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Tuesday, May 1, 2018

Recent Buys PEP and GIS

Nothing exciting here. Had small holdings of both stocks. Both are solid long term dividend payers that are trading at a reasonable price now.

I added two shares of PEP @98.96 per share. This brought down my cost basis. That's 45 years of dividend growth, a 3.76 yield and 65.1 percent payout ratio. Pepsi just raised it's dividend and isn't going anywhere anytime soon. Pepsi is 19.08 percent off it's 52 week high. Morningstar rates Pepsi 4 stars with a fair value at 123. The consensus price target is 115.5.

I added just a single share of GIS at $43.54 to bring down my cost basis. GIS has been a name floating a lot around the dividend community. Until recently many had it on their always buy list. The price and new competition never got me too excited about it. But this was a price I couldn't ignore. This is another stock Morningstar likes right now as it has a 5 star rating. It has further diversified by entering into the petfood market. At 4.50 percent the yield is solid. There are 14 years of dividend growth and a payout ratio of 63.6 percent.

Disclaimer

Material presented on 'Dividend Seedling' is for informational and entertainment purposes only and is the opinion of the author (a social studies teacher and not a financial advisor). None of the information should be relied on or taken as investing advice or a recommendation to invest. None of the information or opinions expressed, constitutes a solicitation of the purchase or sale of any security or investment of any kind. Please do your own research before making any investments. Do not making any purchases unless you are prepared to lose your entire investment.

Additional Disclosure I long everything.

9 comments:

  1. Nice buys Seedling! You got both at a nice price too. PEP and GIS are two that I already have, but I would like to add more at some point. Like you said, they are solid long-term dividend payers! Congrats! :)

    ReplyDelete
    Replies
    1. MDD,

      Thanks for the comment. Feel like you can't go wrong with PEP at this price.

      Delete
  2. You joined dividenddiplomats in purchasing Pepsi,need to look into it.

    ReplyDelete
    Replies
    1. Thanks for stopping by desi. Glad to see I'm in good company with the Pepsi purchase.

      Delete
  3. Hi, DS. I also added some PEP recently at just about the same price. I've owned PEP for a long time but hadn't added to my position since 2012. I agree that adding here looks like a good opportunity.
    Congrats on both additions, which continue to build your portfolio.

    ReplyDelete
    Replies
    1. Thanks Engineering Dividends. Slowly, but surely I'm getting there. Good luck with you Pepsi buy as well.

      Delete
  4. Great purchases Seedling. I already have GIS in my portfolio and probably would have added PEP but for KO. I might still do some day.

    ReplyDelete
    Replies
    1. I was looking at KO too. I don't think there is room for only one in a portfolio even though they compete partially in the same space, I believe both companies will be around for sometime.

      Delete
  5. This comment has been removed by a blog administrator.

    ReplyDelete

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