Well, to be honest it has been a discouraging month. I had hoped to make 2-3 purchases in addition to DPS, TGT earlier this month. However, Mr. Market has had other plans. I would be lying if I said the overall valuation of the market didn’t affect my desire to make a purchase. Given the current high valuations of most stocks in my portfolio (about 25 are large positions or exceeding some criteria), instead of looking for the absolute best value, I decide to add to a position that is smaller than I would like.
My exposure to makers of consumer goods is limited to PG. I have wanted to add KMB and Clorox, but I haven’t done as much research on either and they do not meet my entry criteria (dividends, PE, cash flow) at the moment. Which is double edged sword for me. They don’t meet my criteria, so then I don’t research and a vicious cycle begins.
I made my first purchase of PG in June 2013 at 79.33 per share. It is currently trading at 80.36. Not much of a return, but at the moment given the market I feel like it would be a good candidate for additional funds. Yesterday, I bought 15 shares at a cost basis of 81.80 (including commission) even though this probably wasn’t the best value in the market. PG recently raised the dividend by 6.7% and reported a raise in profit for the most recent quarter. This dividend raise increases their dividend streak to 58 years.
Do I believe this is the best value in the market right now? I don’t know. However, PG is one of those companies that I can own and be comfortable with regardless of the market.
Disclaimer: Long DPS, PG, TGT