Today, I added to a new position by purchasing shares of Eastman Chemical (EMN) in my taxable account. I bought 12 shares, with a total cost of $1,189.80 ($98.578 / share, includes commission). The current yield is 2.29%. For a detailed summary of their history, etc. please visit: EMN's Seeking Alpha Profile (for the record my time is getting more limited by the day, thanks to having a kid, so I am cutting out this section and giving a general view, I do read multiple websites, this just seems to be one of the more accessible ones).
EMN is a major producer of chemicals; I will borrow the Seeking Alpha description:
"Eastman Chemical Co. engages in the provision of specialty chemicals. It operates through the following segments: Additives and Functional Products; Advanced Materials; Chemical Intermediates; and Fibers. The Additives and Functional Products segment includes chemicals for products in the transportation, consumables, building and construction, animal nutrition, crop protection, energy, personal and home care, and other markets. The Advanced Materials segment produces and markets its polymers, films, and plastics with differentiated performance properties for value-added end uses in transportation, consumables, building and construction, durable goods, and health and wellness markets. The Chemical Intermediates segment consists of large scale and vertical integration from the cellulose and acetyl, olefins, and alkylamines streams to support operating segments with advantaged cost positions. The Fiber segment offers cellulose acetate tow for use in filtration media, primarily cigarette filters. The company was founded by George Eastman in 1918 and is headquartered in Kingsport, TN."
EMN is the kind of company I love because of their super small payout ratio and massive earning potential. The dividend is only 8 years old, growing at around a 10% clip, and their is tons of head space. They provide products that are constantly in demand, and the barrier to entry is really high. In addition, EMN has excellent geographic distribution, which means they can meet demand as it ebbs and flows in parts of the world in smooth fashion - relying less on middlemen.
I have eyed this company for a long time. It, along with my position in Westlake (WLK), should stand to be in demand for the foreseeable future. They make products that plenty of people use, but few want to be in the business of making. The industry is capital intensive, but through conservative leadership they have both created strong financial positions.
This purchase will add $26.88 to my forward 12 month dividend income. Part of the funding for this came from the sale of partial shares in my brokerage account. Capital One's brokerage arm is being purchased by ETrade, so my stock quantities are getting cleaned up into nice round numbers.
EMN is a major producer of chemicals; I will borrow the Seeking Alpha description:
"Eastman Chemical Co. engages in the provision of specialty chemicals. It operates through the following segments: Additives and Functional Products; Advanced Materials; Chemical Intermediates; and Fibers. The Additives and Functional Products segment includes chemicals for products in the transportation, consumables, building and construction, animal nutrition, crop protection, energy, personal and home care, and other markets. The Advanced Materials segment produces and markets its polymers, films, and plastics with differentiated performance properties for value-added end uses in transportation, consumables, building and construction, durable goods, and health and wellness markets. The Chemical Intermediates segment consists of large scale and vertical integration from the cellulose and acetyl, olefins, and alkylamines streams to support operating segments with advantaged cost positions. The Fiber segment offers cellulose acetate tow for use in filtration media, primarily cigarette filters. The company was founded by George Eastman in 1918 and is headquartered in Kingsport, TN."
EMN is the kind of company I love because of their super small payout ratio and massive earning potential. The dividend is only 8 years old, growing at around a 10% clip, and their is tons of head space. They provide products that are constantly in demand, and the barrier to entry is really high. In addition, EMN has excellent geographic distribution, which means they can meet demand as it ebbs and flows in parts of the world in smooth fashion - relying less on middlemen.
I have eyed this company for a long time. It, along with my position in Westlake (WLK), should stand to be in demand for the foreseeable future. They make products that plenty of people use, but few want to be in the business of making. The industry is capital intensive, but through conservative leadership they have both created strong financial positions.
This purchase will add $26.88 to my forward 12 month dividend income. Part of the funding for this came from the sale of partial shares in my brokerage account. Capital One's brokerage arm is being purchased by ETrade, so my stock quantities are getting cleaned up into nice round numbers.
I will update my portfolio page at the end of the month.
What do you think of EMN?
- Gremlin
- Long EMN and WLK
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