Monday, May 18, 2015

Recent Buys: OHI and MSEX! And other stuff.



Recent Buy

On May 18, 2015, I bought 28 shares of OHI at 36.00 per share with a total cost of 1015.00. This is my third purchase of OHI this year giving me a total of 82 shares. Nothing changed since my last purchase and I just got paid. This will increase my forward 12 months dividend by $60.48.  

Recent FLIP

I did an analysis on my portfolio last Saturday. I am way too heavy on reits, financials, and basic materials. I decided to add some stability to my holdings by buying 1 share of the Middlesex Water Company (MSEX). This will increase my forward 12 months dividend by $0.77. I will continue using my flip option to buy this company until I reach 100 shares. Unfortunately I just missed the ex-date. Darn.  

Rationale:

        1)     Dividend Champion/Aristocrat. 42 years of increase dividends.
        2)      High starting yield: 3.5%.
        3)     P/E, P/S, and PEG are all below industry average.
        4)     Payout ratio is 64.2%
        5)     3 years dividend growth rate is 1.4% which is slow. MSEX is akin to T. 
        6)     Better balance sheet than the majority of other water companies. Take a look at Aqua America and feel the horror of debt.
        7)     MSEX is a small company that is growing organically on both earnings and EPS.
        8)     Thompson Reuters rates MSEX a Positive 9 with a strong buy recommendation and a 12 month target of $26 for high, low, and mean.
        9)     Yahoo analyst rates the company as a 1.0 strong buy.
        10) But most of all it is SAFE! Better than 90% of my current holdings.

My forward 12 month dividend stands at $1,851.85-$1,875.85


Sell Order Limit

I placed a sell order limit for 9 shares of Brk.B at $150/share. There is nothing wrong with the stock or warren buffet. I am currently too heavy on financials and Brk.B is making me too money at the moment. I could wait 50 years and see those 9 shares become 200k each but I am trying to retire early and not wait until I’m 76. I will still own 1 share of Brk.B for sentimental values.
Potential Buy Order

I will probably use the funds to buy NSC, MSEX, UNP, JNJ, or TROW; depending on the price.

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