This time I have decided to purchase a small bank called Tompkins Financial. Most of you may have never heard of this little bank but it is a dividend champion with 27 years of dividend raises. The company has been around for over 170 years and operates over 65 banks in the north eastern United States.
I was torn between buying more General Mills (GIS) and starting a position in Tompkins Financial (TMP) since both have been on a bit of a downtrend lately. Ultimately I went with TMP simply for more diversity.
A curious thing happened with my order at my brokerage. My purchase price was $44.50 which was actually higher than the daily range of the stock price over the entire trading day. The trading range went from $44.12 - $44.44 which I checked on a few sites. I have no idea how my brokerage managed to execute my order so poorly and even if it did go through shouldn't the daily range been at least $44.50 on the high range ? It wasn't a premarket order or anything like that, just a limit order which I wish I set a tad lower. Not a big deal but I've never seen that before.
Edit: I contacted my broker to find out more about the trade and they cleared things up for me. Turns out that unless the transaction is at least 100 shares it will not be reflected in the daily trading range. Makes me wonder what the daily trading ranges really are in some stocks.
TMP Stock Chart
TMP Basic Statistics
- Ticker Symbol: TMP
- PE Ratio: 12.5
- Yield: 3.6%
- Dividend Growth 5yr: 6%
- Payout Ratio: 43%
- Market cap: $654m
- Website: http://www.tompkinsfinancial.com
TMP Dividend Growth
That's really odd about your brokerage Captain, unless you executed in Extra Hours. Thanks for the dividend idea, I'll take a look
ReplyDelete-Bryan
What's even more interesting is that at the very least the NYSE should have reported a daily range at least as high as my trade right ? Kinda shady
DeleteInteresting choice, and one I'll have to look into and learn more about! Good to see you still adding to your portfolio!
ReplyDeleteThanks for stopping by my neck of the woods. I don't know how many more positions I'll be adding really. I don't really like the idea of setting a hard cap on max positions however I don't think I'd ever hold something like 50 stocks. That's too much to keep up with for me.
DeleteInteresting choice, didn't know about this stock at all. Considering we already own a lot of Canadian banks in our portfolio, we probably won't be adding any bank stocks any time soon. Thanks for sharing.
ReplyDeleteIt's definitely not a big name by any means. A small market cap under 700 million puts it off the radar for many investors. Management seems to make smart decisions which even kept them out of trouble during financial crisis. Decent starting yield, decent growth, low p/e ratio and low payout ratio too. :-)
DeleteDefinitely interesting pick. From the looks of it, it seems like a very consistent dividend raiser. Where did you manage finding this neat dividend player?
ReplyDeleteAs far as your order error goes, I would contact the brokerage and would try to capitalize on their mistake, that is if you set a limit order. Perhaps the least they could is give you a few free trades.
I initially found it by running a screen on Dividend and Whisky's site ( http://dividendandwhisky.com/dividend-screener/ ). It's a neat little screener based off of Dave Fish's Dividend Champion list.
DeleteI may try contacting my broker and see why that happened and if they can do anything about it. A free trade would be nice. :-)
Sounds like your brokerage was trading against your order for u to pay a higher rate. Thats why I always use limit orders. Cant trust anyone these days especially banks!
ReplyDeleteIt was a limit order actually. I contacted my broker to find out more and they cleared things up for me. Turns out that unless the transaction is at least 100 shares it will not be reflected in the daily trading range.
DeleteThanks for sharing the purchase, as it's not the typical DGI buy. However, I've been reading about the possibility of some nice growth in these regional type banks. Thanks for sharing and I wish you the best with this position.
ReplyDeleteI've never heard about this stock. Thanks for sharing!
ReplyDelete