I've made my first stock purchase of the month and I'm feeling confident about it. I've really been trying to add solid dividend aristocrats since I kind of fell away from the practice for awhile. I understand the importance of companies with a long history of increasing their dividend payouts so I'm getting back on track.
I know this wasn't one of the companies on my stock considerations list but it is at a great yield point and this is a solid company that will endure the test of time for sure.
VF Corporation is an American worldwide apparel and footwear company founded in 1899 and headquartered in North Carolina. The company’s more than 30 brands are organized into five product categories Outdoor & Action Sports, Jeanswear, Imagewear, Sportswear and Contemporary Brands. The company controls 55% of the U.S. backpack market with the Jansport, Eastpak, Timberland and North Face brands.
This company still to this date has a major amount of clothing in the market. Not only do they control over 50% of the backpack market, they also have a solid financial track record and have been paying out dividends for over 50 years. This company has been a dividend investor favorite for many reasons, strong cash flow, market dominance, amazing payout ratio for current yield and brand resilience. No matter how many times I feel that Timberlands are finally dead, they always make a comeback.
The company is also at an amazing entry point in my opinion. I love to look for solid dividend paying companies that have an attractive price point compared to their 52 week highs and lows. This fits the bill as it provides the purchase with a higher possibility of an uptrend. I know this doesn't always hold true and I do purchase shares of companies that have the potential to move upward such as AFL, ORI, CLX and EMR
Side note, I would love to see the company produce a jacket similar to Canada Goose that could step toe to toe with those overly priced things.
on 3/16/2017 I purchased 20 shares of VFC for $53.96 per share. This has affected my Annual dividend payout by $33.60. With the addition of this company to my portfolio my expected annual dividend payout is now at $1121.95.
Heres the statistics that make me love this company.
DIVIDEND YIELD 3.10%
FREE CASH FLOW 1.3 Billion
ANUALIZED PAYOUT $1.68
PAYOUT RATIO 54.5%
DIVIDEND GROWTH 44 yrs
With this purchase I have now also added my 13th company into my holdings. I'm right on track to hitting my 20 company goal mark for the year and this further helps to diversify my holdings to create a solid and consistent investment machine. I don't think I need to rehash the importance of diversifying ones portfolio.
I'm super satisfied with the direction of my holdings and I'm excited to diversify them even more of the next year. As my portfolio as grown I have really started to appreciate the stability that diversification can have on ones portfolio. I look forward to next month when my tax refund lands within my bank account and I can add a few more companies to my portfolio also. I'm pretty sure the game plan will be to pick up 2 new names and to add to a current position. I have my eyes on XOM for the addition but It will all depend on what the price of crude does over the next month. I have also started looking at adding more to JNJ along with PEP as these have been some solid dividend earners in my portfolio.
I have a lot of good articles in the works and I look forward to pumping out my next purchase article along with a few articles that hold dear to my current investing strategies.