Wednesday, October 9, 2013

Semi Recent Buys

I've been a bit lax in announcing my purchases over the last 1-1.5 weeks and haven't had the free time to get a post written up.  Well, that changes today.  I recently added to my positions in both Baxter International and Proctor & Gamble.  In late September I had initiated a position in Baxter and with a further dip in price I scooped up some more shares.  To close out September I celebrated by adding to my position in Proctor & Gamble after Unilever came out saying that emerging market growth had slowed leading to PG and following suit by dropping.  Over the long term I don't view either of these dips to be more than just noise in the long term.



I initiated my position in Baxter on September 25th and with the markets in limbo leading into the government shutdown I added to my new position by purchasing 16 more shares for $63.28 per share on October 2nd.  After commission my per share cost basis came to $63.78.  Based on the current annual dividend of $1.96 these shares carry a YOC of 3.07% and will provide $31.36 in annual dividends.  The best part is that I was able to average down my cost basis from my original purchase.  The first purchase of shares had a per share cost basis of $67.62 and the new shares were purchased 5.7% below that to decrease my average cost basis down to $66.04.

I last added to my budding Proctor & Gamble position in early June of this year; but as I mentioned the share of PG took a hit last at the end of September with the government shutdown looming and Unilever announcing sluggish emerging market growth.  That's perfectly fine by me as it gave me an opportunity to pick up some more shares of a very high quality company.  It's not anywhere close to a bargain basement price but I'm happy to pay around fair value for a high quality company.  On September 30th I purchased 15 shares of PG for $75.46, which after commission came with a $75.99 per share cost basis.  Based on the current annual dividend of $2.41 these shares carry a YOC of 3.17% and will provide $36.09 in annual dividends.  I normally try to purchase shares at prices where I can lower my average cost basis but I wasn't able to in this situation.  No worries though as I still feel it's a fair price.

My forward 12-month dividends for my FI Portfolio are now up to $3,047.70 which is 87.08% of the way towards my goal of $3,500 in forward annual dividends by the end of 2013.  Overall my FI Portfolio carries a YOC of 3.36%.

Purchases will be few and far between until the second half of the month when I can transfer funds from my paycheck.  Hopefully with the continued government shutdown and upcoming debt ceiling issue on October 17th we'll be able to get some good deals in the market

I've updated my Portfolio page to reflect these additions.

6 comments:

  1. Ugh!! I need more capital!! there are a few I would like to buy.

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    1. FFDividend,

      I know exactly what you mean. I'd have been buying some more companies if I had the free capital but I'm a bit short right now. I'm working on transferring some funds over but once it's there it's going to be tough determining if I should start buying or not. If the government shutdown runs up to the debt ceiling deadline then the markets are going to be very shaky and I wouldn't be surprised to see a 10% drop. Best of luck at getting some purchases through.

      Thanks for stopping by!

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  2. Nice purchases. I haven't given much thought to increasing my PG position -- I guess I'm satisfied with it for the time being. With all the market volatility caused by the government shutdown and related matters, I'm looking forward to what will be available in November when I'll have new capital to invest. I might need to overhaul my watch list!

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    Replies
    1. DGM,

      I should have built up my PG position before but for some reason I kept looking at other opportunities. I'm not thrilled with the current price level but I believe it's at least at a fair level. I'm also hoping to get some better values due to the governments' incompetence. I've got a bit of capital to to be able to put to work now in case we get some shakeups next week, but not as much as I'd like. Of course it never is.

      Thanks for stopping by!

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  3. I'm thinking about adding CVX right now.

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    Replies
    1. WE,

      CVX is very tempting at these levels and it's high on my list of possible additions. I'm pretty annoyed that we got a pretty big bump in the markets to end the week but hopefully we'll see some further volatility next week.

      Thanks for stopping by!

      Delete