3 Stocks I’m Buying (Tuesday) On M1 Finance – 13 Jan 2020, #UGI Valuation & Comparison


hello financial investors my name is
Brent and welcome to the channel today we’re going to be taking a quick look at
stock futures which is currently up on the screen we’re gonna be then taking a
look at the three main indexes taking a look at their performance for last week
and then from there we’re gonna be jumping over into m1 finance and we’re
gonna be picking out some stocks that we’re going to be purchasing here on
Monday as we’re going to be adding equity into the markets here and into
the account every week we had a brand new hundred and fifteen dollars and 30
cents over the course of 52 weeks in order to max out our Roth IRA so we will
be taking a look at what Sox who are up where Sox were down last week and just
the overall performance of the account and then making our decision on what
three stocks I’m planning on buying I already have them pretty much picked out
I’m going to be buying two that I bought last week along with a new one so that
is what we’re going to be doing in today’s video if you are brand new to
the channel I’d really appreciate if you do hit that subscribe button below if
you do enjoy this video point I hope we’ll hit the thumbs up and feel many
comments or questions going over this video the stock market dividends real
estate personal finance drop it into the comment section below I do read and
apply to all your comments and let’s go ahead and get into the video so stock
futures up on the board or up on the screen now are actually rising S&P 500
up 0.33% currently the Dow Jones right there same as 8.33% and the Nasdaq up
point four three percent we can see some movement here in the after-hours genuine
parts one that I currently hold now recent addition to the portfolio up 1.5
1% here and the after-hours on Friday jump in and just look at the S&P 500 all
three of the main indexes are currently positive for the year with the SP up
last week point nine four percent or your todays 1.0 7% right in front of the
Dow Jones which is in third place right now last week point six six percent or
up one percent year-to-date and our number one leader right now is
the Nasdaq with a whopping five day change of 1.75 percent
and a year-to-date of 2.3 percent so last week was our official first week of
2020 a first full week and already the markets are up 1 to 2% so very crazy and
I’m not sure how 2020 will really play out but I think it’s going to be
interesting as we get closer towards the end of 2020 let me know in the comment
section below what do you think what are your thoughts on 2020 do you think the
market will be higher as we’ve seen back in 2019 up say 20 to 30% or do you
believe we will be in that 10 to 15 to 20 percent range or do you think that we
will be negative this year let me know I would really appreciate your feedback
now jumping into the m1 finance account I want to go ahead and cover some of the
main little tidbits here if you guys have any specific areas you guys would
like to see in upcoming videos drop them into the comment section I’m always
trying to get suggestions they’re gonna try and redo some of the channel the way
that I create content on here so if you have suggestions leave them in there I
write down all the ideas that I collected and I have a lot of content
that I want to release going over all sorts of information there’s so much out
there that I’ve been kind of you know haven’t pushed out and I really want to
create content on that so that let’s go ahead and get started first of all so
we’re gonna be adding a hundred and fifteen dollars and 18 cents into this
account that is what we do every single week and if you add a hundred and
fifteen dollars and thirty cents over fifty – that’s gonna be a row right
below $6,000 now why is this number important well we’re using a Roth IRA
since 2019 the Roth IRA contribution limit is six thousand dollars per year
per tax year so six thousand dollars broken up over fifty two weeks is really
close to one 1538 without pushing me over so that is how much I invest every
single week in order to dollar cost average equity into the market into
positions that are currently either red beat-up or say I’m starting brand new
positions I may in the future add safe about $3,000 into this account just to
bump up all positions two three four hundred dollars and then
at dollar cost average the Romanian $3,000 into the rest for 2020 I’m still
undecided on how I want to play it that out but I’ll kind of make my mind here
shortly and then we’ll kind of go from there
so we do have new cash that’s going to be going into the account we also have
some cash on hand which is showing up in the top right corner now where is this
cash coming from 15 dollars any lot of sense if I selected activity up at the
top we can see that Altria paid us out fifteen dollars in eleven cents from one
holding in the support folio we were paid a whopping fifteen dollars any love
and sense that’s enough capital right there to purchase a share of CenturyLink
or not AMD any longer but a few other companies out there so they’re just nice
to see that this holding which we’ve held in this account for about two years
now is paying out a nice sisal dividend of you know double digits of fifteen
dollars there and here if we select the type here of dividends we can see that
this portfolio generates a ton of dividends every single was just week
after week just pumping out dividends after dividends after dividend so it’s
really nice to see that mat we’ve covered the cash that we’re going to be
added into the account we’ve covered the cash on hand and where it came from I
did make three purchases last week two of these I’m going to be piling in today
the three last week that we purchased for genuine parts company Lancaster
Colony and Wako group two of these will be repurchased this week and one will be
left out but we’ll be buying a separate one that we’ve recently added into our
portfolio so now we can look at the one-week performance how did our
portfolio change in comparison to the SP the Dow Jones the Nasdaq inherent we can
see that this had a point eight seven percent increase
all of this was mainly market gains and then we had did have some earn dividends
we did earn some dividends in this account that have just not been paid out
into this account yet so we earned a hundred and sixteen dollars and sixty
cents of just straight market gains based on the equity that we have
invested and we earned upcoming dividend pales just that we
have we own shares and companies in our portfolio that we’ve sat through the
ex-dividend date and we are going to be paid in the future just not yet so that
is what earned dividends are from so that overall in comparison to say the
S&P the Dow Jones and the Nasdaq it puts us in between the Dow Jones in the S&P
500 if we’re trying to measure the performance in comparison to some of
those indexes and down here we can see that our big winners this past week was
tanker factory outlet up around 7.4 1% there or about $55 and our losers this
week was Walgreens down a whopping eight point five five percent or about
fifty-two dollars and 37 cents and we can kind of see some of these other
positions here also on the red but we have mainly green versus red which is
you know pretty nice if you want to see a lot of green I myself while I do like
the green and I do like to see equity you know gains in the portfolio you
obviously want to invest in companies that are going to be driving profits
driving an increase in dividends and driving earnings because that’s going to
make your investments you know it’s going to make it easier for you to
invest hold the company that you’re investing in and if you’re invested in
in the next 10 15 20 years you don’t want to be invest in a company that’s
paying you out a 7% 10% 15% yield if it’s gonna go up in the air and deflate
you’re going to lose all your equity that you’ve invested in the company and
the company is not gonna pay out any tipnis because it’s gonna go under so
it’s just gonna cut dividends overall so you want to invest and companies that
are sound but they pay dividends and all of the companies in my portfolio a good
portion of them are Dimity District rats and yeah I don’t gotta put out a lot of
that content in the past but that’s where the account is currently with the
one-week there and then just overall up about 32% there and almost $100 of earn
dividends in this account now what I want to look at now
is what companies are currently negative in the portfolio overall this is all
positions which ones are currently read and there’s not too many we did add a
couple recently added one so we have Simon Property Group which has been beat
up recently you can see a 10% change there for the negative and it has been
actually positive in the portfolio for quite a while and it just recently took
a turn for the worst which is fine that’s really nice to see actually can
probably add some equity into that one here in the future if I I may actually
add a little bit more equity into it just not at this moment but I see if it
goes down a little bit more Wako group newly added position january parts
nearly added position ultra not a newly added position obviously but it’s had a
major recovery from being down 30 percent in the account over 200 dollars
of equity loss to now just down 30 dollars of equity loss and that’s a huge
swing in this company for the better UGI corporation this is a newly added
position down about two point five nine and Chevron down about 0.38 so we do
have a few few positions there and the negative now this isn’t always accurate
right here this for example here shows 3m is being positive 0.39% but if I were
to click into here and show you the actual market gains the only reason 3m
is showing us positive and the m1 finance portfolio is because we’ve had
earned dividends of eighteen dollars and ninety three cents market gains of 13 up
sorry market gains of negative 13 91 so that gives us an offset of positive five
dollars and two cents which shows on m1 finance that this is a positive company
where I was really it’s negative by about one point six seven percent based
on the equity change in the portfolio so I like to use my spreadsheet more for a
realistic view of the equity difference in the in the stocks so the three
positions that I am planning on buying or again Waco and GPC so these two
positions here they’re down in the portfolio they look
a lot further down here then whoops so Waco shows us being down 9.32 genuine
part shows us being down 8.5 – this isn’t showing that which I know in parts
is actually up in the after-hours around 1.5 percent this is showing it only was
being down four point seven six and the ways heads down five point two three
percent that’s you know that’s not too bad overall they’re now offering a four
percent certain yield versus my buying yield two three point eight one which I
just started buying this company because I see I see this one turning around I
see it really beat up here in the short term but I do believe in it here in the
in the long term and then the grand scope of it all
so get any 4% yield first of a three point eight is going to be huge here
three point oh eight versus two point nine four not big but not terrible and
the other company that recently took a dip which I recently added to the
portfolio that I want to continue to buy more of as UGI this is a this is a
utility company so this is then about one point five eight percent so I don’t
I covered my covered ways and GPC last week I did not cover you gi I figured
with the new purchase this week of UGI I should at least kind of cover some of
the information that kind of attracted me to you by in this specific company so
overall looking at the one your chart we can see the healed here two point seven
four see if that’s correct two point nine five so it’s very close to two
point nine five right now it’s more accurate at two point nine five percent
versus this is showing two point nine four we can even go to dividend calm and
type in u GI u GI and this will kind of give us an even you know second opinion
so u GI trainer on two point eighty percent certain yield
it has a payout of 0.325 actually that’s I could have just grabbed it up here
right there annualized payout of one dollar and thirty cents so I can just go
one dollar and thirty divided by there current price of $44.95 starting yield
so this is actually correct so you know whatever this is showing so think of
this as almost 3% up here so I’m buying this at a very nice starting yield and
comparison to the past year now looking at it for the tenure you can see here
that price has came down it’s touching it’s past support over the past five
years back in 2018 you can see this company was going higher had some some
issues and it fell back to this 44 $42 point guess what look at this huge
recovery here $55 $56 here just over the course of 2018 and 2019 and now it
retreat retreated back here to that 40 to 44 support level again and it’s
offering a nearly three percent starting yield once again this is a good buying
opportunity for me it’s not going to be something that I expect a high level of
return here in the short term but if I can add a good sizable amount of equity
in this portfolio over the long term this company will turn around it’ll
continue to grow in Paros dividends because it has grown and paid its
dividend for the past 33 years making it a dividend aristocrat and it has a very
low Pat ratio of 50 7.02 here we can see the trend back after the recession took
place look at that spike there in that dividend very nice increase in their
dividend here recently they increase their dividend by a nice spike again so
they do have quite a bit of earnings they do have quite a bit of PAMP but
that payout ratio is very nice and sizable let’s also go ahead and show you
the price in comparison to the 50-day 200-day moving average so here price ISM
the current price is in the blue the 50-day and the 208 are in the orange and
red so here recently it’s been trading here below the 50-day and 200-day moving
average but over the course of the year here
you can see here that it has had a couple blips here in the past where this
has happened but generally it does recover and it does stay recovered and
generally trade over that 50-day 200 day moving average and I’m just looking at
this as this is a good opportunity for me as long as I believe in the company
if I look at the so it’s a it’s a utility company I’m not gonna look I
don’t know I don’t know if the price of sales would make sent to this but here
okay so it’s a 1.0 price of sales I’d say this is probably more of a book
value company so you want anything Book value of around three percent or three
or less or a utility style company and both of these are under three prices
sales out of one you’re basically buying this price for its sales ratio and it’s
price the book is at a two point four so below that three which I like to see as
sort of a little discount there so just kind of their return on invested capital
I’m not looking at this as a huge one you can see it recently has been taken a
bit of a dip that could be why what is driving the price even lower but this is
a utility company it’s one of those niche ones that once you’re in you’re
pretty much in and set like monopoly style there’s only so many utility
companies in an area that you can invest in your utilities from the total assets
and total liabilities so assets thirteen point three five billion liabilities
nine point five one so higher assets versus liabilities if we look at their
operating income and capital expenditures so how much are they
bringing in versus how much are they losing so it looks like their income is
going down shortly here we can see some negative here so for the most part just
kind of looking at this trend line it goes up and down up and down up and down
right now they just expect that a they have a lower low so back here and what’s 2018 so this is probably what happened
before this little dip right here right here was probably this their their
operating income probably dropped so their stock price dropped then their
operating income we increased guess what their price rate crease right
here their operating income drop down their price fell really hard so that is
you know kind of just put it in an inline there with a price with the
capital with the capital income and expenditure so in the long term debt is
pretty high utility companies generally are going to be carrying quite a bit of
debt if I compare this to say the Southern Company or let’s see which
another utility company that I have in my head Eady so another one here edie is
another utility company let’s take a look at the debt and these ones so here
between all of these UGI has the least amount of long-term
debt at six billion versus Consolidated Edison at twenty billion and the
Southern Company at forty six billion so that’s just kind of put in these you
know I’m just giving you a comparison for other ones so you can see here that
447 million one point three nine billion and 895 billion so they all have
long-term debt it’s very normal for utility companies so that is what I
wanted to show you I wanted to compare with other utility companies that we
don’t just look at it and be like oh my goodness that’s a lot of debt to have
long term so that is primarily what I want to cover here that isn’t going to
be in you a new purchase for this upcoming week that I haven’t really
discussed here on the channel and I wanted to cover it here using Y charts
because I think it gets the point across doing a little bit of a deeper dive with
all you viewers subscribers so if you did enjoy that let me know in the
comment section below if you enjoy doing a deeper dive into specific companies if
you guys would like to throw some companies in order to look at y charts a
little bit deeper we can also do that as well so drop that into the comment
section and let’s go ahead and make our buys so we are going to be buying away
Co we’re going to be adding that hundred and fifteen dollars and thirty cents
plus our fifteen dollars in the eleven cents so it makes a hundred and thirty
dollars and 49 cents split by three that’s going to be forty three dollars
and fifty cents so way so I’m going to go ahead and put in $43.50
gotta go ahead and oh that’s not going to let me do it because I only have this
much cash on hand so what I need to do now is that is unfortunate so I’m gonna
have to change my strategy of depositing every Friday and then making my buys
every every Monday so that right there that’s a gut punch I have to change that
so I am going to be buying I was planning on buying over the three let’s
look right here so I was going to buy UGI I was going to buy genuine parts and
I was going to buy Waco with $43.50 into you as much as I could into them kind of
averaging into these and their lows there are currently negative in the
portfolio that just means that I’m buying them at a cheaper discount than
where I originally thought they would have a really good valuation they are
offering me a higher yield on cost I am buying more shares of them than I could
in the past and I’m just increasing my overall dividend and come going forward
by a more substantial amount so I’m really hoping to kind of push more
equity to these poor into these companies that way I can get them up to
par with other holdings and that as these recovery in the future say as
their operating income does bounce back and increase I can see a sizable amount
of invested capital return back to me plus I’d have locked in that four
percent three percent you know yield that’s going to be paying me out into
the foreseeable future just great dividends so unfortunately I’m not going
to be able to make any buys currently and I will just go ahead and make these
hopefully in the morning as the capital gets invested into the account then I
can do it I also am going to have to change the days that my transfer here
takes place so that is going to be pretty rough so okay so
that’s all I can sort of cover in today’s video again stock futures
looking pretty positive let me know in the comment section below what are you
planning on buying to like the new changes with m1 finance that did this
where you have to have the capital in the account before you can make the buys
or did you like it the previous way where you could pre-plan your buys
without having the cash available and then when you have the cash available m1
finance would let it ride and just buy so that is going to be it for today’s
video if you guys did enjoy this video again hit that thumbs up button below I
would really appreciate to have everyone that watches this video hit that thumbs
up if you guys have not yet subscribed definitely hit that subscribe button
below it is red big ol button there and again drop me a comment whether it’s
over this video the stock market dividends real estate some video you
would like to see posted here on the channel and that is it thank you all for
tuning in I will so next time have a great day
bye you

10 thoughts on “3 Stocks I’m Buying (Tuesday) On M1 Finance – 13 Jan 2020, #UGI Valuation & Comparison

  1. Thanks For Watching, Remember To Subscribe & Hit The Bell To Be Notified Of New Content!

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  2. The markets have been on such a tear. I liked it more when the recession doom & gloom was so prominent… watching as I drink my java 🙂

  3. Hey the platform changed a little since you did a video on how to invest less than 10 dollars do you know of any other way that you. An invest less than 10 dollars

  4. Interesting buys. Why did you choose UGI instead of other gas utilities? Beginners might be curious about how you select and analyze candidates for investing. When you compared the LT debt of UGI, ED, & SO, did you factor in the sizes of the companies? SO's cap is 7x of UGI, nearly 12x when looking at TEV.

  5. That's one of my qualms with M1 is you can't make your buy orders before your deposit hits. And you can't manually invest anything below $10 anymore. I hope that $10 minimum changes at some point. I reckon they were losing money with people investing everything below $10.

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