What Did You Buy Today?

[vbin]

Added KR. They are working on integrating future tech with grocery delivery.

[Otter]

Added a little to my PM position this morning.

[Otter]

(09-13-2018, 09:30 AM)fenders53 Wrote: Sold a covered MO put with a great premium close to the money today so I should be long MO soon.  I am VERY tempted to add some more SO today.  SO seems to have a lot of support just south of current price.  Close enough anyway for a longterm hold.  I have been bitten by DIV yield traps in the past but never by a utility company.  They always get the BIZ figured out eventually and get by with it in the meantime because they have no competition.

There is competition on the long-term horizon. Locally-generated renewables that don't depend on the grid, like rooftop solar, will (in the long term) put a lot of pressure on the capital-intensive business model of traditional utilities. I don't see it significantly impacting earnings, or the ability to raise rates, in the short-term. But it is a systemic risk to the business model on the horizon. 

There will always be a place for traditional utilities, as heavy industry needs a steady supply of lots of power. The overall market may shrink though, as residential and light commercial development increasingly power themselves.

[fenders53]

My comment was a bit of a generalization.  In relative terms the competition is nothing.  A tech company makes a  couple bad decisions and 50%+ in market cap can vaporize in a hurry.   

My favorite utility is XEL.  Pre-merger it was Northern States  Power.  I've owned it 25 years.   Purchased most of my shares at $7.50 when they had a bad year in the 90s.  Market acted like they were going out a business when there was no other real power option.  Every year renewables (currently wind) become a larger % of their total power generation.  Solar will not be viable anytime soon in many parts of the US.  I do wish it was but we aren't there yet.  I don't think we disagree so much.

Back on topic I sold another slightly in the money SO Put today.  Pretty much the same as going long today.  If assigned my SO will cost under $43.20 per share.  I am comfortable with that.  Not yet convinced SO is well managed, but the dividend should be secure and you won't find 5%+ often.  I am pretty convinced anyone over the age of 30 should begin searching for that utility company with great management, then add to the position when utilities are out of favor which is usually at least an annual event.  Start early and allow the dividend to compound.  It's nice to have  a few stocks in the Port you don't have to worry about getting crushed when the markets get rough which is inevitable in all our investing lifetimes.

[DividendGarden]

was on vacation last week but an order for MO went through. Bought below $60. Back in town today and I see it's up over $62. Nice!

[vbin]

Added a little more Starbucks

[crimsonghost747]

Buys for this month:
CM.TO
TD.TO
OMC

[divmenow]

Added a little TGT and WEC this week.

[divmenow]

Just bought some Innovative Industrial Properties, Inc. - IIPR

I suggest you all take a position in this one. Pays a nice 3% yield and best of all its in the growing cannabis industry. They provide state-licensed cannabis growers under long-term triple-net lease agreements. Thank me later on this one lol

[fenders53]

Utilities are getting killed today. Finally have an entry position in my beloved XEL. Sold my 25 year old position in a taxable account so I can pay my stupid taxes on a significant CAP gain while my income is still low a few more years.

Not really a purchase but I did a buy to close a MMM put position. Had a chance to make a decent profit. I am not as excited about being forced into a MMM position as I was a week ago. I have a feeling China is going to fight long enough to screw up a quarter of earnings for a lot of companies. Our Prez ain't backing down much even if it hurts in the short-term IMO. Some stock deals may be forthcoming.

MJ stocks are tempting currently but I've had my nose bloodied before. I'll tread lightly before I pull the trigger.

[crimsonghost747]

(09-19-2018, 11:08 AM)divmenow Wrote: Just bought some Innovative Industrial Properties, Inc. - IIPR

I suggest you all take a position in this one. Pays a nice 3% yield and best of all its in the growing cannabis industry. They provide state-licensed cannabis growers under long-term triple-net lease agreements. Thank me later on this one lol

I decided to take a look. A few points:

+Ridiculously good cap rates.
+Definitely a business that is growing fast. Just compare Q2 results with last years. Or even last Q.
+Competitive dividend
+NO DEBT!? For a REIT? Yup. (they paid for all the acquisitions though issuing new shares. Lots of cash left from that for more acquisitions)

+-Apparently they are officially not a REIT yet but that is the plan.

-FFO looks to be a little over $1.00, so "P/E" of 40 or so. Less with AFFO.
-cashflows are a bit iffy, then again that would be normal if they are going for the 90% distribution that REIT status requires.
-We are a little late to the party. Was trading below $40 until a month ago and you could get it for below $30 for almost the whole Q1 this year.

Overall it really does look good! Thanks divmenow! I have some thinking to do but this will probably end up in my portfolio.

[divmenow]

Anytime crimsonghost747. I'm glad you approved lol

Also IIPR raised its dividend from .25 to .35 last quarter. That was a 40% increase.