Investing

This is my buy for March 2018 (KMB, AD)

So its time to discuss my monthly buy again and again I went a bit off course. My initial idea (thanks to my portfolio review) was to open a position in the Utilities sector since I have no exposure there. I was in the middle of analysing a few companies (thanks to Mr. ATM) when I saw a nice opportunity to add yet another dividend aristocrat to my list!

I initiated a position in KMB by buying 5 shares @ $111,60:

Kimberly-Clark_logo.svg

  Kimberly Clark Corporation
P/E (<20) 17,41
Yield (>2%) 3,58%
Payout Ratio (<75%) 57,1%
Increases (>= 5 year) Aristocrat: 45 years (!) of dividend increases
5-year DGR (>5%) 5,20%
EPS (>0) 6,41
Valuation (<=10% > 52wk low) $109,51 = 52-wk low => 1,91% > 52-wk low

Additional reason for me to buy a stock is if I use its products. Well with a small kid around who loves to swim: Huggies – Little Swimmers are often used! Besides that, we have run through 100+ Kleenex boxes during past winter with all the flu/sniffles/colds going around in the house 🙂

This buy adds (5 x 4 x 1) – 15% = $17 to my forward income, bringing the total to $258,62  + $17 = $275,62.

But wait…..there’s more! With my deposit of €500 I had some left over after these 5 shares (I can’t buy partial shares). I decided to add up on my home based allocation and added 3 shares of Ahold Delhaize (AD) to my existing position for €18,25.

AH_logo

With their recent announcement regarding a dividend increase to €0,63 this will add another  ((3 x 0,63) – 15%) x current EURO/USD exchange rate = $1,97 to my forward income. So with these buys my new forward income total is $277,59!

What do you think of my latest buys? Did you buy something yourself? Please share it in the comments!

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18 thoughts on “This is my buy for March 2018 (KMB, AD)

  1. Like KMB bussiness exept their zero and negative equity before 😦 leverage looks ok tough Debt/EBDA ~2. I dont know if its just me but I dont like companies with low equity.

    Liked by 1 person

  2. Hi Mr. Robot,

    Very kind of you to mention me. I’m glad you bought some KMB at at very a good valuation and historically high dividend yield. Now, just keep building that position up and let it do the work for you.

    I’m not familiar with AD but from your description it seems like a good company that is trying to keep up with the amazons of the world. Though grocery stores have very thin margins and they have to constantly re-invent themselves and keep up with the food trends to stay in the business.

    As for a good source of company financial data, you can check out gurufocus.com for free. Just register and use it. It’s like a Ycharts but it’s free. I also use Valueline, but I get it free through my local library. Morningstar also has 5 years of data available for free if you register with them. Though, I like Gurufocus better.

    Wish you all the best,
    Mr. ATM

    Like

  3. That dividend yield and valuation look very promising. I use the companies products a lot as well so the company definitely has plenty of clients. Looking forward to see how it works out for you!
    -Money Professor

    Liked by 1 person

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