Dividend King Position Doubled

Dividend King Position Doubled

Hey everyone

The market continues to go up, down and sideways. One tweet can change everything.

It’s interesting to see the hysteria the media likes to play out and people seem to be getting in the fear stage at the moment. I have friends who call or message me that their stocks are down and keep going down… This stock sucks, once it pops back up I’m selling it.

I try to reassure them that its indeed a good company and the whole market in general has been going down, but it falls on deaf ears. I think little moves like we are seeing are actually good for investors, obviously for numerous reasons. But a big one is to let people know the stock market doesn’t go up all the time….

If you are this shook from these minor moves the market may not be for you…..

I’m comfortable with the stocks we currently hold and any lower prices are welcomed with open arms.

Which brings me to our newest buy…. Normally I do a monthly watch list, but I decided to just pull the trigger and buy the stock once it dropped to my target price.

I was really interested in adding either 3m, Johnson and Johnson or Disney. 2 of these are existing positions and jnj would be a new comer. It seriously was a hard decision as these all seem to be at a good value at the moment.

The Buy

Tuesday the market, bounced and I thought I missed my opportunity and then Wednesday hit and most of the stocks I’m watching on yahoo finance went red…

$160 per share was the target I had set for 3m, $125 for JNJ and disney was $130. The first one to hit those marks would be my buy. If I wanted to buy 3m before their ex dividend date, Wednesday was the day.. The stock played with the $160 mark and then at lunch time it was under…

Take My Money……. I doubled our position in 3m by buying an additional 6 shares at $159.53 per share. It offered a starting yield of 3.58% and added $34.56 to our forward income. Sure it wasn’t a massive stack, but my goal is to always invest 1k a month and with the conversion its over that. Slowly but surely these positions increase in size.

3m A Hated Dividend King?

Let’s be honest, 3m has a lot of haters these days… It’s 52 week high sits at $219.75, we are way lower than that. Well we are right at 52 week lows. People tend to keep dragging it through the dirt, saying it will hit 120 soon, its the next general electric etc etc.

I think this stock screams buy for long term dividend growth investors. The last time I purchased 3m was at 190 per share, so I’ll gladly lower my dollar cost average while increasing my yield on cost.

3m is a dividend King. It really doesn’t need a introduction if your a dividend growth investor. They have raised their dividend for 61 years in a row….. 61 years, that is a lot of good times and bad times.

I think right now is just another bad time with the trade wars. This surely will pass, could the stock go lower? yes it could. But do I believe in the company? Yeah of course or I wouldn’t be a buyer.

The 3.5 plus starting yield is the highest of all dividend kings at the moment and one of the highest dividend yields 3m has had in 25 years…. Woot Woot!

The last 10 years their average dividend growth rate sits at a nice 11.70% per year.

Of course with every stock there are risks, these trade wars will hurt. The pending lawsuits will hurt, but the company has been around for over 100 years. It seen lots of this stuff.

Conclusion

One of my goals this year was to start positions in one or all of 3m, jnj and pepsi. I’ll gladly keep averaging into 3m at the moment at current prices. This is a solid wide moat, dividend king blue chip stock and a industrial one to boot.. (One of my lowest sectors) I always love adding to my lowest sectors and improving the dividend portfolio’s diversification.

Lets end this with Buffett’s most quoted quote. Be greedy when others are fearful…….

What do you think of this purchase? Have you been buying anything?

cheers!

Rob

Hey I’m Rob, creator of Passive Canadian Income.

In 2011 me and my wife had almost $60,000 in debt and a negative $7,000 Net Worth. Through hard work and financial education we paid all that off. Now we are focusing on increasing our Passive Income Streams to make the money work for us. Feel Free to Follow along the Journey by clicking the Social Media links below or subscribing to get notified of new posts on the sidebar.