Monday, July 14, 2014

Recent buy - July

At my last post I did some research about a couple of blue chip stocks which are currently trading close to their 52w-low figure. Some of my readers gave me valuable advice, which is much appreciated!

Getting so much kind words and good advice from fellow bloggers is great to notice and I have to say this feels like a warm welcome in this very kind community, as I am just the little new guy in town.

Aflac (AFL)
Buy: 19 shares @ $63.02

My broker is very cheap with their transaction costs (about $1 per transaction), but the interface is very basic. Another downside is that it does not allow fractional stocks to be purchased. After last month purchases I had about €80 in my account as leftovers. After todays purchases I had about $25 in my brokerage account which was not working for me. This bothered me.

In order to put this money to work for me, I wanted to invest it in some company with a high yield. However, the price for this stock should be as low as possible, since I only had a few bucks left. It was then when I came across a handy website for this matter: DiviData.

At this site, I came across a company called TICC. This was the highest yielding company with more than 10 years of dividend paying history. This stock certainly does not belong in a portfolio focused on long term and growth, but I couldn't resist buying 2 shares at an amazing 11.92% yield. After just 2 terms of dividend from this company, the transaction costs will be covered. I'm probably going to sell this stock shortly after that, in order to use this capital to buy a new blue-chip stock, which I couldn't afford this month.

TICC Capital Corp. (TICC)
Buy: 2 shares @ $9.80

In other news, my watchlist is growing.
I added 52w high/low values to the list, in order to try to find a bargain.
However, this was not easy readable, so I added a percentage. This percentages reflects the growth of the stock, compared to its 52w low value. Hopefully this makes selecting stocks for further analyses a bit easier for me.

Thanks for reading!

Full disclosure: Long AFL


  1. DFS,
    AFL is a great long term hold. Good call on picking them up - its a great company and is currently one of the few ones thats attractively valued.

    Re: TICC I wouldnt invest in a company with a yield that high. It just means that the stock is beaten down because of expected declines in business model or upcomign dividend cuts. Btw, your end saying "Short" has a different meaning in finance and does not really mean "short term holding". Details here:

    Thanks for the link to DiviData. I will have to check it out.


    1. Hi R2R,

      Thank you for pointing that "Short" term out. I've updated my post accordingly.

      TICC indeed is a risky stock. I wouldn't recommend it for any long term investment. However, it is just a gap filler. I didn't see any great long term investments for just 10 bucks a share. I thought this was second best.
      Even a 20% loss in the near future would cost me just $4.

      Thanks for your valuable advice. It's good to have people around saying that you are wrong, instead of just agreeing with everything you do.

      Best wishes,

  2. Love AFL too. I just bought some this week and in May and June. Been a holding of mine since 2007 and has a great dividend raise history going back over 30 years! In this market I feel it still offers great growth and low PE as well. Thanks for sharing.

    1. Hi Divhut,

      Hopefully this stock will keep giving us the growth we'd like!
      Thanks for stepping by.


  3. Hi DsF,

    Short comment egarding your TICC strategy. You say you expect to sell them shortly after you have recovered your transaction costs. So the only chance you have on making money out of this is if the share price rises in that time period. Given the short timeframe you have in mind, this kind of speculation is quite risky (of course I am aware of the fact you only have very little invested in this company) and is a bit contradicting with the Buy-Hold forever DGI strategy ;).



    1. Hi DW,

      Thanks for your good advice. I figured it was better to invest it in a high risk stock than not invest it at all, but after many succesful investors warning me, I guess I was wrong. I'm going to fix this sooner or later.

      Best wishes,

  4. Congrats on your purchases. I see you bought Aflac!

    Also I nominated you for Liebster Award on my blog page. :) Hope you will accept it.

    1. Hi HHWG,

      Thank your for nominating me! I'm flattered.
      Of course I will accept it. I'll write a post about this soon.
      Have to think of my 5 candidates. Your questions are good!

      Thanks again, it's much appreciated.
      Best wishes, DfS

  5. Good Job on the Aflac buy, it is a forward thinking insurance company who continues to grow and outperform. Good Luck

  6. I like AFL but their strongly tied to Japan. I've been looking at Chubb to possibly pick up some more insurance/financial sector exposure. Of course AFL has been a great DG company for over 30 years and they still have a lot of room for growth if they can expand further into the US.

    Re TICC: I think the biggest thing is to make sure that you know exactly why you bought the stock and what will make you sell it. I've never heard of the company but with a ~12% yield investors are most likely seeing problems with the company. It's fine to make a short term play on this if you expect the issues to work themselves out rather quickly but know your reasons to buy and sell before hand with short term plays. In other words just be informed.

    Keep up the good work!

  7. Hey DFS,
    I am hoping to also be a fellow shareholder of AFL this month. This is a really good buy. Keep up the great work.