My November 2016 Investment Activity
My Undervalued Dividend Growth Stock Purchases
November, like most months, I made my normal $500 purchase plus my option income for the previous month($176.50):
- On 11/16/2016 I bought 17 Shares of CTBI at $41.55 ($-713.35 purchase).
This added to my 15.132 shares I already owned.
From Google Finance:
Community Trust Bancorp, Inc. (CTBI) is a bank holding company. The Company operates in the community banking services segment. The Company owns a commercial bank and a trust company, serving small and mid-sized communities in eastern, northeastern, central and south central Kentucky; southern West Virginia, and northeastern Tennessee. The commercial bank is Community Trust Bank, Inc., Pikeville, Kentucky (CTB) and the trust company is Community Trust and Investment Company. Through its subsidiaries, CTBI engages in a range of commercial and personal banking and trust and wealth management activities, which include accepting time and demand deposits; making secured and unsecured loans to corporations, individuals and others; providing cash management services to corporate and individual customers; issuing letters of credit; renting safe deposit boxes, and providing funds transfer services. Its lending activities include making commercial, construction, mortgage and personal loans. am not too worried as I plan on holding the stock for years and years to come.
After I completed my dividend watch list, I decided that I wanted to buy a small bank stock because I believe Trump is going to reduce regulation and possibly even hurdles to merger. This left me with
I didn’t want to go the OTC route so out went NIDB, EFSI and CPKF. THFF and CTBI had similar PE (15.4 vs 14.3) operating margin and P/B are all the same too 37% vs 36% and 1.5 vs 1.2. CTBI has a higher dividend with 3.02% vs 2.31% but also a higher payout ratio 46.3% vs 33.10%. I decided to go with CTBI because I already had a small position in it and I would like to build it deeper. had to buy 676.50 ($500+176.50) – bought in at 706 for 17 shares ($41.55).
I also (reluctantly) purchased 100 shares of Under Armour. For the first time since August, I was actually assigned a stock that I sold a naked put against. I bought $3,150 worth of UA, and have been selling covered calls at the $3,200 strike price ever since. It will eventually be called away, but until then I will collect a weekly paycheck for holding it (thus far $64.91).
My Investment Income
- I only received $17.09 in dividend income (automatically reinvested in $CAT); and
- I earned an amazing $506.46 selling naked short puts – this includes $64.91 in covered calls (might even be higher as I closed something yesterday that wasn’t settled yet)
That increase is ridiculous! I am absolutely loving selling naked puts.
My Current Holdings & Ratios
|Company||Ticker||Shares||Price||Value||Cost Basis||Current Dividend Payout||Current Expected Annual Income||Yield on Cost|
|Community Trust Bankcorp||CTBI||32.132||$42.50||$1,365.61||$34.09||$1.28||$41.13||3.75%|
|CULLEN FROST BANKERS INC||CFR||10.078||$84.25||$849.07||$65.23||$2.16||$21.77||3.31%|
|SONOCO PRODS CO||SON||22.159||$53.95||$1,195.48||$36.79||$1.48||$32.80||4.02%|
|PRICE T ROWE GROUP||TROW||35.244||$69.13||$2,436.56||$69.13||$2.16||$76.13||3.12%|
|UNITED TECHNOLOGIES CORP||UTX||20.129||$107.54||$2,164.67||$87.58||$2.64||$53.14||3.01%|
I am not as worried about the value of the account at the current time as I am the amount of shares and expected income. While I obviously care about the value of the account I understand it is going to fluctuate wildly month over month and year over year. Minus a reverse split the number of shares should always increase as should expected annual income.
- The share number increased from 246.542 to 263.726
- The annual expected income increased from $447.62 to $471.79