Tuesday, March 1, 2016

Recent Buy V

I have been looking to start a position in this recent purchase company for a while since I sold towards the beginning of November 2015. At the time I always said it was going to be one of my stalwarts going forward. Any dividend income investor should take a look at this conglomerate giant. They did suffer some setbacks during the great financial crises of 2008, but are rebounding nicely and recently have been divesting some of those assets that brought it down to its knees during the crisis. This will bode well going forward to dividend investor.

As I continue to build my retirement fund, which one day will cover all expenses. It has become obvious to me to find solid company which will not only support dividend but grow the dividend year after year. I have seen many of the DGI community express their feelings toward both BBL, and KMI which cut their dividend within the past three months.

With every possible dollar earmark towards buy dividend growth stocks. It will continue to build my retirement fund my way towards early retirement.

So here is what I purchase on February 24, 2016 7 shares of General Electric Company (GE)

Action: Buy 
Symbol: GE 
Description: GENERAL ELECTRIC CO 
Quantity*: 6 shares 
Execution time: 02-24-2016 15:10 ET 
Price: $28.97 
Total Commissions & Charges: $6.95 
Total Transaction Amount: $180.77 
Trade Settlement Date: 02-29-2016

This will add $5.52 to my yearly dividend to $356.11 yearly. Not bad for first year of dividend buy strategy.

A little about GE strategies for 2016:
We are a $130B high-tech industrial leader, with strong global franchises that use our enterprise strength in technology, brand, globalization and services to collectively generate consistent growth, high margins and high returns.

Sounds like a company I want to be invested in. I believe fair value long term is at $35 dollars.

Here is what morningstar had to say about GE:

With oil prices hitting new lows and renewed fears of a slowdown in China, 2016 is already shaping up to be a tough year for diversified industrials. However, resilient 2015 results support our belief that wide-moat General Electric has enough ammunition to withstand near-term
critical year of industrial segment execution as GE Expansion of GE’s established product categories, such as manages the Alstom integration, completes the turbines aircraft engines, locomotives, and medical appliances sale, and reinvests divestiture gains to drive imaging, is likely to continue to follow the overall pace of greater efficiency in a newly streamlined industrial economic growth. As such, increasing the attachment rate portfolio.

We expect all of these initiatives to support the service contracts is an important factor in sustaining average organic revenue growth in the mid-single-digit range. With services generating attractive 30%-plus margins on average, upselling customers with long-term maintenance agreements is another key driver of future profitability growth and enhanced returns on invested capital over time. Growth of higher-quality earnings in the long run. As such, our long-term thesis for General Electric is intact, and we reiterate our fair value estimate of $30 per share.

Far off my value but as a long term investor I am ok with that.

What are your thoughts on recent purchases?  What are you buying?

Thanks for reading

Disclaimer: Long on GE

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