The stock market was red yet another day, this is getting interesting. The hard part for me is figuring out which stock to buy, there are many attractive prices to choose from. After scanning my watch list I decided today would be a good time to pick up OMI or APD. My first instinct was to place an order for APD which is a stock I've wanted to own for a long time. I later flip flopped and canceled the order before it was executed. After thinking it over one more time, I placed an order for OMI which was filled at $27.72 + commissions. The 45 shares I bought came with a yield of 3.15% and will pay me $39.60/year in dividends.
OMI is the third healthcare stock in my portfolio. It has a history of strong dividend and earnings growth. Infact OMI has grown its dividend 10+% every year since 2001. In total it has a dividend growth streak of 15 years which is quite impressive. I don't intend to base my decisions solely on the past and I don't forecast this level of dividend growth to last another 10 years, but it does give me an idea of future outcomes. Owens & Minor is expected to grow EPS by 8.7% for the next 3-5 years which should fuel dividend income down the road. It has a healthy payout ratio of 44.8% and strong balance sheet. Another selling point is its beta of .55. APD has a high beta of 1.13, which might work to my advantage as a potential buyer if the market continues to decline.
How low will this market go? I have no idea, I'm certainly not an expert. I think the S&P is back to reasonable levels, but we will have to wait and see what unfolds.
Have a great weekend, it's Miller time!