Monday, March 27, 2017

Adding TROW (T. Rowe Price)

I put TROW onto my watch list several months ago.  I set a target buy price of $68.  I started a 1/2 position in TROW at $67.64 today.  Morningstar rates TROW a 4 Star value, and the FASTGraph below is compelling:

TROW has a nice dividend yield of 3.4%, no debt, and has been increasing the dividend for many years.  At a PE of 14 vs. a normal PE of 20, it looks like a good bargain.  I put another buy price into my watch list at a 5% discount from today.  If it hits that in the coming weeks, I'll add more.



Wednesday, March 8, 2017

Buying KIM for the IRA, Adding KR (Kroger) to my Taxable Account

Many of my high yield holdings are down today in anticipation of an interest rate hike.  As a result, KIM (Kimco) had dipped below my target buy price.  KIM is a high end mall REIT, and somewhat impervious to the assault posed by Amazon and the internet. KIM has a nice high yield of 4.7%, and is now at a nice valuation to start a position.

Here is the FASTGraph:

I put a limit order in at $22.18, we'll see if it fills....

Regarding KR (Kroger), this stock got onto my radar due to my youngest daughter.  After opening brokerage accounts for all of my three children, they started looking at stocks.  They brainstormed stores and companies with which they did business, checked to see if publicly traded, then looked at a FASTGraph for each.

My daughter mentioned she really liked to shop at Ralph's, "they have everything."  Ralph's is owned by Kroger.  The FASTGraph for KR is shown here:

Turns out KR is big, with $115B in sales in 2016.  The valuation is good, and they've paid a growing dividend now for 10+ years.  Good pick.

Due to the yield of 1.7%, I've added it to my taxable account, where I hold stocks with lower yields for tax purposes.

That's all for now,