Several Buys

IMG_20151111_171436761.jpg2016 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?

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14 thoughts on “Several Buys

  1. My shopping still needs to start… I am going to wait a little longer for buying my world index. I agreed with myself to buy when 20 PCT down from the top.
    I have in mind to add even more rdsa, but only after the Feb 4 announcement. Maybe a crazy idea?

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    1. Ciao ATL,

      Not that crazy, I have been looking at that -22% and wanting to buy some more (RDSB), but I am too unsure, also I want to wait for the first announcements to make a move on energy. Having said that I am reducing the weight of the sector to less than 10% so buying now would be counterproductive… Let’s see what happens, I hope that I am wrong (I think that dividend cuts are given for certain, suspension a bit less certain)… 😛

      Great job on the “patiently waiting on the sidelines to make a move”, I wish I had waited a couple of days more, but I am happy with the trades so no damage there… 🙂

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      1. At 26 I thought it was a great entry point… Now that RDSA is just below 18, I want to buy more, write some puts.
        At the other side, I already have enough exposure in my play money to the energy sector, that I should get into something else now. I consider more defensive items like consumer.

        My main goal is to still sleep at night, no matter what. I also wish I entered some trades a few days later… but can’t change that anymore… I just try to learn from it for the coming 50 years 🙂

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  2. Ah! To me that has to be lesson N.1 of 2016. “Wait 3 days to buy a market crash”. The problem this time was that unlike August there hasn’t been a huge decline all of a sudden, it was a continuous streak of smaller market losses, so after the first week (where I did wait), I decided to make a move also because the yields were “ok” for my target and therefore there wasn’t much point in waiting longer…

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      1. Understood, oil is scary but it’s not like RDSB are going to disappear overnight either… One for the brave perhaps. If Unilever would just drop more, I’d jump in too, but it’s just not gone down enough for me to consider it above Interserve or especially Aberdeen.

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  3. ciao, scusami se mi intrometto con un piccolo OT ma ho una domanda su un titolo che hai in portafoglio. Mi chiamo Loris ed anch’io ho un portafoglio dividend growth, ho una piccola domanda; ho visto che in portafoglio hai MunichRE comprato sulla borsa francese, io l’ho su quella tedesca ed ho notato che esiste pure sulla borsa italiana…..sai per caso le differenze sui queste 3 quotazioni su borse differenti?!
    Complimenti x il tuo blog
    Saluti, Loris

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    1. Ciao Loris,
      Intanto benvenuto! Il titolo l’ho preso su Francoforte (a casa sua in Germania diciamo), è quotato anche in altri paesi ma se posso evito Italia e Francia per la tobin tax, il dividendo viene tassato “doppiamente” anche se il titolo è quotato in Italia percui ai fini del dividendo cambia poco. Normalmente nei mercati dove il titolo viene replicato c’e’ un po meno liquidità, ma con titoli di questo tipo non penso che ci siano problemi. Alla fine la differenza è la commissione che paghi per prenderlo, e qualche minimo punto di differenza di quotazione, al di fuori di quello dovrebbe esserci poco altro…
      Spero di esserti stato d’aiuto! Ciao e a presto!

      Stal

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  4. Nice list of stocks. I especially like JNJ and WFC. I want to buys these stocks as well, but I’m waiting for anther dip. So far this year, I’ve made two purchase both in financials – Principal Financial Group (PFG) and Bank of Nova Scotia (BNS). Best of luck to you in 2016.

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    1. Ciao IH,
      I have read a lot about Bank of Nova Scotia, but unfortunately I cannot trade it from Italy unless I change broker, but I have already too much forex complexity to manage so I prefer not to add Can$ to it. As to the further dips, yes, I do think that they might occur, but these stocks are there for the long run, so if I have capital and their price is below my average price I’d consider them to get the dividends. If the sink lower, well, we’ll see what to do when that happens… 😛
      Ciao ciao and thanks for stopping by!
      Stal

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  5. I have wfc and deo(sin stock), I also like pharmaceutical stocks although I only have Baxter. The recent weakness in some of them might pose a great buying opportunity. I’m considering jnj, abbv, ABT at some point.

    Great purchases!
    Cheers!

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