Lately, I have been looking at several different companies across several different industries. I have started seeing some interesting opportunities pop up here and there. Now keep in mind that these purchases were made last week before the market dipped. After looking at several companies I finally narrowed the main purchase down to General Mills (GIS). They have been paying interpreted dividends for the past 117 years, including increasing their dividend for the past 13 years straight. Currently, their dividend yields 3.26%, which is higher than their 5 year average. This doesn’t worry me since they currently have around a 64% payout ratio.
I have read many articles that were very bearish on the company. I can kind of see things from their point of view but that doesn’t mean that I agree with it. General Mills currently has an arsenal of very recognizable brands including Cheerios, Cinnamon Toast Crunch, Betty Crocker, Pillsbury, Häagen-Dazs, Yoplait, Nature’s Valley and Fiber One. They are a diverse company with products in several categories. I see them working toward growing their organic and healthy snacks/foods, which is a growing industry in itself.
The company has lately been showing some stagnate earnings but they have proven in the past to hold up pretty well during recessions. I am not looking for a company that I can buy now and sell next year for a quick profit. I am looking for a company that I can buy and continue to build a position in while I hold it over the long term. Theoretically, I have no intention of ever selling any of my stock unless the company just isn’t growing and paying dividends anymore. So I am willing to buy into a good company like General Mills because I know the short term make look rough but the long term will continue to trend upward.
Another small addition that I made recently was adding two more shares of Kroger to my position. I will continue to nibble away at this position as long as the share price is down below my cost basis. They are a great company with a lot of brands working for them as well. I initially first started looking at Kroger back when I added Kroger to my Watch List. Since then I have been making small nibbles and adding more shares. Unless I see a big dip, I will continue to take nibbles at this stock while I build a position.
I have already updated my Portfolio page as well as my Dividend Income page to reflect these changes. Maybe with the dip that I have been seeing in the market this week maybe I will be able to squeeze in another purchase before the end of the month. I guess only time will tell. Thanks for reading this post about my recent purchases.
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I look forward to hearing all of your comments and questions about my recent buys. Plus I would love to hear about your latest purchases. Just leave me a comment down below. Until next time from More Dividends….. Happy Investing!!!