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.
- 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 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.
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
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.
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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