Monday, February 16, 2015

Recent Buy - Dover Corp (DOV)

Hi Everyone,

February is half way over and I put quite a good bit of money to work in the past week.  The only way to get closer to the American Dividend Dream is to keep buying high quality companies and letting the portfolio compound for years to come.  Hopefully I was able to pick stocks that continue to do what they do - reward shareholders!  With the market staying around all time highs I continue to look for companies that are attractively valued.  It gets harder and harder every day as the market keeps going up but I think I found a few good ones.  First up, Dover Corp (DOV) so without further adieu...

I purchased 27 shares of Dover Corp (DOV) at 74.15.  This purchase adds $43.20 of annual dividends to my account.

I now own 27 shares of Dover as this was a new purchase which means I have 31 individual companies that I am invested in.  Phew that's a lot!  I may add to this position in the future, or I might just let the position compound for years to come, either way I'm happy.  Forward dividends now stand at around $3,614 for the next 12 months and I just happened to get Dover before the ex-dividend date so I will not miss any of their payouts!  The portfolio will be updated to reflect this purchase.

From Google Finance: Dover Corporation (Dover) is a diversified offering innovative equipment, components, and specialty systems. The Company also provides supporting engineering, testing. The Company operates through four business segments: Energy, Engineered Systems, Fluids, and Refrigeration & Food Equipment. The Company’s businesses are based primarily in the United States of America and Europe with manufacturing and other operations around the world.
DOV Chart:


P/E:  16
Yield:  2.15%
Market Cap:  12.5B
Dividend Growth Rate (5yr):  9%
Payout Ratio: 33.5%
Years of Dividend Growth:  59 years!!

I purposefully made the 59 bold for the years of dividend growth above...   Think about that, 59 YEARS.  This company has been raising dividends for longer than my parents have been alive.  That was a main driver for buying that company, but not the only one.  The stock has recently pulled back 22% from it's high, I got in right before the ex-dividend date, low debt and close to $700M in cash.  The market is fearful about the weakness in oil and Dover's subsequent energy portion of its company.  However, even though guidance has been lowered twice in just the past few months, they are still expecting to have increased earnings over this past year.  Forward PE will be down to 15 at my purchase price and if oil/gas comes back just a bit, earnings could beat estimates and Dover will be sitting pretty.  

So there you have it, the next building block on the path to the American Dividend Dream!  What do you think, good purchase, bad purchase?  What are you looking to buy next?

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