New Stock Positions for 2023 ~ Zoetis, BJ’s Warehouse, TXN, and BMY
It’s been a bit since I’ve added any new stock positions. 2022 was largely a year of adding to my Index Funds and selling off positions that had ran too far or those I wanted to get rid of. This year I wanted to increase the yield of my portfolio slightly and add a new growth stock.
So, what are my new stock positions?
- Bristol Meyers Squibb
- Texas Instruments
- Zoetis
- BJ’s Warehouse
Zoetis and Texas Instruments positions were started on January 4th and I’ve added to both a few times. Currently I’m up 8-11% in these stocks.
BJ’s Warehouse I started on Jan 26th and I’m up 3.7%. This stock is in my Traditional IRA account.
Bristol Squibb Meyer I began on Feb 2nd; I am up 3.21% so far.
All of these stocks except BJ’s pay dividends. I did purposely seek out TXN and BMY as dividend stocks to add to my income.
Texas Instruments #TXN Stock
TXN was paying around a 2.9-3% dividend when I purchased it. The company just increased its dividend (7.83% annual dividend growth rate now). The payout ratio is under 55%, so plenty of room to keep increasing its dividend for many years to come.
I also like the profit margins, Return on Equity (61%), and its debt isn’t too high (52% Debt/Equity). The stock is also trading below it’s 5 year average PE (19 vs. 22.6).
Zoetis #ZTS Stock
Zoetis is also trading below it’s 5 year average PE (37 vs. 41). I realize this PE is high; however, Zoetis typically trades at a premium. Historically, this PE isn’t too bad.
Like Texas Instruments, Zoetis offers some big dividend growth stats. It has a 15.7% annual dividend growth rate and a whopping 25% 5 year Dividend Growth rate. Unfortunately the yield isn’t much at .91%; however, I fully suspect it to be worth the wait.
Zoetis is a high profit margin business; TTM numbers were 26%. Return on Equity is 45%, so management is doing a good job. At the same time, Zoetis does carry a large amount of debt- 124% Debt/Equity
BJ’s Warehouse #BJ Stock
BJ’s is a stock I have looked at countless times, even back in 2019 (when I should have bought). I finally decided to pull the trigger. I do think it offers a better value than Costco at the moment. BJ’s still has lots of room to grow.
It has had a whopping 50% EPS growth rate over the last five years. Cash Flow Growth Rate over that time has been 23%. Like Zoetis, it unfortunately does have a large amount of debt. I’m less enthusiastic about the valuation I paid for this stock; however, sometimes the old “Time in the market” adage applies. You just have to jump in and that is kind of what I did. I’m hoping that in 10 years, whether I got this $10 cheaper won’t be much of an issue.
Bristol Meyers Squibb Stock
This is yet another case of a stock I missed. I almost bought it two years ago but never did. BMY offers a decent yield (slightly over 3% currently). The dividend growth isn’t as high as the other stocks, but still a respectable 5.5% annually and 7.34% over the last five years. Hopefully, inflation cools down and those numbers are comparatively a little better.
Cash Flow has been increasing significantly for BMY, 28% over the last five years. Profit Margins are decent (17%) and a respectable ROE of 20%.
Nothing here serves as a recommendation to buy; it serves more as an archive of my own investment decisions. If any of these stocks interest you, as always, do your own research and seek professional financial help as needed. Everyone’s portfolio is unique and these stocks may not offer your own portfolio anything (depends).
