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.
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.