Back at it with new dividend buys — FLO and GILD

The first was buying an additional 50 shares of Gilead Sciences (GILD). I had purchased this biotechnology company in February 2016 at a share price of $89.779. I liked the company at that price and recently it has gotten even more attractive. I was able to buy these 50 shares at a price of $78.36 per share. This not only lowered my cost basis to $83.97, it also added $86 per year in extra dividends.

The second purchase was a company that has gotten a lot of attention recently by the dividend investing community, Flowers Foods (FLO). This is a new purchase for me. On 9/1/2016 I bought 200 shares at $14.76 per share. This adds $128 a year in dividends.

Together these two purchases bring my annual dividends to $4,899.34, or $408.28 per month.

At one point I was over $5000 a year in projected dividends. However, due to dividend cuts (here’s looking at you KMI and KKR!), I’m having to slowly work my way back up.

It’s getting hard now a days to find stocks that I feel are undervalued… I may have to go to the method of collecting premium by selling puts at prices I wouldn’t mind owning the stock at.

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11 Responses

  1. desidividend says:

    good to see some else also buy Gild and FLO.
    i bought FLO and GLd earlier .
    Good luck to us

    • scott says:

      Hi desidividend! Thanks for commenting. These entry points for FLO and GILD are really good. I bet they’ll serve us well in the years to come.

  2. Thanks for sharing Scott. I’m with you on these 2 companies. I will add more to both these companies in the near future. I believe in them and find them very attractive at these prices.
    Let’s keep up the hustle and don’t ever stop. Cheers bro.

  3. DivHut says:

    Seems like I have GILD on my watch list for the longest time. I have been looking at them and AMGN as well for some biotech exposure but have not pulled the trigger yet. Of course, on the other end of the spectrum is FLO that seemingly every dividend investor is buying these days. Thanks for sharing your recent buys,
    DivHut recently posted…Dividend Income Update August 2016My Profile

    • scott says:

      DivHut, thanks for commenting! Yeah, the biotechs had a great run and now some of them, at least GILD, has pulled back a bit. When I went looking for companies to invest in I first looked at the few I own that were in the red…when I saw GILD there I had made up my mind.

  4. Love both buys! Both GILD and FLO are great value buys at the moment! We already have a limit order placed on FLO and based on your post and our quick research while reading your post, we will be placing a limit order on GILD as well.

    Thanks for sharing. Hope to be a fellow shareholder soon! AFFJ
    A Frugal Family’s Journey recently posted…Collection of RECENT BUYS (August 2016 Summary)My Profile

    • scott says:

      Thanks for commenting, AFFJ! I’m glad I could help with the tip. I think GILD will serve us both well now and in the future. I love this space. I’m in the healthcare field (radiology) and the majority of the cancer treatments are related to toxic chemicals (chemotherapy), radiation, or surgery. Chemo and radiation kill everything and the thought is that the faster dividing cancer cells will be preferentially killed first. That works to a certain degree. However, research into immunotherapy to have our own white cells target the cancer or other means of targeted treatment will revolutionize cancer treatment in the not-too-distant future. I’m very long on all my healthcare names, which also includes some more speculative small- and micro-cap names that don’t pay a dividend and are not included in my shared dividend portfolio.

  5. Thanks for sharing your purchases! FLO has been scooped up by many in the community and it was on my last watch list. I’m keeping a close eye on it here as the market continues to dive and the market has a pull back. Honestly haven’t done too much research on GILD. Will spend some time today taking a look at it.

    Way to go rebuilding your income after the two massive cuts. It was a set back for many, but you haven’t let it discourage you and instead you are attacking the hole. So close to $5,000, you’ll be there after some re-investment and growth here in September (hopefully!).


  6. I like both stocks. I’ve bought 300 shares f FLO over the past few months. Gilead has been one of my favorites for a while. I’ve done really well selling options against GILD too. Nice buys.
    Investment Hunting recently posted…A New Blogging Adventure – Introducing Options HuntingMy Profile

    • scott says:

      Hi Nathan,

      I’m going to sell some call options on FLO too. I own 200 shares and volatility is still quite high so premiums are decent.

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