Marshalls

As discussed previously, building materials supplier Marshalls has caught my eye in the current market downturn.

They have historically been good, reliable dividend payers, but the company shares have declined rapidly in the last few weeks along with the market.

I decided to take advantage of my brokers no commission offer if I buy on a mobile phone before the end of the month, and bought a 'half-holding' of £500 worth. I bought at £1.3714 each and bought a total of 363 shares.

At this price, the shares yield a whopping 10.1%. This is not always a good sign as it can signal dividend cuts around the corner. But Marshalls board last week reaffirmed their commitment to at least maintaining the dividend. I have faith in them as it is a highly cash generative business. Also, at this price, the shares are trading at book value - so I've bought the shares on an incredibly cheap 8.3 PE at a price not seen since 1999.

I am happy to tuck this one away for the long term and is a welcome addition to my portfolio.

The Dividend Seeker