Tuesday, 8 December 2015

New Purchase - Cummins

As the sell off continues, I was hesitating between CMI and UNP. I also wanted to buy more ACO.X and CU. In the end, I settled for 50 shares of CMI, which brings my total holdings to 90 shares at an average cost of $9,875.85, or $109.73 per share.

Number of shares purchased
50
Price per share
$89.80
Commission
$9.95
Total cost per share
$90.00
Total cost
$4,499.95
Annual dividend per share
$3.90
Initial dividend yield
4.33%
Increase in forward 12-month dividends
$195.00


My 12-month forward dividend income stands at $9,853 per year.

I think there is indiscriminant selling for very high quality companies at the moment and I'm in buying mode.

7 comments:

  1. CMI was one of my most recent purchases as well - I think it's very undervalued at current prices.

    ReplyDelete
    Replies
    1. Agreed. Solid Management, high quality products and a very attractive dividend yield made CMI irresistable.

      As of late, I've been a little piggy in this market ridden by fear.

      Thanks for stopping buy.

      Delete
  2. Nice buy ADY. I bought some CMI recently. I will average down if this dips further. I think it is perfect time to do the buying.
    D4s

    ReplyDelete
    Replies
    1. I'm with you on the timing. I noticed that in general, there have been a lot less "buy articles" from bloggers and persons have been posting extremely negative comments wrt WMT and CMI on seeking alpha. The market is all about psychology when it should be all about future earnings.

      Happy hunting.

      Delete
  3. Good buy. I am long CMI. I bought shares earlier in the year at a much higher price and I was happy then too. Nice job buying on the dip.

    ReplyDelete
    Replies
    1. I purchased some shares when they were over $130! Wish i had known.

      When looking at the capital losses in my portfolio it shows me that I have not always been patient enough. I'll try and do better in 2016.

      Take care

      Delete
  4. This comment has been removed by a blog administrator.

    ReplyDelete