Nov 19, 2016

2 Recent Buys - KO, UNA

More than a week after the unexpected elections in the US the market in general keeps climbing higher. S&P 500 index for example is practically at ATH (all time high) level. It's impossible to buy anything in these conditions right? Well, not quite so I think. I have made two small additional purchases to my existing positions in The Coca-Cola Company (KO) and Unilever N.V. (UNA.AS).


Buy in USD - The Coca-Cola Company (KO)
Trade Price: 40.95
Shares: 3
Commission: 0.35
Total: 123.20
Sector: Consumers - Soft Drinks
Yield: 3,4%
Payout Ratio: 80%
Dividend Increase Streak Years: 54
Annualized Dividend Growth 3-yr: 9,0%
P/E: 24,8
S&P Credit Rating: AA-

Buy in EUR - Unilever N.V. (UNA.AS)
Trade Price: 36.35
Shares: 2
Commission: 0.73
Total: 73.43
Sector: Consumers - Personal Products
Yield: 3,5%
Payout Ratio: 74%
Dividend Increase Streak Years: 9
Annualized Dividend Growth 3-yr: 7,8%
P/E: 21,0
S&P Credit Rating: A+

A little bit surprisingly I was able to buy these two consumer goods giants near 52-week low prices. So, clearly this sector has come down from sky-high valuations, which is great news for many dividend growth investors. Still we can't really speak about discount prices here. But many positives apply to both companies: pleasant yield around 3,5% with manageable payout ratio, strong credit rating, very many consecutive years of dividend raises (for Unilever actually much more than 9 years, but currency change and extra dividend some 10 years ago mess up calculations), globally known brands, dividend increase expected in February (Coke) and April (Unilever). And so on.

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

Disclosure: Long KO, UNA.AS

Image courtesy of tiverylucky at FreeDigitalPhotos.net

8 comments:

  1. Hitting those consumer staples. I love it. That's definitely one of the more popular sectors getting investments these days. I'm on the UL kick but have other names I'm considering as well should weakness continue in the space.

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    1. Keith, yeah many DGIs, myself included, have waited for consumer staples to come down. I hope they don't bounce right back. It will be interesting to see what's your next move.
      Thanks for stopping by!

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  2. Hi Div Lord,

    We have the same way of thinking.
    I add also the same companies this week to my portfolio and also bought OMega Healtcare Invest ( OHI) which went down and looks an atrractive buy.

    Willem

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    Replies
    1. Hi Willem. Great to hear that we are on the same page here. I can't blame you on the OHI buy either. In fact it's my biggest dividend payer.
      Thanks for visiting and commenting.

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  3. I was just thinking about KO the other day. Good buy.
    Cheers,
    DFG

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    Replies
    1. DFG, you know, always when I take a sip of Coke (and that's quite often) I also think about Coke the stock, haha!
      Thanks for your visit and comment.

      Delete
  4. Replies
    1. Thank you Divi Cents! Happy Thanksgiving!

      Delete