Investments Trade Log

[George the original one]

Dividend growth stocks I've been very happy holding the past 5 years:
AVA +50% dividend growth, current yield 3.7%
JNJ +42% dividend growth, current yield 2.6%
OHI +73% dividend growth, current yield 5.5%
PEP +45% dividend growth, current yield 2.7%
WPC +88% dividend growth, current yield 5.4%

avg 4% yield
Most of these are priced about 10% higher than I'd currently pay.

[Dragline]

bought IBM. 7+% free cash flow yield. Next year earnings estimates fell to 16.83 after last earnings release. Even so it still trades with a PE of 9.6 next year estimates. Net income before extraordinaries has been flat last few years. EPS have still gone up though because of the buybacks. Recently they have landed some large contracts with WPP, a Ductch bank ABN Amro and Lufthansa. Going forward if they can grow cloud, security and bid data segments, the market might assign a higher PE. PE expansion along with current dividends and share buybacks should lead to a nice total return eventually.

I am also accumulating IBM over the next few months. Selling/have sold a good chunk of long term US government bonds (EDV and TLT), although will still maintain large positions in them.

As a contrarian, I'm very happy to see horrible news about it, but honestly wish there was a little more: http://www.marketwatch.com/story/ibm-is ... -01?page=1

http://www.bloomberg.com/news/2014-10-2 ... ts-1-.html

[George the original one]

Updated my stock grades spreadsheet today (it's been 6 months since I last did so), which provides me a way to set priorities when considering dividend growth stocks. I weight towards income with income growth that significantly beats inflation and/or yields significantly better than inflation-adjusted bonds. You can see that the past year or so has been tough on companies as many have not raised their dividends (TGH, PETS, LTC, O, NSH, SNH, INTC to name a few); if you're looking for a quick capital gain, figuring out which of these will resume raising their dividend could be the ticket, though it's probably priced in to INTC.

In the majors, COP and MAT are getting interesting. COP is oil, so I suspect waiting to buy would be sound advice. MAT has been having some troubles with revenue, but one must also keep in mind that it is in the nature of their business to go through slumps before rebounding.

Perennial income favorites T & VZ are still present. Again, there's little long term difference apart from T offering 18% more yield than VZ. Generally speaking, I consider these to be like holding an inflation-adjusted bond fund.

In the REIT category, OHI & WPC continue to be prime candidates. If trying to boost current yield in your portfolio, then LXP might be worth considering.

Speaking of yield, in the MLP category, OKS & WPZ are yielding 8+%. Naturally this is in the oil/natural gas industry, so caution is advised before jumping into them, however both these companies have good track records for managing their finances and I consider them unlikely to cut or freeze the dividend in the short term.

[workathome]

I got put into IBM at 160 and switched to selling calls for the income, though I think it's undervalued.

[George the original one]

I trimmed my holdings in SJR and TRP. Originally I bought them as a hedge biased toward the Canadian dollar in case the US dollar went the wrong way. The dividends are now fighting an uphill battle against the US dollar...

[jennypenny]

In and out of a lot of stuff right now. Bought COP, RICE, and SLCA. Still holding SDRL, TICC, and TCAP. If SN gets hammered today, I might bite. Also watching WNR. If you do LP's, I'm watching CVRR.

FYI ... Vanguard announced a new muni fund/ETF coming next quarter for those looking for tax-advantaged options.

[sterlingarcher]

At what price did you buy SDRL, jennypenny?

[jennypenny]

$16.27

[sterlingarcher]

Do you have a stop loss on it in case it drops further?

[jennypenny]

No, I don't like using them if I can help it. I might consider getting out @$8 *if* there was someplace else I wanted to put the money.

[George the original one]

I bought MAT and T today.

[Chad]

Trying to buy some COP and some more SDRL today. All long-term holds if I get them. I might buy some BP too, but that dividend is getting really high. Makes me wonder if they can keep it for the next 12-24 months.

[George the original one]

Trimming down O, DLR, & LTC. Parking some of the money in PNNT.

Edit: And, after some consideration, parking some in TICC. 15+% yield for a BDC seems like a fair gamble.

[Chad]

I got SDRL at close to the 52 week low. Though, it could easily set new lows going forward. I didn't get any COP, as it never came back to my price.

[jennypenny]

Bought CRK. Added to RICE.

Also adding to TICC here and there, like GTOO.

[workathome]

Consumer Discretionary PE10 is at 37.6 (!). If the market enters another correction it's pretty tempting to buy some puts...

[NPV]

Has anyone looked into investment opportunities in clean energy? Valuations should probably be depressed by oil price crash...

[Chad]

Has anyone looked into investment opportunities in clean energy? Valuations should probably be depressed by oil price crash...

I don't see a major opportunity in clean energy due to cheap oil, as oil isn't a major electricity generator. The price of natural gas has a bigger impact on clean energy and it has been cheap for a while.

The volatility in the energy sector may create a few select opportunities in clean energy, but there are always select opportunities in every sector.

The most likely impact of cheap oil on clean energy is the potential for significantly lower transportation costs to juice the world economy, which could create more electricity demand. Of course, this isn't a given and any new power plants of any type are very long-term plays.

None of this changes the fact that the world is slowly moving towards clean energy, so very long-term it's probably ok...but not because of cheap oil.

[jennypenny]

Bought WNR. Added to CRK and COP. Took a much bigger bet on TICC (trimmed mREITs a bit to make room for it in the high yield part of my portfolio).

Moved some money out of a PIMCO bond fund into a couple of vanguard int'l stock funds.

[altoid]

bought some fcx today. Looking at GLDI for an entry. SLVO has done well so far, thanks for the recommendation from Jennypenny.