Recently, I put some fresh capital to work!
Here's a short breakdown of the purchases I made.
T. RowePrice (TROW)
Buy 12 shares @ $76.44 at 7/6/2015
They manage US and international stocks, mutual funds, blended assets and bonds.
Main reason for buying this stock is their strong growth over the last decade.
The Great Recession obviously has hurt the stock price, but their funamentals never changed.
Despite the recession, even the 10-year growth numbers are double digits!
These numbers beat 20 of the 21 Financials in the CCC Aristocrat list. Pretty amazing if you'd ask me.
The yield of 2.68% is below the sector average of 3.16%, but with these growth numbers, I'm not worried at all.
Looking at the valuation of TROW, the numbers are looking very nice.
EPS - $4.46
Payout ratio - 46.64%
P/E - 17.43
This high EPS combined with a low payout ratio and a low P/E leads me to believe that the stock is currently undervalued. Theres definitely enough room for future growth. I'm new to valuating stocks, so I don't know what a fair price would be, but I am studying this subject.
Buy 13 shares @ $62.81 at 7/6/2015
If you own a non Apple smartphone, the heart of your phone is probably manufactured by QCOM.
Their Snapdragon processor is widely used in the current generation of smartphones.
Qualcomm is my first holding in the Information Tech sector.
I'm not a huge fan of Facebook, because there is no product to sell. As with MySpace, Facebook could be worth nothing in a matter of a couple of years. Same goes for Twitter.
Apple seems to be overvalued to me. Will we keep buying an iPhone every 2 years until they release iPhone 27? I'm not sure.
I do think smartphones and other smart products are here to stay, so buying QCOM makes perfectly sense, despite not liking Apple so much from an investor point of view.
As with TROW, QCOM has some impressive growth numbers.
These numbers beat all the other 17 stocks in this sector for the Contenders section!
This amazing deal comes with a 3.07% dividend yield, which is above average.
EPS - $4.22
Payout ratio - 45.50%
P/E - 14.84
With these numbers, there should be more than enough capital to sustain current dividend payouts as well as a lot of money to be used to growth the relative new company. They have been raising their dividends for 13 consecutive years.
Buy 1 share @ $35.57 at 7/6/2015
After buying TROW and QCOM I had about $40 left in my account.
My broker does not support buying fractial shares yet, so I added 1 share of AT&T to my portfolio, as they went ex-dividend at the 8th of July.
What do you think of these purchases?
Thanks for reading!