Today’s purchases were all companies trading at attractive yields with healthy balance sheets and consistent earnings. Benjamin Graham recommended an earnings yield at least double the typical investment grade corporate bond, which is now 3.77%. Double that would be 7.54%.
I’m finding that it is much harder than in past years to find quality bargains after the run up in the markets. It figures that as soon as I launch this site, the markets are uncooperative! I may not be able to become fully invested before January 2017 due to the lack of attractive options, but that’s okay. I’m sure Mr. Market will be in a different mood eventually.
My objective is to complete my purchases on an annual basis and give the stocks a year to work out with an annual re balancing every December so I can take advantage of the January effect. If I cannot become fully invested by year end, I will likely purchase some short term treasury instruments. At the moment, 49.56% of the fund is now invested.
37 shares of Valero (VLO) @ $67.58
Earnings Yield = 7%. Dividend Yield = 3.57%. The earnings yield is bit lower than I typically demand, but when combined with the dividend yield, share buybacks and the apparent bottoming of oil prices I think it is a good value.
337 shares of Manning & Nappier (MN) @ $7.51
Earnings Yield = 8.9%. Dividend Yield = 8.48%
129 shares of IDT Corporation (IDT) @ $19.75
Earnings Yield = 9.31%. Dividend Yield = 3.92%
81 shares of Cato Corp (CATO) @ $30.70
Earnings Yield = 8.60%. Dividend Yield = 4.34%
171 shares of United Insurance Holdings (UIHC) @ $14.90
Earnings Yield = 9.23%. Dividend Yield = 1.59%
65 shares of Cooper Tire & Rubber Company (CTB) @ $38.80
Earnings Yield = 10.96%. Dividend Yield = 1.08%
61 shares of Greenbrier Companies (GBX) @ $41.75
Earnings Yield = 14.08%. Dividend Yield = 2.07%.
PLEASE NOTE: The information provided on this site is not financial advice and I am not a financial professional. I am an amateur and the purpose of this site is to simply monitor my successes and failures.