I’m reporting my automatic purchases for last week:
I Bought:
$300 of AWR
$200 of ESV
$200 of MDT
I used $700 in new capital and added $27.22/year to my dividend income. This is an average yield of 3.9%.
Note:
I am pretty comfortable with my large position in ESV and energy in general (currently 20%). If I do average down further, it will likely be in very small pieces. I’ve also sold several puts that if assigned would lower my basis further. All of the drillers could be under pressure for a while.
I’ve mentioned why I like AWR before and I’m trying to slowly increase my weight there. Water is a resource that will stay in high demand. I also like this company as a defensive stock in a market downturn.
I added a small amount to MDT. It’s below an average weight and I’d like to bring up my weight in the medical sector in general. Both BDX and MDT are due for some additions to.
Picture:
Just for some fun and to add some color I will be posting pictures of places I’ve been to. It’s also motivation to reach FI so I can travel and do what I want to when I want to.
This is a picture of the helicopter we rode in on the scenic waterfall tour in Hawai’i. We originally wanted to see the volcanoes but the weather was too bad on the eastern side of the island.
Nice pick up with the ESV addition. I know many dividend bloggers are looking to add energy names and drillers. I wonder what you think about SDRL?
DivHut recently posted…Recent Stock Purchase â October 2014
DivHut,
Thanks, I am a little heavy on ESV now. I do think these prices are extremely attractive though. I like SDRL, they have the youngest fleet but it’s the debt that scared me. They have a much larger debt load then ESV and I believe they will have to cut their dividend eventually. Even if they cut it in half, it’s still very large though.
Thanks for stopping by!
I’ve been to Hawai’i a long time ago. Beautiful state, isn’t it? Not sure I agree with your purchase of AWR, since I think it’s overvalued. I do agree that water will become more important over time, and you’re at least averaging in. Maybe it’s a good idea to look at water equipment manufacturers as well, like PNR, XYL, and AOS? That way, no matter how each water utility actually does, you can still profit. Takes a bit of the risk out of the equation.
DividendDeveloper recently posted…Dividend Stock Analysis – UNH
DividendDeveloper,
It’s a gorgeous place indeed. We had the best time, especially on the Big Island.
I agree that AWR’s P/E is a little high for a utility. However, you are paying for decent projected growth and an impressive dividend streak. Their beta is only .7 which is defensive. 10k invested just 5 years ago would be worth 20k. They have had a nice run but you could be right. I currently have a very small position and will just keep dollar-cost-averaging. I think this company is a very low-risk investment.
You might be on to something with a more pure play with water. Those are more speculative positions but worth looking into. Thanks for mentioning them.
Thanks for stopping by!
Nice purchases. I’d love to ride on a helicopter once of these days.
Tawcan recently posted…6 ways to save money on baby items
Thanks Tawcan! Keep investing and you’ll be able to do a lot of things that you always wanted to one day.
Cheers!
oil must be bottoming out soon. Cant get below $70 so its looking pretty good value on some of these stacks now
Asset-Grinder recently posted…$2,111,011 Net Worth Update October 2014
A-G,
There should be a pretty good floor at $70 but who knows what can happen. I do know our need for oil isn’t going away any time soon and the price will be back up sooner rather than later. I agree that it’s creating some good values in the energy sector.
Thanks for stopping by!