Recent Buy and Sale

I had another buy and also sale in this opening month of January, as compared to last whole year, I just posted one article on sale.  I bought Unilever Plc (UL) and sold iShares Emerging Mkt (DVYE).

I’ve been eyeing this multinational company UL since a while but finally pulled the trigger this month, with the price being in my buying range. Its a hold for long time to come.

1) Unilever Plc (UL)

Unilever plc is a multinational consumer goods company, co-headquartered in Rotterdam, The Netherlands and London, England, dual-listed there, and has Anglo-Dutch origins in Soap and Margarine. Its products are sold across 190 countries, and grouped into 4 categories: Personal Care, Deodorants and oral care products, foods, weight-management products and nutritionally enhanced staples, powders and liquids, soap bars and other cleaning products. Some of the popular brands include Becel, Flora, Bertolli, Heartbrand, Knorr, Lipton, Rama, Blue Band, Brylcream, Sunlight, Surf, Dove, Lux, Rexona, Lifebuoy, Close up, Sunsilk, Vaseline and Ponds.

UL is trading at P/E ratio of 19.50 which is lower than its close competitor, The Proctor & Gamble Company (PG) at 24.70, dividend yield of 3.36% and a Market Cap of $128.59B. It traded at $45.99 at its 52 week high and currently at $42.51, fairly valued in my opinion.

I bought UL at $41.31 on 1/21/14 and initiated 15 positions in this company. It will add $21.45 of passive income on an annual basis that I do not have to earn and work for.

UL was also a recent buy of Dividend Mantra and few other bloggers.

I wrote last month about the criteria when I sale the securities and one of them was significant reduction of dividends. That’s  what happened with DVYE, dividend was slashed mercilessly in this case from $0.76 to $0.05. I do not mind small and temporary reductions in dividends if the fundamentals of the underlying company remains good, however, in this case, it was a hammer blow on dividends.

I sold my 10 positions in DVYE on 1/20 at $41.73 and netting $407.64. These proceeds were used to purchase 15 positions in UL.

Full Disclosure: Long on UL, PG.

Do you think UL is a good buy at these prices? Are you also thinking to add them in your portfolio.

Thanks for reading.

15 thoughts on “Recent Buy and Sale

  1. Thanks for sharing your recent buy and sale. It’s rare to read about sales among the dividend bloggers but I like both of your plays. I like UL at $40 or so and like the sale of your ETF. That was a real serious drip in dividends for that one and I can understand you wanting to jettison that holding. Personally, I do not own any ETFs nor plan to as I prefer to receive my dividends straight from the companies I own.

    1. Hi DivHut,

      Good to know that you like both my moves. I had bought DVYE due to good dividends and future growth potential and neither panned out. Significant cutting of dividends was the last straw. I like UL, PG and CL and own all 3 of them. Yep, UL around $40 is a good deal in this flying-high market. Also, I would like to own Nestle and Hersey at some point.

      Thanks for stopping by!

      1. I think Nestle is currently priced very reasonably, but tough to buy if most of your money is in tax deferred accounts. We lack the right tax treaties with Switzerland.

        Hershey just dove 7% after earnings, but as always you have to pony up for that stock.

        1. Hi Adam,

          Nestle is a great company and has a American ADR: NSRGY and I would like to buy it but I think it has gone up quite a bit, just like the whole market and $76.51 is close to upper end and same goes for Hersey (HSY), will wait a little for some pullback. hey! you must pony up to sweeten the tooth 🙂

          Thanks much for adding value to the discussion of great companies here!

  2. PIM,

    Seems like a solid buy to me. Unilever is a great company. They’re going through a rough patch right now as some of the emerging markets appear to be slowing down, but I’m not really concerned about what’s going on now. I’m more concerned with their prospects over the next couple of decades, as I’m sure you are as now.

    Best regards!

    1. Hi Jason,

      Yeah, UL is a rock solid company and it is a good time to buy while they are in a down draft. Could not agree more with you, we are in it for a couple of decades 🙂

      Thanks for stopping by!

  3. Nice purchase PIM. I still have not bought UL but continue to look at it and I might be a fellow shareholder in no time. I might be making purchases of CB, TRV, TROW or another energy play in the upcoming week. Just have not decided yet.

    Keep up the good work

    1. Hi ADD,

      Chubb, Travelers and T Row are good choices, all 3 having dividend yields in the vicinity of ~2%. I prefer to own companies that yield close to 3% or above OR if long-term growth justifies them. Frankly, I’ve not researched these companies in detail.

      I went on a high on energy companies a while back in Nov/Dec and bought a few: CVX, BP, COP, RDS.B, and XOM. They are still under-valued in my opinion and so, you cannot go wrong on any of these.

      Appreciate your kind words.

      Thanks for stopping by!

  4. Hi DivGuy,

    I also like high dividend growth securities, however, I prefer to add crown jewels into my portfolios at reasonable price and decent earnings. UL fits into this category.

    Good luck on finding those hi-gro companies.

    Thanks for stopping by!

    1. PIM, I agree with you, building a core portfolio before going hunting for more aggressive stocks is important. I’m pretty happy with my core, this is why I’m ready to take additional risk at the moment. I’ve bought more stocks related to the oil industry this week, now I just have to wait for the storm to pass!

      1. Hi The Dividend Guy,

        Could not agree, Core portfolio is an absolute necessity to lay a strong foundation stone, needless to say a high tower can only be built on a rock solid foundation, not a wobbly clay. I bought several energy plays last couple of months and therefore, wanted to stabilize my portfolio with some high-quality blue chip companies like UL, CL.

        Thanks for stopping by!

  5. Great purchase in UL. UL is going through some rough patches right now but for long term investors like us, that means good opportunity to pull the trigger.

    1. Hi Tawcan,

      Absolutely agree! UL is a great buy at current valuations and would love to dollar cost average if prices were to go down more. We will be happy campers in UL 🙂

      Thanks for stopping by!

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