Portfolio Update (September 2015)

Third month into the start of my new portfolio and I have added four more companies into my portfolio. From October onwards, I will start the consolidating phase, adding more shares to the six companies and reviewing the portfolio for changes to the companies that I will want to invest in.

Third month since I started on my new portfolio and after reviewing of my investment plans, I had made investments and added four more companies into the portfolio.

The third company that I had added into my portfolio was Automatic Data Processing, Inc. (NYSE: ADP). Bought 6 shares of ADP at $77.1975 each. The additions to the portfolio was followed by 4 shares of Clorox Co (NYSE: CLX) at $111.70, 5 shares of PepsiCo, Inc. (NYSE: PEP) at $92.35 and 11 shares of Abbott Laboratories (NYSE: ABT) at $43.78.

After buying all the shares that I had planned for this year, marking the end of the portfolio’s building phase. From October onwards, I will be moving into the consolidation phase where I will start buying more shares once a year and will be expecting to collect dividends once a month (surprising the dividend distributions are spaced out quite evenly). The dividends collected will be reinvested to buy more shares using DRIP.

Stock Holdings

Stock holdings as of September 30, 2015. Cost basis is the total invested amount, including dividends that were reinvested and the commissions and taxes paid. This cost will be used in the percentage calculations for YTD dividends, and profit and loss.

Stock Symbol Shares Cost Basis
Home Depot, Inc. HD 4.01400 $480.55
Johnson & Johnson JNJ 5.02812 $509.59
Automatic Data Processing, Inc. ADP 6.00000 $473.18
Clorox Co CLX 4.00000 $456.79
PepsiCo, Inc. PEP 5.00000 $471.74
Abbott Laboratories ABT 11.00000 $491.57
Total Investment Amount $2,883.42

Dividends

Johnson & Johnson (NYSE: JNJ) paid a total of $3.75 of dividends, before tax, on September 09. The dividend has been converted to 0.02812 worth of shares at $93.1624 each via DRIP.

Home Depot, Inc. (NYSE: HD) has also paid a total of $2.36 of dividends, before tax, on September 17. The dividend has been converted to 0.01400 worth of shares at $118.1616 each via DRIP.

ADP began trading ex-dividend on September 09, 2015, with cash dividend of $0.49 per share to be paid on October 01, 2015.

Stock Symbol YTD Dividends
Home Depot, Inc. HD $2.36 0.50%
Johnson & Johnson JNJ $3.75 0.76%
Automatic Data Processing, Inc. ADP $0.00 0.00%
Clorox Co CLX $0.00 0.00%
PepsiCo, Inc. PEP $0.00 0.00%
Abbott Laboratories ABT $0.00 0.00%
Total Dividends $6.11 0.21%

Profit & Loss

The month of September was with a lot of uncertainties. There were a lot of anticipations that the Fed will be raising their interest rates but when the announcement that the interest rates were not to raise this month, signalling that the global economy is still dangerously weak. That drove the stock prices to fall sharply.

Stock Symbol Profit/Loss
Home Depot, Inc. HD $16.23 3.39%
Johnson & Johnson JNJ $39.08 7.69%
Automatic Data Processing, Inc. ADP $8.98 1.90%
Clorox Co CLX $5.33 1.17%
PepsiCo, Inc. PEP $0.24 0.05%
Abbott Laboratories ABT $49.15 10.00%
Total Profit/Loss $90.43 3.14%

Portfolio New Addition: Abbott Laboratories

The second company in the healthcare sector that I have invested in. Although the reasoning to hold the shares of Abbott Laboratories (NYSE: ABT) is not strong, I had to choose the better ones from this sector as a means to diversify in my investments. A look at the rationale behind investing in Abbott and a reminder to why I should continue holding on to it.

Abbott Laboratories logo | Investor MonkeyAbbott Laboratories (NYSE: ABT) is engaged in the discovery, development, manufacture and sale of a range of health care products. Abbott operates in four business segments: Established Pharmaceutical Products, Diagnostic Products, Nutritional Products, and Vascular Products. The Established Pharmaceutical Products segment includes the international sales of a line of branded generic pharmaceutical products. The Diagnostic Products segment includes the sales of a line of adult and pediatric nutritional products. The Nutritional Products includes the sales of diagnostic systems and tests for blood banks, hospitals, commercial laboratories and alternate-care testing sites. The Vascular Products includes the sales of coronary, endovascular, structural heart, vessel closure and other medical device products.

Rationale for Addition to Portfolio

Abbott has been growing their dividends at an average of 8.3% annually over the past five years. With a payout of 60.4% for the fiscal year 2014, Abbott’s payout ratio is still within the range of what I am comfortable with.

Healthcare sector was one of the sectors that I have chosen to invest in and selection of a company to invest in the healthcare sector was tough as most of the companies could not meet the selection criteria for the portfolio. Abbott proves itself as one of the better ones within the sector as the dividend payout is more stable as compared to its peers of the healthcare sector.

Transaction Details

Date September 16, 2015
Shares 11
Price 43.78
Yield (TTM)* 2.15%
* as at time of purchase