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Friday, August 21, 2015

RECENT BUY - (NYSE: BBL)

WE RECENTLY PURCHASED THE FOLLOWING

BHP BILLITON PLC (BBL)
Purchased 12 shares of BBL on 8/18/2015 at $34.71
Total Spent: $416.52

With surge in iron ore inventory, BBL share price has been negatively effected lately. The decrease in share prices can safely be attributed to falling iron ore prices as supply gains momentum, setting off demand supply equilibrium. In our opinion, BBL is still one of the most attractive stocks in the commodity sector... and with a yield of roughly 7%!

 Company Description
From Google Finance:
“BHP Billiton PLC (BHP) is an Australia-based mining company having interests in diversified natural resources. The Company mines, extracts and produce aluminum, coal, copper, iron ore, manganese, nickel, silver and uranium, and oil and gas. The Company extracts and process minerals, and oil and gas from its production operations located primarily in Australia, the Americas and Southern Africa. The Company’s assets, operations and interests are separated into five business units, Petroleum and Potash, Copper, Iron ore, Coal and Aluminum, Manganese and Nickel. The Company’s Petroleum and Potash Business comprises conventional and non-conventional operations and a potash project. The Company’s Copper business produces copper and related ores and minerals. The Company’s Iron ore business produces iron ore. The Company’s coal business produces multiple variants of coal. The Company’s Aluminum, Manganese and Nickel business is a producer of aluminum, manganese and nickel”

On Tuesday, we decided to pick up 12 more shares of BHP Billiton plc (BBL) in an effort to continue averaging down our current shares. We originally picked up shares of BBL back in September of 2014 and have since grabbed a few shares here and there as it continued to fall throughout the past year. With our purchase this week, we now own 79 total shares of BBL in our family's dividend stocks portfolio.  I'm happy to report that the cost basis for our BBL shares went from $48.28 to $46.22 (down a total of $2.06 from Tuesday's purchase). 

 Our estimated forward dividends grew another $29.76, putting our yearly dividends at approximately $3,096/year (excluding our Edwards Jones account) and $3,405/year (including our Edward Jones account).

Since we had already held BBL shares in our family's dividend stocks portfolios (WF and EJ Accounts), the portfolio remains unchanged at a total of 46 different dividend paying stocks/ETFs and also 4 companies that either don't pay a dividend our has currently suspended their dividends.
Our family's dividend stocks portfolio may be found
by clicking on the link below:

We also maintain an extensive list of stock analysis
that can be access through the link below:

We also just started a list of Recent Buys by other bloggers
that can be access through the link below:



HERE IS A QUICK FACT SHEET FOR THE STOCK I JUST PURCHASED:

BHP BILLITON PLC (BBL)
P/E: 6.77
Payout Ratio: 66.99%
Dividend Yield: 6.96%
12 consecutive years of dividend increases
Last Ex-dividend date: 3/11/2015
Next Ex-dividend date: approx. - 9/11/2015*
Have paid a dividend since: 2002 (13 years)
Pays a dividend 2 times a year.
Market Cap: 93.4 Billion
52-week high: $69.56
52-week low: $34.78
Purchased Price: $34.71

What are your thoughts about my recent purchase?

What are you buying?



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12 comments:

  1. Whimsical DividendsAugust 21, 2015 at 6:18 AM

    Great to see all the recent buys, AFFJ! Love seeing your portfolio grow, and seeing you that much closer to your goals!

    ReplyDelete
    Replies
    1. A Frugal Family's JourneyAugust 21, 2015 at 3:30 PM

      Thanks Whimsical Dividends. It's been a nice ride these past two months. And with the market continuing to offer deeper discounts each month, I have a feeling it will continued into September and maybe October as well.

      Thanks for visiting. Best wishes. AFFJ

      Delete
  2. Adam - IWTRSAugust 21, 2015 at 7:18 AM

    What a great yield on BBL lately! Wow. Congrats on the addition!

    ReplyDelete
    Replies
    1. A Frugal Family's JourneyAugust 21, 2015 at 3:33 PM

      I agree Adam, and even higher today! At these yields, I'm fine if there isn't a raise in the near future. I'm just hoping there isn't a cut.

      Either way, as a long term investor, we like BBL at current valuations.

      Thanks for stopping by and commenting. AFFJ

      Delete
  3. Roadmap2RetireAugust 21, 2015 at 8:25 AM

    Nice yield. Nice div growth. That is all.

    Nice purchase :)
    R2R

    ReplyDelete
    Replies
    1. A Frugal Family's JourneyAugust 21, 2015 at 3:36 PM

      R2R - Not often you can buy into a great company at near 7% yields. There will certainly be some grey clouds above that may affect BBL short term, but we like their future prospects once commodities come back around.

      Hope you have a great weekend! AFFJ

      Delete
  4. Income SurferAugust 21, 2015 at 9:39 AM

    Solid buy. I bought BHP Biliton a week ago, and I'll be buying more soon. The dividend is fairly safe, but more importantly......when the industry consolidates......they will have gained huge marketshare.
    -Bryan

    ReplyDelete
    Replies
    1. A Frugal Family's JourneyAugust 21, 2015 at 3:40 PM

      Thanks, we did notice your recent buy. In fact, we've added it to our Collection of Recent Buys. ;)

      Thanks for the feedback Bryan.

      Regards, AFFJ

      Delete
  5. Race2RetirementAugust 22, 2015 at 6:18 PM

    Great buy, AFFJ. I also bought BBL last week along with few others. Keep racing!

    ReplyDelete
    Replies
    1. A Frugal Family's JourneyAugust 22, 2015 at 9:37 PM

      thanks, and congrats on your buys. you are really race at some high speeds! love seeing your progress my friend. keep it up.

      Wishing you continued success on your race to retirement! AFFJ

      Delete
  6. Dividend DiplomatsAugust 23, 2015 at 5:46 PM

    AFFJ,

    I see quite a few scooping up more shares, it is a sign that I should too? Valuation appears appropriate, expected dividend increase is looming, only downside is the forward EPS doesn't look to be as promising. I like the dividend pick up and hope they can maintain their current dividend! 12+ years, come on BBL don't show any signs now!

    -Lanny

    ReplyDelete
    Replies
    1. A Frugal Family's JourneyAugust 23, 2015 at 8:37 PM

      Not sure if BBL will continue to raise their dividends but I think they will do what they can to at least keep things steady. Hey, at roughly 7% yield, I'll certainly be happy to get that. :)

      Lots of great deals out there Lanny. Each investor is going to feel differently about what they should add to their own portfolio. We are taking this opportunity to average down a few holdings. I think we will continue to do so for the next month or so if the market stays put or slides.

      Thanks for stopping by. Best wishes, AFFJ

      Delete