Tuesday, March 22, 2016

Recent buy V - March 2016

It was time to add to health care as my portfolio continues to grow steady little by little every day.
I talk about the reasons I initially purchase this stocks why I am bullish about this stock here.

On March 18, 2016 I but a order for Medtronic PLC (MDT), but it did not fill as I was hopping it dip more towards my target of fair value. But I am happy to report I was able to change the price to reflect fair value using Dividend Discount Model Calculator (DDM) recently post on Seeking Alpha. As I adjusted the Beta to reflect MDT correct beta of 1.16 and using its 5 years dividend growth of over 8% I came up with a fair value of $80.31.

So on March 21, 2016 I purchased
MDT $233.75 3 Shares @ $75.60 6.95 Commission

This was well below fair value which is a bargain. Hopefully I can add few more shares before it reaches fair value for the dividend aristocrat. It has a current yield of 1.99% below my target of 2.50% but 38 years of continue dividend payout and raises, I think I will take those numbers.

Morning star rates fair value at $76.00 with a three star rating. Their quantitative equity report shows value at $81.98, just above my DDM calculations. So all and well it's a fair value at this level.

It will add $4.56 to my yearly dividend. This bring my forward yearly dividend to $416.57

What are your thoughts on recent purchases?  What are you buying?
Hoping to still add some industrial and finance this month. The likes of ITW, WPC, WFC, CMI, CB, DE and JPM all seem appealing as far as valuation goes. But will see if capital will be available to invest.

Thanks for reading.

Disclaimer: Long on all stocks listed.

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