Tuesday, June 7, 2016

Recent buy: NKE, ADP, ABT ...

Today I added several purchases from my cash positions. I want to deploy capital gradually even though the market is quite expensive in high quality companies since I am not confident in predicting market tops or bottoms. These purchases will help improve my income in the 1/4/7/10 and 2/5/8/11 months.

PG, T, KO are the heavy dividend payers here.
ADP and ABT have moderate yields
NKE is a very low yield stock but it has strong growth and I am liking the price of this high quality company as it continues to fall.

I consider Nike the highest quality consumer discretionary company. They have a credit rating of AA- from S&P, a very low 14% debt/cap, consistent earnings and dividend growth, Value Line financial strength of A++ (highest) and a Value Line safety of 1 (highest). I consider NKE to be fair value at $50-52 but want to build the position slowly as it falls further.


As of now I have around $25,900 USD in cash positions waiting to be deployed, so roughly 12% of my portfolio. This is higher than I would like but it's hard finding value nowadays.

2 comments:

  1. Nice buys, Young Dividend! I own all but NKE and ADP in my portfolio. NKE is attractive, despite the low yield. I think I may follow your example! Take care!

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  2. Wow! Some nice guys there and a lot of money put to work. Well done, solid companies.

    -Adam

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