Thursday, July 13, 2017

Recent Buy, July 2017

Farmer's Tan Gremlin here.  I don't know about you, but I sunburn like crazy - so save yourself the experience of awesomely itchy skin and use sunblock lotion.  Anyways, summer is very busy.  We are buying a house, getting sunburned by the pool, going tubing, going to a wedding, etc.  One of the things I have been trying to do a lot is to ride my bike where I can.  Its cheaper and more enjoyable than driving.  However, I sweat like a maniac - so if I am riding I either need a shower when I get to where I am going, or to keep about 10 feet away from everyone else who has a good sense of smell at all times.  Enough, with how much I sweat and what I am doing this summer, what did I just buy?

Yesterday, I added a new position by purchasing shares of J.M. Smucker Co. (SJM) in my Roth IRA account.  I bought 11 shares, with a total cost of $1281.85 ($115.90 / share, including commission).  The current yield is 2.62%.    The P/E ratio for SJM sits today at approximately 22.44, trailing and 14x forward earnings.  These are both better than the historical 5 year average for the stock with the average yield being 2.19% and the average P/E being just under 24 (with a high of 41!).  SJM boasts a trailing payout ratio of 57% and a forward payout ratio of approximately 35% (looking at the data from multiple sites...).  SJM has 19 years of dividend growth and is a member of the Dividend Contenders.  This purchase will add $33.00 to my 12-month forward income.

SJM is a consumer staple stock, and that sector is finally entering good buying territory (thanks to one Amazon, which one day will find itself on the wrong side of anti-trust litigation I would think).  It is nice to get a security that is approaching 5 year highs in terms of yield.  On a macro level, it has been nine years since a recession so the likelihood of having one is increasing.  When it does hit, people will continue to buy the staples.  Perhaps even buy the cheaper items.  No fancy food, but stuff they can afford to put on the table all week.  This is where companies like SJM come in; they have been buying healthier brands and securing space in that market and they still have the old guard value brands.  Not to mention to mention that many store brands are made by large companies like SJM.

This is a company and a sector I am very confident will still be around decades from now.  The fact is, people need to eat and there are now more people than ever.

I will update my portfolio page at the end of the month.  Stronger 2017!

What do you think of SJM? 

- Gremlin
- Long SJM

Monday, July 3, 2017

June Review / July Preview, 2017

Sweaty Gremlin here to talk about last month and look forward to the next.  June was a busy month, I turned 32, my wife and I found and made an offer on a house, which was accepted, I was in a wedding, and on and on.  Now we face the prospect of our rent payments becoming mortgage payments, so we can build some equity.   Now I can literally talk about the situation on the 'home front' and mean it.

On the work front I got to travel a little bit, and it is likely I will be required to do so again soon.  The projects I support like to do visits and tests in the summer months.  Traveling for work is not always ideal, but looking on the bright side, I rack up points, and all my required expenses are covered for those days - so I save some of my money.  


This past month I did not make any new investments.  I have the cash on hand, but I did not see any stocks I wanted to purchase, also there is my whole housing situation.

Last month I brought in a total of $294.87 in dividends ($101.16 taxable, $61.80 Roth, and $131.91 IRA).  This is an increase from last year ($116.44 total) by 153%. The IRA money does it again, destroying a prior month.

In terms of dividend increases, I realized four this month from Pepsico (PEP), Unilever (UL), Johnson and Johnson (JNJ), and Exxon Mobile (XOM).  Raises were between 2% to more than 8%.  Thus far for 2017, I have realized 29 dividend increases!

Next month I will realize one raise, Realty Income (O).  The increase is approximately 0.2% - the 4th from O this year.


At the moment we only have low interest auto loans, in terms of realized debt.  This past month I covered my net-worth, which be very much in flux in the coming months.  This month we anticipate closing on a house, which will set us back a little bit [about a metric ton], but allow for a longer term building of wealth.  Owning our house has been a long time coming, and it is the smarter long term financial move.  However, it did impact stock purchases as I have held back potential Roth IRA and taxable purchases in case the cash is needed in the short term.  I will likely make the Roth move in July, but sit on the other cash until at least August.

Next month should produce around $71 in dividends, which is a 8% YOY decrease, which is  attributable to Kraft-Heinz (KHC) switching its payout month.

My portfolio page is currently up to date.

Hope everyone has a great July, get some sun and some fireworks!
- Dividend Gremlin
- Long all stock tickers mentioned