Aug 27, 2016

3 Recent Buys - ES, KO, XEL

Here are my purchases during the latter half of August. Wow, looks like I should have waited for the FED and Yellen with my buys, hah! Well, anyways, I bought more shares to my existing positions in Eversource Energy (ES), The Coca-Cola Company (KO) and Xcel Energy Inc (XEL).


Buy in USD - Eversource Energy (ES)
Trade Price: 56.48
Shares: 2
Commission: 0.35
Total: 113.31
Sector: Utilities - Electric/Gas
Yield: 3,2%
Payout Ratio: 65%
Dividend Increase Streak Years: 18
Annualized Dividend Growth 3-yr: 8,1%
P/E: 20,8
S&P Credit Rating: A

Buy in USD - The Coca-Cola Company (KO)
Trade Price: 43.70
Shares: 2
Commission: 0.35
Total: 87.75
Sector: Consumer Goods - Soft Drinks
Yield: 3,2%
Payout Ratio: 84%
Dividend Increase Streak Years: 54
Annualized Dividend Growth 3-yr: 9,0%
P/E: 25,1
S&P Credit Rating: AA-

Buy in USD - Xcel Energy Inc (XEL)
Trade Price: 42.55
Shares: 4
Commission: 0.35
Total: 170.55
Sector: Utilities - Electric/Gas
Yield: 3,2%
Payout Ratio: 64%
Dividend Increase Streak Years: 13
Annualized Dividend Growth 3-yr: 5,9%
P/E: 20,2
S&P Credit Rating: A-

This month I have been increasing my weight in Utilities. This sector suits well my slow & steady approach. I would love to load the truck with Consumer Staples stocks, but there are some problems that are well visible in KO's numbers above. Valuation is killing me, and payout ratios tend to be on the high side too. Going forward, most likely KO's dividend growth will be much less than the 9% last 3 years. Still, I try to nibble a share here and there.

Rate hike speculation punished Utilities on Friday. That's fine since I'm already looking to buy more XEL, and this situation seems to open a chance to average down my cost basis.  

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

Disclosure: Long ES, KO, XEL

4 comments:

  1. Utilities, although slow growers, tend to stick around with dividend increases the longest. Good call.
    Cheers,
    DFG

    ReplyDelete
    Replies
    1. Yep, dividend increases are going to be small with ES and XEL. In return I expect to get them reliably every year. Bigger raises I should get from my Canadian investments CU and AQN, but naturally then there is also more risk.
      Thanks for dropping by DFG!

      Delete
  2. Thanks for sharing -- I'm long ES and KO but not XEL. Good buys. I agree with your sense that KO won't keep up the 9% dividend growth rate. Nevertheless, I think its a good stock to keep for the long run!

    ReplyDelete
    Replies
    1. FerdiS, can't really remember any other DGI owning ES, so that was a nice surprise! Then again KO can be found in almost every portfolio:) And yeah, I intend to keep it in my portfolio too, even though the company may not be at its strongest right now.
      Thanks for stopping by!

      Delete