Recent Buy - Parker-Hannifin Corp.

After quite a few REIT purchases (OHI, DLR, WPC) we decided to go a different direction this time.  After doing some research, there is plenty to like about PH.  First of all, look at that chart above, its beautiful.  Then, you add in dividend growth of 58 consecutive years and its getting better.  Finally, you put an average 15% dividend growth rate on the stock and you'd be hard pressed to find a better stock in the market at this time.  With the market still around all time highs, PH falls in an undervalued company with a PE of only 15.75.  Over the past year and a half, the stock has not really gone anywhere so it looks like a good time to start a position.  The stock is consolidating, perhaps right before the next break out!  If you put a 20 PE on this stock (roughly the S&P PE) you are looking at a $153 stock.

After putting some high yielding REIT's into our portfolio, its nice to get a nice dividend growth stock into the mix.  I realize the yield isn't all that great, but growing at a 15% clip, by the time I am ready to retire the yield on cost will be more than the REIT's we own.

With that being said, my wife and I are still looking to buy some REIT stocks if they continue to stay depressed.  I realize I am a bit behind but I am still looking to put post together discussing the other picks we are looking at such as:  OHI, MO, GLP, DPS, DE, T and BA.  And hopefully letting you readers get to pick what we should buy next!

You can check out all the other purchases we have made for the year on my Stock Purchases and Sells page.