Portfolio Update: New Addition (AMGN; April 01, 2015)

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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:

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http://www.morningstar.com/stocks/XNAS/AMGN/quote.html

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.

Thoughts

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! 🙂

 

Happy Investing!

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SundeepFI InvestorZeeGen Y Finance GuyFI Fighter Recent comment authors
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Roadmap2Retire
Guest

Welcome as a fellow shareholder. I bought AMGN in Feb and now that I have some skin in the game, I pay closer attention to whats going in. I have to admit that there is a lot of like in the company – the cash flow is fantastic..and some analysts are suggesting that the dividend could easily double over the next few years. It seems like this year the div increase is going to be another big one….and I will be looking to add more shares before the div inc announcement.

cheers
R2R

Gen Y Finance Guy
Guest

Even with the market down a bit, I have a hard time committing new capital at near all time highs. I am sitting with over 50% cash patiently waiting for more attractive prices.

In the long term your buys will be great. However, I think there are better prices ahead and I will continue to build up the cash stash while I wait.

In the meantime I have been selling calls against long positions to get a little downside protection on any significant correction.

Cheers!

Gen Y Finance Guy
Guest

And the market could also continue higher and finish the year up another 15% and I would be the one that looks like the idiot.

No one knows for sure 🙂

Cheers!

Zee
Guest

I’ve had my eye on UA for a while now, I think it’s growth potential looks great. But it just seems like such an expensive stock at the moment that I can’t pull the trigger on it yet…. I’ve been hoping for at least a little more pullback on it, I think I would be a buyer at around $70-71 but I’m not sure if that’s going to happen or not.

FI Investor
Guest

I have been watching AMGN and GILD for about two months now waiting to initiate a position in the biotech field but the fact that AMGN is paying a dividend might be the decision maker for me. As for UA I absolutely love this stock and I was smart enough to grab some shares back in 2012 which have since given me a return of 177% which is the exact reason why it is a good idea to throw some growth companies in along with dividend payers.

Sundeep
Guest
Sundeep

Nice idea with AMGN, even moreso with the decent dividend, especially for a high growth stock. Will add it to the “list.”

Also thanks for the tip to look at UA. I’ve witnessed the rise of the company out in the public with their gear, but didn’t think to look into them as an investment. Maybe the next Nike, worth some due diligence at the least.

On a side note, do you or anyone of your other readers use the FAST Graphs Screening tool used by quite a few folks on the Seeking Alpha site. I’ve seen several articles use it and it seems to be pretty awesome…just wondering.

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