I had a few stocks on my watch list including CB, CTBI, and PM. Philip Morris in particular is looking attractive and I would love to own this stock eventually. It may even be my next purchase but I feel that I have time to get in on PM since the stock has been under performing for the past 2 years and I don't see it rebounding that quickly. PNY on the other hand has seen it's stock price plummet over $5 since the beginning of February. PM has 2 quarters before the next dividend increase and PNY is due for another increase next payment, I also felt that it is near the low of it's trading range so I pulled the trigger on it.
I purchased another 30 shares of PNY at $36.30
As you can see from the images below this dividend champion is a pretty boring utility stock and that's one of the reasons I like it so much. I am a bit worried about the payout ratio approaching 70% however.
Piedmont Natural Gas Co is an energy services company. It is engaged in distribution of natural gas to residential, commercial, industrial & power generation customers in portions of North Carolina, South Carolina and Tennessee.
PNY Chart
PNY Basic Statistics
- Ticker Symbol: PNY
- PE Ratio: 19 (18 forward p/e)
- Sector: Utility
- Yield: 3.64%
- Dividend Growth: 36 years
- Payout Ratio: 69 %
- Market cap: $2.8b
- Beta: .53
- Website: http://www.piedmontng.com
PNY Dividend Growth Chart
PNY EPS Growth Chart
Without a doubt the most consistent looking chart I think I've ever seen in the stock market. I have thought about buying this company as well, but for some reason I have never pulled the trigger.
ReplyDeleteLike you, I like to try and have my months somewhat consistent so I do search out stocks that will increase payments in the weaker months like you. It kind of gets thrown off a bit with the 401K payments, but after backing those out, the months are relatively consistent with their payouts.
Keep on trucking!
It certainly has been steady and that's one of the reasons I find it attractive. It just sorta keeps chugging along slow and steady.
DeleteThis stock is a nice addition to your portfolio. I think it is a good idea to round out your dividends so that your monthly income evens out. This is especially important for DGI investors living on their dividends.
ReplyDeleteWell as long as you can easily maintain a budget the month to month fluctuations really shouldn't matter much especially in the accumulation phase like I am. However I just like seeing slow and steady progress across the board nice and even each month, not unlike the charts posted above.
DeleteCD,
ReplyDeleteThere is no right or wrong in investing, it all depends on the investor's point of view. If it fits your investing strategy, go for it! Also, about the utilities companies having a high payout ratio, I think its normal based in my observation. I used to own SO and I sold it due to high payout ratio, that was me being inexperienced investor. I noticed they have a higher yield compared average S&P, higher payout ratio and lower growth rate (but consistent). Again this is just based on my research, correct me if I'm wrong.
Thanks for sharing your stock purchase!
FFF
You may be right there about the P/E ratios for utilities but I did do a comparison to some other utilities and they were all lower.
DeletePNY is a name I haven't heard in a while! I can't say I like the very low Chowder number of 6.9, but if that's good for you, keep on buying! That recent dip seems to provide a decent buy point as well, at first glance.
ReplyDeleteThanks for stopping by DD. I probably have a few stocks that break the chowder rule (T comes to mind). I think the chowder rule is a nice metric to stick to when selecting stocks. However I don't invest by the chowder rule alone and I'm sure your not implying that I should. I just feel safe with PNY and I am willing to sacrifice a bit of potential growth for that.
DeleteDon't know much about this one so thank you for sharing! Did you get the dividend growth rate? I already have a couple holdings in energy (the same ones that hit me in the beginning of the year... but hey! ;-) ), but this one looks attractive.
ReplyDeleteThe dividend growth rate is about 3.2%
Deletethanks for sharing! I didn't hear about this stock before but it looks like a good purchase. Good luck!
ReplyDeleteHappy to spread the word. :-)
DeleteFirst time hear about this stock. Thanks for bring my attention to it. At first glance, it looks a solid buy with this dividend champion and 36 years dividend increase.
ReplyDeleteYa, I wouldn't have bought it but it's really been under some selling pressure this month so I grabbed up some shares. I doubt I add more for a while though as it's one of my larger holdings.
DeleteGreat purchase. I didn't know about this stock, so thanks for sharing. I added it to my watch list.
ReplyDeleteApparently there's quite a few who have never heard of PNY which is a bit of a surprise considering it's a dividend champion. I'd swear I must have them all memorized by now. hehe
DeleteCD,
ReplyDeleteI hear ya on keeping the payouts balanced over the course of the year. Mine are unbalanced and it drives me a little crazy so I'm definitely not in the majority. In fact, most of my recent purchases have deliberately been slow month payers.
I like the utility buy as the entire sector is slowly emerging as undervalued with the interest rake hike fears. I'm not overly familiar with PNY but will certainly take a look.
Best,
DWC
I absolutely love boring dividend stocks. Enbridge Gas, TransCanada... Just naming them make me want to buy. Great purchase!
ReplyDeleteOooh very nice find Captain Dividend. With a strong dividend payout history, I'm definitely keeping an eye on for a buy in opportunity. That is unless gas continues to knock it down some more, then I'll for an even better entry opportunity. Thanks again mate!
ReplyDeleteI think it is a solid buy.
ReplyDeleteOne risk for this kind of companies, is political.
In Portugal, a utility with numbers pretty close to the numbers of this company took a hit of 25% in their profit. Government called it "Special tax for energy companies". Now, it is up to the courts to solve this conflict...
I did not know PNY existed until I read your post. It looks like a great sit back and relax dividend growing company. I will keep it on my watch list. Thanks for sharing.
ReplyDeleteBSR
Been in PNY for years. The payout ratio is high but due (imho) to a recent rate reduction in (I think) two states. I increased on the dip because of their partial interest in both the Atlantic Coast and Constitution pipelines.
ReplyDeleteCharlie