New Purchases (MO,ABBV and HD)

Hey folks so are you wondering what I did with all that money? Today I will reveal which stocks I purchased. I chose three stocks all US, even though there is a big different in the exchange I still thought it was a good time to buy. All of the stocks were closer to their 52 week lows then their 52 week ends. At the moment I am heavily invested in financials and energy so I need to diversify and these will help in that regard. The three purchases fall into the consumer/non-cyclical, healthcare and services sectors. All of these purchases were made in my Registered Retirement Savings Plan (RRSP) account for tax purposes.

Let’s get down to business here is the first stock.

Altria

 

Altria Group, Inc. is a holding company. The Company’s segments include smokeable products, smokeless products and wine. The Company’s subsidiaries include Philip Morris USA Inc. (PM USA), which is engaged in the manufacture and sale of cigarettes in the United States; John Middleton Co. (Middleton), which is engaged in the manufacture and sale of machine-made cigars and pipe tobacco, and UST LLC (UST), which, through its subsidiaries, including U.S. Smokeless Tobacco Company LLC (USSTC) and Ste. Michelle Wine Estates Ltd. (Ste. Michelle), is engaged in the manufacture and sale of smokeless tobacco products and wine. Its other operating companies include Nu Mark LLC (Nu Mark), a subsidiary that is engaged in the manufacture and sale of tobacco products, and Philip Morris Capital Corporation (PMCC), a subsidiary that maintains a portfolio of finance assets. Other subsidiaries include Altria Group Distribution Company and Altria Client Services LLC.

Altria Group also holds a 10.2% stake in the world’s largest brewer Anheuser- Busch InBev. Also earlier this month they entered the cannabis market here in Canadian by investing $2.4 billion for a 45% stake in Cronos Group.

Altria Group has been raising their dividend every year since 2008, and 52 times in the past 49 years. Currently pay a quarterly dividend of $0.80.

Purchase & Income

I bought 61 shares @ $53.69

With these shares I will receive $48.80 quarterly and $195.20 annually in dividend income.

The second stock I purchases was:

abbvie

AbbVie Inc. (AbbVie) is a research-based biopharmaceutical company. The Company is engaged in the discovery, development, manufacture and sale of a range of pharmaceutical products. Its products are focused on treating conditions, such as chronic autoimmune diseases in rheumatology, gastroenterology and dermatology; oncology, including blood cancers; virology, including hepatitis C virus (HCV) and human immunodeficiency virus (HIV); neurological disorders, such as Parkinson’s disease and multiple sclerosis; metabolic diseases, including thyroid disease and complications associated with cystic fibrosis, and other serious health conditions. It offers products in various categories, including HUMIRA (adalimumab), Oncology products, Virology Products, Additional Virology products, Metabolics/Hormones products, Endocrinology products and other products, which include Duopa and Duodopa (carbidopa and levodopa), Anesthesia products and ZINBRYTA (daclizumab).

I think Abbvie is a pretty darn good fit for me. Before the purchase I needed help in the healthcare sector as I only had a tiny position in Johnson & Johnson. Abbvie was founded in 2013 when it split from Abbott. Since inception the quarterly dividend has increased 168%.  Abbvie pays a quarterly dividend of $1.07 per share.

Purchase & Income

I bought 38 shares @ $87.41

With these shares I will receive $40.66 in quarterly and $162.64 in annual dividend income.

Third and final stock is:

Home Depot

 

The Home Depot, Inc. (The Home Depot) is a home improvement retailer. The Company sells an assortment of building materials, home improvement products, and lawn and garden products, and provides various services. The Home Depot stores serves three primary customer groups: do-it-yourself (DIY) customers, do-it-for-me (DIFM) customers and professional customers. Its DIY customers are home owners purchasing products and completing their own projects and installations. The Company assists these customers with specific product and installation questions both in its stores and through online resources and other media designed to provide product and project knowledge. Its DIFM customers are home owners purchasing materials themselves and hiring third parties to complete the project or installation. Professional Customers are primarily professional renovators/remodelers, general contractors, repairmen, installers, small business owners and tradesmen.

Home Depot is the largest home improvement retailer and operates in the United States, Canada and Mexico. With the US economic growth Home Depot has seen its earning grow as people have more money to spend on home improvements. This year the company has revised earnings upwards and announced a huge stock buyback plan.

Home Depot has a dividend yield of 2.42% but don’t let that fool you, since 2012 the company has been aggressively raising the dividend. In 2012 the annual dividend was $1.16 per share as of today it sits at $4.12 per share.

Purchase & Income

I bought 12 shares @ $172.94

These shares will provide me $12.36 in quarterly and $49.44 in annual dividend income.

 

If I add up the dividends from these three companies it would be $407.28. The stock and ETF that I sold would have provided me $364.83 in dividend income per year. I come out ahead by $42.45 and I believe all three companies have the ability to grow their dividends in the years ahead and also provide capital growth.

Well what do you think of my purchases? Please feel free to let me know in the comment section.

Thanks for reading

Matthew

 

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7 thoughts on “New Purchases (MO,ABBV and HD)

  1. sweet Matt.

    All 3 are great companies and helps diversify your portfolio nicely.

    I didnt know mo had a wine segment. thanks for schooling me.

    i recently bought 34 shares of abbvie as well.

    cheers

    Liked by 1 person

    1. Thanks Rob. I didn’t know they were into wine until I did a little research. They just took a 35% stake in Juul Labs an e-cigarette company. Congrats on your purchase of Abbvie.

      Like

  2. I like all the purchases, Matthew. I agree about the diversification they provide given your tilt to financials and energy.
    These stocks should provide a nice combination of earnings and dividend growth for years to come. All solid additions! Nice job boosting your dividend income during the swap, too.

    Liked by 1 person

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