Monday, December 14, 2015

Recent Buy, December 2015

Winter Gremlin here to talk about a recent buy.  It has been a crazy few months with lots of travel through which I have been diligently saving for a large purchase outside of the Loyal3 realm.  I've been looking to expand my holdings to new companies and widen my base in the market, as increased company diversity is one of my goals.  Recently, a lot of companies have regained value they had lost months ago, but not all of them.  In particular the industrial sector has been hammered pretty hard, and nice valuations abound.  The particular company I chose manufacturers products for use in the electrical industry, hydraulics, aerospace, and other industry.

Today I seized the initiative and acquired Eaton Corp. PLC (ETN).  I received 24 shares at $50.32 / share, without a commission.  The current P/E ratio is approximately 11.65 and yield is 4.32% (on current cost).  Looking at past dividend payouts, ETN has managed to a 5 year DGR of 17.1% while keeping an approximate payout ratio of 52%.  Holy crap, I like this stock and considering its recent decline in price it was hard to resist.  This purchase adds $52.80 to my forward 12-month dividend income. 

This purchase was not a hard choice to make.  I like the industries they feed, their wide foot print and how they are generous with shareholders.  On top of the growth rate of the dividend, the price of the stock has been nominally positive over the past decade.  The board also frequently buys shares back, increasing my value.  Lastly they inverted their structure and are headquartered in Ireland, this allows for dividends to count against cost basis (I think I am reading that right, correct me if I am wrong).  I just see positive trends on their side, and I am excited to earn some of it.

What do you think of ETN?

I will update my portfolio page at the end of the month, keep enjoying December everyone.
- Gremlin
- Newly long ETN!

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