Well, I've decided to make a move in this volatile market. I believe in dollar cost averaging, and my take on that strategy is to purchase high quality equities that are fairly valued or undervalued every single month, no matter what the market is doing. I do try, however, to purchase less when the market is up and more when the market is down, but ultimately I believe in accumulating assets that pay me to own them when I have the capital available to do so. If I wait for the "perfect" time to buy stocks, I'll be a lonely, old man.
As part of my Recent Buy series, I try to let my readers know of any equities I purchase soon after the transaction is completed. This is just one way I try to document my progress toward early retirement and financial independence.
I purchased 37 shares of Medtronic, Inc. (MDT) on 11/4/11 at $34.41 per share. All things considered, I'm happy with this purchase. This is a high quality company that has been near the top of my watchlist for some time now. I would have liked to get it closer to $32 per share, but at the time of purchase MDT is down 7.3% on the year.
I wrote about some of the reasons why I was interested in MDT recently, as it made my list of four stocks I was interested in purchasing this month. It's a solid play in the health care field, and one of the largest medical devices company in the world. It's a leader in its space and it's trying to grow in key emerging markets. My entry yield on my purchase is 2.79%. This is backed by 34 years of dividend growth, so I strongly believe this is going to continue. I feel I got a pretty good value on my purchase. Based on the current payout, I'll be receiving $35.52 in yearly dividend income from this purchase.
I still have enough capital to make one more purchase this month. I'm currently interested in Raytheon Company (RTN), Becton, Dickinson and Co. (BDX), TEVA Pharmaceutical Industries Ltd. (TEVA) (ADR), General Dynamics Corporation (GD), Lockheed Martin Corporation (LMT) and Emerson Electric Co. (EMR). I'm going to be strongly watching these six names over the next week or so.
Some analyst opinions on MDT:
*Morningstar currently rates MDT as a 4/5 star valuation.
*S&P currently rates MDT as a 3-star Hold.
I'll update my Freedom Fund in early December to reflect my recent purchase.
What are you buying?
Thanks for reading.