Nov 8, 2017

4 Recent Buys - AMGN, HRL, KMB, PPL & 1 Sale - GE

As you probably know there has been a lot of talk about General Electric (GE) possibly cutting its dividend soon. So, I have been pondering what to do with my shares. On Monday this week I closed out my position in the company. I returned the capital back to markets by increasing my position at Amgen Inc (AMGN), Hormel Foods Corporation (HRL), Kimberly-Clark Corporation (KMB) and PPL Corporation. And here are the details...

Buy in USD - Amgen Inc (AMGN)
Trade Price: 171.70
Shares: 1
Commission: 0.35
Total: 172.05
Sector: Healthcare - Biotechnology
Yield: 2,7%
Payout Ratio: 42%
Dividend Increase Streak Years: 7
Annualized Dividend Growth 3-yr: 28,6%
P/E: 15,5
S&P Credit Rating: A

Buy in USD - Hormel Foods Corporation (HRL)
Trade Price: 30.95
Shares: 3
Commission: 0.35
Total: 93.20
Sector: Consumers - Meat Products
Yield: 2,2%
Payout Ratio: 42%
Dividend Increase Streak Years: 51
Annualized Dividend Growth 3-yr: 19,5%
P/E: 19,1
S&P Credit Rating: A

Buy in USD - Kimberly-Clark Corporation (KMB)
Trade Price: 110.20
Shares: 2
Commission: 0.35
Total: 220.75
Sector: Consumers - Personal Products
Yield: 3,5%
Payout Ratio: 64%
Dividend Increase Streak Years: 45
Annualized Dividend Growth 3-yr: 6,2%
P/E: 18,2
S&P Credit Rating: A

Buy in USD - PPL Corporation  (PPL)
Trade Price: 36.65
Shares: 11
Commission: 0.32
Total: 403.49
Sector: Utilities - Electric/Gas
Yield: 4,3%
Payout Ratio: 66%
Dividend Increase Streak Years: 16
Annualized Dividend Growth 3-yr: 4,3%
P/E: 15,4
S&P Credit Rating: A-

Sale in USD - General Electric (GE)
Trade Price: 20.50
Shares: -42
Commission: 0.43
Total: 860.57
Sector: Industrial - Diversified Machinery
Yield: 4,7%
Payout Ratio: 119%
Dividend Increase Streak Years: 1
Annualized Dividend Growth 3-yr: 0%
P/E: 25,3
S&P Credit Rating: AA-

So, it's goodbye to GE, at least for now. Was the decision right or wrong, remains to be seen. But I didn't feel comfortable with owning the company any more. It was my only holding whose next dividend move would be more likely a cut than an increase. I had to sell GE at loss, that's for sure. But I can't deduct that loss in taxation, so no harm done.

Selling GE left a "dividend hole" in the months of Jan/Apr/Jul/Oct. With KMB and PPL purchases I started patching up that hole. I decided to buy AMGN and HRL too, because I expect them to declare dividend raise during the rest of the year and their price looked quite attractive. 

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

Disclosure: Long AMGN, HRL, KMB, PPL

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