Friday, July 12, 2013

New additions to the Dividend Growth Portfolio!

In the last week I've initiated three new positions. I wanted to blog about this earlier but everytime I started, something came up. Now without further ado, my purchases are:
  • 63 shares of Intel (INTC) for $23.88 each
  • 43 shares of Textainer Group Holdings (TGH) for $34.34 each 
  • 28 shares of BHP Billiton (BBL) for $54.70 each
Logo Intel
Intel yields 3.7% at current valuations and has increased dividend for 9 consecutive years. The last 5 years dividend has grown by 14% yearly compounded. Although the technology sector is quite volatile, Intel is a stock I feel comfortable purchasing. I am sure the future holds great things for our society but one of the key ingredients for further growth is technological advancement.  Intel is one of the leading companies on this front. 
Textainer buys and leases sea containers. Textainer offers a nice fat dividend of 5.4%, but is also one of the fastest dividend growers. It has raised dividends for the last 7 years and in the last 5 years it has grown dividends over 50% yearly compounded. Current payout-ratio is 45% so that means there is room to grow. Downside of this company is it's debt/equity-ratio of 2.3x. It uses debt to finance growth, however it's interest ratio is a healthy 3x. Definately one of the more riskier stocks in this portfolio but also a potential gem!
Finally, BHP Billiton. A big exploration and mining corporation. It yields over 4% and I think it was fairly cheap, because it traded near 52week lows. BBL's been raising dividends for 10 years, with yearly increases between 10-20%. As well as Textainer, BLL is a bit more risky than average. This doesn't have to be a problem but I'll try to pick less risky stocks for my next purchase.

These stocks added $200 to my yearly forward dividend which stands at $363. I plan to deposit some more money after my vacation to finalize my first part of the portfolio. After these purchases I will deposit monthly and together with dividend income will initiate new positions or add to existing ones.

Thanks for reading!

What do you think will be good additions to this portfolio? The usual suspects like KO, MCD, PG, JNJ or another company? Let me know!

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