Wednesday, June 22, 2016

Recent Buys - June 16, 2016

I'm still a relative newbie to Dividend Growth Investing, so I'm all about accumulating shares in great companies now to reap the benefits in the future. I have been using my Robinhood account to take advantage of commission-free trades over the past few months, depositing a weekly surplus and making purchases. I also have a higher cost brokerage account and Roth IRA account elsewhere, so my game plan at the moment is fund the Roth IRA as well as the Robinhood account.

My most recent buys were pretty small, but mainly because a majority of my savings are going to the Roth IRA account until I reach the $5500 maximum contribution for 2016. Currently half of my savings go to the Roth, a quarter goes to the Robinhood, and the remaining quarter goes to my online savings account. Anyways, on to the buys!

Cardinal Health (CAH) has been a company I have been eyeing as they are in the Healthcare space, and have been growing their dividend at a substantial pace. with their latest dividend announcement, the yield starting at their next dividend payout will go up to 2.3%. Also in addition to growing their dividend, EPS is projected to grow over the next 5 years a little over 10% annually. I think that is a nice balance between dividend payout and growth. Also, it appears to be undervalued at the moment, as I have seen fair values estimated anywhere between $90 and $100. CAH is currently trading under $80/share.

Abbott Labs (ABT) is another in Healthcare, that I have been buying. I like that they are into various aspects of healthcare from nutrition, to medical devices, and they have worldwide exposure. The price at the moment is depressed, over lingering fears about the impact of their latest acquisitions, Alere, and St. Jude's Medical. However, I believe these are temporary hurdles, and their long term outlook remains strong. The depressed price presents a good buying opportunity, so I had been gobbling up shares where I can since May.

I purchased 4 shares of CAH (I now own 8 shares) and 1 share of ABT (I now own 35 shares in my Robinhood account, and 25 shares in my Roth IRA), bringing my estimated forward 12-month dividend income to $955.

What are your recent buys? Or what are you eyeing for your next purchase? Let me know in the comments.

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