September 2018 III Purchase Part I
We are halfway through the month of September, I continue to collect stocks that will be the cornerstone of my Dividend Pursuit portfolio, which will fuel my goal to Financially Independent/Retire Early (FIRE). To that end I collect stocks that have a track record of annually increase their dividend to keep up with inflation. Inflation can erode one's early and purchasing power as the years go by.
US markets tend to present best options to buy stocks with a long term track record and stability. But that does not mean international stocks do not present the same value and record, it is just harder to find and keep them long term. As international markets specially the emerging markets, does not have the same sticker regulations and company structures as USA does. The political instability can also be a major cause of concern. These is why I will stick mostly to US, Canadian, UK, Germany and France companies in general.
However, Mr. Market can present value at times, which makes it hard to ignored possible opportunities. That is why I started 3 position in Latin American with my third purchase this month. Since I am using Robin Hood (RH) i started some low end positions and did not spend much here as I hope to track all 3 stocks longer before adding more shares.
So without further ado...lets see what I purchase:
September 14, 2018
TUP 30 shares @ $32.86 total $985.80
September 17, 2018
VIV 10 shares @ $9.73 total $97.30
BLX 5 shares @ $20.89 total $104.45
TGS 7 shares @ $15.40 total $107.80
First Tupperware (TUP), has long been a position I hope to add, It is at 52Week low here so was time to buy. The dividend is safe as payout ratio is around 65% currently compared to earnings, current dividend of 8% is on the high end, so lets hope the stocks appreciate in the near future. This purchase will add $81.60 to my forward yearly dividend. The purchase is also eligible for the upcoming dividend as the Ex-Dividend date is September 18, 2018, with the payout on October 4, 2018.
Telefonica Brasil, S.A. (VIV), this is a play on one of the biggest economy in South America. Brazil is a hit or miss. So I will be hoping to hit big on this one. VIV like TUP is a low point of its 52 Week average, so there is room to grown here. Current Dividend payout ratio is still low at 40% compared to earnings, so there is an expectations that the dividend will grow, couple with Brazil population which is majority young and vibrant, the telecom companies will continue to grow, last quarter the Mobile revenue increased at 4.2% clip. VIV is paying down debt and the revenue continue to grow.
Banco Latinoamericano de Comercio Exterior, S.A. (BLX), I first purchase BLX back in 2016, so it was time to initiate the position again. I very much like the exposure to Latin American. BLX is headquarter in Panama. Panama, has seem an increase of USA Ex-pats, so banking is a huge drawn here as USA citizens move to water weather and with the increase of baby boomers reaching retirement in the near future. The current purchase adds $7.70 to my forward yearly dividend.
Transportadora de Gas del Sur SA (TGS) engages in the production and commercialization of natural gas liquids. It operates in the following segments: Natural gas transportation; production and commercialization of liquids; other services; and telecommunications. TGS is headquarter in Argentina, so another play in South American here. I like that the payout ratio is still at lower end of 28% versus earnings. Argentina, is still dealing with Peso (currency) flatuating and dropping more and more. However, it is an emerging market that has a lot of potential to grow and grow fast. This purchase will add $7.64 to my forward yearly dividend.
All in all I like the purchase and the current shape of where the portfolio fund is heading. The current forward yearly dividend is now at $1040.01. I just cross my first thousand (1000).
What do you
think of current purchase?
What are
you buying now?
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Disclaimer: Long on all stocks listed
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