Recent Buy – Johnson & Johnson


Another purchase in my portfolio to close out this quarter. I added to my position in Johnson & Johnson (JNJ) with 15 shares @ $98.50. The stock yields 3.05% adding $45 to my annual dividend income.

Recent Buy Decision

  • Johnson & Johnson barely needs an introduction as it is one of the best known brand names in the world. The company is a well diversified healthcare giant with three major segments – pharmaceuticals, medical devices and consumer goods.
  • A global giant, sees revenue diversification breakdown of: 45% from US, 26% from EU, 18% from Asia-Pacific, and 10% from the rest of the world
  • JNJ came under a lot of pressure in 2014 with record recalls and lawsuits. As expected, JNJ has turned things around and the company now runs more efficiently with better QA in order to avoid similar mistakes.
  • One of only three companies having a AAA rating from S&P (the other two being Microsoft (MSFT) and Exxon-Mobil (XOM))
  • My healthcare diversification had shrunk – with only Amgen Inc (AMGN) making my other healthcare exposure. I decided to add here as the sector is recession-proof and is seeing robust inflation
  • JNJ expects to launch 10 new drugs by 2019, each with a $1B potential
  • A dividend champion, with 53 consecutive years of dividend raises, and 31 consecutive years of adjusted earnings increases

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Chatter Around the World – 102

Chatter Around the World is a curated weekly update of articles related to economics, investing, dividends and personal finance. In these weekly updates, I also capture my blog updates and news related to my portfolio holdings.


New NASA data shows how the world is running out of water

Image Source: Wonkblog

New Blog Posts

Let’s dive into the links that caught my attention this week.

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Recent Buy – Bank of Nova Scotia


Another purchase in my portfolio to close out this quarter. I added to my position in Bank of Nova Scotia (BNS.TO) with 20 shares @ C$65.65. The stock yields 4.15% adding C$54.40 to my annual dividend income.

Recent Buy Decision

  • Bank of Nova Scotia is the third largest financial institution in Canada – one of the oldest and most prestigious banks, which has rewarded shareholders extremely well through the decades.
  • BNS has the second longest dividend payment streak in Canadian corporate history – without a single miss in dividends since 1832!
  • BNS is the most international of the Canadian banks – with exposure in 55 countries outside Canada. More recently, the bank shed some assets/jobs in South America and has been expanding in Mexico – buying operations from Citigroup, and also in talks to buy operations from HSBC.
  • The Canadian financial sector has been under pressure due to the energy market turmoils facing the economy. While this effected the oil, gas and rest of the commodity markets – which has a heavy weighting in the Canadian market, the financials also suffered. Bank of Nova Scotia (and other Canadian banks) have traded sideways through the year – and as I mentioned in this post from Feb 2015, the pressure through 2015 should provide decent investment opportunities and recommended investors to keep adding shares as the long term prospects of these banks are undeniably bright.
  • My full dividend stock analysis (from Oct 2014) can be found here. BNS is still one of the most undervalued companies in the Canadian banking sector.

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How to Invest in Water – Water Utilities

The next hot investment is water. Water, freshwater to be particular, will have a profound impact on human civilization in the coming decades. Naturally, the savvy and prudent investors will have some exposure to water in their portfolio, as the value of water rises. In this series of posts, I will cover some obvious and not-so-obvious ways to invest in water. This the first post of the series and we look at the most obvious of the investment vehicles available for water, i.e.,  water utilities.

The advantage of investing via utilities is that the companies provide a crucial service and have been around for over a 100 years, having stood the test the time. Lucky for income investors, the water utility companies also pay a decent dividend and all companies mentioned here are proven dividend growers.

How to Invest in Water

The water utilities industry is fairly small, with just a few players, each covering a small region of the country. The major players are summarized below. Only companies paying dividends are profiled in this article. In addition, there might be other companies that operate in utilities, but have water as just one segment of the business, instead of the main focus. This list looks are pure-play water utilities.

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Recent Buy – Ventas Inc

Ventas Inc

A new purchase and a new addition to my portfolio! Over the last few weeks, I have been re-evaluating my overall portfolio to see where I can tweak things to shed positions that do not make sense for my investing needs anymore, and re-allocating those funds where good opportunities exist. While the overall market is at lofty levels, it is important to remember that it is market of stocks and not a stock market. Yes, the indexes point to the fact that the overall market (measured according to these indexes – which simply includes the valuation of the index components) are stretched, but some companies have already gone close to correction or attained technical correction territory (fallen atleast 10% from the peaks). So, looking at these pockets of opportunity, I have decided to initiate a new position.

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