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). Yeeeeaah, 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.

Summary

  • Bought 2 new companies. Total amount invested: 28.421 NOK or $3.304
  • Added to 4 companies: H&M, ASC, KOBR MET, VER. Total amount invested 10.000 NOK or $1.165
  • 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: Everybody 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 a leading supplier of branded and unbranded food products to the North American foodservice 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’s products.

Products

They offer a variety of food products that provide great taste, nutrition, convenience and value for consumers around the world. GIS’s food products have 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 defense 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&P 500 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

Finished? Nope!

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’s Fair Value.

The cost was 20,421 NOK or $2,378 and this increases my dividend by $106.34. Realty Income Corporation is a real estate company that primarily leases 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 6,060 NOK or $700 which increases my dividend by 442 NOK or $51.4.

Conclusion

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 COURSE! What are you doing right now? Join the discussion and tell us your top picks right now!

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9 Comments

DivHut · May 8, 2017 at 4:26 am

I like the GIS pick up. I added some last month to my taxable and ROTH account. I think the best time to buy this stock is when everyone is crapping all over it. GIS has proven it can adapt to changing consumer tastes like MCD has and HRL too for that matter. Thanks for sharing.
DivHut recently posted…Dividend Income Update April 2017My Profile

    Stockles · May 9, 2017 at 8:29 pm

    Hi DivHut,

    Agree. It looks like GIS is trending down, and I have no clue when it will reach “bottom”. So instead, I just started a position, and we shall see. I´m fine if it goes down, I´m fine if it stays neutral and I´m fine if it goes up. Win-Win!
    Thanks for commenting =)
    Stockles recently posted…Recent Purchases – Beer, Food, Clothes and Real EstateMy Profile

ambertree · May 8, 2017 at 5:03 am

GIS is on my radar as Well. I might move today…

Not sure how to understand the 24 year old girl story….

Saturday we had a mustachian meetup and drinks in the sun.
ambertree recently posted…Help us – We consider a 0 pct savings rate!My Profile

    Stockles · May 8, 2017 at 6:47 am

    Interesting. It´s trending down, so might not be in a hurry.

    Just that I chose to watch Buffet and Munger instead of going on a date, hehe.

Dividend Portfolio · May 10, 2017 at 3:46 am

I’m a huge fan of Realty Income. It’s a nice addition to your portfolio and you got it at a good price.
Dividend Portfolio recently posted…RationalizationMy Profile

    Stockles · May 10, 2017 at 7:17 am

    Hi Dividend Portfolio,

    Yes me too. O has always been at a high price, thanks to this REIT volatility, I got some at a fair price. Super happy with that. Hopefully, it will decline some more in a couple of months, so I can get more, but I´m fine with the number of stocks right now. Around 5 % of portfolio.

Dividend Daze · May 16, 2017 at 2:30 pm

Great purchases. Some big names there and hitting a bunch of different categories. I picked up some GIS earlier in the year and started a position with O last week. Gotta love the monthly dividends that compound. Nice to see the market showing more value right now than it has been.
Dividend Daze recently posted…How to Decide Between Paying Off Student Loans Early Or Investing (Or Both)My Profile

    Stockles · May 16, 2017 at 5:38 pm

    Hi Dividend Daze

    Yeah, looks like some stocks, especially REITs, are becoming cheaper. That´s very nice for us dividend Investors. The USD/NOK is also down now, so I might buy a few more shares. Btw, I noticed we are almost at the same age. Awesome. Will follow your journey too. Thanks for stopping by!

AlphaTrading · January 11, 2018 at 11:15 am

Appreciate your detailed analysis. Keep up the good work.

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