Recent Sell – ADM, SBUX


A quick update on three sales in my portfolio. Both companies below are still great companies to hold for the long haul, and I may consider re-initiating a position in them during the next cycle. In addition, part of the reason for also selling is to move some of these funds towards passive investing as I want to reduce my number of holdings and focus on a smaller group of companies.

Archer Daniels Midland (ADM)

A dividend champion that I’ve held since 2013. The food/commodity business is a tough sell and there are some very good bullish and bearish cases for holding this company. However, the company has continued to increase payout ratios over the past few years as it wants to grow its dividends, just for the sake of record. This is not the right move imo, and I will look for a better home for my investment dollars.

Total profit (including dividends): 32.8%. 

Holding period: 4.5 yrs

Starbucks Corp (SBUX)

This is one of those investments that has traded sideways for me. With the founder Howard Schultz stepping down from CEO position, the spark has gone from this stock. However, the company is still functioning pretty well. I am not as confident in the growth story of this company as I was a couple of years ago. I have decided to exit this position, esp this late in the market cycle and re-evaluate in coming months/years.

Total profit (including dividends): 9.2%. 

Holding period: 2 yrs

What do you think of these sales? Let me know with a comment below.

Recent Buy – Starbucks Corp

As is customary, I document and share all my recent purchases. The stock market has had a terrible start to 2016 – with equities across the board falling. Even with that, we were not able to pick up any shares that were in our buy range – but that finally one came along last week. I had entered a couple of GTC orders and one of them got executed.

Last week, we added to our position in Starbucks Corp (SBUX) with 25 shares @ $54.80. The stock yields 1.47% adding $20.00 to our annual dividend income.

Recent Buy Decision

Starbucks has been my top pick for 2015 and 2016 and I have written a lot about the prospects of Starbucks. Its a great company that is growing fast and expanding immensely both in US and  international markets.

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Starbucks Corp – My Top Pick for 2016

As the year 2015 wraps up, we can look back at the year that was: a volatile market that has gone nowhere in particular, ending the year pretty much flat. More importantly, with the turn of the calendar year, we can start to look ahead as to what 2016 will bring. In addition to setting financial goals, I am also considering what stocks to invest in, as I continue my journey towards financial independence.

I am yet to finalize a list of targeted companies broken down sector-wise that I will be sharing with the readers in the new year, but I wanted to get a jump start and share my top pick.

This year’s top pick for me is no different than my top pick for 2015 – Starbucks Corp (SBUX).


Starbucks Performance YTD 2015

Starbucks started the year 2015 at a (split-adjusted) price of $41.07 and as of this writing, is currently trading at $61.13. The stock price has appreciated a massive 48.8% and paid an additional 1.2-1.3% in dividends bringing the total return to a neat 50%.

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Recent Buy – Starbucks Corp

Well, the market is finally turning south. This correction has been long overdue and much needed for the overall health of the market. Whether this will turn into a short-term correction or beginning of a bear market remains to be seen. I continue to purchase looking for good opportunities trying to tune out the noise as a majority of these occurrences are out of control. Whenever I make a purchase, I like to share my buys to document and illustrate how I am building my income stream over the course of months/years. My main goal is simply to keep investing at regular intervals and build my passive income over the course of time. In staying true to tradition, here’s another purchase in my portfolio, this time adding a new company to my portfolio – my 32nd company.

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