2016 started with a “bang”, actually we should refer at it as more of a “crash”, but I am sure you get my meaning.
Oil is down (I am eying a strong resistance at 24$), the world seems to be taking an important slowdown, economically speaking, things are not going to be easy in this 2016 by the looks of it.
On the other side we are still alive, and despite hearing Cassandra”s” warning us of a further 10% loss potential in this market correction, my activity (as it happened in August 2015) just increased as there are lots of opportunities out there to be taken in terms of dividend plays.
The only issue is that I have now run out of money, the “secret stash” that I put aside these months has evaporated (almost), but that’s what it was there for.
As I am not trying to time the market I have decided to buy the following stocks mostly for a reason: yield was around 3%, a mark that (taken away taxes and so on) should help me getting the 2% net dividend target in 2016. These are all stocks that I already own and that I do not mind buying again if the opportunity rises, you’ll see the names and you’ll understand. I got myself more stocks of:
Wells Fargo – Pepsi – Diageo – BASF – Sanofi – Johnson & Johnson
Apart from BASF, all the others are companies that I would buy if they get just below or equal to the average cost in the actual PF.
BASF hit the -10% rule, it’s a company that looks after the stockholders and despite being immersed in the “materials” sector it’s not a miner per-se, and I still think it will have higher profits due to low cost commodities. (drawback, BASF products are used massively in the industries that are struggling right now…).
Then we have a new addition: NEXT. I needed some Consumer Discretionary stocks, I have been eyeing Next for a long time, but the dividend yield was quite not right. To be honest I got in at around 2.2% yield, but that is excluding the special dividends that this company dishes out regularly, Next is a very attentive company when it come to shareholders, and the financials look like the dividend can be increased in the future without too many troubles.
The month is not over yet, I have still a couple of trades that I am eying (Unilever, Interserve, 3M), but the prices are not quite right so I am holding the money and see what the market will tell us.
I am growing more and more certain of a “blanket” of dividend cuts coming from the material/energy sectors, but let’s wait till it happens, hoping that I am mistaken like with many other investing related things 🙂
And how was “blood January” for you? Did some shopping after all?