Tuesday, July 17, 2018

Recent Buy, July 2018

Reunion Gremlin here to talk about a recent buy.  Over the weekend was family reunion time, which is always fun and exciting.  Sure it requires a good bit of driving, but its important to see people you care about - even more so when they are scattered about the globe.  Before we left on this journey I added to an existing stock position.  This was partly fueled by the merger of Dr Pepper Snapple (DPS - formerly) with Keurig to form Keurig Dr Pepper (KDP).  I will continue to hold my new shares of KDP, I do think there is value in the combined company.  Now to the proceeds, what did I buy with them?

Last week, I added to an existing position by purchasing shares of Kraft Heinz Corp. (KHC) in my taxable account.  I bought 17 shares, with a total cost of $1,087.81 ($63.58 / share, plus commission).  The current yield is 3.88%

This purchase nicely rounds out this position, and is in addition to KHC shares I hold in my Roth account.  I am not going to rehash the fundamentals of this stock as it is an existing position.  However, it is in an industry that will always be in demand - food.  Sure they are a little bit of an aged giant, but they have the ability to add newer products and acquire new brands.  I suspect that KHC, and its competitors, will continue to gobble up smaller / healthier products until each has its own respectable portfolio of these items.  Each added product might not move the needle on its own, but collectively I suspect companies will be seeing ever higher profits in the long run as trends continue.

This purchase will add $42.5 to my forward 12 month dividend income.

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

What do you think of KHC? 

- Gremlin
- Long KHC and KDP


  1. I like the KHC buy. I know the staples are still considered out of favor but I think they'll bounce back. KHC has a stable dividend with a nice yield. Enjoy it while you can. No plans to sell my KHC any time in the future.

    1. Keith,

      Thanks for the comment. I agree they are out of favor, which a makes them really attractively priced!

      - Gremlin