Saturday, May 21, 2016

Recent buys - WFC & TGT



Earlier this week, I initiated new positions in WFC and TGT. These two companies are always on my watchlist. It’s just waiting for acceptable entry points (at least my acceptable from my perspective). I noticed MyDividendPipeline buying TGT at exactly the same time and exactly the same number of shares! Strange things going on in Texas.

Transactions

Date
Transaction
Ticker
Price
Quantity
Amount
Divs/Year
Est. For Dividend
5/17/2016
Buy
WFC
47.66
33
1579.73
1.52
$50.12
5/18/2016
Buy
TGT
67.48
40
2699.20
2.24
$89.60




Total
$4,278.93
Total
$139.76

Sunday, May 15, 2016

Recent Buy (Tax Deferred) - GILD



I recently initiated a new position in Gilead Sciences (GILD) at the end of last month. You can read more on my purchase here: https://div4son.blogspot.com/2016/05/recent-buy-gild.html

I felt a weakness in the price, so I decided to split up my purchase, with the intention of buying more at a later date with a more palatable pricing.

I didn’t have to wait long. On 5/12, I added a new position with GILD.

Date
Transaction
Ticker
Price
Quantity
Amount
Divs/Year
Est. For Dividend
5/12/2016
Buy
GILD
82.67
30
2480.10
1.72
$51.60




Total
$2480/10
Total
$51.60

If you’re interrested in GILD, you can read more about the company here: http://www.wikinvest.com/stock/Gilead_Sciences_(GILD)

Tuesday, May 10, 2016

Dividend Compound Annual Growth Rate (CAGR) and Bumpiness

Dividend Compound Annual Growth Rate (CAGR) and Bumpiness





The best definition of Dividend Compound Annual Growth Rate (CAGR) can be found here: http://www.investopedia.com/terms/c/cagr.asp


The compound annual growth rate (CAGR) is the mean annual growth rate of an investment over a specified period of time longer than one year.

Friday, May 6, 2016

Recent Buy - ABT



At the end of last month, I bought some shares in GILD. This is partly due to my re-balancing of my portfolio to add more healthcare companies. It is also partly due to the some weaknesses in the sector (at least for some companies).
To continue this trend, I added to my position in ABT in my tax deferred account.
By the way, my strategy of buying companies when the sector is performing poorly hasn't been too great. Last year, I bought a bunch of industrials. Not much action there. So, please don't follow me:). Anyway, I plan to sit on these companies for years and collect the dividends.


On May 6th, I bought 90 shares of ABT in my tax deferred account.


Date
Transaction
Ticker
Price
Quantity
Amount
Divs/Year
Est. For Dividend
5/6/2016
Buy
ABT
37.95
90
$3415.50
1.04
$93.60




Total
$3415.50
Total
$93.60


I bought ABT last September and again earlier this year. So, this is not a new position for me.

Tuesday, May 3, 2016

Recent Buy - GILD



Based on my portfolio, I need to increase the holdings in my Heath Care sector. I have been eyeing ABT, PFE and GILD over the last couple of months. PFE is now out of reach, but ABT and GILD are buying opportunities - especially with the negative earning report reviews.

On 4/29, I added a new position with GILD.

Date
Transaction
Ticker
Price
Quantity
Amount
Divs/Year
Est. For Dividend
4/29/2016
Buy
GILD
88.07
17.00
1497.19
1.72
$29.24




Total
$1,497.19
Total
$29.24

You can read more about GILD here: http://www.wikinvest.com/stock/Gilead_Sciences_(GILD)

Biopharmaceutical companies business models are ‘simple’ (note) to understand. They make drugs, and then markets them. The key is the types of drugs they manufacture. The industry is very competitive and highly regulated. The key is to go with companies with strong moats - nice range of drugs and patents on them. Eventually, they will have generics to deal with, so constant R&D is a must.

Note: It is never easy to fully understand businesses…. but I tell my son that they sell drugs! (See http://div4son.blogspot.com/2015/12/kiss-principle-for-investing.html)

My Criteria Table

Monday, May 2, 2016

April Summary



The market has really pulled back. My net worth has peaked again. The last couple days of April has some volatility, but it is current nothing compared to the beginning of year. Based on the chart, the VIX index is well below 20, which means I need to be cautious in this overheated market.

During the 1Q, my cash situation has not been too great which explains the limited trades during the period. However, I am now fully funded for both my taxable and non-taxable accounts.

If the VIX level stays below 20, I will purchase only companies trading close to their lows.


I will probably buy one or two companies a month to keep up my ‘regular investing’ approach. If the VIX goes above the threshold, I will start unloading my cash.

Let's see how this strategy will work. I want to invest but it seems most of the companies on my watchlist are way over my desired buy point.

With the strategy aside, let’s review my accounts for April.