Recently, I published a post with review of my portfolio from the Sectors perspective. I figured out that there is only one sector (Materials) which is not represented in my portfolio.
Well, at the beginning of last week, I closed the gap and my portfolio now has holdings from each sector. It was quite convenient because Materials sector took a beating lately and I had an eye on a few companies from this field (see my latest Watchlist).
The company I decided to go for is Eastman Chemical (EMN).
Shortly about the company:
Eastman Chemical Company, is an American company primarily involved in the chemical industry. Once a subsidiary of Kodak, it today is an independent global specialty chemical company that produces a broad range of advanced materials, chemicals and fibers for everyday purposes. Founded in 1920 and based in Kingsport, Tennessee, the company now has more than 40 manufacturing sites worldwide and employs approximately 15,000 people.
Company is creating a wide range of products that are used in many industries. The main end-use markets are transportation, consumables, building & construction, Industrial chemicals & processing etc:
Eastman Chemical is also quite diversified geographically:
Fundamentals at the purchase price:
- P/E (TTM): 9.95
- Forward P/E: 9.20
- Dividend Yield: 3.85%
- Payout Ratio: 38%
- Net Debt/EBITDA: 3.21
- Market Cap: $10.2B
On the 3rd of September, I purchased 20 shares of EMN for $64.4/shares for a total of $1295 (including commissions).
This purchase adds $42.16 to my forward annual dividend income.
My target was to purchase the company if it was trading below $66. Luckily, my purchase coincided with the latest small dip in company’s price and I managed to get it at desired price. Currently, the price is up by ~16% to $74.6, so I am happy I managed to jump to the train. Of course, it may go down again, as it’s quite a volatile stock lately. That’s mainly due to concerns of slowing economies and ongoing trade wars between the U.S. and China.
What do you think about this purchase? What was your latest purchase? I would love to hear from you!