Author: Mr DDU & Mrs DDU.
Disclaimer: Stocks mentioned on this blog are for general entertainment/documentation purposes only, following our own investment journey and decisions. Nothing in this article should be considered investment advice nor is intended to be investment advice. Please click here to continue reading our disclaimer. By viewing any page on this blog you are agreeing to the linked terms & conditions.
So, let’s get into it:
What we bought: National Veterinary Care (ASX:NVL). We bought 241 shares at $2.48 each.
What National Veterinary Care do: They aim to be one of Australia and New Zealand’s largest vet groups.
A few numbers:
Market Capitalisation: $131 million
Dividend increase streak: Not started yet
Latest result: 6 months to 31st December 2016
Latest dividend increased by: No dividend declared
Latest earnings per share (EPS) increase: 772.6%
Operating Activities cashflow: $6.4m
Net Profit after tax: $2.86m
Why we bought more National Veterinary Care shares: We said in (reasonable) detail in our first purchase and second purchase about why we considered National Vet Care, even though it’s not paying a dividend yet.
We wouldn’t normally go back to buying the same share so often but each month we look to see what’s trading at the best value. If one of our long term dividend favourites, like Ramsay, aren’t trading at great value then we next look at other ones we already own. National Vet Care keeps making acquisitions which improves its future rolling 12 months of revenue and profit. This is both good for future growth of our shares and also made us think the share price doesn’t reflect all the future growth. Hopefully they will start paying a dividend this month and keep growing it for many years to come.
Risks: As long as the number of pets in Australia/NZ keeps rising then there shouldn’t be that much risk.
Another July buy
What we bought: WAM Microcap (ASX:WMI). We bought 432 WAM Microcap shares at $1.17 each.
What WAM Microcap do: It’s an investment company following in the footsteps of the other WAM listed investment companies except this one invests only in small cap stocks. It’s new but we think it has a great future.
Why we bought WAM Microcap: We think the WAM companies are some of the best dividend shares in Australia and this latest one gives us diversification to small caps that we’d never consider for our portfolio. Diversification is always a good thing if it keeps up a strong performance. After two months the WAM Microcap portfolio had already returned 5.9%. Hopefully it turns into a strong dividend payer for us over time.
Risks: The small cap space is much more volatile than most others, but that could just give us more opportunities to buy at a discounted price sometimes. Key person risk is important to consider, but we’re only going to let this be a smallish part of our portfolio over time.
So, there are our 2 July buys. We invested a total of $1,125, nicely beating our goal of $1,000 a month. We think in five years time both of these will be solid dividend payers for our portfolio and that’s the type of stock we want – what’s good for us now and in the future.
What investments did you make in July?
Thanks for reading this article about our investing journey Down Under.
Onwards and upwards!