Dividend 8

Recent Buys

I talked with a few people and good friends about documenting the stocks Skyy and I buy as time moves on. I wasn’t sure at first, but after some thought I decided to give it a try. As long as I document Skyy’s journey I want others to at least see what we brought and why we did.

To start I brought 11 more companies between August-October from my watch list when the market decided to go for a wild ride in August. Hence why I broke my rule of buying 10 or more shares at a time, it was just too good to pass up! I will list 5 companies on this post and the next 6 on the second “Recent Buys”.

Purchased 3 shares of BHP Billiton (BBL) on 8/26/15 for $ 32.34 per share

Purchased 2 shares of Caterpillar (CAT) on 10/28/15 for $ 71.50 per share

Purchased 2 shares of Chevron (CVX) on 8/26/15 for $ 72.14 per share

Purchased 2 shares of Diageo (DEO) on 8/26/15 for $ 104.53 per share

Purchased 5 shares of Emerson Electric (EMR) on 10/28/15 for $ 47.32 per share

I view all the stocks above except DEO as a huge risk because of the large downturn in oil prices! They all have advantages around the world and have been down before and bounced back. The oil situation has been a special case the past 600 days, but I believe these companies will pull through and flourish as they have in the past. There is money to be made and I will not miss this opportunity like I did in 2008, whether its big or small.

-Live Long & Prosper

Full Disclosure: Long BBL, CAT, CVX, DEO, and EMR

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16 thoughts on “Recent Buys

  1. My goodness DM, rein yourself in please!

    1) BBL @ $32.34, & now the price is $21 & change?
    2) CAT @ $71.50, & now the price is $57?
    3) EMR @ $47.32, & now the price is $42?

    You really need to get a valuation tool, your whole portfolio is suffering because yuo dont know how to value companies.

    STOP buying what the other DGI bloggers are buying, it’s killing you. Be smart. In this time of uncertainty, buy Dividend Champs only. Find out what is undervalued and buy that. No different than looking for a sale on a TV.

    There are several Champs on sale to some degree – ITW, BEN, ADM, AFL, etc. Figure it out. You are bleeding out because you don’t seem to understand the concept of “margin of safety”.

    You are young, and you think you have all the time in the world to make up for your buying high. Get in the habit of buying what is on sale an figure out a way to determine what is on sale.

    Disclosure; I bought DOV & SBSI this weekend. Let’s see how we do.

  2. Mike,
    Thanks for letting me know and yes I am taking the young approach to it as this is for my daughter who is 5. She will have many years to make up and as you noticed I only brought a few shares so I have plenty of time to lower my average, at which I will by dividends and buying more shares.

    Also I am still learning and will get better in time. Still in my 20’s so I have a while to go. haha. Thanks again and we will see where these stocks end up in the near and not so near future.

    Regards,

    DM

    1. DM, it doesn’t matter how young you or your daughter is, my point is to buy when things are on sale. It is just a good policy. I never understood these “frugalists” who claimed they ate ramen noodles to save money, but then buy JNJ at a premium. Makes no sense. That just tells me that they know how to value ramen, but not stocks.

      One of the best investments I made was buying FASTGraphs. It’s $10 bucks a month (non-premium member) and I don’t even think of buying a stock unless I consult that Graph. I am not a shill for FG and Chuck would tell you (as I am doing now) that FG is just a first line check. More DD is needed.

      If FG shows a company is overvalued and its credit rating is good–I do nothing more than put them on my watch list. When they become “fairly valued” by FG, I do more DD and consider buying.

      Good luck. I will be watching to see if you can be the next “DM”. 🙂

  3. Mike,
    Thanks for the support and the info about FASTGraphs. In the future I will look at more companies that are at fair value and as far as DM goes hopefully I don’t bail on people or take that route. Haha

    Thanks again!

    DM

  4. DM,

    Although I’m a young dividend investor myself, I can easily see that you need to step back for a second and stopping buying small bunches of stock that have you owing tons in trading fees and at a much too high price. In my first year I made the mistake of following other dividend investors into their trades and REALLY paid the price. It feels like that’s what you’re doing as well. Take a step back, learn to evaluate your stocks, and better from it. If you don’t, you’re just going to continue leaving tons of cash on the table and losing out on the whole deal.

    Hope to see this turn around! I’ll be watching your blog and trying to keep up with it.

    -Dividend Monster

    1. For any kind of small shares you buy, to avoid trading fees, I’d suggest the Robinhood app. I use it for my brokerage and love it. It takes 3 business days to move funds around, but the $0 trading fees are worth it Just a suggestion.

      1. WS,
        Thanks for the heads up about that I will definitely have to check that out. Currently my trading fees are $6.95 with capital one.

        Thanks,
        DM

  5. DM,
    Yes I have noticed that also and have been thinking on ways to make it better(adding to my positions instead of buying more companies) in the end I feel we will be ok in the long term. After 2016 we will see how things shake out.

    Thanks again for the advice.

    DM

    1. DM,

      The way I see it, we’re all here to help each other. There’s enough hate on the internet to satisfy the world for years to come. If I may ask, what is the process you go through when you are evaluating a company to invest in? I’d love to see how it looks from your eyes and see if there’s anything I could learn from you or the other way around.

      Thanks for the advice,

      DM

  6. DM,
    Yes there are always some haters around. As far as the process I start with the dividend aristocrats and kings and look at the valuation at that point and how they been performing the past 5-10 years. (MDU that Skyy has just joined the club) I also look for companies that don’t have that much debt or that won’t have a difficult time paying it back if things get shaky.

    If you notice I have a number of oil and gas plays which I need to slow down on and the only reason why I am doing so is because the oil market is getting smacked and I told myself after 2008 I Was Not Going To Miss Another Opportunity Like That Again. So once this oil market swings back(whenever that will be) I will rebalance and step away from the oil plays.

    Its a journey and will be a wild one. I like to think of it as the book The Alchemist!

    Hope that helps you understand a little more

    DM

  7. DM,

    That’s not a bad strategy. I would just make sure to stress buying a larger number of the company your keeping your eye on rather than a few at a time, that way you save out on the trade fees. You may not feel like the $8 is a lot per trade now but they really add up if you look at the greater picture.

    I definitely agree with you on oil right now though. I think that it will boomerang back like it did in 2008. It always does this whenever elections are incoming. Once the election is over however, it’ll rebound as long as ISIS isn’t still rampaging around the world. That has a lot to do with it.

    I’ve currently been keeping my own gaze on the utilities right now. With Tesla on the rise and electric cars starting their runs off well, I think you’re going to see a lot more from the utilities. Not only that but the US and other countries will continue to have more and more dependence on them as the population grows. It may be good for you to check them out as well and increase your stake it them. It’s as sure a bet as you can get with stocks right now in my opinion.

    Take care,

    -DM

  8. DM,
    Thanks and yes I know I did so because I saw an opportunity back in August since the dow dropped below 16K. In the future I will try to not do that as much but I just got married and money needed to go else where so I just went for it. Also just like you I have been looking at utilities and will be doing so more in the next couple of weeks/months.

    Let’s hope that oil bounces back sooner than later and thanks again!

    DM

    1. Also make sure to check out EMR right now. Once I’ve got some cash set aside after my budgeted amount for the month, that’s where I’ll likely throw my money. It’s a great industrial stock that shows a lot of promise and many years of raising dividends. I broke it down on my blog if you are unfamiliar with the company but I still recommend looking into it yourself if you really are interested in it.

      -DM

  9. Thanks DM! Yes I picked 5 shares up back in October. I recently got married so I might not make purchases for a few weeks. I would like to pick up some more but will have to wait. Thanks again and looks like we are ending January Great!

  10. I see that fees have come up. I am wondering why people do not use two of the free services. Robin Hood and Loyal 3. I know Loyal 3’s biggest drawback is that you can only buy up to 50-60 companies. But Robin Hood let’s you buy pretty much any American company and some foreign (If it has a US based office). I currently use both. But my question is why do others not use them? Using them allows me to buy 1 share at a time and not get killed on trade fees. Please explain if I am wrong for using these services.

  11. Jamieson,
    Thanks for the heads up about Robin Hood and Loyal 3! I looked up both and as you stated Loyal 3 only allows a select few companies to choose from. When I looked up Robin Hood some individuals were saying that it takes up to 3 days for the purchase to go through and 5 days if you want it transferred to your bank account? I guess if that’s the case that’s why people don’t use it or have it as a play account because I can make a trade and get the share in 5 mins of sooner.(Time is Money)

    Also I think people are still trying to feel it out and you only can only make trades and nothing else like options etc. It can be good for long positions and getting your feet wet but I guess if it takes that long for a transaction that would be a huge drawback for a lot of people.

    Hope that helps some?

    DM

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