Follow the dividend investment decisions of a person who has no background in financial investment and wishes to take control of their financial future.

Recent Buys - ESV, BHB & MHLD - 30 Apr 2014 00:06

Tags: bhb esv mhld

Finding opportunities for new acquisitions that meet my growth requirements is getting tougher but with a little elbow grease there are still opportunities.
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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.
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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.
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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.
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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. - Comments: 0

Impulse Buy - 09 Nov 2013 22:38

Tags: ensco esv

Last week I did something out of character. Normally I track a potential stock on a watch list, tear apart its annual report, and monitor its performance over time before I make a buy decision. Instead I made an impulse buy and bought a small position (20 shares) in Ensco PLC (ESV). This purchase completes my diversification with energy and has increased my annual dividend by $60.

ESV is a contract drilling company based in the U.K. that specializes in offshore drilling contracts. Their financials are strong but historical consecutive dividend increases were weak with only 3 consecutive years. After the market close on 11/5, ESV announced a 50% dividend increase increasing their annual dividend yield to just over 5%.

Originally I had been tracking and targeting Helmerich & Payne (HP) as my last energy investment but its stock price shot up from $66 to $78. Out of fear that ESV could do the same I placed a buy order on the next market open.

After having time to tear apart the annual report I now feel confident about my purchase. Yet, I was surprised at how quickly I assessed the stock and made an impulse decision and this was a bit troublesome. On the positive side it was limited to a small investment but would I do it again in the future? I honestly do not know. Assuming I may, I will need to adjust my appetite in relation to risk for these types of purchases so I am adjusting my rules that any impulse buy must be limited to small purchases of $1,000 or less. - Comments: 0


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