Investing

This is my (extra-large) buy for December 2017

So December has finally arrived. The year is almost at an end so this will be my final buy for this year and what a year it has been! I’ll do a year review post so I won’t get nostalgic in this post yet so lets move on to my buy for this month. Thanks to some side hustling I was able to generate €250 of additional cash so I had a total of  €500 to spend.

adm_logo

Archer-Daniels-Midland was my first buy. I managed to purchases 10 shares @ $40,09:

  Archer Daniels Midland
P/E 18,82
Yield 3,19% (5-yr avg is 2,40%)
Payout Ratio 59,15%
Trackrecord Aristocrat: 41 years (!) of dividend increases
Valuation $1,50 above 52-week low | $7,35 below 52-wk high

Since I missed the ex-dividend date on this one, it will not provide me with additional income this year but my I will receive my first payout in 2018. These 10 shares create an additional (10 x 4 x 0,32) – 15% = $10,88 amount of passive income bringing my total of the $200 mark to: $205,88. Thats some really amazing news!

As I said this month I was able to raise some extra cash so I could make an additional purchase, just like last month. So my next buy might be something of a surprise:

disney_logo

Yes I’ve bought Walt Disney! To be honest ever since I started on this journey and I found out I could be co-owner of some amazing companies I really wanted to own a part of Disney. I’ve been fortunate to have been raised in a great family and was surrounded by Disney toys, movies, etc and now that I have a family of my own I am doing the same. My house is loaded with Disney stuff and we’ve visited the park in Paris multiple times over the years. This year being the first with Lil’ Bot and what an amazing adventure it was. So is it safe to say that this is also (part) an emotional buy, the answer is yes. But I also believe their fundamentals are solid as well. I’ve bought 2 shares @ $105,64:

  The Walt Disney Company
P/E 18,60
Yield 1,59% (5-yr avg is 1,29%)
Payout Ratio 27,42%
Trackrecord Not much, growing since 2015
Valuation $9,45 above 52-week low | $10,46 below 52-wk high

Ever since Disney announced that they are going to remove all their content from Netflix in the coming two years and start their own streaming channel I wasn’t really happy. Since Netflix is sort of the only thing we watch on tv (still havent cut the cord yet) a lot of content will go missing, especially a lot of stuff Lil’Bot is looking at. I was also wondering where they would get their additional content to start a streaming channel, but then the whole Fox thing happened and things are starting to make sense again. Although I’m probably going to be forced to buy another subscription in a few years, it makes my investment in the House of the Mouse a lot safer and brighter.

This additional investment was made before the ex-dividend date they payment will be on 11th of January so it won’t help me with my goal for this year. These shares will provide me with (2 x 2 x 0,84) – 15% = $2,86 of additional passive income, bring the total forward income to $208,74!

So thats all folks! My last buy of the year and it was a great one. What did you buy? What do you think of my buys? I’m excited to find out!

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6 thoughts on “This is my (extra-large) buy for December 2017

  1. Nice purchases Mr. Robot. I have been a long time holder of ADM. I wish I could say the same for Disney, but I have never owned the stock. My mistake there. With valuations being a bit stretched, I have not been adding to my individual stock positions. I have been more comfortable adding to the Vanguard High Dividend Yield ETF (VYM) to provide some extra diversification in my portfolio.

    How old is Lil’Bot and boy or girl?

    Tom

    Liked by 1 person

  2. Very nice purchases Mr. Robot. I also own ADM and like the stock and the company. I’ve always wanted to own DIS but that yield is just too low for me.

    Like Tom, I also like VYM and dollar cost average into it in my HSA (Health Savings Account).

    Take care and keep rocking those dividends Mr. Robot 🙂

    Liked by 1 person

  3. Hi Mr.Robot,
    Nice buys! I have to admit – I also tend to buy companies that I like or that have some sentimental value to me, even though I could perhaps find a better looking company from the financial ratios part. In your case, I think Disney is looking pretty good at the moment and I am sure that you won’t regret it in the long run.
    The same goes for ADM – it was in my watchlist a few times this year but I didn’t have enough cash, unfortunately. I might for for it next year, if price stays attractive.
    Happy New Year!
    -BI

    Liked by 1 person

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