Share purchases: March 2017

By | April 16, 2017

Author: Mr DDU.

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We’re into month 3 of our new investment strategy. Now that we’ve been successful with our IVF, we’ve decided to put at least $1,000 a month towards buying shares.

So let’s get into it:

What we bought: Altium (ASX:ALU). We bought 75 Altium shares at $7.26 each, with a dividend yield of 2.89%.

We already owned Altium and posted about them here last year and here last month. In-case you haven’t read those articles, here’s another summary:

What Altium do: Altium are an electronic PCB software company that helps designers design the products of the future. They have a long list of big customers including Toyota, John Deere, NASA, Boeing and Microsoft (and many more). Not bad!

A few numbers:

Market Capitalisation: $993 million

Dividend increase streak: 4 and a half years

In its latest results for 6 months to 31st December 2016 it announced:

Latest dividend increased by: 10%

Latest earnings per share (EPS) increase: 7%

Operating cashflow: USD$13.7m

Profit after tax: USD$9.9m

Why we bought more: The main reason we decided to buy more is because the share price declined by 10% from $8 (which we thought was a good, long-term price) to $7.26. This increased the potential dividend yield by 10%. As long as we’re confident with the business’ potential and future dividend growth, then we’re happy to dollar-cost average at a lower price. Altium is now a sizeable portion of our portfolio so it would need to decline another 10% before we’d buy any more this year.

Risks: We will re-iterate the risks for Altium. Tech companies are always in danger of being disrupted so we’ll have to keep an eye on if any other competitors are coming along or if Altium’s products are becoming irrelevant. But Altium is growing its market share, up to 16% of the global PCB market, so that isn’t the case at the moment.

 

Another March buy

What we bought: Ramsay Health Care (ASX:RHC). We bought 17 Ramsay shares at $64.37 each, with a dividend yield of 2.77%.

We only just bought our first parcel of Ramsay shares in the previous month, but a decline of 5% from our previous buy made the shares even more attractive to us. The share price was just too tempting to ignore and we bought a bigger parcel than we normally do. Let’s go over what Ramsay do in-case you don’t know:

What Ramsay do: Ramsay is one of the world’s top 5 biggest private hospital operators. It has a presence in Australia, the UK, France, Malaysia, Indonesia and Italy.

A few numbers:

Market Capitalisation: $14 billion

Dividend increase streak: 17 years

In its latest results for 6 months to 31st December 2016 it announced:

Latest dividend increased by: 12.8%

Latest core earnings per share (EPS) increase: 13%

Operating cashflow: $457m

Profit after tax: $285m

Why we bought Ramsay: Ramsay could be described as Australia’s best dividend growth stock considering the strength and growth of its dividend over the last 17 years.

We want it to be one our biggest holdings for many years and the share price decline gave us the opportunity to add more to our portfolio.

Risks: We’ll go over our risks again for Ramsay. The main risk we will monitor for Ramsay is its funding. Governments, private health insurance providers and patients will all want to keep a check on Ramsay’s costs. Hopefully anything that comes up will be temporary and be a good buying opportunity for us.

Final thoughts

So there are our 2 March buys, we invested a total of $1,638. We’re happy with both of them, particularly that we reduced our average cost for both companies. The more we can focus on companies that have great futures, a great dividend whilst buying at an attractive price, the better off we’ll be.

What investments did you make in March?

Thanks for reading this article about our investing journey Down Under.

Onwards and upwards!

19 thoughts on “Share purchases: March 2017

    1. Dividends Down Under Post author

      Indeed! but it’s a level we are happy with at the moment. Would rather get a purchase or two in a month than to hoard our cash waiting for bigger purchase amounts to negate brokerage costs. You could always buy with a bigger parcel to make the brokerage less of a killer, everyone’s gotta decide their limit!

      Mrs DDU

      Reply
  1. Dividend Diplomats

    DDU –

    Pretty nice buys and the first having some pretty nice/well-known customer’s that’s for sure! Thank you for sharing and hope you had a relaxing/nice weekend!

    -Lanny

    Reply
  2. Buy, Hold Long

    Very nice purchases. I am hoping to make a purchase soon and possible another in a couple weeks if all works out well. All the best.

    Reply
  3. Passivecanadianincome

    nice buys Ramsay healthcare seems pretty rock solid. Cant go wrong with hospitals people always need them.
    I worked on industrials and purchases Aecon construction. Cheers

    Reply
    1. Dividends Down Under Post author

      Ramsay is one of my favourites for sure. Great to hear you made a purchase in March too, love seeing fellow bloggers portfolios build.

      Mrs DDU

      Reply
    1. Dividends Down Under Post author

      Sounds like you’re another Aussie! Hello there 🙂 thanks for coming by our blog! Ramsay is one of my favourites for sure, but definitely make sure you do your own research and don’t just take our word for it.

      Mrs DDU

      Reply
  4. Graham @ Reverse The Crush

    It’s amazing that you were able to get over $1600 working for you during March. I’m not familiar with either of the companies, but it sounds like you’ve done your due diligence. Furthermore, both companies have double digit dividend growth rates. You can’t go wrong with that. Thanks for sharing!

    Reply
    1. Dividends Down Under Post author

      Thanks :). We really like the $1k commitment too, and so far we seem to be exceeding it each month! I’m really excited to see the dividend growth over the year.

      Mrs DDU

      Reply
    1. Dividends Down Under Post author

      Thanks for coming by and commenting, I see you’re a fellow Aussie, Hi there.

      We don’t currently own any IVF stocks but maybe in the future, not ruling it out but also not high on our “buy” list at the moment 🙂

      Mrs DDU

      Reply

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