Jan 5, 2017

8 Recent Buys - EMA, ABT, CSCO, CVS, GIS, HCN, PG, UNA & 1 Sale - DE

Starting the new year with full rumble! Well, actually I added to my Cisco Systems Inc (CSCO) position on the last trading day of 2016, but rest of these transactions are from the first days of 2017. Most significant trades at this time period: opened new position Welltower Inc (HCN) and closed out position Deere & Co (DE).

Buy in CAD - Emera Incorporated (EMA.TO)
Trade Price: 45.41
Shares: 6
Commission: 1.02
Total: 273.48
Sector: Utilities - Electric/Gas
Yield: 4,6%
Payout Ratio: 91%
Dividend Increase Streak Years: 10
Annualized Dividend Growth 3-yr: 12,2%
P/E: 19,8
S&P Credit Rating: BBB+

Buy in USD - Abbott Laboratories (ABT)
Trade Price: 38.55
Shares: 2
Commission: 0.35
Total: 77.45
Sector: Healthcare - Medical Appliances & Equipment
Yield: 2,7%
Payout Ratio: 117%
Dividend Increase Streak Years: 3
Annualized Dividend Growth 3-yr: 0
P/E: 42,6
S&P Credit Rating: A+

Buy in USD - Cisco Systems Inc (CSCO)
Trade Price: 30.22
Shares: 2
Commission: 0.35
Total: 60.79
Sector: Technology - Networking & Communication Devices
Yield: 3,4%
Payout Ratio: 50%
Dividend Increase Streak Years: 6
Annualized Dividend Growth 3-yr: 15,1%
P/E: 14,4
S&P Credit Rating: AA-

Buy in USD - CVS Health Corporation (CVS)
Trade Price: 79.30
Shares: 5
Commission: 0.34
Total: 396.84
Sector: Healthcare - Retail/Pharmacy
Yield: 2,5%
Payout Ratio: 43%
Dividend Increase Streak Years: 14
Annualized Dividend Growth 3-yr: 23,6%
P/E: 17,0
S&P Credit Rating: BBB+

Buy in USD - General Mills Inc (GIS)
Trade Price: 61.40
Shares: 3
Commission: 0.35
Total: 184.55
Sector: Consumers - Processed & Packaged Goods
Yield: 3,1%
Payout Ratio: 71%
Dividend Increase Streak Years: 13
Annualized Dividend Growth 3-yr: 9,4%
P/E: 22,8
S&P Credit Rating: BBB+

Buy in USD - Welltower Inc (HCN)
Trade Price: 66.45
Shares: 12
Commission: 0.33
Total: 797.73
Sector: REIT - Healthcare Facilities
Yield: 5,2%
Payout Ratio (of FFO): 76%
Dividend Increase Streak Years: 13
Annualized Dividend Growth 3-yr: 4,0%
P/FFO: 14,8
S&P Credit Rating: BBB+

Buy in USD - Procter & Gamble Co (PG)
Trade Price: 83.65
Shares: 2
Commission: 0.35
Total: 167.65
Sector: Consumers - Personal Products
Yield: 3,2%
Payout Ratio: 76%
Dividend Increase Streak Years: 60
Annualized Dividend Growth 3-yr: 4,1%
P/E: 23,7
S&P Credit Rating: AA-

Buy in EUR - Unilever N.V. (UNA.AS)
Trade Price: 38.90
Shares: 2
Commission: 0.78
Total: 78.58
Sector: Consumers - Personal Products
Yield: 3,3%
Payout Ratio: 74%
Dividend Increase Streak Years: 9
Annualized Dividend Growth 3-yr: 7,8%
P/E: 22,5
S&P Credit Rating: A+

Sale in USD - Deere & Company (DE)
Trade Price: 103.68
Shares: -12
Commission: 0.39
Total: 1,243.77
Sector: Industrial - Farm & Construction Machinery

A sale right in the beginning of new year! Is this going to lead to a stock selling spree during 2017? I definitely hope not. Actually I hope that this was my first and last sale this year. When I look at my portfolio I don't think that's impossible. But why sell Deere then? Well, this is Norfolk Southern Corporation (NSC) story all over again. A relatively low yield combined with frozen dividend (they got kicked out of  David Fish's CCC-list). I have many stocks in my portfolio yielding higher and raising dividend reliably every year. So, I had a feeling that DE is not doing its job like others do. Additionally it's looking clearly overvalued right now. Was it a bad investment then? Absolutely not. I was able to get out of the company with ~20% profit.

OK, so most of the funds from Deere sale went on to Welltower Inc (HCN). Since I sold my shares in  another Healthcare REIT, HCP Inc (HCP), I have been lagging a bit in the months of Feb, May, Aug and Nov. HCN's payment schedule is similar with HCP, and it becomes one of my highest yielding stocks, so that problem should be solved now. Welltower is the biggest Healthcare REIT in the U.S. with total market cap of ~$38 billion. It focuses on seniors housing, other properties include post-acute care facilities and outpatient medical buildings.   

I was kind of obligated to buy more CVS, since it's my Top Investment Pick for 2017. Check out that article if you didn't yet. Many interesting ideas there. ABT completed their major acquisition of St. Jude Medical (STJ) just yesterday. So, hoping that this move will begin to pay off sooner than later. Speaking of acquisitions, EMA.TO is in the process too, to buy Teco Energy (TE). Weighing their financials down a bit, but if this process is successful EMA.TO should become quite a juggernaut in the utility space.

Always a good feeling when I'm able to add to my non-cyclical consumer positions. This time bought more shares in GIS, PG and UNA.AS. They may still be above bargain prices, but yields north of 3% sweetens the deal nicely.

Wow, that was a busy start to the new year. I must say that I'm really excited to see how February income shapes up after these transactions. January dividends already started rolling in, and this month doesn't seem too bad either.

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

Disclosure: Long EMA.TO, ABT, CSCO, CVS, GIS, HCN, PG, UNA.AS 

6 comments:

  1. You have been very busy with a lot of new buys. I like a lot of the moves you made. I'm looking at PG and GIS too and some of the health REITs. I'm not familiar with EMA though. Thanks for sharing.

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    1. DH, I remember you like PG, GIS and other consumer stocks. It will be interesting to see if you or other bloggers end up buying at this time. I noticed Dividend Diplomats making a move on PG.
      Thanks again for your visit and comment.

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  2. Looks like a good move out of DE and the replacement purchases look good too. I own PG and GIS of your new purchases.
    Best wishes,
    -DL

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    Replies
    1. DL, yeah I don't like to sell stocks but from dividend investing perspective DE was not doing its job properly. PG and GIS are popular divi stocks for sure and for a reason. Good to be a fellow shareholder in these names.
      Thanks for stopping by!

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  3. Busy with the buys i see. good start they will definatly help in the long run. Good job.

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    Replies
    1. Yeah I loaded up right in the beginning of new year. Hopefully these will pay reliable and raising dividends for many years to come.
      Thanks again for your visit and comment, D&H!

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