Hey everyone today I wanted to share some purchases I made last week with you. Last Monday I sold some of my shares of Inter Pipeline and you can read about that here. From that transaction I put the proceeds into the US side of my account leaving me with about $5,200 to spend. Last week we saw some volatility in the markets, they began the week down then up and back down again. After Wednesday I stopped looking. Why did I stop looking? I stopped because I am a long term investor who try’s to buy quality stocks and hold them for long periods of time, and also because I spent all my money on Wednesday 🙂
Before making my purchases I took a look at my portfolio and noticed that I was weak in the following sectors: industrials, healthcare, tech and consumer defensive. My weakest being tech so I tried to focus on stocks in those sectors. I believe I selected some good quality stocks to help boost my portfolio. As the title says I made four purchases all on Wednesday and they were all US. Not only do these buys help me in the sectors above they also help me to diversify away from my home Country of Canada. Three of these stocks are brand new to my portfolio. All of these stocks were purchased in my Registered Retirement Savings Plan account for tax purposes.
The first stock I bought was: Walgreens Boots Alliance
Walgreens Boots Alliance is the largest retail pharmacy, health and daily living destination across the U.S. and Europe. Walgreens Boots Alliance and the companies in which it has equity method investments together have a presence in more than 25 countries and employ more than 415,000 people. The company is a global leader in pharmacy-led, health and well being retail and, together with its equity method investments, has more than 18,500 stores in 11 countries as well as one of the largest global pharmaceutical wholesale and distribution networks, with more than 390 distribution centers delivering to more than 230,000 pharmacies, doctors, health centers and hospitals each year in more than 20 countries. In addition, Walgreens Boots Alliance is one of the world’s largest purchasers of prescription drugs and many other health and well being products.
The company’s portfolio of retail and business brands includes Walgreens, Duane Reade, Boots and Alliance Healthcare, as well as increasingly global health and beauty product brands, such as No7, Soap & Glory, Liz Earle, Sleek MakeUP and Botanics.
(Source: Walgreens Boots Alliance website)
I thought Walgreens would be a good addition to my portfolio as it helps me in the consumer defensive sector. Walgreens as mentioned above is a huge business with more 18,500 stores located in 11 countries. The stock is near its 52 week low and thought it was a good time to buy.
On July 10th Walgreens announced their latest dividend increase and this marked their 44th consecutive year in which they have raised their dividend. With the announcement they now pay a quarterly dividend of $0.4575.
Purchase
I purchased 20 shares @ $50.74. These shares will provide with $9.15 in quarterly income and $36.60 in annual dividend income.
The second stock I bought was: 3M (MMM)
3M Company develops, manufactures, and markets various products worldwide. It operates through four business segments: Safety & Industrial, Transportation & Electronics, Health Care, and Consumer. The Safety & Industrial segment offers personal safety products, adhesives and tapes, abrasives, closure and masking systems, electrical markets, automotive aftermarket, and roofing granules. The Transportation & Electronics provides electronics, such as display materials and systems, electronic materials solutions; automotive, aerospace, and commercial solutions; advanced materials; and transportation safety products. This segment serves transportation and electronic original equipment manufacturer customers. The Health Care segment offers medical solutions, oral care, separation and purification sciences, health information systems, drug delivery systems, and food safety products. The Consumer segment provides home improvement, home care, and consumer health care products, as well as stationery and office supplies. This segment is also involved in the retail auto care business. The company serves automotive, electronics and automotive electrification, appliance, paper and printing, packaging, food and beverage, construction, medical clinics and hospitals, pharmaceuticals, dental and orthodontic practitioners, health information systems, food manufacturing and testing, consumer and office retail, office business to business, home improvement, drug and pharmacy retail, and other markets. 3M Company was founded in 1902 and is headquartered in St. Paul, Minnesota.
(Source: Yahoo Finance)
3M is a stock I’ve had on my radar for awhile now and I finally decided to pick up some shares when I had the cash. 3M helps me in the industrial sector. 3M over the last few months has had it’s share price continue to slowly drop I believe this is due to the ongoing trade war between the US and China. This stock was also near it’s 52 week low and looked like a good entry price for me.
3M is a dividend aristocrat and that means the company has raised their dividend at least 25 consecutive years. In fact according to the company’s website they have raised the dividend for the last 60 years. Quite impressive if I may say so. 3M currently pays a quarterly dividend of $1.44.
Purchase
I purchased 10 shares @ $159.68, these shares will add $14.40 in quarterly income and $57.60 annually.
The third stock I purchased was: Texas Instruments
Texas Instruments Incorporated designs, manufactures, and sells semiconductors to electronics designers and manufacturers worldwide. It operates in two segments, Analog and Embedded Processing. The Analog segment offers power products to manage power requirements in various levels using battery management solutions, portable components, power supply controls, point-of-load products, switches and interfaces, integrated protection devices, high-voltage products, and mobile lighting and display products. This segment also provides signal chain products that sense, condition, and measure signals to allow information to be transferred or converted for further processing and control for use in amplifier, data converter, interface product, motor drive, clock, and sensing product end-markets; and integrated analog and standard products, which are primarily for sale into personal electronics, industrial, and automotive markets. The Embedded Processing segment offers connected microcontrollers, such as microcontrollers, microcontrollers with integrated wireless capabilities, and stand-alone wireless connectivity solutions that are used in electronic equipment to sense, connect, log, and transfer data; digital signal processors for mathematical computations; and applications processors for specific computing activity. This segment offers products for use in various markets, principally industrial and automotive. The company also provides DLP products, primarily for use in projectors to create high-definition images; calculators; and application-specific integrated circuits. Texas Instruments Incorporated markets and sells its semiconductor products through direct sales and distributors, as well as online. The company was founded in 1930 and is headquartered in Dallas, Texas.
(Source: Yahoo Finance)
I selected Texas Instruments because it would fit perfectly in my portfolio and help boost my technology holdings. The company is a free cash flow machine in 2014 free cash flow was $3.8B and in 2018 it reached $6.1B representing 38% of the company’s revenue. When I purchased the stock shares were were much closer to their 52 week high than it’s low. I’m not too worried about that I have plans to hold this stock for quite awhile.
Texas Instruments have grown their dividend for the past 15 consecutive years with impressive growth. Over the last five years the dividend has had a compounded annual growth rate of 21%. The 2018 dividend only consumed 42% of the company’s free cash flow meaning their is still plenty of room for the dividend to continue to grow. The dividend currently sits at $0.77 quarterly.
The Purchase
I purchased 10 shares @ $121.18, these shares will provide me $7.70 in quarterly dividend income and $30.80 in annual income.
The fourth and final purchase is: Microsoft
Microsoft Corporation develops, licenses, and supports software, services, devices, and solutions worldwide. The company’s Productivity and Business Processes segment offers Office, Exchange, SharePoint, Microsoft Teams, Office 365 Security and Compliance, and Skype for Business, as well as related Client Access Licenses (CAL); and Skype, Outlook.com, and OneDrive. It also provides LinkedIn that includes Talent and marketing solutions, and subscriptions; and Dynamics 365, a set of cloud-based and on-premises business solutions for small and medium businesses, large organizations, and divisions of enterprises. The company’s Intelligent Cloud segment licenses SQL and Windows Servers, Visual Studio, System Center, and related CALs; GitHub that provides a collaboration platform and code hosting service for developers; and Azure, a cloud platform. It also provides support services and Microsoft consulting services to assist customers in developing, deploying, and managing Microsoft server and desktop solutions; and training and certification to developers and IT professionals on various Microsoft products. The company’s More Personal Computing segment offers Windows OEM licensing and other non-volume licensing of the Windows operating system; Windows Commercial comprising volume licensing of the Windows operating system, Windows cloud services, and other Windows commercial offerings; patent licensing; Windows Internet of Things; and MSN advertising. It also provides Microsoft Surface, PC accessories, and other intelligent devices; Gaming, including Xbox hardware, and Xbox software and services comprising Xbox Live transactions, subscriptions, cloud services, and advertising; and video games and third-party video game royalties, as well as Search, including Bing and Microsoft advertising. Microsoft Corporation was founded in 1975 and is headquartered in Redmond, Washington.
(Source: Yahoo Finance)
I already own shares of Microsoft (11 shares) before this purchase. I thought this was a good time to add to my position. I believe Microsoft has a long and bright future ahead of itself.
Microsoft pays a quarterly dividend of $0.46.
The Purchase
I purchased an additional 10 shares @ $134.70, these will provide me $4.60 in quarterly income and $18.40 annually.
Well folks that’s a wrap. I’ve now spent all of my money and will be on the sidelines for the next couple of months. What do you think of my purchases? I feel like I have better diversified my portfolio for the future, for example my tech sector only consisted of 11 Microsoft shares before these buys.
Thanks for reading
Matthew
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