Well, it’s been a few weeks since I last made any stock purchases, but with the markets down again today, I decided it was time to make another move. Although my last few buys could be classified as conservative (initiating positions in KO, EMR, T, TD, etc.), my underlying stock strategy features a blend of both defense and growth.
Today, it was time to focus on the growth aspect of the gameplan. I initiated a position with Amgen (AMGN) and picked up 35 shares at $154.91/share.
Here are some key stats from Morningstar, where AMGN is currently receiving a 4-star rating:
P/E is currently 23.9 and Forward P/E is about 14.9 (not shown in the chart), which is not outrageous.
AMGN is a play in the growing biotech field and will complement my position in Gilead Sciences (GILD) rather nicely. The bonus? With Amgen, not only do you get to ride the biotech wave into the future, but you also get to collect a decent dividend in the process. AMGN is currently paying out $0.79/quarter, which represents a dividend yield of 2.04%.
This purchase will add $110.60/year in passive income.
Although I added 35 shares, ideally, I would have liked to have picked up a bit more AMGN during this most recent pullback. Capital is kind of tight at the moment, so I will have to be content with things as is. Some other stocks under consideration for this morning’s purchase included:
- Union Pacific (UNP)
- Starbucks (SBUX)
- Under Armour (UA)
If I had more funds available, most definitely I would have initiated a position with UNP today. Union Pacific is a best-of-breed type of company that I would love to own in my portfolio.
Down the line, I would like to get into some shares of SBUX and UA for future growth. UA was not accounted for in my initial list of stocks to buy, but I love the growth prospects of this company.
My philosophy remains that it is preferable to invest for not only dividend growth, but also overall portfolio growth. I love a good mix of both defensive Core Holdings to weather any economic storms, and also some aggressive high-flyers that are dominating their respective industries.
I want my cake… and then I want to eat another one! 🙂