May 8, 2016

4 Recent Buys - AMGN, GILD, MMM, UNA

My strategy is to constantly add more shares to positions in my portfolio. So, it's a pleasure to announce that once again I have managed to buy more of some quality companies. In fact I have added to my existing positions in Gilead Sciences (GILD), 3M Company (MMM) and Unilever (UNA.AS). But there is also one newcomer: Amgen Inc (AMGN). OK, here is the summary of my recent acitivity:

Buy in USD - Amgen Inc (AMGN)
Trade Price: 156.64
Shares: 3
Commission: 0.70 (consists of two trades)
Total: 470.63
Sector: Healthcare - Biotechnology
Yield: 2,6%
Payout Ratio: 44%
Dividend Increase Streak Years: 6
Annualized Dividend Growth 3-yr: 29,9%
P/E: 16,2
S&P Credit Rating: A

Buy in USD - Gilead Sciences Inc (GILD)
Trade Price: 88.70
Shares: 1
Commission: 0.35
Total: 89.05
Sector: Healthcare - Biotechnology
Yield: 2,1%
Payout Ratio: 16%
Dividend Increase Streak Years: 0
Annualized Dividend Growth 3-yr: 0
P/E: 7,6
S&P Credit Rating: A

Buy in USD - 3M Company (MMM)
Trade Price: 167.25
Shares: 1
Commission: 0.35
Total: 167.60
Sector: Industrial - Diversified Machinery
Yield: 2,7%
Payout Ratio: 59%
Dividend Increase Streak Years: 58
Annualized Dividend Growth 3-yr: 20,2%
P/E: 21,5
S&P Credit Rating: AA-

Buy in EUR - Unilever NV (UNA.AS)
Trade Price: 39.95
Shares: 4
Commission: 1.60
Total: 161.40
Sector: Consumers - Personal Products
Yield: 3,2%
Payout Ratio: 68%
Dividend Increase Streak Years: 9
Annualized Dividend Growth 3-yr: 7,8%
P/E: 21,3
S&P Credit Rating: A+

Wow, 2 out of 4 purchases were biotech. Gilead has been taking heavy beating on the markets again, this time due to disappointing earnings report. Averaging down my cost basis was a no-brainer. But Amgen is a new addition to my portfolio. It has been on my watch list for a while, and finally came the moment to pull the trigger. Non-cyclical business, treatments in different areas of diseases, mature drugs bringing in good cash flow, new drugs and pipeline look promising. AMGN just reported excellent Q1 earnings and raised sales guidance for this year. I'm looking to buy more Amgen when I have capital on my brokerage account. 

3M Company refuses to go down when it comes to share price. There is not too much time till next ex-dividend date and I wanted to increase position before that, so this is the price I had to pay. It was a good feeling to buy more Unilever again. They don't come much more non-cyclical than this one. It's too bad that the company doesn't appear on David Fish's CCC list. Dividend is paid in euros, and when converted to dollars it fluctuates from year to year. Anyways, in euros Unilever has raised its dividend for a very long time. I play it safe and write down 9 years. In 2006 the company paid special one-off dividend, so actually the history of dividend increases goes beyond that. But since it's hard to find out how far the history exactly goes, I will cut it off there. 

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

Disclosure: Long AMGN, GILD, MMM, UNA.AS

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