GE, JNJ, V, BRK/B, DIS, UL – Recent stock purchases in this cheap(er) market
With the recent drop in the stock market, I couldn’t help myself but buy some more shares in a few of the great companies that I already own. I even transferred some cash that I had just sitting around in my options trading account into my regular brokerage account. While I’m definitely not giving up on selling puts (and, in fact, the recent volatility has been good for premiums), I prefer to just put that cash to work in some higher yielding stocks for now. I’ll be funding my options account again as soon as I can.
My last post basically boiled down to being greedy when others are fearful. With that in mind, I went searching today for discounts:
Tim at The Conservative Income Investor, one of my favorite blogs, just wrote a post entitled, I Feel The Same Way About General Electric Right Now As I Did About Johnson & Johnson In 2011. Since I had been wanting to buy more GE anyway and now it is at a 3.8% discount from as recently as October 8th, I went ahead and bought 70 shares at 23.84 for a cost of $1677.88 (including commissions). My cost basis had been 23.54/share so while this purchase is slightly increasing my cost basis, it is an improvement over the cost basis of my most recent dividend reinvestments at 26.72 and 25.54 in April and July, respectively. This purchase adds $61.60 to my annual dividends and yields an excellent 3.69%. With a current P/E of 16.49 and a forward P/E of 14.4, I feel that GE is incredibly valued at this price.
My second purchase was of Johnson & Johnson. JNJ had dropped 6.4% since October 8th. My current cost basis for JNJ is 86.86. While I am not lowering my cost basis with the purchase of 15 shares at 95.65/share for $1443.70 (including commission), I am getting in at a significant discount to the 108.64 that JNJ was back on September 24th. JNJ is one of the best pharmaceutical companies in the world. I also feel that it is at a value right now with a current P/E of 16.08 and a forward P/E 16.33. The 2.93% dividend is also a great entry point. This Johnson & Johnson purchase adds $42 to my annual dividends.
I also purchased Visa on October 10th at a price of 207.919. The 11 shares that I bought at a cost of $2296.06 will add $24.23 to my annual dividends. Yes, if I would have waited and bought today I could have bought at closer to $200/share. However, I am happy with my 207.919 price point…Visa is such an excellent growth stock and dividend growth story that a decade from now I have to imagine that anything in the $200-300/share price range will feel very, very cheap. The current dividend yield is a paltry 0.77%. However, dividend growth is the name of this game. Expect a blog post on Visa’s incredible potential within the next week!
I also initiated one time orders of $50 each into Berkshire-Hathaway/B, Disney, and Unilever in my Loyal3 account. This is in addition to the monthly $25 purchases that I am already making on the 16th of each month.
I am still invested in 23 companies. These stock purchases add an additional $130.23 to my annual dividends, making my forward 12-month dividend $2739.00 (or $228.25/month).
|Company||Symbol||Shares||Price||Yield||Expected Annual Dividend|
|Johnson & Johnson||JNJ||15||$95.65||2.93%||$42.00|
Forward 12-Month Dividends: $2739.00 (or $228.25/month).
Full disclosure: Long BRK/B, DIS, GE, JNJ, V, UL
Thanks for sharing your recent purchases with us. As always, when Mr. Market decides to place certain items on sale it is usually wise to jump on board and buy. I added UL to my portfolio last month and this month averaged down on my BNS and TD holdings in my ROTH.
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Thanks for visiting. I have a few stocks in my Roth that I wish I could have averaged down as well. The only issue is that I immediately put the annual $5500 to use each January and don’t generate enough cash via dividends to have anything leftover in there to buy at these depressed prices. I always feel that getting your money in the market as soon as you can is better than trying to time it.
These were all solid purchases. I own UL, JNJ and V. I also own a small piece of DIS in my Motif account. It’s great to be able to average down on a position that you are still confident about. Let’s hope the market brings us some more good prices.
Brent, Thanks! Looks like we’ll have to wait awhile for that longer correction. This one was so short and now everything seems to be going back up already! Well, they always say that it is tough to time the market…the best time to invest is when you have the money.