Monday, May 5, 2014

Weekly Purchase - OMI

14 shares OMI, 3.15% yield, $14.00 annual income

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.

Symbol: OMI
Core Position: No
Speculative Position: 
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!


  1. Nice pickup near the 52 week low. Those commission free trades are working really nice. Adds a solid amount of income to your future. I missed out on BAX, BDX, and other ones I once considered, but may get in eventually.

    STAG increased the dividend 5% today at least!

    1. Yeah I missed out big time on MDT which I almost bought a few years ago. Same with BDX. I'm looking to get my hands on one of them at some point.

      Great news with STAG!

  2. I really like OMI and I guess I need to revisit it if its near a 52 week low. Im just happy to get an increase out of BAX since they have the upcoming split. I wouldn't have been surprised if they kept it the same but i welcome the increase.

    1. Indeed. I wasn't sure if they would increase this year or not. Pretty nice start to the month!

  3. CI,
    Feels good to get lucky every once in a while on price. I got ABBV a few weeks ago in the $45s and just happened to be ready to buy on a big dip. I saw a OMI truck the other day making deliveries and had another look at the stock as well. Excellent dividend growth rates. Yield well above 5 year average.

    1. Appreciate it! It remains to be seen if the price I paid was good or not. On a micro term basis (3 days) it was good, but I'm not a trader... The verdict is still out!

      Best wishes