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Monday, January 30, 2017

Recent Purchase JNJ

I almost made it out of January without a buy. It would have been my first month without a purchase since I started dividend growth investing in May. It's not that I didn't have the money. I made my regular deposits into my Robinhood account. I just didn't see a lot that was cheap. And what was cheap, wasn't screaming buy. My thought process was that since I only had around $100 to invest anyway, why not hold onto it? I could make a larger buy for something I was more interested. But just as the month was about to end I changed my mind. 

I've been wanting to own JNJ since I started dividend investing.  The price has either been too high or I haven't had the money. This month nothing really interested me that much. So when I had enough for a share @113.08 I jumped all over it. With a P/E ratio of 19.8 is just about fair value for a stable company with an excellent track record of dividend increases. The payout ratio is only 54 percent and the one year price target is $124. I don't think I got the greatest deal in the world. But for some stocks fair value might be the best you can hope for in this market. One thing I do want to get away from is buying a single share of many different stocks. It's not that I don't want to be diversified, I just want to start building larger positions. With JNJ I'm okay with starting a small new position because it is a foundation stock that I can see myself adding too over time.

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