Dividend Diplomats Recent Buy: Citizens & Northern

| About: Citizens & (CZNC)
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The Dividend Diplomats were back at it again! Yes, both of us purchased the same company approximately two weeks ago and we wanted to share the purchase article with you. And yes, this is the second time we have both purchased a stock at the same time in 2016.

Due to both of being busy with work, traveling, vacations, festivity planning, etc. we were taken away from writing this article closer to the date of the stock purchases we made. Given that we are both Financial Institution auditors, we purchased a bank that is already friendly in our portfolio – Citizens & Northern (NASDAQ:CZNC). Time to cash in those checks for stock!

Citizens & Northern Stock Purchase


Well, it wasn’t the first time we bought this stock, with Bert making a purchase back in January of this year, and me making an investment last year wayyy back in January of 2015. Even though it wasn’t on Bert’s recent low yield stock watch list, it was definitely on both of our radars as we went through the month of April. One Sunday, especially, Bert came over and we just talked for a while. I sat there and just stated, on my seasonal patio area, that the banking environment is making it more difficult by the quarter to stay in business if you don’t have size, capital, and efficiencies – especially for the smaller community banks given the extreme regulation that is in the industry.

With that information and us both making purchases into Norwood Financial (NASDAQ:NWFL) recently this year, it made sense for us to continue to add to the other community bank in our Roth IRA accounts in order to fulfill portions of our contributions for the year, as well as tax protect our cash in case any acquisition of these entities occur in the future (i.e. avoiding capital gains tax). It was time to add to our positions in Citizens and Northern. I purchased them in 2015 at $19.96 and Bert purchased them in the $19-$20 range as well. We both made the investments on April 26th using a FREE investment sharebuilder plan credit, on that Tuesday, with a price of $20.38 (rounded). The big question is – how much capital outlay were we both able to use and how much forward dividend income were we able to add? Details below!