January 2017 Monthly Purchases (looking back)

I’m starting to have some good discipline. I’m proud of my choices for this month’s purchases. There are some great companies in here. Here’s what I came out with in January 2017.

I am writing this looking back from September 2017.

3 shares of BA (Boeing Co) @ $158.7/share ($476.1)

I have seen a lot of beginning investors avoid companies with expensive ($100+) share values. I never felt this urge, but can understand it. It’s tough psychologically to spend almost $500 and just get 3 of something. But when it is 3 shares of BA, it is time to party! I will add more shares of BA a few more times by the time I am writing this, and it will turn out to be my best investment by far. BA’s order backlog is legendary, and in Sept 2017, it has a safe yield (2.32%) and payout ratio (57%). I bought it too late to be a part of the most recent 30% (!) dividend hike, but I can’t wait to be a part of the next one and all the ones after that!

It’s tough to buy a company like Boeing that is always at its record high, but if I wait for a drop, I’ll be waiting forever. By Sept 2017, BA will grow to be one of my largest holdings.

4 shares of HAS (Hasbro, Inc.) @ $81.53/share ($326.12)

I love a lot about Hasbro. I especially love the safe 2.39% yield and 45% payout ratio (as of Sept 2017). I only wish I bought more of it in retrospect! Marvel is exploding in popularity and Hasbro is an avenue for Marvel to sell to the public. Shortly after I bought Hasbro, I enjoyed a 12% dividend increase. Hasbro is doing everything right these days while Mattel is having some hard times. I’ll later add more Hasbro.

2 shares of ORI (Old Republic) @ $19.07/share ($38.14)

Another low-cost stock purchase with some leftover funds. I will later sell this.

4 shares of IBM (International Business Machines Corp.) @ $177.64/share ($710.56)

IBM has been a test in my long-term holding strategy. It seems like a 1,000-lb monolith in a room of nimble tech companies. Shortly after I bought IBM, Warren Buffet disclosed his large sale and the stock price has fallen from there. IBM does have a good dividend growth history (6-9% the last few years). And its payout ratio is still only 43% (as of Sept 2017). If they can turn around and compete, I am sure this will be a good long-term buy. For now, it is one of my worst performers.

3 shares of IFF (International Flavors & Fragrances Inc) @ $119.95/share ($359.85)

I love this purchase looking back. A very safe 1.92% yield and 48% payout ratio (in Sept 2017). An 8% dividend hike later in the year. IFF makes flavors that can enhance almost any food. IFF also makes fragrances that can go in almost any material, such as toiletries. I couldn’t imagine a more broad and adaptable business model that should always be in demand. This will be fun to add to going forward!

4 shares of RTN (Raytheon Company) @ $144.19/share ($576.76)

A 1.75% yield and 42% payout ratio (Sept 2017). I’m developing a pattern in my purchases. Later in the year, I’d get a 9% dividend increase! I’ll later add to Raytheon. They are the clear leader in their business, and international defense is not an easy business to break into. I’ll gladly add to RTN any chance I get.

2 shares of FLO (Flowers Foods, Inc.) @ $19.91/share ($39.82)

With a few bucks left over from this deposit, I found FLO. I was initially attracted by the low share price (which meant I wouldn’t have as much idle money until my next deposit). In Sept 2017, it has a 3.72% yield and 81% payout ratio. The payout ratio is above what I’m comfortable with. I will continue to keep an eye on it though.

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