Recent Stock Purchase III – June 2015

There’s little doubt that current stock market headlines are creating an enormous amount of volatility in the market today. With the stock market averages at all time highs it seems like everyone is itching for that one catalyst that will hammer stocks back into submission.

One such potential catalyst that seems like a familiar song has been played over and over again…. Greece and the PIIGS default. Wasn’t a Greek default in the news in 2010, 2012, 2014 and now, once more, in 2015? Of course, coupled with the Greek potential default in the news we have the seemingly eternal question of when the Fed will finally increase interest rates. This gem of a headline has been making appearances since 2013. To call these events ‘market noise’ is definitely an understatement. I’m simply trying to convey that, while news and events are important, news and events sometimes are not. Despite numerous headwinds facing the U.S. and world economies, the stock market continued to move ahead with higher stock prices and increased dividends with or without you. Since our deep recession began six years ago we saw the ‘end of the U.S. dollar’ as it slid to records lows only to become one of the strongest currencies in recent months. We heard news of the weakest economic recovery, slowest job growth, greatest government bond buying, oil at record prices, oil crashing, gold and silver at all time highs and crashing, all the while high quality businesses such as 3M Company (MMM)Illinois Tool Works Inc. (ITW)Johnson & Johnson (JNJ)Emerson Electric Co. (EMR) and many others continued to march higher despite the market noise and volatility. It’s often said among our dividend community that volatility creates opportunity and that certainly seems to be the case.

Of course, all these headlines and volatility has continued to weaken one sector in particular in recent months, the REITs. With lower prices and strong fundamentals to their core businesses REITs continue to look attractive. With that being said let’s review my recent purchase.

I have added to my IRA account 11.7803 shares at $67.74 for a total investment of $798 in Health Care REIT, Inc. (HCN). With this recent purchase my IRA account holdings in HCN now totals 25.9173 shares for a value of $1,757.19.

For now, I continue to like many of the REITs with a focus on the large health REITs foremost. I have other names on my radar but would like to build up my holdings in HCP, VTR and HCN first. The last couple of months saw my first foray into the REIT sector ever as I have traditionally focused on ‘standard’ dividend growth stocks instead.

What do you think about my recent purchase? Are any REITs or other stocks on your watch list for the rest of June? Please let me know below.

 

Disclosure: Long MMM, ITW, JNJ, EMR, HCN, HCP, VTR

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