Monday, May 5, 2014
Weekly Purchase - OMI
I went with a company that has been paying dividends the past 85 years for my purchase this week: Owens & Minor. As I mentioned last weekend, I believe the stock looks reasonable in an otherwise heated market. OMI recently had a soft earnings report which seems to have triggered the wrath of Mr. Market all the way down to 52 week lows. Anyways I spent time reviewing the company last weekend because I was interested in knowing why this stock was sitting at yearly lows while the stock market was sitting at yearly highs. Usually that means something must be going on. I didn't discover anything that lead me to believe OMI had long term problems. Might as well buy more.
It appears I managed decent timing today because my order was filled within a few cents of the daily low and also yearly low. That's 100% luck, but I'll take it none the less. From experience I know the stock market has a habit of changing its mind rather quickly; even better entry prices could be around the corner for all I know. The only other thing I'd note is that OMI is now weighted 1.73% (based on income) for my portfolio. Sounds just about right, though I wouldn't mind adding if the stock price continues to slide.
I have many free trades available and did not pay commissions today. I plan to continue small weekly purchases until my supply of free trades run out.
Core Position: No
Speculative Position: No
Expectations: Steady income; 7% (average) annual dividend growth
Automatic Sell: Dividend cut
Consider Selling: Frozen dividend, business fundamentally changes, management becomes untrustworthy, fundamentals deteriorate, wildly over valued stock price, or position fails to meet expectations
Baxter International Increases Dividend
Today Baxter (BAX) announced a dividend increase of 6.1% from $.49 to $.52 per quarter. That boost is a bit smaller than what they've done in the past, but it doesn't surprise me since the company is planning to split in two. Probably a good idea not to overly commit to a high dividend payment before such an event. I'd like to add more BAX at some point, but haven't had a chance to look at the spinoff implications yet.
Have a great week!