I Bought:
$500 of UNP
$300 of DEO
$100 of RDS.B
20 shares of JNJ ($2018)
I used $2918 in new capital and added $93/year to my dividend income. This is an average yield of 3.2%.
Notes:
At these prices, UNP will be on my list until it’s a full position. I like the value here and I love companies with a large moat. UNP is a good compliment to my railroad holdings in CSX and NSC.
RDS.B is one of the best values of the majors in my opinion. The cash flow they produce is enormous and I believe their dividend is still fairly safe even at an 8% yield. It’s a company in a cyclical industry and now is the time to load up in my opinion. I’m willing to build up to a $20k position in this company over the next couple of years if prices stay depressed.
DEO is a brand new position. They have a lot of big alcohol brands in their portfolio and sport a pretty nice yield of almost 4%. S&P Capital IQ estimates their 3-year CAGR at 8% and Morningstar gives the company 4 Stars. I’m a buyer here. Considering I’m opening a bar, I think this one is fitting for my portfolio.
I also added 20 additional shares of JNJ to bring up the weight. JNJ is one of those “forever” companies if there is such a thing. I plan for them to be a core holding for the rest of my life.
In Recent News:
The TABC inspection seemed to go well. The officer didn’t have much of a personality but I have my fingers crossed. Apparently I’ll have to go for an in-person interview soon. I’m getting quotes on pouring some concrete for a parking lot currently, testing out some POS and credit card payment systems, working on menus and getting the bar in compliance with all the state laws. The target opening date is still in March.
Nice buys a always. I have been reading quite a few DEO buys in recent weeks. I guess that yield is getting pretty attractive. Been a while since I added to my DEO holdings. Thanks for sharing and keep up the strong buys.
DivHut recently posted…Dividend Income Update December 2015
Thanks DH. Yeah, I’ve watched DEO for a while and finally decided to pull the trigger and buy a few shares. I plan to slowly dollar-cost average into more shares. That yield is hard to pass up and I don’t have any other companies in their space currently.
Thanks for stopping by!
Nice buys AAI. We will be adding to our position in Union Pacific as well
-Bryan
Income Surfer recently posted…2015 Wrap-up and 2016 Goals
Income Surfer,
Thanks bud! I just can’t get enough UNP at these prices. I can’t wait to have a full position. I’m happy to have you as a fellow shareholder.
Cheers!
Great buys, I nearly bought more JNJ this week myself. DEO is another that’s looking attractive. Best of luck with the bar, you’ll have to post some pics once you get settled in!
Captain Dividend,
JNJ offers a decent valuation right now. Congrats on being a fellow shareholder.
Don’t worry, I’m going to start posting some sneak peaks of what it looks like soon!
Thanks for stopping by!
Great purchases! DEO is one that I have my eye on again this new year. Though, with the issues in China, it seems that there are many bargains currently out there!
Exciting news about the bar! Will you be doing a brewery as well?
Scott
Scott @ Two Investing recently posted…December 2015 Income
Scott,
Thanks! I think the stock is looking attractive here.
I totally agree, with a sluggish China and oil tanking, we are seeing lots of bargains now!
Thanks again. I’d love to do a brewery but a restaurant/bar is all I can handle for now. If I could find the right brew master and find more spare time I’d definitely be interested in a brewery.
Thanks for stopping by!
Awesome Purchase Brent. Love it. Solid Companies. I would love to add to US stocks but the Canadian sucks hard. It’s definitely pulling back so Happy hunting bud.
The bar sounds like a dream come true. You’re gonna rock it bud.
I wish you the best with your new business!
You’re gonna rock it, I know it. Cheers bud.
D Hustler,
Thanks a lot! I’ve got a lot of catching up to do the next few years after my portfolio took such a huge hit. What you are doing is very motivation. Good luck to you as well.
Thanks, I’m excited about the bar. I’ll be sure and post updates.
Cheers!
Great buys, AAI — DEO is a newby for me and I’ll have to look into it! Best of luck with those investments and in getting your new business going!
Cheers
FerdiS, DivGro
FerdiS recently posted…Quarterly Review, Q4-2015
FerdiS,
Thanks! DEO is worth looking at, they’ve been around a long time and have been paying out steady dividends.
Thanks, I appreciate that. Good luck to you as well!