Friday, November 4, 2016

RECENT BUY: Orchids Paper Products Company (NYSE: TIS)

We Recently Purchased The Following:

Orchids Paper Product Company (TIS)
Purchased 20 shares of TIS on 10/27/2016 at $24.33
Total Spent: $486.00; added $28.00 in forward dividends.

Orchids Paper Products Company (formed in April 1998) is a small cap Oklahoma-based manufacturer of tissue paper products. It's better known for selling for selling Colortex, Soft & Fluffy and Tackle tissue Investors who are interested in having defensive stocks in their portfolios should be looking at Orchids Paper since its products aren't subject to the fluctuations of the economy.

It is true...Orchids Paper has had a volatile year so far.  TIS has seen its stock price go from $30.50 in early January to as high as $36.31 in early July but has since continued to dip to its current stock price of $24.31. The stock decline is likely due to having missed expectations in both the 2nd and 3rd quarters. However, we believe that this bearish turn provides investors with a good opportunity to take a look at the stock and decide whether its 5.65% dividend yield is a good enough inducement to pick it up. After all, a $10,000 investment in Orchids Paper provides $565 a year in passive income, which is the best for its peer group. 

Here were the main reasons why we bought Orchids Paper Products Company (TIS) stock: 
  1. We believe that it has good prospects from its ongoing expansion.
  2. We believe their balance sheet is stable and only mildly leveraged.
  3. We think it's undervalued compared to market estimates and other small cap stocks.
  4. We would be lying if we didn't say that we also like the dividend yield!
  5. And as a bonus, since we purchased the stock before its recent Ex-Dividend date, we won't have to wait long to receive a dividend payout for this purchase!!
Company Description
From Google Finance:
Orchids Paper Products Company is a supplier of consumer tissue products. The Company produces bulk tissue paper, known as parent rolls, and converts parent rolls into finished products, including paper towels, bathroom tissue and paper napkins. The Company offers customers an array of private label products across the value, premium and ultra-premium market segments. It is an integrated manufacturer of tissue paper products serving the at-home market and the away from home market. The Company sells its products to grocery stores, grocery wholesalers and cooperatives, convenience stores, janitorial supply stores and stores in the food service market. The Company's products are sold primarily under its customers' private labels and, to a lesser extent, under its brand names, such as Colortex, My Size, Velvet, Big Mopper, Linen Soft, Soft & Fluffy, Virtue, Truly Green, Golden Gate Paper, Big Quality and Tackle.
With our recent purchase of Orchids Paper Product Company (TIS), the estimated forward dividends for our family's dividend stocks portfolio grew another $28.00, putting our yearly dividends at approximately $3,370/year (excluding our Edwards Jones account) and $3,755/year (including our Edward Jones account).  

We already owned 30 shares in Orchids Paper Product Company (TIS). With this recent purchase, we now own a total of 50 shares of TIS stock in our family's dividend stocks portfolios (WF and EJ Accounts).  But since this was not a new company for us, the total stocks held in our family's dividend stock portfolio remains 58 different dividend paying stocks/ETFs and also 2 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:


Orchids Paper Product Company (TIS)
P/E: 15.92
Payout Ratio: 87.50%
Dividend Yield: 5.65%

consecutive years of dividend increases
Last Ex-dividend date: 8/4/2016
Next Ex-dividend date: approx. 11/3/2016
Have paid a dividend since: 2012 (4 years)
Pays a dividend 4 times a year
Market Cap: 249.7 Million
52-week high: $36.31
52-week low: $23.60

Purchased Price: $24.33

What are your thoughts on of recent purchase?

What are you buying?


  1. Great buy of a great dividend payer. Good job!

    1. Thanks BSR. Appreciate the words of support. Hoping to collect dividends while we wait for a turnaround. :)

      Regards, AFFJ

  2. Looks like a good buy... Best of Luck!!!

    1. Thanks TWI. The turnaround may not be immediate but we feel their is some value for the patient long term investor. AFFJ

  3. maybe i should more share my existing 2 shares of TIS,i bought these last year on random.

    1. We certainly think it's a value but obviously do your own risk reward analysis. TIS did dip again today so you'll be getting a better buy than we did recently. ;)

      Best wishes! AFFJ

  4. AFFJ,

    Great job! I bought some more shares yesterday as well. Awesome value and yield!!


    1. Thanks. Great minds...but you got a slightly better deal. haha

      Cheers to future dividends and growth! AFFJ