Friday, September 11, 2015

Weekly Purchase 3 - IVZ



For this week's purchase through my weekly sharebuilder plan, I bought around 24 shares of IVZ. As you know, I am trying to improve and balance my holdings in my portfolio.(I am overweight with PG, XOM, TROW etc.)


Also, IVZ showed up in the September screen which looks for companies with lower than median P/Es and higher than median yields with good credit ratings and excellent chowder numbers.



Action
Security
Price
Quantity
Amount
Buy
IVZ
$32.41
24.5619
$800 + fees


You may be familiar with Invesco Ltd (IVZ) due to the PowerShares QQQ ETF that it manages. Invesco manages just under $800B worth of assets, so it is one of the smaller AUMs.


Invesco Ltd (IVZ) Overview


Invesco Ltd (IVZ) is diversified investment manager that offers an array of investment options with $798.3 billion of assets under management at March 31 2015.


Investment management areas: real estate, distressed investing, bank loans, quantitative equity,fundamental equity, Fixed income, hedge funds, Fund of funds, environmental investing and ETFs.


Criteria List


IVZ 9/2015
Area
Criteria
CheckList
Comment
Quality Company
Dividend Growth
>5 years
Yes
6 Years
ROE/Op Margin
Stable
Yes
Stable
Long term Avg Growth
Stable
Yes
Stable
FCF over Dividends
Yes
Yes
FCF covers Dividends
M* Moat
Wide Moat
Yes
Narrow
M* & S&P
Credit Rating
> BBB+
Yes
A-
Cash to Debt & Interest Coverage, Debt to Equity
Cash Debt >1 or Interest Coverage > 5
Yes - but TTM Debt/Equity > 50
Cash to Debt 0.39
Interest Coverage 6.17
Debt to Equity 75.96
M* & S&P Stars
> 3 Stars for both
Yes
M* 4 Stars
S&P CapIQ 4 Stars
Payout Ratio
<60%
Yes
42.39%
Dividend Growth
& Yield
Dividend Yield
>3%
Yes
3.28%
Dividend Growth
>5%
Yes
21.00%
Chowder
>12%
Yes
24.28%
Valuation
Yield/Avg Yield
>1.1
Yes
1.4 of median
Dividend Yield Theory Mid Point
Below Mid Point
Yes
Mid Point 52.59
Low Point 34
P/E
Below Mid Point
Yes
0.75 of median
DRRM
~10%
Yes
Assuming 8% growth; projected return=10.58%
M* Estimate
<M* est
Yes
M* 42
S&P Estimate
< S&P cap IQ est
Yes
S&P Cap IQ 42
Note: data from M*, Yahoo, Gurufocus and CCC


You can check out my previous analysis here:


Like most sectors, the AUMs are down significantly with the recent market dip. I have a few choices in this area. TROW, IVZ and EV.


TROW is well covered in my portfolio. Between IVZ and EV, I could have gone either way. I ended up going with IVZ this time. If the market stays low for a while I may add some EV.


The IVZ purchase increases my estimated annual dividends by $26.53.


I am starting to like my weekly investing approach for dividend stocks investing. It definitely takes me away from constantly checking the markets. With the market down, I can balance my portfolio's holdings.
The weekly method is also useful for me this month. Since my capital is low (due to the massive tax and insurance bills last month), I can spread out my purchases over time. Investing paycheck to paycheck.


What do you think of IVZ?

D4s

4 comments:

  1. Never heard of IVZ, but since it seems to meet all your investment criteria, I'll take a closer look at it going forward. Should the minimum 3% yield in your table be a Yes?
    Good luck with the weekly purchases!

    ReplyDelete
  2. Dividends in Hand,
    Thanks - I corrected my table. I think the AUMs are all trading fairly - so you have quite a few to choose from.
    D4s

    ReplyDelete
  3. Good buy D4s. But I am surprised that IVZ has an A- rating considering that they do all the powershares etf.

    ReplyDelete
  4. Broke investor, Thanks for your comment.
    The rating came directly from Morningstar. S&P rates them with a A.
    D4s

    ReplyDelete