RECENT BUY - INTERNATIONAL PAPER CO (NYSE: IP)

WE RECENTLY PURCHASED THE FOLLOWING:

INTERNATIONAL PAPER CO (IP)

Purchased 10 shares of UNP on 1/25/2016 at $33.00
Total Spent: $333.00; added $12.30 in forward dividends.

Another winter deal in the books! International Paper Co (IP) set a new 52-week low during the mid-day session. In fact, IP dipped as low as $32.50 during the afternoon session. Although we didn't pick up shares at the lowest point of the day, we did manage to pick up a few shares close to the bottom at $33.00. 

We have been watching IP paper for awhile and saw the dip as an opportunity to add another great dividend paying company our family's dividend stocks portfolio. 

Although we understand the price concerns, we believe that International Paper Co (IP) management has laid down the necessary foundations for the company to have a successful 2016 and beyond. We believe the high 4.7% yield provides a reasonable entry point. We have no problems sitting back and collecting the juicy 4.7% yield as we wait for a turnaround.

Below are a few pros and cons we compiled from a few recent articles found:

Pros:

• IP is a large cap company with a capitalization of $13.5Bil.
• Nearest competitor Avery Dennison (NYSE:AVY) has a much smaller capitalization of $5.6Bil.
• IP is the world's leading producer of containerboards used to make corrugated brown boxes for shipping goods.  With E-commerce expected to grow steadily, sales in this category should continue to see steady growth.
• 3rd-quarter earnings of .97 cents for 2015 beat estimates of .92 cents.
• IP has a dividend yield of 4.7% and has been increased for the past 5 yrs.
• Next Ex-dividend is 2/11/2016, which means we will get our first dividend payment on March 15th.
• IP has a nice cash pile at $1.97Bil which allows it to continue to pay its high dividend and still have cash left over for stock buyouts and company investment.
• IP has a 3-year CAGR of 13%.
• S&P Capital IQ has a 4-star  (or buy) rating on IP with a price target of $52.00.

Cons:

• Sales down in Industrial packaging, printer paper, and consumer packaging.
• Concerns over pricing are running up and down the paper and packaging sector.
• Recent Downgrade from Citi.

Company Description

From Google Finance:

“International Paper Company is a paper and packaging company with primary markets and manufacturing operations in North America, Europe, Latin America, Russia, Asia, Africa and the Middle East. The Company operates in three segments: Industrial Packaging, Printing Papers and Consumer Packaging. Industrial Packaging segment’s products include linerboard, medium, whitetop, recycled linerboard, recycled medium and saturating kraft. Printing Papers segment products include uncoated papers, which engage in the business of producing papers for use in copiers, desktop and laser printers and pulp, which manufactures printing, writing and specialty papers, tissue products and filtration products. Consumer Packaging’s coated paperboard business produces coated paperboard for packaging and commercial printing end uses. Its foodservice business produces cups, lids, food containers and plates. Its brands include Hammermill, Springhill, Accent, Ballet, Rey, Pol, Everest, Fortress and Carolina”

With today's purchase of International Paper Co (IP), the estimated forward dividends for our family's dividend stocks portfolio grew another $12.30, putting our yearly dividends at approximately $3,612/year (excluding our Edwards Jones account) and $3,970/year (including our Edward Jones account).  

Since we did not previously own IP in our family's dividend stocks portfolios (WF and EJ Accounts), today's purchase now brings our portfolio to a total of 52 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:

DIVIDEND STOCKS PORTFOLIO

We also maintain an extensive list of stock analysis

that can be access through the link below:

COLLECTION OF STOCK ANALYSES

We also just started a list of Recent Buys by other bloggers

that can be access through the link below:

COLLECTION OF RECENT BUYS

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



International Paper Co (IP)

P/E: 15.29

Payout Ratio: 74.98%
Dividend Yield: 4.83%
Dividend Growth rate (5yr AVG): 39.87%
6 consecutive years of dividend increases
Last Ex-dividend date: 11/12/2015

Next Ex-dividend date: approx. 2/11/2016
Have paid a dividend since: 1946 (69 years)
Pays a dividend 4 times a year.
Market Cap: 13.5 Billion
52-week high: $57.90
52-week low: $34.03
Purchased Price: $33.00

What are your thoughts on of recent purchase?

What are you buying?

RECENT BUY (NYSE: UNP)

WE RECENTLY PURCHASED THE FOLLOWING

Union Pacific Corp (UNP)

Purchased 5 shares of UNP on 1/22/2016 at $69.70
Total Spent: $348.50; added $11.00 in forward dividends.

Another winter deal in the books! Union Pacific Corp (UNP) opened the day by setting a new 52-week low today. We saw the dip as an opportunity to add more shares to one of our existing holdings. Although we missed the opportunity to pick up shares at the lowest point of the day when it dipped to $67.06, we did manage to pick up a few shares at $69.70 before it closed the day at $71.00. 

A 60 billion dollar dividend payer for since 1900 (over 115 years!) with a yield in the 3% range. We couldn't resist the opportunity to add to our current position. With today's purchase, we now own a total of 21 shares of UNP that will continue to provide our family with an estimated $46.20 in dividends a year. Given their long dividend history, we are confident that those dividends can be counted on for years to come.  And looking at the same history, it is likely that these dividends will continue to grow as well.

Company Description

From Google Finance:

“Union Pacific Corporation operates through its principal operating company, Union Pacific Railroad Company. The Company is a Class I railroad operating in the United States, which has 31,974 route miles and maintains coordinated schedules with other rail carriers to move freight. It links 23 states in the western two-thirds of the country by rail, providing a supply chain link around the world. Its business mix includes agricultural products, automotive, chemicals, coal, industrial products and intermodal. The Company serves United States population centers, operates from West Coast and Gulf Coast ports to eastern gateways, connects with Canada's rail systems and serves six Mexico gateways. The Company's freight traffic consists of bulk, manifest, and premium business”

With today's purchase of Union Pacific Corp (UNP), the estimated forward dividends for our family's dividend stocks portfolio grew another $11.00, putting our yearly dividends at approximately $3,600/year (excluding our Edwards Jones account) and $3,958/year (including our Edward Jones account).  

Since we already previously owned UNP, our family's dividend stocks portfolios (WF and EJ Accounts) remained the same with total of 51 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:

DIVIDEND STOCKS PORTFOLIO

We also maintain an extensive list of stock analysis

that can be access through the link below:

COLLECTION OF STOCK ANALYSES

We also just started a list of Recent Buys by other bloggers

that can be access through the link below:

COLLECTION OF RECENT BUYS

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

Union Pacific Corp (UNP)

P/E: 12.93

Payout Ratio: 37.13%
Dividend Yield: 3.00%
Dividend Growth rate (5yr AVG): 14.99%
9 consecutive years of dividend increases
Last Ex-dividend date: 11/25/2015

Next Ex-dividend date: approx. 2/25/2015
Have paid a dividend since: 1900 (115 years)
Pays a dividend 4 times a year.
Market Cap: 60.6 Billion
52-week high: $124.52
52-week low: $67.06
Purchased Price: $69.70

What are your thoughts on of recent purchase?

What are you buying?

RECENT BUY (NYSE: ORCL)

WE RECENTLY PURCHASED THE FOLLOWING

Oracle Corporation (ORCL)

Purchased 11 shares of ORCL on 1/13/2016 at $34.50
Total Spent: $379.00

Another winter deal in the books! With Oracle reaching a new 52-week low today, we decided to place an limit order to buy 11 shares of ORCL at $34.50 and by the end of the day, we check our e-mail to find that our order had executed during the afternoon session. 

Oracle Corporation (ORCL) is a global leader in database technology. It has more than twice the market share than its nearest competitor, IBM.  In addition, ORCL is slowly gaining market share in hardware and cloud. Revenues from hardware and cloud are expected to grow meaningfully in the coming years. At current values, we feel ORCL is a great long term buy.  Although the dividend yield is a bit lower than we prefer, we are confident that given the low payout ratio, ORCL will continue to raise their dividends for years to come! 

Company Description

From Google Finance:

“Oracle Corporation (Oracle) is a provider of enterprise software and computer hardware products, and services. The Company’s offerings include Oracle database and middleware software, application software, cloud infrastructure, hardware systems including computer server, storage and networking products, and related services. It operates through various segments, including new software licenses and cloud software subscriptions, which include software licenses and Oracle Cloud offerings; cloud infrastructure-as-a-service, which provides deployment and management offerings; software license updates and product support, which includes support, enhancements and upgrades for Oracle software products; hardware systems products, which includes servers, storage, networking, virtualization software, operating systems and management software; hardware systems support, which provides software updates for software components, and services business, which offers consulting services”

With today's purchase of Oracle Corporation (ORCL), the estimated forward dividends for our family's dividend stocks portfolio grew another $6.60, putting our yearly dividends at approximately $3,589/year (excluding our Edwards Jones account) and $3,947/year (including our Edward Jones account).  

We did not previously owned ORCL; therefore, our family's dividend stocks portfolios (WF and EJ Accounts) added another great company.  We now hold total of 51 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:

DIVIDEND STOCKS PORTFOLIO

We also maintain an extensive list of stock analysis

that can be access through the link below:

COLLECTION OF STOCK ANALYSES

We also just started a list of Recent Buys by other bloggers

that can be access through the link below:

COLLECTION OF RECENT BUYS

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

Oracle Corporation (ORCL)

P/E: 16.30
Payout Ratio: 27.4%
Dividend Yield:1.7%
2 years of dividend growth
Last Ex-dividend date: 1/4/2016

Next Ex-dividend date: approx. - 4/4/2016
Have paid a dividend since: 2009 (6 years)
Pays a dividend 4 times a year.
Market Cap: 143.1 Billion
52-week high: $45.33
52-week low: $34.52
Purchased Price: $34.50

What are your thoughts on of recent purchase?

What are you buying?

RECENT BUYS (NYSE: UNP, RY, and GPC)

WE RECENTLY PURCHASED THE FOLLOWING:



Union Pacific Corp (UNP) 
Purchased 6 shares of UNP on 1/7/2016 at $73.25
Total Spent: $439.50
$13.20 added to annual dividends

Royal Bank of Canada (RY) 
Purchased 10 shares of RY on 1/7/2016 at $50.00
Total Spent: $500.00
$23.22 added to annual dividends

Genuine Parts Company (GPC) 
Purchased 5 shares of GPC on 1/8/2015 at 80.00
Total Spent: $400.00
$12.30 added to annual dividends

With the market of to its worst 5-day start to a year on record, we decided to take advantage of the Winter Sale! We purchased a few shares of Union Pacific Corp (UNP) and Royal Bank of Canada (RY) during Thursday's session. And on Friday, with the market seeing more decline, we seized the opportunity to pick up a few shares of Genuine Parts Company (GPC). 

With China's stock market in complete disarray, crude oil prices plunging to lowest level since 2003, and corporate earning for the last quarter of 2015 widely expected to be underwhelming, there may be more deals to be had in the coming weeks.  Nevertheless, as a long term investor who is now seeking to buy and hold forever, we feel that we found three companies at great values that should continue to pay us "dividends" for years to come! 

As you observe the fact sheet on our recent purchases below, you will notice a common theme that is consistent found in stable, high quality companies: 1) Yields Above 3%, 2) 10+ Billion Dollar Market Cap, 3) 60+ year history of paying dividends.  Additionally, the P/E and payout ratios aren't that bad either!!  

With the recent purchases today, we added another two NEW stocks to our family's dividend stocks portfolio. Royal Bank of Canada (RY) and Genuine Parts Company (GPC) now brings our family's dividend stocks portfolio to a total of 50 stock/ETFs. Union Pacific Corp (UNP) was a company that we had already previously owned.

With the purchases mentioned above, our estimated forward dividends grew another $48.72 and now stands at approximately $3,941.85/year in dividends.

Our family's dividend stocks portfolio may be found

by clicking on the link below:

DIVIDEND STOCKS PORTFOLIO

We also maintain an extensive list of stock analysis

that can be access through the link below:

COLLECTION OF STOCK ANALYSES

We also just started a list of Recent Buys by other bloggers

that can be access through the link below:

COLLECTION OF RECENT BUYS

HERE IS A QUICK FACT SHEET FOR THE STOCKS WE JUST PURCHASED:

Union Pacific Corp (UNP)

P/E: 12.75
Payout Ratio: 37.13%
Dividend Yield: 3.01%
Dividend Growth rate (5yr AVG): 14.99%
9 consecutive years of dividend increases
Last Ex-dividend date: 11/25/2015

Next Ex-dividend date: approx. 2/25/2015
Have paid a dividend since: 1900 (115 years)
Pays a dividend 4 times a year.
Market Cap: 63 Billion
52-week high: $124.52
52-week low: $72.42
Purchased Price: $73.25

Royal Bank of Canada (RY)
P/E: 9.82
Payout Ratio: 45.86%
Dividend Yield: 4.49%
Dividend Growth rate (5yr AVG): 9.06%
4 consecutive years of dividend increases
Last Ex-dividend date: 10/22/2015

Next Ex-dividend date: approx. 1/22/2016
Have paid a dividend since: 1870 (145 years)
Pays a dividend 4 times a year.
Market Cap: 71.4 Billion
52-week high: $67.49
52-week low: $49.83
Purchased Price: $50.00

Genuine Parts Company (GPC)
P/E: 16.93
Payout Ratio: 52.22%
Dividend Yield: 3.04%
Dividend Growth rate (5yr AVG): 8.46%
4 consecutive years of dividend increases
Last Ex-dividend date: 3/5/2015

Next Ex-dividend date: approx. 6/5/2015
Have paid a dividend since: 1948 (67 years)
Pays a dividend 4 times a year.
Market Cap: 11.8 Billion
52-week high: $104.23
52-week low: $78.76
Purchased Price: $80.00

What are your thoughts about my recent purchases?

What are you buying?