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:

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:

Orchids Paper Product Company (TIS)

P/E: 15.92

Payout Ratio: 87.50%
Dividend Yield: 5.65%
0 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?

ASK THE READERS - Should I buy HCP, TIS, WPC?

HCP, TIS, WPC?

We started this series back in November as a way to add some fun to our buying process. We plan to continue doing these Ask the Reader post once a month (except when funds are limited) and will be maintaining the stocks purchased in a separate portfolio just to see how they perform. 

 

The three stocks we have chosen are stocks that are currently at the top of our watch list and thus stocks we would be comfortable buying regardless of the outcome.  But we thought it would be fun to get our readers input and see if collectively, we can all beat the market with this interactive portfolio. :) 

Below is a chart below of our ASK THE READER purchases to date: 



For each ASK THE READER post, we will select 3-4 current stocks on our watch list that we feel are worth buying.  But to add some fun into our buying process, we have decided to put our faith in our fellow bloggers and readers once a month. 

 

Please spend a few minutes to vote for ONE stock from the companies listed below.  Tell us why you like the stock that you picked. 

Thanks in advance for your STOCK PICK!
 

STOCK #1 HCP, Inc (HCP)

• Sector: Financials - Real Estate
• Market Cap: 18.3 Billion
• Dividend Yield: 5.68% 
• Consecutive years of dividend increase: 19 Years
• Paying Dividends Since: 1990
• Payout Ratio: 72.4%
• P/E Ratio: 43.43

STOCK #2 Orchids Paper Products Co (TIS)

• Sector: Consumer Products - Household & Personal Products
• Market Cap: 228.0 Million
• Dividend Yield: 6.2% 
• Consecutive years of dividend increase: 4 Years
• Paying Dividends Since: 2011
• Payout Ratio: 106.1%
• P/E Ratio: 20



STOCK #3 W.P. Carey, Inc (WPC)

• Sector: Financials - Real Estate
• Market Cap: 6.6 Billion
• Dividend Yield: 6.0% 
• Consecutive years of dividend increase: 14 Years
• Paying Dividends Since: 1998
• Payout Ratio: 91.1%
• P/E Ratio: 26.54

**LET US KNOW WHICH STOCK YOU WOULD PICK AND WHY**

Recent Buys - (NYSE: SDRL, VZ, KMI, DE, TIS)

 

WE RECENTLY PURCHASED THE FOLLOWING:

SEADRILL LTD (SDRL)

• Purchased 15 shares of SDRL on 9/11/14 at $32.48
• $60.00 added to annual dividends

VERIZON COMMUNICATIONS INC (VZ)

• Purchased 5 shares of VZ on 9/10/14 at $48.45
• $11.00 added to annual dividends

KINDER MORGAN INC (KMI)

• Purchased 8 shares of KMI on 9/9/14 at $38.50
• $13.76 added to annual dividends

 DEERE & CO (DE)

• Purchased 3 shares of DE on 9/5/14 at $83.00
• $7.20 added to annual dividends

ORCHIDS PAPER PRODUCTS CO (TIS)

• Purchased 10 shares of TIS on 9/5/14 at $26.10
• $14.00 added to annual dividends

Of the recent stocks purchased, only SDRL was a new holding as we already own shares of VZ, KMI, DE, TIS in our family's dividend stock portfolio. 

 

With the recent purchase of SDRL, our family's dividend stocks portfolio now has a total of 26 dividend paying companies. More importantly, the recent purchases added $105.96 to our family's annual dividends which is now estimated to be $1,960.20 a year.

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

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

Seadrill LTD (SDRL)

• P/E:
• Payout Ratio: 72%
• Dividend Yield: 11.70%
• Dividend Growth rate (5yr AVG): 18.11% 
• 0 consecutive years of dividend increases
• Last dividend Ex date: 9/4/2014
• Have paid a dividend since: 2010 (4 years)

 

Verizon Communications Inc (VZ)

• P/E: 10.66
• Payout Ratio: 45%
• Dividend Yield: 4.50%
• Dividend Growth rate (5yr AVG): 2.87% 
• 9 consecutive years of dividend increases
• Upcoming dividend Ex date: 10/8/2014
• Have paid a dividend since: 1984 (30 years)

 

Kinder Morgan Inc (KMI)

• P/E: 33
• Payout Ratio: 145%
• Dividend Yield: 4.50%
• Dividend Growth rate (5yr AVG): N/A 
• 2 consecutive years of dividend increases
• Last dividend Ex date: 7/29/2014
• Have paid a dividend since: 2011 (3 years)

Deere & Co (DE)

• P/E: 9
• Payout Ratio: 24%
• Dividend Yield: 2.9%
• Dividend Growth rate (5yr AVG): 14.03% 
• 10 consecutive years of dividend increases
• Upcoming dividend Ex date: 9/26/2014
• Have paid a dividend since: 1937 (77 years)

Orchids Paper Products Co (TIS)

• P/E: 17
• Payout Ratio: 109%
• Dividend Yield: 5.30%
• Dividend Growth rate (5yr AVG): N/A 
• 2 consecutive years of dividend increases
• Last dividend Ex date: 7/31/2014
• Have paid a dividend since: 2011 (3 years)

What are your thoughts about my recent purchase?

What are you buying?