May 13, 2017

5 Recent Buys - CU, ADM, EMR, KMB, MMM

So, I had a feeling that I need a new steady dividend payer in my portfolio. A payer with payment schedule during the first month of every quarter, since those months lag behind a little bit. As a result I have initiated a new position in Kimberly-Clark Corporation (KMB). Other purchases add to my existing positions in Canadian Utilities Ltd. (CU.TO), Archer Daniels Midland Co. (ADM), Emerson Electric Co. (EMR) and 3M Company (MMM).


Buy in CAD - Canadian Utilities Ltd. (CU.TO)
Trade Price: 39.30
Shares: 3
Commission: 1.00
Total: 118.90
Sector: Utilities - Electric/Gas
Yield: 3,6%
Payout Ratio: 69%
Dividend Increase Streak Years: 45
Annualized Dividend Growth 3-yr: 10,3%
P/E: 17,9
S&P Credit Rating: A

Buy in USD - Archer Daniels Midland Co. (ADM)
Trade Price: 45.75
Shares: 2
Commission: 0.35
Total: 91.85
Sector: Consumers - Farm Products
Yield: 2,8%
Payout Ratio: 59%
Dividend Increase Streak Years: 42
Annualized Dividend Growth 3-yr: 16,4%
P/E: 21,1
S&P Credit Rating: A

Buy in USD - Archer Daniels Midland Co. (ADM)
Trade Price: 41.75
Shares: 2
Commission: 0.35
Total: 83.85
Sector: Consumers - Farm Products
Yield: 3,1%
Payout Ratio: 59%
Dividend Increase Streak Years: 42
Annualized Dividend Growth 3-yr: 16,4%
P/E: 19,2
S&P Credit Rating: A

Buy in USD - Emerson Electric Co. (EMR)
Trade Price: 60.05
Shares: 1
Commission: 0.35
Total: 60.40
Sector: Industrial - Industrial Equipment & Components
Yield: 3,2%
Payout Ratio: 75%
Dividend Increase Streak Years: 60
Annualized Dividend Growth 3-yr: 4,7%
P/E: 23,5
S&P Credit Rating: A

Buy in USD - Kimberly-Clark Corporation (KMB)
Trade Price: 128.25
Shares: 3
Commission: 0.35
Total: 385.10
Sector: Consumers - Personal Products
Yield: 3,0%
Payout Ratio: 65%
Dividend Increase Streak Years: 45
Annualized Dividend Growth 3-yr: 6,2%
P/E: 21,4
S&P Credit Rating: A

Buy in USD - 3M Company (MMM)
Trade Price: 195.44
Shares: 1
Commission: 0.35
Total: 195.79
Sector: Industrial - Diversified Machinery
Yield: 2,4%
Payout Ratio: 58%
Dividend Increase Streak Years: 59
Annualized Dividend Growth 3-yr: 20,5%
P/E: 24,0
S&P Credit Rating: AA-

You can see above that I bought ADM twice, May 1 and 2. Sometimes one day makes a big difference. I didn't intend to make two purchases, but when small earnings miss led to ~10% price drop I had to take in second batch.

KMB has been on my watch list pretty much since I started investing in North American stocks. So, at last there was the time and money to add this Dividend Champion to my portfolio. Tissues, toilet paper, diapers, paper towels and other products that people use daily no matter what the economic situation. It's no secret that I like investing in this kind of stuff. Now I had capital only for 3 shares, but there is a series of buys coming for sure.

Like ADM; CU.TO, EMR and MMM buys also add to my June dividends total. Great feeling to be able to add to my 3M position again. It probably is overvalued at this time, but I felt like there was still enough reward in that yield. I wouldn't like it to go much lower though. At 2,2% I wouldn't be interested in buying more even though 3M is such a great company.

KMB became immediately one of my Cornerstone positions. I have also a new position category called Observation Class. It actually replaces Speculative position category. There I have now placed 3 stocks that either have problems with growth, have very low yield or haven't declared a dividend increase for a long time. Check out these on my portfolio page.

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

Disclosure: Long CU.TO, ADM, EMR, KMB, MMM

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