Recent Buys - ESV, BHB & MHLD

30 Apr 2014 00:06

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Finding opportunities for new acquisitions that meet my growth requirements is getting tougher but with a little elbow grease there are still opportunities.


My first purchase was to increase my position in the oil platform company Ensco (ESV). This was only a small purchase ($500) but could not resist the share price of $48.72 per share and a yield of 6.16%. Not sure why but Mr. Market has punished this stock the last 6 months so I'm capitalizing on the opportunity. This purchase adds $30 annually to my portfolio.


Second purchase was Bar Harbor Bank (BHB) at $37.42 a share and yield of 3.5%. Bar Harbor is a local Maine bank with 15 branches, a well managed balance sheet and has been around since 1887. They have a dividend growth history of 10 years with a 5% average rate. Adding a twist to this purchase is a recently announced 3 for 2 stock split scheduled in May and an 3% dividend increase slated for a June payout. Another feature that makes this an attractive purchase is that they review dividend payouts quarterly and have had 12 straight quarters of dividend growth. The one down side is the size of the company with a market cap of only $157M. With a small cap it is hard to get the attention of wall street investors so equity growth will be limited but on the positive side it translates into a low beta. This purchase adds $56.70 annually to my portfolio.


Third purchase was Maiden Holdings Ltd (MHLD) at $12.06 per share and yield of 3.65%. MHLD is an insurance company based in Bermuda that provides reinsurance solutions to regional and specialty insurers primarily in the United States and Europe. It operates in three segments: Diversified Reinsurance, AmTrust Quota Share Reinsurance, and ACAC Quota Share. They have a 6 year dividend growth history and a 3 year 11% average dividend growth rate. This purchase adds $54 annually to my portfolio.
BHB and MHLD were both on my watch list so I can scratch them off the list. Tough part is I have nothing to replace them with and the candidates on my watch list is getting smaller each quarter.

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