Mr. Market you can keep taking that downturn all you want. As long as us Dividend Diplomats have capital and we feel there is an opportunity, we are going to try and strike, in the words of Austin Carr – throw the hammer down. The market was on a nice decline today, came slightly back, but then took another slide in the park for us. Let’s dive in about who, why and how much I bought of a certain stock!
This week, I learned a valuable investing lesson that caused me to miss a great opportunity in the market. Luckily, this lesson did not result in a realized loss like lessons in the past, so I can’t complain too much. However, I did miss a golden opportunity to capitalize on Mr. Market taking a crazy turn (even more so than a few months ago). What lesson did I learn and how will I apply it going forward?
What a month it has been for the market and it seems like every day there was a development that caused the stock market to toss and turn. Heck, the turbulent market allowed the two of us to purchase shares of Norfolk Southern Corporation and Lanny to continue to decrease his average cost basis per share in Canadian Imperial. The buying hasn’t stopped with us, as many other dividend growth investors in the community have purchased some solid companies as well. Through all of this, one Dividend Aristocrat’s stock price continues to fall (Down 13.4% YTD!) and pop up on my personal stock screener. So I thought “why not analyze the company to see if I should use my excess capital to purchase shares?” Now, it is time to put Emerson Electric (EMR) through the Dividend Diplomats’ Stock Screener!
There have been a lot of major news stories over the last week covering topics ranging from social to financial issues. It seems like every day there was some new development that had major implication, which is a great fit for our 24 hour news cycles. The one story that has a substantial impact on us dividend growth investors is the continuing saga in Greece. Once again, we find ourselves staring a default, departure from the European Union, etc., in the face and worst of all at any second a decision could be made that could send shock waves through the financial markets. It finally hit me, I didn’t have a plan to capitalize on a potential downturn in the market. But that all changes now.
Over the past few days, I stumbled on an interesting stock that I wanted to share with the community. While I haven’t shared this habit of mine with the dividend investing community in a long time, I have always monitored spin-offs to try to find potential new dividend stocks that are getting ready to (or have recently) hit the market. This strategy has worked well for me in the past, as I stumbled on the fact that Kraft was going to be a dividend paying stock and was lucky enough to catch the company prior to their build up (which occurred long before the announced Heinz-Merger). So why am I bringing this up? Well, beginning July 1, a dividend focused spin-off is getting ready to hit the open market and man has it caught my attention. I wanted to take some time to introduce you to the newly formed Edgewell Personal Care Company.
The Dividend Diplomats were at it again! We both had bought the same company on Tuesday June 16th and we couldn’t be any more happier/excited with the purchase. The best part about it, neither of us had any idea we purchased the stock. We just sent each other a message discussing the purchase and it just so happened we set up the same automatic on Sharebuilder. The stock was back down a handful of dollars per share and in this volatile stock market environment, the company was too good to pass up on the price point and with the “legendary” status it has. We bought had made the purchase – an additional allocation and one a whole new stock. We purchased Johnson and Johnson (JNJ). Let’s see why we bought them!
Pullbacks in the stock market present some great opportunities in the stock market. Thanks Captain Obvious. When I see the whole market stumble substantially for a series of days, I begin looking to purchase stocks that typically trade at a premium that may now become discounted. To me, that’s how you get the most bang for your buck in this kind of market environment. While I was very close to following Lanny’s lead and purchasing JNJ, one of my favorite dividend stocks, there is still one stock I wanted to analyze to see if it would be a better fit for my portfolio. So now, it is time to dive in and perform a stock analysis of Genuine Parts Company.