New ISA Purchase

Image courtesy of Grant Cochrane / FreeDigitalPhotos.net

Image courtesy of Grant Cochrane / FreeDigitalPhotos.net

As I am due to receive a pay-out from my shares in my employing company, I thought I would take some money from my cash savings and buy shares to take advantage of the fall in the markets (too early as it turns out). However in true FI UK fashion the share price of the company I bought shares in continued to fall, but as the saying goes it’s the time in the market that is more important than timing the market and hoping to absolutely hit the bottom by anything but luck is a forlorn hope.


I have bought 300 shares in Interserve at £6.0228 per share for a total cost of £1,827.82 including dealing costs. This purchase will add £69 (based on 20140results) to my annual dividend income for a yield on cost of 3.77%.

Interserve are a Support Services and Constructing company who operate under a number of trading names in over 40 countries across the world. Their turnover in 2014 was £3.3 billion, with a net profit of £49.9 million, this gives earnings per share of 32.2p, which covers the 23p dividend approximately 1.4 times. They have also recently announced their half year results for 2015 which shows significant growth in all their figures (Revenue +16%, Profit +19%, Future Orders +11% and EPS +10%), which if continued for the remainder of the year will allow them to continue a run of increased dividends.

They have actually increased their dividend each year for the last 18 years with a 10 year dividend growth rate of 4.9% which is not a massive growth rate but has easily beaten the rate of inflation over that period.

This purchase means I now hold shares in 20 companies, and cover most of the sectors in the market, so will now have to start looking to fill the gaps in my portfolio with mu future savings, as well as add to existing positions where I feel there is great value to be had in a company whose share price has been depressed.
&nbsp
This was my eighth purchase this year and should be able to make another two or three before the end of December which would mean I am approaching making an average of a buy every month. If I can get to this point my dividend increases should get a boost as the new purchases add more and more shares to pay me dividends. Also if I am buying regularly, I should also be able to have money available buy more shares if the market drops in the future.

I have now passed 100 posts on this blog, with almost 50,000 pageviews, so thank you to everyone who has been reading, and particularly to people who have commented.

8 thoughts on “New ISA Purchase

  1. Mike Rawson

    Hi there FI-UK,

    You’re a brave man, buying in these markets. Congratulations on the blog milestones – it sounds like it’s all going well.

    I’m planning to start a dividend portfolio over at 7 Circles in the next month, so I’ll come back and look at your stocks for inspiration.

    Thanks,

    Mike

    Reply
    1. Financial Independence UK Post author

      Hi Mike

      Thanks for reading and commenting.

      I can definitely recommend a dividend portfolio, as you don’t need to sweat when the markets are falling as long as the dividends are still coming in.

      Look forward to following your progress

      Best Wishes
      FIUK

      Reply
  2. diy investor (uk)

    Good to see you are making progress with your portfolio FI.

    As you may know, I had a change of strategy this year which involves offloading my individual shares and moving towards index funds. I purchased Vanguards UK Equity Income fund which is basically a FTSE 350 higher income tracker with a current yield of around 4.5%. I think this will be a good replacement for my UK shares.

    I have also moved towards a more globally diverse and balanced allocation with their LifeStrategy 60 fund – it will be interesting to see how it all plays out longer term.

    Congratulations on your century not out! Also 50,000 page views is good going – looking forward to the next 100 posts, keep it going!

    Reply
    1. Financial Independence UK Post author

      Hi John

      I do feel that things are progressing OK, and that the income is starting to ramp up now, which along with my savings is starting to make a good cash increase in the dividends.

      I am interested in your change of strategy as I will need to sell down some of my capital when I do finish working so I will be watching how things go.

      Thanks for your comment on the number of posts and page views (although these are well behind your numbers), and hopefully people still find things of interest and use when they do drop by.

      Best Wishes
      FIUK

      Reply
  3. M from There's Value

    Excellent choice if I do say so myself. I really like Interserve and am always looking to top up my holdings in them, only haven’t done so due to Unilever and RDSB having gone down so much since August.

    Congrats on the views and reaching your post centenary – here’s to the next 100!

    Cheers

    Reply
    1. Financial Independence UK Post author

      Hi M

      I think Interweave should be a good buy for the future, and will be looking to increase my holdings in the future. I am also looking to add more Unilever as I think they are a screaming buy at the current level.

      Thanks for the comment on views and posts.

      Best Wishes
      FIUK

      Reply
    1. Financial Independence UK Post author

      Hi Weenie

      Thanks for your comments, always look forward to reading your posts.

      I think your decision on saving a bit less for the benefit of time with your family is a great one, and hopefully you enjoy sliding down a mountain on your snowboard.

      Please let me know what Japan is like for winter sports as never been there, but would be interested in going to ski

      Best Wishes
      FIUK

      Reply

Leave a Reply

Your email address will not be published. Required fields are marked *

Spam Check * Time limit is exhausted. Please reload the CAPTCHA.