Recent Stock Purchases April 2017

We are already in the middle of April and I can see that the spring is slowly coming. Even though the temperature is around 6 celsius, the sun is shining. Summer is not that far away anymore.

It´s not that easy finding stocks that trades at an undervalued or fair price these days. At least not if one only look at S&P500. Luckily, I´m norwegian so my periscopes are not just set on US. It´s set on the globe, and we do have some great companies here in the nordic countries too.

However, there are still some great stocks that are trading close to what I consider fair in the US. To name a few: Hormel Foods corporation ( HRL), General Mills (GIS), Compass Minerals Inc (CMP), Gilead Science (GILD) or Qualcomm (QCOM).

During April I have done two purchases so far, but what´s even better is that I have already achieved by portfolio goal for 2017 which was adding another 50000 NOK or $5863. This is great and will boost my DGI a lot.

Back to my purchases: I have bought 15 shares of Compass Minerals Inc (CMP) at a market price for $66,80. This purchase increases my annual income by $43.20.

 

Compass Minerals Inc (CMP)

Compass Minerals is a leading producer and marketer of essential minerals, including  salt, sulfate of potash specialty fertilizer and magnesium chloride. The share price has fallen due to lower sales in road salt and fertilizer. It´s been fewer “snow events” than what´s normal, which might be because of higher average temperature around the globe. However, the company is very well driven, and I think it will remain solid for decades.

XACT Nordic High Div Low Vol (UCITS ETF)

My second purchase is XACT Nordic High div Low Vol (UCITS ETF). It´s an ETF tracked by Handelsbanken Nordi Smart Beta Index. The index replicates a combination of the highest yielding and the least volatile single stocks in the nordic countries. The fund normally distributes dividends in May, and the fee is 0,30 %. The annual yield is around 4 %, and the ETF consist of 50 high quality Nordic stocks that has a low beta. I bought 124 shares at a marked price of 101,40 SEK. This corresponds to about $1450 and increases my annual income by 500 NOK  / $58.

 

What do you think about my recent purchases? What stocks are you looking at right now? Join the discussion below =)

10 comments

  1. […] I have already achieved by portfolio goal for 2017 which was adding another 50000 NOK or $1600.

    The dollar is strong but not THAT strong;)

    Also, with so many single stocks you seem to be very well diversified. How does your portfolio’s performance compare with say the S&P 500 index or the global index?

    1. Hi Robert,

      Haha, thanks for noticing that. Changed to $5836 now =)

      Since the start of 2017 the portfolio is up 5,95 % while Nasdaq is up 8,66%, which makes sence since my beta for the US portfolio is around 0,60.

      For the US portfolio, these are the returns:

      35.20%
      19.58%
      12.22%
      18.43%
      8.43%
      12.35%
      9.20%
      -0.89%
      10.13%
      5.72%
      19.26%

      Total gain: 24.84%

      Other than that it´s hard for me to tell since the 40000 NOK extraordinary dividend from Opera was set as “Deposit cash”. It should have been “dividend”, but not it looks like I just lost 40000 NOK in one day. However, if one neglects Opera and all that mess, I suppose I´m slightly behind the index, but not that much. Most previous trades has been successful and there as been very few actual loses. And I got 3- 5 bank stocks that delivered 15 – 50 % return in 6 months. But as I said, it´s hard for me to track.

      Overall, at least at my current state, I would probably be better of putting the money in the index. But since I find that this hobby gives me a happy and fulfilling live, the possible difference is okay. Hopefully in time it will pay of, but if I lose some % to the index, it´s fine. It´s fun and makes my life more interesting. Most hobbies are way more expensive anyways =)

      1. Yep! Putting money in index funds following broad and global indexes are reducing risks significantly than picking single stocks. Doing DGI, or making a dividend money machine, your Opera case is proof of that.

        Previously, I thought that a 100 USD lost in an poor ETN bear/bull investment product was nothing – since I earned money on other investments at the same time and also got my pay check. However, for me now, I have realized that every single dollar counts on the journery towards Financial Independence and to get maximum effect of the Compound interest as the eighth wonder of the world.

        But as you said, if this is your hobby, put aside maximum 10% to play with. Your are the greatest enemy of your own investments 🙂

        1. Hi SteelOfNorway,

          First I would just like to say welcome to my blog. I know that you share a lot of my views about life and how to live it, so very happy to see a fellow adventurer here.

          I partly agree with you. If I started now, I would never have bought Opera, so in after thought, doing single stock picking is something beginners should avoid. As time has passed, I feel more comfertable picking stocks, and I also see this as practise since I might work as a fund manager or something like that one day. I´m positive that investing is something I will do thoughtout my live.

          I guess we just have to agree to disagree, but I share with you Sure Dividends 11 reasons to become a dividend growth investor:
          https://www.google.no/webhp?sourceid=chrome-instant&ion=1&espv=2&ie=UTF-8#q=sure+dividend+why+dividendt+growth+investment

  2. Well, it’s been almost a full month since my last ‘recent stock purchase’ has been posted, and it’s not for lack of finding stocks to invest in, rather, just watching the market move in a very aimless direction has made it a bit of a challenge in deciding where to make my buy. Another way of saying this is the market has been moving sideways in recent weeks and so have many of my stock considerations. Of course, if you have been following me for a while you already know that no matter what’s going on in the world nor the market (up, down and sideways), I still make at least one monthly buy staying consistent in building up my passive income stream.
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  3. Stockles, out of curiosity, how do you determine when a stock is undervalued or is otherwise trading at a fair market price?
    In any case, I’m actually unfamiliar with both of your stock purchases, so can’t really comment on those. But, as you know, I’m seriously considering adding HRL to my portfolio and it’s good you think it’s currently trading at a good price.
    Dividend Portfolio recently posted…Backup Your Blog – New Feature AddedMy Profile

    1. Hi Dividend Portfolio,

      Actually, I´m going to make a blog post about that, because many people ask me that question. There are so many factors that comes to play here and NB: It´s the combination of everything that makes a stock in my mind undervalued or fair valued. Is it okey if I wait a bit and write a proper blog post about it instead of just commenting in high speed?

      Compass Minerals is as I said a leading producer and marketer of salt, sulfate and potash specialty fertilizers. It´s a boring company, and I can´t say that putting salt on the road is amazing. However history shows that it´s companies like theise that create real wealth. Not insane tech companies, but boring and stable companies that has great products.

      It´s also a part of SimplySafeDividends Conservative portfolio (which I recommend strongly to subscribe to!):
      The Conservative Retirees portfolio seeks to preserve capital and deliver a very safe, above average dividend yield. Dividend income is expected to steadily grow at a moderate rate, and the portfolio is expected to keep up with the S&P 500 over time.

      We invest in high quality companies with enduring competitive advantages, long operating histories, shareholder-aligned management, and large markets that provide opportunity for long-term growth. These businesses maintain reasonable payout ratios, generate consistent free cash flow, and have healthy balance sheets, providing a sturdy foundation for consistent dividend increases.

      We expect the portfolio to underperform in bull markets and significantly outperform in bear markets due to the defensive nature of its holdings.

      Total return is expected to be composed of:
      3.5% – 4.5% dividend yield
      4% – 6% earnings growth

      As for the other one: nordic countries are far cheaper that companies on S&P500. The strong dollar is also something I have to take into account when purchasing stocks. Therefor it´s nice to to be able to invest in lots of great nordic companies without worrying about the businesses or lack of reasearch material (which is the most standard case here).

  4. First off, love the picture on top of the article lol. I’m not too familiar with your purchases but a few of your other mentions I currently own (HRL, GIS) which have performed very well for me. I was looking at QCOM but haven’t got around to pulling the trigger on it yet. Thanks for sharing.
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    1. Hi Dividend Daze,

      Glad to see you back at Stockles again. Thanks for the comment about the picture. I also thought it was too good to not share it with you guys. I think you should read up on Compass Minerals Inc. Great company and I think it suits a portfolio like yours very well. However, thanks for the comment and let me know if you buy QCOM. I´m also close to pulling the drigger at this one. Just not sure if Cardinal or CVS are even better buys right now. IBM is also attractive.

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