Thursday, March 7, 2019

Recent Buy, March 2019

Busy Gremlin here to discuss a recent buy.  Yesterday I added a new position, keeping the push alive to for FI.  I had considered closing a position to assist in the buy, specifically the Gap (GPS) after they announced the company would split.  However, I did not do that and I will patiently wait to see what happens there.  My GPS position is so small that eventually closing would be worth it as I refocus my effort on building larger positions of greater quality.  Now don't get me wrong, their clothes are fine - and some of the few that actually fit me pretty well (Gap and Old Navy), but I do not see their future including consistent dividend raises comparable to other quality stocks out there.  I must digress, what did I buy?

So yesterday, I added shares of Eaton Vance (EV) in my taxable account.  I bought 25 shares, with a total cost of $1,029.45 ($40.90 / share, plus commission).  This was a limit buy, and when I placed it I thought it would not be fulfilled; I am glad it was - though I could have waited 1 more day.  The current yield is 3.35%. For a detailed summary of their history, etc. please visit: EV's Seeking Alpha Profile.

EV joins Amerprise Financial (AMP) and T. Rowe Price (TROW) as the asset managers in my portfolio.  In addition, many of my Canadian banks and Prudential (PRU) also are involved in this industry.  It is one where scale and growth of the economy / assets work together in some sort of synergy to throw off money like a hurricane at sea throwing around water.

Asset managers are hard to escape, anyone who has a 401k or similar retirement account knows this.  Indeed, many people opt towards various types of funds as a way to set their money and forget it by virtue of letting someone else do it.  In a world where there is more money and people everyday, and where those people are so busy they cannot even slow down enough to enjoy a beer - there will be a space for companies like EV.  That coupled with excellent fundamentals including a great valuation, excellent payout ratio, and dividend growth propelled me to buy EV.

This purchase will add $35 to my forward 12 month dividend income.

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

What do you think of EV?

- Gremlin
- Long EV, GPS, AMP, TROW, PRU, and the big 5 Canadian banks


  1. Never looked at EV ever in fact. Thanks for sharing. My only exposure is a small position in TROW in the asset management space. Don't really see this name in any online portfolios. Interesting pick.

    1. Thanks for the comment Keith.

      EV is not a common one out there, however it is a dividend champion with 36 years of dividend increases. So it and TROW make for good company together.

      - Gremlin