Investing

This is my (extra-large) buy for May 2018

So first off, let me say thank you to all the people commenting on my own small space on the big interweb. It amazes me that in the past year I’ve (virtually) met people from all over the world who share a common goal. To create a better life for themselves and their loved ones.

As some of you have already seen on other blogs I frequent, I’ve made not one, not two but no less then three buys this month! Next to my regular monthly contributions of €500,- I received a bonus from my employer. Part of the perks of my new job since last September was an annual bonus from the company. Unfortunately I didn’t get the complete bonus since when the year ended I had only been at the company for 4 months, but still it gave me an additional €700,- to spend on behalf to my portfolio.

So I decided to put my money to work and made the following buys:

unilever_logo

On 02/05/2018 I added 12 shares of Unilever @ €46,47.

  Unilever
P/E (<20) 21,71 (slightly higher then I normally want)
Yield (>2%) 3,32%
Payout Ratio (<75%) 64.91%
Increases (>= 5 year) 2 years (varied through the years)
5-year DGR (>5%) Fluctuated a lot
EPS (>0) 1,55
Valuation (<=10% > 52wk low) 10,78%

As you can see the financials are not as optimal as I want them to be, but since it’s a Dutch-British company it balanced my portfolio better against my majority of US stocks. With the ex-dividend date a day later it also allowed me to snag their dividens three times this year. Lastly we have and use a lot (!) of their products. Think shampoo, conditioner, soap, creme and ofcourse everyone’s favourite (except my wife’s) PEANUTBUTTER! 🙂

My second buy happened a day later when I saw a dividend aristocrat hit their 52-week lows and boy I wasn’t the only one who noticed.

pepsico_logo

I added 5 shares of this world famous company @ $97.

  Pepsico
P/E (<20) 28,61 (higher then I normally want)
Yield (>2%) 3,82%
Payout Ratio (<75%) 65,2%
Increases (>= 5 year) Aristocrat: 45 years
5-year DGR (>5%) 8,7%
EPS (>0) $3,39
Valuation (<=10% > 52wk low) 1,10%

And on the same day I splurged some more and added to an existing postion.

att_logo

Since the price dropped a lot since I added to my existing postion last november and is even further removed from the price when I initiated ($41,75 :() in this titan of industry, But with the yield spilling over the 6% mark, I added another 10 shares @ $31,90.

So with all three above purchases AND a 4% dividend increase from IBM my 12-month forward income rises from $298,04 to $345,31. So I didn’t just cross the $300 mark but I’m already halfway to the $400 mark!

The snowball is rolling ladies and gentleman!

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32 thoughts on “This is my (extra-large) buy for May 2018

  1. Hey Mr. Robot,

    Congrats – that are some solid purchases. I would love to add Unilever and boost my consumer sector some more. I decided to buy PepsiCo instead and increase my position to 35 shares, but Unilever will end in my portfolio someday, no doubt about that. They got so many great brands in and the dividend history is good as well.

    At the beginning of May i bought 40 additional shares of AT&T too. With a yield like that i could not resist.

    Greets
    DividendSolutions

    Liked by 1 person

  2. Good Buys! I have to admit, I got some ULVR too, but instead of Pepsi I got KO. The reason being since KO seem to put more effort into recycling and fixing up palm oil problem, so just a personal preference I guess. But oh its so gard to be an ethical investor!

    Liked by 1 person

  3. Unilever is one of the few process food companies that is having some success in making a change into new healthy food trends. Most of the companies in this sector are struggling big time. Just look at GIS, KFT, and CPB, all are struggling despite buying other smaller food companies.

    Your other two buys are looking good two. Even though I don’t like or buy Pepsi’s products, it is a great brand and likely will do well in long-term.

    T is the best dividend deal among all the blue chip companies, in my opinion. I’ve been buying it every chance I get and so quite over weight in it, but I don’t care. I did the same with BA when it was down and the stock was not going anywhere few years ago. Now, it is my most profitable and biggest position in terms of dollars in both dividend payments and capital gains.

    Just keep buying more shares in companies you already own and believe in, but do focus on adding more into companies that you feel are best positioned for future gains. This way you won’t have the regret of not adding more after the stock has already taken off.

    Take care

    Liked by 1 person

    1. Hi Mr. ATM, as always thanks for the extensive comment. I’m definitely going to expand existing positions but most likely opening up a few new ones as well. Currently looking at PPL and IRM.

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      1. Hi Mr. Robot,

        I like PPL and have owned it for a few years. It’s my one of the highest yielding utilities. I keep adding to it as I get more dividends, along with SO, DUK, ED, and D. I believe, this is the time to increase your dividend cash flow by investing in less loved sector utilities.

        I don’t follow IRM, but took a quick look. It seems awfully risky to me with a BB- rating and high debt to cap ratio. In a high interest rate environment, I would not touch risky REITs, just my opinion. I normally don’t buy anything below a BBB rating.

        Liked by 1 person

  4. Another perspective on IRM is just what I needed Mr. ATM and you provided yet again. I understand your concern but I am still intrigued by this company.

    I believe they have quite an unique business and large moat. And now with combining physical storage with virtual storage they create an entire new segment for themselves.

    Their recently announced acquisition of EvoSwitch datacenter business here in Holland makes them additionally interesting for me personally.

    Like

    1. Being intrigued by a company or business is a good thing, especially if you want to invest in it for the long-term. You listen to everyone else and then make your own mind based on all the information you have available to you. I like the fact you did your research on the company and feel strongly about it. That’s a sign of a confident and smart investor.

      Keep up the good work Mr. Robot and I’m here to exchange ideas with you anytime you want 🙂

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  5. Mr. Robot. I can’t think of a a bad thing to say about this purchase. Those are three EXCELLENT companies that will serve your portfolio well for many, many years to come. Congrats on the nice purchases.

    Bert

    Liked by 1 person

    1. Hi T, welcome to the blog and thank you for your comment! PEP is being bought all over the DGI community. Not that this should mean you must buy as well but it s a sign that a lot of people are thinking in the same way.

      Like

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