Today I decided to pick up some shares of UNP.
- UNP: 20 shares @ $95.68 --- Yield 2.30% (initial position)
Total capital invested is $1920.55 and my yearly dividends will increase by $44.00.
The markets are really going crazy today. It continues to amaze me how a country like Greece has so much impact on not only the Euro markets, but the world markets as well. I guess it's the domino theory in action. If the first domino falls the 20 behind it will fall as well.
I am actually pround of myself with this purchase. My mouse kept gravitating towards Shell, CVX, XOM, BBL, PM, and GM. They all really look like good buys to me. Of course they always look like good buys to me. In spite of that, I changed directions and decided to go the route a lot of bloggers have gone recently. Hopefully UNP can get things back on track. :-)
DEFY MEDIOCRITY
Great purchase price, MDP. Hope the knife will stop after meeting your hand :)
ReplyDeleteR2R
R2R,
DeleteThe way things have been going recently I need to borrow some armored gloves. :-)
MDP
MDP,
ReplyDeleteExcellent buy. I initiated some buys also and may be cut several times. However, I see it as opportunities to buy at a discount. Double edge sword :)
D4s
Div Son,
DeleteCuts or no cuts, we must continue to forge ahead! I love discounts and larger future dividends. Keep fighting hard over there
MDP
The payout ratios for the oil stocks (that pay dividends) are getting pretty extreme. You may want to look at some of the insurance names (great valuations), utilities (some of them are in bear markets because interests "are going up" - I think interest rates are going lower) and ADRs like BUD and UL.
ReplyDeleteAnonymous,
DeleteThe payout ratios have flipped upside down and is not surprising as revenues and earnings have fallen drastically. As long as the downturn is not too prolonged, I think the big boys will continue paying. I have also been buying SO on the utility side and considered UL today as it fell with many European stocks.
MDP
I was eyein some UNP today as well to lower my cost basis but my mouse drifted toward DIS and that wonderful 1% dividend! Yah!
ReplyDeleteAdam,
DeleteGreat choice! I think there will probably be more opportunities to add UNP in the future....along with oil companies.
MDP
If nothing else, I love the title of this post. The key about falling knives is to not get cut. Still, a great buy nonetheless. I have a feeling that we'll be getting some great buying opps this summer as markets all over the world are on edge. Time to buy is when everyone is selling. Thanks for sharing.
ReplyDeleteDivHut,
DeleteI agree with you about future buying opportunites. I am eagerly awaiting the chance to pick up more companies across many different sectors. The Greece scare may be short lived so I will keep my eyes open.
MDP
Nice buy, MDP! I already made an initial purchase in UNP around $100 a few weeks ago (along with NSC) so I didn't want to add more just yet, though I might drip a share or two this week to lower it a tad.
ReplyDeleteI went XOM instead today for 20 shares at just above $83 with LO spin-off proceeds to help bring my cost basis down. Unfortunately that basis is still $91 and change, but it's a lot better than where it has been.
Other buys I'm eyeing are OHI (second position as right now it is barely below my cost basis), VTR (initial purchase), AAPL (if it gets to $122 I may nibble, but I already have a decent position at 70 shares with a cost basis under $80), and SBUX (this stock has been incredibly strong on volatile down days and I'd like my tiny position to grow, but I need more of a drop first).
Sometimes you have to get cut first in order to reap rewards later.
Best,
DWC
DWC,
DeleteNice move with XOM. It is and has been on my buying list for some time. My XOM basis is around $90 as well and I look forward to lowering that basis.
I have cut my hand on REITs a bit over the last few months, but will probably not add much more in this sector as it is out of balance right now.
Keep adding more coal to the fire.
MDP
MDP,
ReplyDeleteDamn - that's a nice position initiation. As an investor, with the Greece turmoil - companies are becoming MORE and MORE attractive. Great purchase. Do you like NSC at all?
-Lanny
Lanny,
DeleteI actually do like NSC. It has a higher yield and has been on as big of a run as UNP. I probably will stick with UNP as I think it is probably the better company of the two.
MDP
Awesome Purchase MDP. I like the buy for sure as I was gonna buy UNP this morning as well bud. But damn! I had to restrain myself. We'll see how I feel tommorow. You'll doing wonderful bud. I'm happy for you. Let's enjoy this wonderful journey bud. Cheers.
ReplyDeleteHustler,
DeleteThanks for the encouragement. I don't think I can catch you, but as long as you are within my view I know that things are good. :-)
MDP
Nice buy MDP...We don't own any shares in UNP (yet!), but it has been quite popular today. I've been following UNP for a short time now and must say it is looking quite attractive at current prices. We might join you as a shareholder soon if prices remain at current levels long enough for us to gather up a little capital to put to work. :)
ReplyDeleteThanks for sharing. AFFJ
AFFJ,
DeleteI hope you get your opportunity to buy some shares soon. There are many companies that are appealing so I know it will be difficult to narrow your choices.
MDP
I am pondering regarding your rationale to buy individual shares with yield 2.2%. An index tracker will give you similar results but at a reduced risk. Do you see some potential in UNP for growth?
ReplyDeleteFI,
DeleteI guess bond investors could use the same logic. 2.4% yield with less risk than index investing. I actually have a lot invested in Vanguard index funds (s&p 500 and bonds) in my retirement accounts. My opinion is that the income I receive from UNP will most likely be higher in 10,20,30 years than the income from income investing.
We'll see how it goes.
MDP
Nice purchase. I am eyeing them up as well! I do not have the capital now so maybe they will keep falling and I'll get some on the real cheap. I'd love to get it around $85 or so. We shall see.
ReplyDeleteADD
ADD,
Delete$85 would be great and at the rate UNP is falling you may get your entry price fairly soon. I will gladly add more shares as well.
MDP
UNP appeared 4th on my June list of 10 Dividend Growth stocks. I've noticed several buys by dividend growth investors over the last month or so. With the share price dropping further, I believe it would make the July list, too. I might be a buyer next month. Thanks for sharing!
ReplyDeleteFerdiS,
DeleteI have notice UNP on many radars recently as well. It has certainly been falling hard and still could fall a bit further. It will be interesting to see how things play out over the next few months.
MDP
For me, a good entry point for UNP (or NSC) would be when its yield hits 3% -- so long as the dividend hasn't been frozen. That would be a good floor for growth given my time horizon. With the gradual disappearance of coal freight and continuing uncertainty around profitability, it's hard to say whether it'll actually get to near $73, but it'll definitely go on my watch list if it hits $80.
ReplyDelete