Monday, April 10, 2017

Recent Buys, April 2017


Health Gremlin here to talk about some more recent buys.  This past weekend was one of the few away I've had in a while.  Many fun jokes were told, sports were played, drinks and merriment were attained by all (or at least most).  Before I left town I made sure I executed some purchases I had been waiting to attend to.  Some of these were in my Loyal3 account and will be included here along with my major buy that I made.  So, what did I buy and why?

First, I added a new position by purchasing shares of Amgen Inc. (AMGN) in my taxable account.  I bought 8 shares, with a total cost of $1305.54 ($162.32 / share).  The current yield is 2.80%.    The P/E ratio for AMGN sits today at approximately 16.  I really want to add more in the healthcare sector in general, and this will be a part of that.  AMGN boasts a 40% payout ratio and 7 years of dividend growth.  This purchase will add $36.80 to my 12-month forward income.  I like AMGN's products, product pipeline, payout ratio, and general moat.  AMGN has been a monster of a company over the past several years, and the products they provide will be profitable for a long time.

Second, I added another new position consisting of around two shares of Starbucks (SBUX) to my Loyal3 account.  The current yield is 1.54%.  The P/E ratio is still high at 29+, but this is a position I have wanted to have for a while.  It will be my window unto the company.  The payout ratio on the yield is a sweet 44%, which is lower than the majority of the industry leaving plenty of room for growth.  Personally, I am not a coffee drinker, but I know that most people are and a lot of them seem to like SBUX.  To be sure, some like Dunkin Donuts (DNKN) too, so I figure it is time to own both.  This purchase will add $2 to my 12-month forward income.

Third, I added around one and a half shares of American Express (AXP) to my Loyal3 account.  The current yield is 1.62%.  The P/E ratio is 13.76.  I also own Discover (DFS) in my Roth.  I like the credit market companies.  They have carved a way forward for the overall world economy.  Its hard to find a place that does not take credit, and its harder deal with those places.  There is also so much more on the financial side to both companies.  Hopefully in the future I can add their other competitors Visa (V) and Mastercard (MA).  This purchase will add $1.65 to my 12-month forward income.

Finally, I added shares two of YUM! Brands (YUM) to my Loyal3 account.  The current yield is 1.87%.  The P/E ratio is around 16.  The payout ratio is approximately 76%, which is high at the moment.  This move was to fill up the position I had started, which split its value with the creation of YUMC.  I think YUM in the long run will be a nice holding, and they are relatively cheap right now.  However, sorting out their finances might slow dividend growth in the short term with the absence of the Chinese contingent bringing it revenue.  Still, I am positive on them, and its a long road ahead. This purchase will add $2.40 to my 12-month forward income.

I will update my portfolio page at the end of the month.  Here is to a strong 2017.

Happy 100th post to me!


- Gremlin
- Long AMGN, SBUX, AXP, DFS, YUM, YUMC

6 comments:

  1. Congrats on the new AMGN position. I still have them and GILD on my watch list. I also have SBUX on my watch list. Maybe it's time for me to start nibbling on those two positions? Like the YUM pick up. Waiting to hear about a YUMC dividend though. Happy to read the buying continue on your end. No market timing for us. Just adding to our ever growing passive income stream. Happy 100th!

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    1. Hut,

      Thanks for the comment. I agree those stocks have all had my eye on them, and figured time to grab some. I am curious to hear what YUMC does as well. It might not even make sense to hold them pending on the pay structure (depending on how the Chinese government deals with the payment).

      - Gremlin

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  2. Bye bye Loyal 3.

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    1. A,

      Yes sadly, so long and farewell.

      - Gremlin

      Delete
  3. Congrats on the 100th! All great choices for the long term. I currently don't own any of them but I see them on many of the members of our communities portfolios. Nice to get a feel for what others are buying to add to your own watch list for further research. This also adds a decent amount of passive income for you. Nice job!

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    Replies
    1. D Daze,

      Thanks for the comment! There are lots of good choices out there, heck with 800 stocks on the CCC list there is something for everyone. Thanks for the kind words.

      - Gremlin

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