Recent Buy in CVX and CRWS

Over the holidays not much has been going on (especially since I didn't save much.)  I did have enough cash though to initiate to positions in decent companies.  The first is Chevron Corp. (CVX).  I wrote about them and a few oil companies  in one of my previous posts, Battlefield Oil.  The other is Crown Crafts Inc. (CRWS).  I had read an article about them and then did some research.  It was a small purchase for a small company.

Chevron was a no brainer.  Being the fifth largest integrated energy company in the world and a dividend champion gave me enough confidence that the dividend is secure and will continue to grow.  Their free cash flow is not so well but overall the last quarter's cash flow statement was in decent shape.  They will survive this bump.  I was able to pick up 9 shares at $109.04 and then watched it drop further.  Sometimes you just have to smile when that happens to you and keep your chin up.  It has rebounded recently so that makes me feel a little better.  The ratings from various companies all said sell or hold.  You know that is when we dividend investors buy!

Crown Crafts Inc.  Is a textile company dealing with everything from adult home furnishings through infant products.  My sister-in-law has bought their baby furniture and it is expensive and of high quality.  I could not afford it but there are allot of middle class families out there that can.  Sometimes they sell direct and sometimes through a subsidiary.  My entry criteria were all met.  Below are some of the highlights and are all good in my book.  They just started paying dividends in 2010.  The only downside is no dividend increase between 2013-2014.

Price/Earning
13.7
Yield
4.33%
Payout Ratio
59%
Price/Sales
0.9
Price/Book
2.0
Free Cash Flow TTM
4

So the buy was 18 shares at $7.44.  A very small investment that could go somewhere or nowhere.  Hard to tell but looking at the past (up 184% over the last 5 years) tells me they will keep going up and hopefully keep the dividend increasing.


Buy any small companies lately that pay dividends?

Comments

  1. Henry - Living At HomeDecember 22, 2014 at 3:25 PM

    Congrats on the buy! CRWS is something different from the typical dividend companies. Nice to see you change things up!

    ReplyDelete
    Replies
    1. Dividend Family GuyDecember 24, 2014 at 11:02 AM

      Yeah gotta have a core but also need to take some risk with up and coming dividend stocks. Adds a little excitement to dividend investing.
      DFG

      Delete
  2. DivHutDecember 25, 2014 at 2:16 AM

    Nice yield on CRWS. I have never heard of this company before but as you mentioned a small investment in a small company might pay off nicely down the road. Why not dip your toe in less common dividend payers. Thanks for sharing.

    ReplyDelete
    Replies
    1. Dividend Family GuyDecember 29, 2014 at 9:15 PM

      Anytime DivHut. Might be worth something in 10 years.

      Delete
  3. Dividend LifeDecember 28, 2014 at 12:28 AM

    Hi DFG,

    Congrats on adding to your portfolio again!

    The smallest company I own is AWR at $1.4B - my selection rules prohibit me purchasing a company smaller than a market cap of $250M as I feel larger companies have more room to handle recessions and prevent dividend cuts.

    What article did you read about them that interested you? I'm curious since they're not on your usual screener from the Dividend list.

    Wishing you a successful and healthy New Year!
    -DL

    ReplyDelete
    Replies
    1. Dividend Family GuyDecember 29, 2014 at 9:15 PM

      Company has been around some time and not to shabby for a microcap. Here is the article, http://goo.gl/To1vqR.

      Delete

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This webpage is provided for general information only and nothing contained in the material constitutes a recommendation for the purchase or sale of any security. If you have any questions please feel free to contact me at dividendfamilyguy at gmail dot com.