Recent purchase: Omnicom Group

Earned a pair of dividends this week, too

Tuesday was a dry day in terms of dividends … which I hate.

I try and take steps forward whenever possible. Dividends obviously point my portfolio in the right direction, but, when I don’t earn one, the best way to keep the march moving is to make a purchase … which is exactly what I did.

Purchase

I bought a share of Omnicom Group Tuesday (commission free on Robinhood, of course) adding to a position I started back in July.

The purchase price was $78.93, barely above the stock’s 52-week low, which is a great place to buy a solid company. That’s just common sense.

My other share cost me $82.48, so this new purchase brought my cost basis down about $2. I now have two shares at an average cost of $80.70 – a position which makes up 1.15% of my portfolio.

OMC provides advertising, marketing and corporate communications services to a boatload of clients from a crap ton of places. It operates in North America, Latin America, Europe, the Middle East, Africa, Asia, Japan, China, Australia … need me to go on, because I can.

Its numbers are good, which makes me wonder why it’s scraping its 52-week low. OMC consistently beats earnings estimates, doing so for at least the last eight quarters, and had an EPS growth of about 2.94% last quarter compared to the same quarter from a year ago.

OMC boasts a P/E ratio of 15.88%, manageable 44.44% payout ratio (I view anything under 50% as great) and, oh yeah, the dividend is pretty good, too. With a yield of 2.80%, it pays $0.55 quarterly. In other words, the purchase boosted my forward annual dividend income by $2.20.

Dividends

Wednesday was a different story. Unlike Tuesday, I did earn a little somethin’.

Lowes: LOW has a history of raising its dividend. It’s been doing it for 54 years, and I got a taste of that for the first time since opening a position in December of 2016. The company sent a $0.35 dividend my way each of the last three quarters. This time, though, it was $0.41. The $0.06 raise may not seem like much on the surface, but plug the numbers into a calculator and you’ll see it’s a rather impressive 17% raise. When was the last time your boss gave you a 17% raise?

Mastercard: MA also paid me a dividend Wednesday. The $0.22 payment was the same as the one I got last quarter. I’m still waiting on that first increase.

Wednesday’s combined $0.63 in dividends brought my August total to $16.70 and my 2017 haul to $176.88.

This is my second post of the week. Here’s Monday’s. I also recently posted my portfolio.

Thanks for marching along!

 

 

 

 

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