Friday, October 27, 2017

Recent Buy, October 2017

Costume Ready Gremlin here to talk about a recent buy.  Life has slowed down, of late - something that usually happens after the birth of a little one.  So far everyone continues to be happy and healthy, and we are getting ready for a small Halloween party.  Hooray for simple family costumes - time savers and generally cheaper - and simple parties with friends.  They provide for real happiness and keep costs down.  Using some of that saved income, we have made a new dividend stock purchase.  Every purchase is another building block towards that goal.  So here is a new brick:
Yesterday, I added a new position by purchasing shares of Sonoco Products (SON) in my taxable account.  I bought 23 shares, with a total cost of $1190.48 ($51.46 / share, plus commission).  The current yield is 2.98%.  The P/E ratio for SON sits today at approximately 19.75, trailing.  This is about the same as the historical 5 year average for the stock with the average yield being 3.08% and the average P/E being just under 19.29.  SON boasts a trailing payout ratio of approximately 57%.  SON has 35 years of dividend growth and is a member of the Dividend Champions.  This purchase will add $35.88 to my 12-month forward income.

As I said this is a new Purchase, and SON is not a well known company, so you are probably wondering what do they do here?  So SON, what do you do?  Well here is a description in their words:

"Over its 100-year-plus history, Sonoco Products has steadily assembled a diverse portfolio of industrial and consumer packaging product offerings such as flexible and rigid plastics, reels and spools, pallets, and composite cans. In the next few years, we believe Sonoco will continue to invest in its advantaged product lines (composite cans and tubes and cores), primarily through overseas acquisitions. Sonoco has raised its dividend annually for more than 30 years, a streak we expect to continue."

SON is my first basic materials company housed in my taxable account.  Packaging will always be thing, that is simple.  There product line covers so many different types of products, so even during a downturn they should have no problem bringing in enough money to cover their needs and my dividend.  Also they have made important recent strides in the packaging industry, something that should reward shareholders for decades.  Also that last line is awesome - a streak we expect to continue.  It is a streak that I cannot wait to join.

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

What do you think of SON? 

- Gremlin
- Long SON


  1. It's not a company I've taken a close look at yet although I've added it to my watch list based on this post. I'll have to take a closer look in the near future!

    1. TitM,

      Thanks for commenting. It is a boring stock in a boring, but always in use industry. I like those odds and consistent growth.

      - Gremlin

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