Friday, August 17, 2012

Watch List Update

-ADM:  A lot of savvy investors have been looking closely at ADM the past few months.  The share price has eroded to the point where it is trading below book value.  I'm really not very familiar with Archer Daniels Midland, but know they have a long streak of dividend increases.  I'll start monitoring ADM and learn more as I go.

-BDX: I'm looking to add one more stock from the healthcare sector. BDX is a dividend champion in the business of manufacturing medical instruments. Quite a few dividend growth investors like BDX, I would consider a purchase at a higher yield. I require a minimum of 2.75% yield at purchase. All it would take is a dividend increase and a lower price. This stock will likely sit on my watch list for a long time. I want to start monitoring it and become more familiar with the company.

-HRS:  I am employed as a satellite technician in the US Army.  We use a lot of Harris products, more than any other DOD supplier/contractor I can think of.  In the past I wasn't a fan of HRS because the Harris equipment we currently use is old technology.  Newer and better technology is available right now.  The bottom line is the Army will continue to use the old Harris equipment because it's extremely reliable and already paid for.  Reliability is key in the communications field.  You don't want to lose comms and piss off some General.  Anyways about a month ago a couple Harris technicians visited our site to fix a few things and train us.  Obviously I used this as an opportunity to learn more about a possible portfolio candidate.  What I discovered is that HRS is currently working on replacing/upgrading most of the systems at fixed satellite terminals.  This is going to be a huge project down the road and likely good for dividend growth.

-NNN:  This is a REIT with a nice yield and a history of dividend increases.  The ticker "NNN" refers to the triple net lease structure.  Basically this means the tenants are required to maintain the property, pay the insurance, and pay the taxes.  National Retail Properties (and most other REITs) just sit back and collect rent/lease fees.  I'm starting to look at REITs from other industries besides healthcare.

-PSX:  I sold my tiny PSX position a week or two ago.  I still like Phillips 66 and will continue to monitor it.

-SNH: I became a shareholder.
-WR:  Seriously doubt I'd ever buy this one.


  1. That's a diverse set of choices. I own ADM and BDX, both of which I expect to announce dividend increases in November. I am closely monitoring ADM and may increase my position. I haven't given much thought to increasing my BDX position because 19.5% of my portfolio is in healthcare stocks.

    I have watched HRS from time to time but not currently. I have recently been exploring the REIT sector and noticed NNN, but I need to do more research on REITs in general.

    Lately I have been focusing more on potential increases to existing positions than on starting new positions. With the recent market run-up, I'm having a hard time finding new stocks that are attractively valued and would make good additions to my portfolio.

    1. Hi Compounding Income,

      I just wanted to let you know that I've changed the name of my blog to "Dividend Growth Machine" and its URL has changed to:

    2. Ok, I'll check it out.

      This post was just updating my watchlist. Except for ADM I'm not interested in buying any of these stocks at the moment. I typically add something to my watch list and track it for a while before making a purchase. It's simply just a list of all potential candidates that have qualities I look for in investments.

  2. CI,

    Great list.

    I also like ADM at current prices and was almost purchased this month. It's at the top of the list for September's round of buys. BDX has been range bound from about $72-81 since I've been watching it. It seems that $73 would be a great place to start building a position. Excellent company with a great syringe business.

    I purchased my lot of HRS in the low $30's and I think there is still a lot of value even at today's prices. Solid dividend grower and a great business. Really not a lot to dislike there. They picked up some of Tyco's business a little while back if I remember correctly.

    I haven't purchased anything with a high yield in a while, so I'm trying to pick up something with decent yield next month...but as we all know the market is a bit frothy and yields are depressed.

    AFL also has some strong value at today's prices, in my opinion. I wish WM was a better operated business and had improved fundamentals..that's one I'd like to own.

    Best wishes!

    1. Yea I was watching ADM as well. Probably not going to buy anything until September, with the possible exception of INTC or AVA. If INTC or AVA go low 24 I'm in.

  3. ADM at below book value is very interesting. I'll have to take a closer look at this one.

    1. I see it has gone up a bit since I made this post, but still looks interesting. I wonder how big the dividend increase will be this year with the drought???