A few days ago, I added shares of WestRock Company (WRK) in my taxable account. I bought 30 shares, with a total cost of $1,094.95 ($36.27 / share, plus commission). Once again, had I waited a single day my yield would be higher. The current yield was 4.82% at the time of purchase. For a detailed summary of their history, etc. please visit: WRK's Seeking Alpha Profile. Side note, SA's dividend evaluation is off, looking at the historical information elsewhere - I find they have approximately 10 years of growth and payments.
The materials sub-sector that WRK lives in - packaging and paper type products - is one that will grow with the human population. They will also likely be at the forefront of creating better and smarter waste / recycling solutions. Those will likely include reduction is material usage, which will lead to shipping cost savings and better efficiencies. Those efficiencies and improvements still cost money, and groups like WRK will be there to soak that up like a sponge.
WRK is not the first materials company I own in the space, I have Sonoco Products (SON) in the same sub-sector. I also own Eastman Chemical (EMN) and Westlake Chemical (WLK), which are in the broader materials sector. I am running a bit high on my materials sector allocation, but WRK is sitting at such a good valuation that it was impossible to ignore. All this means is my next buy will not likely be in this sector.
These purchases will add $54.60 to my forward 12 month dividend income.
I will update my portfolio page at the end of the month.
What do you think of WRK?
- Gremlin
- Long WRK, SON, EMN, and WLK
Hey Gremlin,
ReplyDeleteCool buy! I actually had not heard of any of these companies. I will have to look into them for future buys.
Scott
Two I,
DeleteThanks for the comment. They are all worth a look, of them SON has the longest history.
- Gremlin
well i think work is a dirty 4 letter word. Oh you mean what i think of the stock lol. i have always eyed it but always went with other purchases but ironically materials is the last sector i havent bought in. 18 years of buying dividend stocks and never bought anything in materials. same was true of health care last year but it has grown nicely. so i imagine once i buy somehow i will buy others from that sector.
ReplyDeleteD and H,
DeleteWork can be dirty indeed, an old job of my literally was. There are so many good companies across so many sectors that it could be pretty easy to keep yourself limited to only a handful of sectors. I think you are right, once you step foot into the arena you will end up going the distance.
Thanks for the comment,
- Gremlin
I have seen WRK come up here and there. I think one of the diplomats picked some up too. How does IP compare?
ReplyDeleteKeith,
DeleteThanks for the comment, funny mention them and IP - since they just reviewed it: https://www.dividenddiplomats.com/dividend-stock-analysis-international-paper-company-ip/. Personally, I like WRK's history a little better, but between WRK, IP, and SON you have 3 good choices.
- Gremlin