Recent Buy

I’m looking for companies that are fairly valued, have a decent dividend yield(3% to 6%) and have a fairly long history of paying dividends consistently for 10 years or more. However, there could be some cases for exceptionally good company or a strategic buy for a very long term.

Here are two final purchases for this month of February.

1) General Electric (GE)

General Electric is a diversified infrastructure and financial services company, founded by Thomas A. Edison and incorporated in 1892 with headquarter in Fairfield, Connecticut. GE operates in a varied range of products and services: aircraft engines, power generation, household appliances, water equipment, medical imaging devices, industrial items, business and consumer financing. GE has wide geographical footprints across over 100 countries. 

GE is trading at reasonable P/E ratio of 17.30 with a decent dividend yield of 3.54% and Market Cap of $261.0B. It traded at $27.53 at its 52 week high and currently at $25.99, is fairly valued in my opinion and a long term hold.

I bought GE at $24.98 on 02/13 and added 20 positions in taxable account, making it 45 positions. It will add $18.40 of passive income on an annual basis.

2) Digital Realty Trust, Inc. (DLR)

Digital Realty is a real estate investment trust (REIT) that acquires, owns, and manages technology-related real estate, incorporated in 2004 and is headquartered in San Francisco, CA. The company focuses on strategically located properties that house services critical to day-to-day operations of technology companies and corporate data center users.

Digital Realty’s portfolio consists of 131 properties, most of them 104 are in North America, 22 are located in Europe, 3 in Australia and 2 are in Asia. 

DLR is trading at P/E ratio of 69.10 with a healthy dividend yield of 5.12% and Market Cap of $9.0B. It traded at $75.39 at its 52 week high and currently at $66.38, it is almost 12% lower than its recent high and I think it is decently priced right now, though, further slide could not be ruled out if interest rates were to suddenly spike and new aggressive competitors were to emerge.

I bought DLR at $65.38 on 02/26 and initiated 10 positions. It will add $34.00 of passive income on an annual basis that I do not have to earn and work for.

Thanks for reading.

What do you think about these buy? Are you considering adding any one of them to your portfolio also.

16 thoughts on “Recent Buy

  1. Nice buys PIM…especially like the General Electric (GE) buy. We also own GE and think it has a lot of growth potential while paying a pretty decent yield. Way to grab GE under $25, I think you will be very happy down the road.

    Way to add roughly $50 to your passive income stream. Best wishes and continued success with your investments! AFFJ

    1. Hi AFFJ,

      I’m sure we will be in good companion in GE for exactly the same reasons. I’ll like to add more down the line as it has long term potential. Appreciated much your wishes!

      Yeah, happy to add few more $ in the kitty 🙂

      Thanks for stopping by!

  2. Like the GE buy. I am waiting for an under $25 mark to add to my position but lately been tough to catch. It seems like GE has been in neutral for a long, long time and waiting for either a break out to occur or a drop so I can add more. Thanks for sharing.

    1. Hi DH,

      Glad we are on same page on GE. I pulled the trigger when the price went below $25. I like that fact that it has been mostly flat as it provides a great opportunity to accumulate.

      Thanks for stopping by!

  3. I like GE, and if I didn’t have such a large position, would have added more earlier in the year when it was in the low 24s. I think DLR is a bit richly valued for me at the moment, but with a small position it is always good to get your foot in the door, and you can average down on weakness.

    1. Hi W2R,

      Good to know that you added in low $24’s and that’s a great price to enter. I agree with your views on DLR, however, I pulled the trigger since the price has significantly gone down and felt comfortable at current price, though, downside risks are always there. Absolutely, I can always average down in future.

      Thanks for stopping by!

    1. Hi DD,

      Appreciate liking my buys, hope they work out. Typically, I buy shares to hold for a long time, ideal time being for ever, per Oracle of Omaha, Warren 🙂 But, if the fundamentals were to change significantly, I’ll change my opinion.

      Thanks for stopping by!

    1. Hi ADD,

      Good to know that you like my recent buys! Yeah, 4% is not too bad, Isn’t it 🙂 Totally agree, market is setting all time highs and finding good buys are turning out more difficult, than it used to be few years back.

      Thanks for stopping by!

  4. I like your both purchases. Both are solid. I am at my very initial stage of DGI, so I am looking for good opportunities to build up my portfolio. These two seem like good candidates for my portfolio.

    1. Hi MU,

      Could not agree more. These two stocks are good starting point. If you are just starting out to build your portfolio, I would suggest even more bluer blue chips stocks to start with like JNJ, MCD, KO, PEP, PM, CVX, etc. I would suggest to check all my Portfolios and decide which securities you feel comfortable with.

      Typically, you can not go wrong with Consumer staples, healthcare and energy stocks and then some Utilities/Telecoms/REITs to round off your portfolio.

      Good luck on your DGI journey, glad to help if you have any other.

      Thanks for stopping by!

    1. Hi DivGuy,

      A very good query reg % growth rate. Frankly, it has been all over the park in short and it depends what period you are considering. If you look at past 2 yrs, earnings per share growth rate is 8.70%, while over past 1 yr, it is just 2% and over 10 yrs, it has been -3.00% per yr, no surprise there, due to financial trouble this company was in due to meltdown during 2008-2009. However, if you look at dividends per share growth rate over last 1 yr, it is fantastic: 12.70% per yr and past 5 yrs, 11.00% per yr.

      GE has come out strongly out of financial doldrums and with 3.56% dividend yields, it provides a sufficient margin to wait out while the price fully recuperates.

      Thanks for stopping by!

  5. As a new starter in this DGI journey, I am not familiar with a lot of stocks. But I like your purchase of GE. I would like to add some shares in my portfolio if it falls back to 24s.

    1. Hi MU,

      Glad that you like GE and you will be a happy shareholders with GE. Definitely, GE is a great buy in 24’s.

      Thanks for stopping by!

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