increase streak; so we are back in the 1950s when it started! The world was quite a different place at that time, yet MMM was able to begin something that still continues today uninterrupted. So, it's great to be a shareholder at last, and I consider this to be one of my cornerstone positions.

Buy in EUR - Nokia Corp (NOK.HE)
Trade Price: 5.84
Shares: 110
Commission: 8.00
Total: 650.40
Sector: Technology - Network Infrastructure
Yield: 2,4%
Payout Ratio: 41%
Dividend Increase Streak Years: 0
Annualized Dividend Growth 3-yr: 0%
P/E (ttm): 16,5
S&P Credit Rating: BB+

Nokia must be the most famous Finnish company in the world. Once it was the biggest mobile phone manufacturer, but now that's just one chapter in company's history. Today Nokia's main business is networking infra. I haven't been following Nokia or any other Finnish companies very closely, but when the company took some -11% nosedive in the beginning of February I decided to open a small position.  

Thanks for reading. My Portfolio page has been updated to reflect these trades.

Disclosure: Long ENB.TO, ADM, GILD, MMM, NOK.HE

2 comments:

  1. Another great set of purchases. Keep piling on those shares regularly.

    R2R

    ReplyDelete
    Replies
    1. Hei R2R, yep that's exactly what I intend to do. Next the focus will turn towards companies that pay in April.
      Thanks for stopping by!

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