Yesterday was one of the sunniest days here in Bergen, Norway. I had an offer to go on a date with a beautiful girl this saturday, but as any sane and reasonable 24-year-old in his best years, I followed my inner instinct. I politely declined, and chose to watch two old men almost close to 100 talking about finance, stocks, EBITDA and the future…..(cough). Yeeeeeeeh, let´s talk about my actions instead.
It didn´t take long before I pushed the “buy” button again at my broker, but when I see great opportunities, I take them. And I must say, there have been quite a few companies trading at a fair valuation lately.
- Bought 2 new companies. Total amount invested: 28421 NOK or $3304
- Added to 4 companies: H&M, ASC, KOBR MET, VER. Total amount invested 10000 NOK or $1165
- Increased annual income by $200
Purchase 1: Clothes, Cider and Investment banks
I started the shopping spree easy by adding some stocks to my nordic / viking portfolio:
- Purchased 2 stocks of Hennes & Mauritz (H&M) at 217 SEK. Dividend Income $1.65
- Purchased 2 stocks of Kopparbergs (KOBR MTF) at 210 SEK. Dividend Income $1.71
- Purchased 110 stocks at 5.42 of ABG Sundal Collier (too boring to get a picture). Dividend Income $6.50.
In total this gives me 85 NOK or $10, but wait. There is more to come!
Purchase 2: Everyone needs FOOD
Few people, especially in Norway, have heard about General Mills (GIS), but I bet you have bought some of their products. The company is a leading global manufacturer and marketer of branded consumer foods sold through retail stores. The company is also are a leading supplier of branded and unbranded food products to the North American food service and commercial baking industries. I purchased 16 shares at $56 which increases my dividend income by $30.72. Let´s look at some of GIS products.
They offer a variety of food products that provide great taste, nutrition, convenience and value for consumers around the world, with a focus on five large global categories: ready-to-eat cereal; convenient meals (e.g. meal kits, pizza, soup, side dish mixes, frozen foods); snacks (e.g. grain, fruit and savory snacks, nutrition bars, and frozen hot snacks); yogurt; and super-premium ice cream. Other significant product categories include: baking mixes and ingredients; refrigerated and frozen dough; and frozen and shelf-stable vegetables.
What´s so great about this company?
- Provides significant defence if we reach a bear market. General Mills grew sales by 9 % during the financial crisis (2008), and returned 9 % that year, outperforming the S&P500 by 48%. People will need food no matter what happens, and investors tend to move towards more secure consumer brands when things look scary. However, GIS is moving downwards, so I just started a medium position.
- Nice valuation:
P/E Ratio: 21.2 Sector P/E: 25.4 FCF Yield: 4.6%EV / EBIT: 16.3 Div. Yield: 3.35% P/B Ratio: 7.3
Purchase 3: REIT SALE
On Wednesday Mr. Market gave us REIT investors a little gift by reducing the price of many high quality REITs due to the issues (Triple-Net lease) with Spirit Realty (SRC) The good thing is that while many not-so-high-quality REITs fell, so did The Big Great ones too.
I managed to purchase 42 shares of Realty Income Corporation (O) at $55.55 (which is close to REIT expert Brad Thomas Fair Value.
The cost was 20421 NOK or $2378 and this increases my dividend by $106.34. Realty Income Corporation is a real estate company that leases primarily single-tenant properties to over 230 different commercial tenants doing business in more than 40 different industries.
I also purchased 90 stocks of VEREIT (VER), a commercial REIT, at $7.76 for 6060 NOK or $700 which increases my dividend by 442 NOK or $51.4.
In total I have increased my dividend income by $200. I´m easily going to make my goal for 2017 now. What´s next? Just sit, relax and COLLECT dividends OF COURCE! What are you doing right now? Join the discussion and tell us your top picks right now!
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