This afternoon I bought 40 shares of Harris Corporation (HRS) for $47.05 per share. After commission my cost basis is $47.25 per share with a YOC of 3.13%. I missed my limit order yesterday by $0.01 which is very annoying. Luckily it wasn't a huge difference in YOC. I'll be able to get their next dividend payment which goes ex-div next Wednesday. These shares will add an extra $59.20 in annual dividends with an extra $29.60 coming in this year before reinvestment. I'm hoping that the market will sell off some next week prior to some big news out of Europe and that I can buy more into HRS before the ex-div. My entry price is selling at a 14.35% discount to the average fair value that I calculated in my stock analysis on HRS. I'll update my HRS stock analysis soon now that another fiscal year for them has passed. The Harris purchase increased my overall YOC from 2.39% to 2.44% and my non-ESPP share YOC from 2.99% to 3.01%.
I'm a little annoyed because my brokerage wasn't counting my option premium income if I sold a put on Archer-Daniels Midland (ADM) like I wanted to. My plan was to sell the December 22 2012 $26 put for $1.28. This would have returned a 4.62% after commission which is a 14.91% annualized return. And if the option was executed then my cost basis would be $24.88 which is a 2.81% YOC based off the current annual dividend of $0.70. If it is still selling for this amount come next week I very well might be selling the put once my deposit clears at my brokerage. This will help to lower my cost basis on my existing ADM shares.