Nov 5, 2016

7 Recent Buys - CU, ENB, AMGN, CVS, GILD, MMM, TGT & 1 Sale - NSC

Well, like you can see in the headline, beginning of November has been a busy one in Div Lord's portfolio. Not surprisingly I have added more shares to several positions, but the big news is that I have also sold one position: Norfolk Southern Corporation (NSC). On the buying front I was active in the following securities: Canadian Utilities (CU.TO), Enbridge Inc (ENB.TO), Amgen Inc (AMGN), CVS Health Corporation (CVS), Gilead Sciences Inc (GILD), 3M Company (MMM) and Target Corporation (TGT).


Buy in CAD - Canadian Utilities Ltd. (CU.TO)
Trade Price: 38.42
Shares: 8
Commission: 1.01
Total: 308.37
Sector: Utilities - Electric/Gas
Yield: 3,4%
Payout Ratio: 87%
Dividend Increase Streak Years: 44
Annualized Dividend Growth 3-yr: 10,1%
P/E: 25,8
S&P Credit Rating: A

Buy in CAD - Enbridge Inc (ENB.TO)
Trade Price: 57.90
Shares: 2
Commission: 1.01
Total: 116.81
Sector: Energy - Oil & Gas Midstream
Yield: 3,7%
Payout Ratio: 146%
Dividend Increase Streak Years: 20 
Annualized Dividend Growth 3-yr: 18,1%
P/E: 39,9
S&P Credit Rating: BBB+

Buy in USD - Amgen Inc (AMGN)
Trade Price: 141.40
Shares: 1
Commission: 0.35
Total: 141.75
Sector: Healthcare - Biotechnology
Yield: 2,8%
Payout Ratio: 41%
Dividend Increase Streak Years: 6
Annualized Dividend Growth 3-yr: 29,9%
P/E: 14,1
S&P Credit Rating: A 

Buy in USD - CVS Health Corporation (CVS)
Trade Price: 82.00
Shares: 2
Commission: 0.35
Total: 164.35
Sector: Healthcare - Retail/Pharmacy
Yield: 2,1%
Payout Ratio: 39%
Dividend Increase Streak Years: 13
Annualized Dividend Growth 3-yr: 29,1%
P/E: 18,9
S&P Credit Rating: BBB+

Buy in USD - Gilead Sciences Inc (GILD)
Trade Price: 73.85
Shares: 1
Commission: 0.35
Total: 74.20
Sector: Healthcare - Biotechnology
Yield: 2,5%
Payout Ratio: 17%
Dividend Increase Streak Years: 1
Annualized Dividend Growth 3-yr: 0%
P/E: 6,9
S&P Credit Rating: A

Buy in USD - 3M Company (MMM)
Trade Price: 165.25
Shares: 1
Commission:0.35
Total: 165.60
Sector: Industrial - Diversified Machinery
Yield: 2,7%
Payout Ratio: 57%
Dividend Increase Streak Years: 58
Annualized Dividend Growth 3-yr: 20,2%
P/E: 20,8
S&P Credit Rating: AA-

Buy in USD - Target Corporation (TGT)
Trade Price: 66.85
Shares: 2
Commission: 0.35
Total: 134.05
Sector: Consumers - Discount/Variety Stores
Yield: 3,5%
Payout Ratio: 47%
Dividend Increase Streak Years: 49
Annualized Dividend Growth 3-yr: 17,8%
P/E: 12,4
S&P Credit Rating: A

Sale in USD - Norfolk Southern Corporation (NSC)
Trade Price: 92.25
Shares: -12
Commission: 0.37
Total: 1,106.63
Sector: Industrial - Railroads

I don't like selling stocks, but sometimes it must be done. On 25th October NSC declared 8th consecutive quarterly dividend at $0.59 per share. This ended their 14 year streak of dividend increases. Mr. David Fish had no choice but delete Norfolk from his CCC listing. To me this tells that the company management lacks commitment towards dividend and specially growing dividend. Apparently they want to bring payout ratio down which is fine for the company, but I'm an income hungry investor and feel like there are better opportunities elsewhere. I decided that frozen dividend combined with relatively low yield(~2,5%) is not for me.

So, I have started to re-allocate funds from the NSC sale and will continue on the elections week. Companies like 3M and Target offer better yield to start with. They delivered dividend raise this year, and I'm pretty confident that they will deliver it next year too.

Biotech and pharma stocks have taken good beating on the markets lately. Buying more AMGN, GILD and CVS here. Averaging down my cost basis. I kind of wish that the bottom is already closing in! 

From Canadian stock markets I bought more CU.TO and ENB.TO. Payments are coming in December, and I'm also expecting dividend raise announcements rather soon. Investors have been excited about Enbridge/Spectra Energy (SE) merger, and share price has soared since the intention came public.

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

Disclosure: Long CU.TO, ENB.TO, AMGN, CVS, GILD, MMM, TGT

2 comments:

  1. Wow, that's a lot of buying. I'm happy to see that you are continuing to make hose important dividend purchases and doing the tough selling when dividend income from a particular stock doesn't meet your needs. GILD, AMGN and MMM all look good. Thanks for sharing.

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    Replies
    1. In case of dividend cut I'm able to make sell decision rather easily, but dividend freeze is more complicated. And I really liked the idea of investing in railroad company, so it was kind of sad to see it go. But there wasn't the growing income stream I wanted.
      Yeah, a lot of buys and more is coming in the week beginning!
      Thanks for your visit and comment.

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